The Oil Man: SDX, Sound, Saffron
23rd January 2018 11:54
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WTI $63.57 +26c, Brent $69.03 +42c, Diff -$5.46 +22c, NG $3.22 +4c
Whilst all those clowns play in the snow at Dav-oh the rest of the world is getting on with business, the real world you might say.
In the real world, oil is going up and for a very old fashioned reason, as the best ever oil analyst David Gray would say, control of the marginal barrel is being exercised.
From the Muscat conference came a renewed agreement between Russia and Saudi Arabia in which they pledged to continue their commitment to cutting oil supplies, not just through 2018 but possibly next year as well and with 'unwavering resolve'.
For those with long memories it is almost like the Russia/KSA axis is acting in the swing producer role, aware that as long as they are together then a base camp of say, $60-70 can be established bringing some sort of stability to economics.
Now, clearly this doesnt last forever, nothing does, but it is more than a possibility that for the time being at least plans can be made.
Adding to the fun was the IMF who added to oil demand by upgrading world growth numbers to 3.9% for this year and next, what's not to like about that?
SDX Energy
Another day, another good well result from who have announced that the ONZ-7 development well at the Sebou Permit in Morocco is a gas discovery.
With 5 million of net conventional natural gas pay in the Hoof formation the well was on prognosis, but the reservoir quality exceeded expectations with encountered porosity in the pay sections of 35.3%.
With an analysts' visit to Morocco starting this afternoon, I expect us band of SDX brothers to be increased substantially before long. This is not a secret that one can keep for long…
Sound Energy
The final resources certification for the TE-5 horst core volumes at Tendrara onshore Morocco have been announced by .
The numbers are entirely consistent with and confirm the preliminary results announced last December.
The company has announced that Stephen Whyte is leaving the position of chairman of the Board in order to concentrate on other directorships that he holds, this includes where he has superb Latin American experience to share. Richard Liddell takes over and will add to the Non-Executive board in due course.
Saffron Energy/Coro Energy
Yesterday afternoon , soon to be Coro, announced that the book building in its raise announced yesterday had concluded and was oversubscribed.
The company raised £14 million with applicant getting 2 warrants for each share subscribed at a price of 6.57p being 150% of the 4.38p raise price.
CIP Merchant Capital subscribed £6 million to become their cornerstone investor, Marco Fumagalli will join the board and is a familiar face in the Holy Trinity…
Cairn Energy
No surprises in the trading update from today, first oil from Kraken and Catcher and the near conclusion of the first phase of the Senegal development in the period.
In Senegal, Cairn expect government approval this year and first oil between 2021-2023, which is a wide window, as is expected production at 75-125,000 barrels per day. This year will see drilling in the UK and Norway and next year in industry hotspot, Mexico.
Angus Energy
I was firmly put in my place yesterday as I said that would be drilling the horizontal 2Z well. Actually, it has all been done, all they need to do is switch it on in order to test it which is the main advantage in the short term. My apologies…
And finally…
With only a bit of catch up to play the HubCap Stealers went to bottom of the table Swansea brimming with confidence, but came away pointless after losing 1-0.
The Bristol City army is gathering already I suspect as the mighty Robins prepare to welcome the Noisy Neighbours to fortress Ashton Gate in the 2nd leg of the Haribo Cup semi-final. Good luck to Andy Bone and of course Giles Clarke, famous City and blog reading fans who are only 1-2 down from leg 1.
And huge congratulations to Kyle Edmund who has reached the semi final of the Australian tennis Open, he will meet either Rafa or the palindromic Cilic who are battling it out as I write.
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.