Interactive Investor

The Oil Man: Jersey Oil & Gas, Genel Energy

WTI $68.05 +35c, Brent $74.00 +14c, Diff $5.95 -21c, NG $

Oil was up yesterday and again today, after all the French kissing Macron went and ruined it all by saying something stupid like, I dont really like what you stand for Mr President. The stuff about I Ran went down like the proverbial and Donald is likely to go his own way to keep the musical analogy going. Accordingly, geopolitics continues to dominate the short term oil price.

Jersey Oil & Gas

It was a very good year for Jersey Oil, but now we are looking front and centre and the company is in very good nick. With cash of £25.4 million and the summer drilling and seismic programme planned to be at the top end of the forecast £9-11 million of capex, JOG is set fair. Statoil is planning a Verbier appraisal well and possibly a sidetrack and, with the seismic programme looking for Verbier analogues, there is much scope for upside. At 210p, JOG looks astonishingly undervalued.

Genel Energy

Readers will know that I have been much more positive on Genel Energy in recent months, and today's Tawke PSC updates gives a clue to all the good things going on at the company at the moment. The company announce that 15/- b/d of production from 2 Peshkabir wells is to be co-mingled with 90/- b/d from Tawke to be exported through Turkey.

Meanwhile, three new wells at Peshkabir have been fast-tracked, with the 4 well on production testing, the 5 well drilling ahead at 2,250m, and the 6 well spudded last week and will also be an exploration well for the deeper Triassic formation. All looking good, and I'm looking forward to a big session with the company's senior management next week.

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

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