The Oil Man: Gulf Keystone, Falcon, Thalassa, Ithaca
12th August 2016 13:48
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It might just be an up week for crude oil, but in modest volume and on, to be frank, fairly skinny reasons.
After all, who on earth is still believing the old line - especially when coming from the Kingdom of Saudi Arabia - that "we will have a special OPEC meeting to discuss current low oil prices"? It goes with "the cheque's in the post" and other such lines that don't carry any weight.
The market grabbed at it, though, and conveniently forgot the Saudi July production number of 10.67 million barrels per day (b/d), which is clearly just a net export figure plus domestic demand, higher than usual this year due to a very hot summer.
Elsewhere, the Chinese domestic oil production numbers continue to fall; July was down 8.1% year-on-year at 3.94 million b/d due to uneconomic fields at these prices and exhaustion.
And the International Energy Agency valiantly tried to remain fairly bullish by expecting a "healthy" stock draw in the third quarter - but also sees a fall in demand again next year.
Thalassa Holdings
It's a "good news, bad news" sort of day for and one of the blog's favourite Chairmen, Duncan Soukup.
A dispute with Sevmorgeo over unpaid bills in Ecuador had meant that, in the last accounts, Soukup had personally guaranteed the $1.1 million (£845,000) owing to THAL.
The good news is that the court appears to have ruled in favour of THAL - but the bad news is that it is only for $750/-, leaving DS out of pocket to the tune of $350/-. Knowing Duncan, he will have taken the news with peaceful equanimity...
Thalassa has, along with other service companies, had a decent run this year, but I suspect that business is still pretty tough.
Falcon Oil & Gas
With the polls suggesting that a Labour victory in the imminent elections in the Northern Territories, I felt the need to have a chat with Philip O'Quigley of .
This is because FOG shares have fallen sharply in the last couple of months as the Labour party appear to have suggested a moratorium on fraccing should they win. With this win becoming more and more inevitable, investors have felt that this likelihood outweighs the possibility of a big find in the Beetaloo and cut and run.
Talking to Philip, who also agrees that a Labour win is likely, he feels that, until that actually happens and operator Origin sits down with the eventual winner, it is business as usual.
I think that, with Origin carrying on as usual and, ironically, about to start this historically significant frac job, should this complete safely and with no hitches and prove up a worthwhile discovery, the new Government may feel that the 10% royalty more than outweighs the concerns they have.
That's obviously not being cynical about politicians - but using a healthy dose of realism.
The bottom line is that nobody knows what will happen; politically a Labour win looks likely, operationally Origin couldnt be happier, and until 28 August uncertainty will prevail.
Sundry
"Warning, Low Bridge" is a sign that the master of the tugboat pulling the FPF-1 does not want to see as, finally, the entourage moves off and heads through the Øresund Bridge between Denmark and Sweden on their way to the North Sea.
As I write, it appears to have passed under the bridge and shareholders will be relieved to know that the rig is nearer to its destination.
announced yesterday that they have received a payment of $15 million from the Kurdistan Regional Government as a part payment of recent invoices. The words "drop" and "ocean" come to mind.
Talking of drops and oceans, whilst I was away yesterday I noticed that raised £1.5 million at 3.125p. There is little to add, as readers know what I think of this company: it is firmly in the list of "have nots" and avoided comprehensively.
And finally…
As we approach the halfway stage in the Olympics and the athletics begin, the week has been pretty good for Team GB. One gold yesterday from the sprint cyclists and three silvers kept us in eighth position and "Super Saturday" is ahead of us.
The Premier League starts this weekend with potentially the most exciting season ever in prospect.
Tomorrow sees the Tigers v. the Foxes, Saints v. the Hornets, the Clarets v. the Swans, Eagles v. Baggies, Toffees v. Spurs, Boro v. the Potters and the Noisy Neighbours v. the Maccams.
On Sunday it's the Cherries hosting the Red Devils and the Gooners take on the HubCap Stealers, and on Monday it's Chelski v. the happy Hammers.
And in the Test match yesterday England got slightly out of jail, as it could have been much worse if it hadn't been for Moeen. Having said that, quite how the umpires gave Hales out is anybody's guess, and Athers on Sky this morning showed him at his pompous belligerent worst…
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