Opinion

Oil price, Sound Energy, Cape, Sundry-Tullow-Plexus- And finally…


Oil price

Another good day for the oil price as the KPC confirmed that it was cutting production in January as part of the Opec agreement. Further good news came from Bloomberg as their survey showed that in December Opec output fell by 310/- b/d to 33.1m b/d. Another vaguely positive number was that US car and truck sales last year were a record 17.555m units, exceeding forecasts. It is interesting to note that whilst the millions of cars made in Mexico for the American market save a considerable amount of tax, they have also contributed to significant destruction of the domestic car industry and the jobs that go with it. Free traders might not like it, but if The Donald is going to revive the rust belt he may decide that the 750/- jobs created in Mexico should be better recreated in the USA…

The API stats came out late as usual and were rather obfuscating as usual at this time of the year, a draw of 7.4m barrels looked highly encouraging against forecasts but a build of 4.3m in gasoline and 5.2m in distillates was worse than expected. The EIA numbers out later should put them into some sort of perspective.

Sound Energy

A Badile update from Sound this morning where all appears to be going according to plan. The ground works are complete, the conductor pipe was set last week and the rig has been mobilised. Spud date is now March and this long awaited well will be underway albeit later than expected but it is in Italy after all…Having said that the delay hasn't made the well any less meaningful, with a potential 85 Bscf of gas and 10 mmboe of condensate as net best-case prospective resources, a success here would still be almost as transformational as Tendrara has been.

Cape

Cape clearly put the burners on at the end of November, I have just re-read the trading statement of 18 November in which trading was described as being ‘slightly ahead of expectations'. According to today's update trading is now expected to be ‘materially ahead of expectations' due to ‘Additional work scope awarded at the Chevron-operated Wheatstone natural gas project' and to be fair a strong performance in Asia-Pacific. The company has also felt able to say that ‘This improvement in performance is supported by strong cash generation with a consequent positive impact on net debt'. Only the good lord knows what might have happened by the time of the results which are coming out during the Cheltenham Festival…

Cape remains one of my top picks, like most followers I was rather put off by the announcement about the insurer PL industrial disease claims situation, which appeared to worsen last year and the company had to admit that the worst case scenario might threaten the divvi. (There is nothing in today's release about this)  If one can put that to one side it is clear that the excellent management team continues to deliver and then some and in what has been a difficult environment has come through with flying colours.

Sundry

Tullow Oil has announced that CFO Ian Springett is taking extended leave of absence in order to undergo medical treatment. Finance VP Les Wood steps up to the plate and I wish Ian all the very best and hope to see him back again fully fit before too long.

Plexus has announced that Masirah has awarded them a follow-on contract  for a second well offshore Oman. This contract is worth  $285/- and may extend again as there is potential for a third well in the drilling programme.

Two lots of interviews below, firstly I did a Vox Markets Podcast earlier this week talking about the recent Pantheon news, here is the link.

VOX Markets podcast: includes Malcy on Pantheon Resources

Also just before Christmas I did three interviews for Interactive Investor they can also be seen on these links.
Interactive Investor interview: Favourite oil major for 2017 named

Interactive Investor interview: Is oil sector a buy in 2017?

Interactive Investor interview: AIM's most exciting oil stock for 2017

And finally…

Only the game at White Hart Lane needs to be discussed as the 13 run unbeaten run by Chelski was halted as Spurs and Deli Ali beat them 2-0. As I said yesterday that top of the table is getting mighty congested and will take a breather this weekend for the first round proper of the FA Cup.


Visit source site

malcysblog.com/2017/01/oil-price-sound-energy-cape...

Malcy's Blogoil priceSound EnergyCapeTullow OilPlexus

More items from malcy


Oil price, Hunting, Empyrean Energy, And finally…

Oil price After a shaky start yesterday the oil price settled near the highs of the day, as an example Brent had traded down to around 50 bucks but was nearly a dollar off the bottom at the close. The continued strong dollar hasn't been helping and the market is still concerned about those Chinese ...

Malcolm Graham-Wood - Malcy's Blog


Posted 6 days agoOpinion > Malcy's BlogHuntingEmpyrean Energy

Oil price, Range Resources, Tower Resources, Link, And finally…

Oil price Sometimes the market wants to go in a certain direction, a few weeks ago no amount of good news could trigger a rally, at the moment it is the other way around. Yesterday, news that the uprising in the control room at the Sharara field in Libya had been put down and production was back u ...

Malcolm Graham-Wood - Malcy's Blog


Posted 14 days agoOpinion > Malcy's BlogRange ResourcesTower Resources +1

Oil price, President, Hurricane, Cabot, Sundry-Kosmos-Genel-Aminex- And finally…

Oil price The oil market was fast and furious yesterday and in heavy trading both WTI and the new front month of Brent crude for October struggled under a welter of mainly disappointing news. The first was the Bloomberg report that July output from Opec was again above quotas with an increase of 2 ...

Malcolm Graham-Wood - Malcy's Blog


Posted 20 days agoOpinion > Malcy's BlogPresident EnergyHurricane Energy +4

Oil price, Sound Energy, Genel, Sundry-Empyrean-Thalassa-UKOG- And finally…

Oil price Onwards and upwards as a number of things added to yesterday's tick list. The data is coming out re 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 7/8 Augu ...

Malcolm Graham-Wood - Malcy's Blog


Posted 21 days agoOpinion > Malcy's BlogSound EnergyGenel Energy +3

Oil price, Faroe Petroleum, Echo Energy, Tullow Oil, Range Resources, Petrofac, And finally…

Oil price New best friends Russia and Saudi Arabia are underpinning the market, to a degree although longevity is always uncertain. The KSA after having surprisingly ‘unadhered' to its own quota in May has now accepted its punishment and will cut back more in August and September. The Russians are ...

Malcolm Graham-Wood - Malcy's Blog


Posted 25 days agoOpinion > Malcy's BlogFaroe PetroleumEcho Energy +3
All posts from malcy