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The Oil Man: Sound Energy, Genel, Empyrean
By Malcolm Graham-Wood | Tue, 1st August 2017 - 09:45
WTI $50.17 +46c, Brent $52.65 +13c, Diff -$2.48 -33c, NG $2.79 -15c
Onwards and upwards, as a number of things added to yesterday's tick list. The data is coming out regarding long/short positions built in July and they, unsurprisingly, show a substantial build in NSL with a lot of short closing.
Elsewhere it was announced that there will be a meeting on 7 and 8 August in Abu Dhabi of the Opec/Non-Opec 'technical' committee to assess how the cuts are going. The important thing now is that we have left the tricky first half behind us and they can assess the 12 months to 18 June now.
The US sanctions against Venezuela have been announced, I suspect not in their entirety so far as a blanket ban on Venezuelan crude has not been proposed... yet.
Finally, the product market is getting tighter. With demand increasing dramatically and inventories falling the inevitable is happening and gasoline prices are starting to rise.
Country-wide the price is $2.35 which is only up 4 cents on the week but 19 cents year-on-year and if nothing changes this might increase. Don't forget that this is happening at a time of record refinery utilisation.
Sound (SOU) has announced that it has received preliminary approval for the route of the gas export pipeline which will connect to the main GME pipeline. Initially for the TE-5 Horst discovery at Tendrara, this should lead to early monetisation of this gas asset.
This is good news and to an extent shows the value of having good relationships with the important people locally, developed through extensive local social policies.
No surprise that Genel (GENL) has poor figures this morning. The dramatic loss of production at Taq Taq is clearly hitting them hard. Having said that, elsewhere there are signs for some optimism at Peshkabir where the two well tested well and the three well is drilling now.
The main potential driver is now very much the gas projects at Miran and Bina Bawi where the company appear to be moving reasonably fast to get the developments underway.
I look forward with interest as Genel progresses with a new board and a new direction, for the first time in a while, Genel is back on the radar screen.
Empyrean (EME) has announced that Sacgasco intends to spud the Dempsey 1-15 well Wednesday. This is important for the company as it is potentially very large and quick and easy to monetise being close to surface gas infrastructure, just needs to come in.
Thalassa (THAL) has released interim results in a typically brief manner. Revenue, profits and margins are all up and, despite there being no comment from the normally ebullient chairman, things seem to be going ok over there.
UK Oil & Gas Investments (UKOG) has said that it has achieved regulatory approval for the extended well test at Broadford Bridge in the Weald Basin.
This is testing multiple zones in the Kimmeridge, which appears to be oil bearing across a substantial section and if, for any reason, it is a success this will be a very substantial field.
I don't cover the company formally as I have yet to meet the management and the investor relations seems sporadic but should be one to watch albeit not without risk.
The test match against the Proteas ended in a hurry yesterday afternoon with a hat trick from Moeen Ali, ironically the third time a bowler was on one in the match at a venue where such a feat has never occurred in a test. The fourth and final match starts on Friday at Old Trafford where anything could happen…
And today sees the start of Glorious Goodwood, arguably the finest race meeting of the summer on the Sussex Downs. Today the crowd will gather to watch Big Orange try to win the Goodwood Cup for the third time but the first as a Group One race.
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.