The Oil Man: Rockhopper, IGas, Falcon Oil & Gas, Ascent Resources

WTI $49.56 +33c, Brent $52.10 +50c, Diff -$2.54 +17c, NG $3.04 -2c

Yesterday's first 'up day' in six might prove to be a rarity as crude has opened this morning a bit weak after a confusing set of API stats. A build of 897 thousand barrels in crude wasn't expected - a draw of 1.7 million was forecast - but at Cushing the 2 million draw was better for the constitution.

Gasoline stocks built by 4.4 million barrels against the forecasts, but why can't these overpaid numpty analysts take a look at the refinery rate, it's a month until the driving season and that's what happens…Take a look at the retail gasoline price, £1.91 overnight against only £1.48 on the 28th of November. Those stats by the way were after the close, tonight's EIA numbers will hopefully look a little better/clearer…

Russia is not helping matters with its position-taking ahead of the meeting next month, however, at the moment I'm sure that's all it is. Stand by for a joint communique from Moscow and Jeddah…

Rockhopper

Rockhopper is starting to get things done in the Greater Med part of the business, and today they announce the spudding of Al Jahraa SE-2X well in Egypt. Targeting the Abu Roash-C reservoir, pre-drill STOIIP of 20 million barrels might be added to the development lease.

Expect news from here in around 40 days after which the company intend to drill Al Jahraa-9, which is a development well aimed at the AR-C deep reservoir with the intention of finding a connection between the Al Jahraa and the South East fields.

IGas Energy

Results today from IGas Energy, which are even more inconsequential than ever after the recent raise and Kerogen financing. With a strong balance sheet now and cash flow from the, guided, 2,500 barrels per day of production things are definitely looking up for IGas.

With a modest spring in its step, I expect to see more favourable planning decisions on the way and maybe even some drilling this year. IGas has cut hard back on G&A which is creditable - they were hardly overspending before but are now pretty lean - from the board down and with the shares at 4.65p may well be worth taking a serious look at…

Sundry

I met with Philip O'Quigley, CEO of Falcon Oil & Gas, yesterday, a good opportunity to catch up during this period of moratorium. Readers know that I am incredibly bullish about its value, assuming that the inquiry goes its way. Only that slight fly in the ointment stops entry to the bucket list to be honest.

Timing-wise the enquiry is proceeding quickly, expect an interim report, no more, mid-summer and a likely advisory statement for the PM in October. Should this be positive, FOG would be expected to rise sharply again, remember it has already doubled this year so far, but it has a wallet full of other people's cash and is sitting on huge potential reserves.

I also met with Colin Hutchinson, CEO of Ascent Resources yesterday, and it was a great pleasure to hear the news in person, of the first gas from Slovenia. With that milestone successfully completed the gas is now able to be sold to INA via the GSA signed last year.

With more work to be done, more gas will inevitably flow and there are plans to sell gas into the grid once any final objections can be overcome. This news after such a long time is extremely positive and the second half of 2017 should even start to look profitable. It has been a long haul for patient Ascent shareholders, but there is a decent light at the end of the tunnel.

And finally…

After Chelski dismantled the Saints last night I guess that Spurs have to do the same to the Eagles tonight, although Big Sam appears to have them cooking on gas right now. Elsewhere, the Gooners host the Foxes, not easy now, and the relegation derby is between the Maccams and the Boro with seemingly little to play for…

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.