The Oil Man: Victoria Oil & Gas

WTI $57.40 +10c, Brent $63.57 +46c, Diff -$6.17 +36c, NG $3.03 -15c

The OPEC meeting ended up with what everyone expected, a maintenance of cuts through to the end of 2018. There was a modest tip of the hat to Russia by agreeing to a 'production review' at next June's meeting which may be interesting.

There is no certainty that at that stage things will look that much better, after all if OPEC's predictions are right the big call on its production will be in the second half not the first half.

Brent expired and the February contract is up 38c this morning at $63.01, which is pretty creditable. WTI is up 28c at $57.68.

Given the ongoing worries about non-OPEC production I consider the oil price to be in pretty good nick. Time will tell as to the efficiency and stayability of shale and oil sands, but one has the confidence that if the price falls back their production falls back too.

The oil sector should be ablaze, lower costs achieved by expectations of sub $40 oil should mean that over $60 hay should be being made, if not questions need to be asked in the house…

Victoria Oil & Gas

Victoria Oil & Gas today announce the completion of the La-108 well at Logbaba, which has been delayed by 14 days due to electrical problems.

The liner has now been run to TD and cemented in place, the production equipment will be placed in the well and then the rig will be skidded off.

The well is then scheduled to be perforated and flow tested and should be on production by mid-December. It is worth remembering that the preliminary analysis of the logs showed 84.5 million of net gas sands in the Logbaba formation.

VOG is one of a number of stocks that should have performed way better given the current state of the market.

With OPEC concluded and the new Brent contract over $63 (£46), the market is not behaving efficiently and, therefore, offers exceptional value in a number of stocks, VOG is one of them.

And finally…

The football World Cup draw for Russia 2018 will be made at 3.20 this afternoon. Expect over-analysis and the creation of groups of death and the like, usual advice to England fans is not to book hotels for the latter stages…

The Premiership is back this weekend, Sunday sees the Noisy Neighbours host the Hammers and also that day is the Riviera derby between the Cherries and the Saints.

Tomorrow the big game is the Gooners v the Red Devils whilst Chelski host the Magpies, the HubCap Stealers are at the Seagulls and Burnley go to the Foxes. The interesting fixture is Spurs going to Watford, if they are to keep up with the leaders a win at the Hornets is crucial.

And racing at Newbury and Newcastle where the famous Fighting fifth is of high quality but short on runners…

Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor

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.