The Oil Man: Oil price, Sound, Range Resources
27th July 2016 10:57
WTI $42.92 -21c, Brent $44.87 +15c, Diff $1.95 +36c, NG $2.71 -4c
A mixed day for crude - very quiet as traders contemplated inventory stats that would likely show that WTI is suffering more that Brent at the moment.
In the end they turned out to be right: the American Petroleum Institute numbers, after the close, were worse than expected; it was a draw, but only 827/- barrels, where the gifted amateurs on the street had predicted 2.3 million.
Gasoline, the bane of their lives also in recent weeks, did actually show a very small draw of 423/- barrels, whereas the whisper was a modest build.
Sound Energy
The good news just keeps on coming for , which today announces an extension of its agreement with , this time on its exciting Badile prospect. Schlumberger will invest €7.5 million (£6.3 million) for a 20% option to acquire a Net Profit Interest in Badile, by which it will pay for 30% of the costs of the first well and 20% thereafter.
Sound has consistently demonstrated an ability to find interesting and novel ways of using partners to achieve the financing needed to get their portfolio working for them. The company should have much to say in upcoming presentations and, of course, results from its well programme, of which I expect further news from Tendrara before long.
Range Resources
Today's quarterly update from doesn't tell us anything we don't already know, as there have been a number of announcements about drilling etc.
The long term focus is obvious and concentration of development drilling and work on the waterflood projects continue. Shareholders will be happy to see the 2,500 barrels per day production forecast by the end of next year still in place - and drilling of the MD 251 continues at present.
And finally…
Rest in peace, JT McNamara.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
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