The Oil Man: Amerisur, Sound Energy, Shell and Ithaca
4th May 2017 11:21
WTI $47.82 +16c, Brent $50.79 +33c, Diff -$2.97 +17c, NG $3.23 +3c
So, the story goes like this: the momentum of the market is downwards it is only going one way. How do we know that? Well in recent weeks, while crude stocks were falling and product stocks building (ahem, the driving season is just around the corner and following maintenance, refinery rates are up, drawing more crude and building gasoline inventory), analysts didnt like those product builds and got bored.
Yesterday they were even more baffled. The EIA stats showed a draw in crude of 930,000 against predictions of 2.3 million and gasoline added only 200,000 versus a guess of +1.3 million. Result: total confusion; oil was marked up but today they are having second thoughts, roll on 24/25 May… long term, it is a very different picture.
Amerisur Resources
More good news from this morning by way of another operational update from Platanillo. The Platanillo-22 well is producing 719 barrels per day, well in excess of highest hopes whilst the Platanillo-21 well is drilling on, ahead of time and budget, expect target depth in around 20 days.
Platanillo-25 is in the planning stage and will spud as soon as -21 finishes testing, so there should be even more good news down la carretera as they say in Bogota.
All this is coming from Pad 2N which is definitely exceeding expectations. In fact, CEO John Wardle states that "may become an important new production centre at Pad 2N", which is good for analysis of the Platanillo field.
Finally, the company has devised an organic chemical treatment to try and enhance production on some wells, this has been used on Plat-8 and production has risen from 108 barrels per day to 350 barrels per day and, whilst not jumping to any conclusions, might benefit a number of other Platanillo wells.
All in all things are going very well for Amerisur, and we can expect a bullish presentation from Mr Wardle at the upcoming AGM.
Sound Energy
has announced that at Badile the fourth casing point in the Eocene Scaglia formation at 3,379 metres and will now drill on towards a target depth of 4,450 metres. Never a quiet moment at Sound #Ticktock…
Another good set of figures from a major, as comes in today with top-of-the-range numbers, good cash flow, reduced debt and a covered divi. Apart from the obvious upstream benefits it was a good quarter in chemicals and with £15 billion of divestments already Shell-cum-BG Group is looking quite a beast…
The death Knell has sounded for today as Delek announce that they have 94.2% of the company.
It was a valiant but not wasted effort to try and persuade investors that more was surely to come, but in the end the Israeli's £1.10 was too good to be true, after all it was already a huge performer. Let's hope that Les and the team might start up something new now that their wallets have been warmed…
And finally…
Finally, the goal machine at Monaco ran out and the typical Italian efficiency came good and they take two away goals back home which should be plenty. Tonight in the Boropa Cup it's semi final time as the Red Devils travel to Celta Vigo for the first leg.
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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