Oil Price, Amerisur, Faroe, and Finally…

WTI $63.51 +50c, Brent $68.12 +48c, Diff-$4.61 -2c, NG $2.70 +2c

Oil Price

A modest bounce yesterday with the Russian Oil Minister suggesting that they will discuss long term cooperation at the upcoming ministerial talks. Equities bounced which took commodities with them and Bloomberg announced that March Opec production was at a years low.

The API stats after hours were mixed, the headline draw of 3.28m barrels was better than the expected build of 2m but the build at Cushing was perceived as worse and oil is slightly weaker this morning.

Amerisur Resources

A number of announcements out from AMER this morning, whoever said that news was thin on the ground? An operational update says that the first complete tanker of 350/- barrels of crude loaded on 22/3 and was sold to Shell. Elsewhere the most interesting news is that a rig was mobilised to Pintadillo-1 to test the first of the  ‘N' sands anomalies, should this be successful three wells will be drilled back to back, the well is targeting estimated P50 resources of 11.44 mmbo which would be success indeed. The Miraparriba-1 well on PUT-8 should spud early May as the exciting well programme rolls out, this will likely include Indico-1 on CPO-5.

Monthly production averaged 6,476.5 b/d with a peak of 6,647.5 b/d and exports through the OBA were 5,544.8 b/d and a peak of 5,809.2 b/d. Reserves were slightly down due to production and two poorly performing wells but offset by success at Mariposa and Mecaya. Overall things are going very well at Amerisur and with crude well over $60 cash flow and revenues are good and there is still substantial upside potential from an exciting exploration programme.

Faroe Petroleum

Good news also today from Faroe who announce ‘significant' discoveries at Hades and Iris in the Norwegian Sea. At Hades there is a 35m gross column within the Cretaceous Lange Formation of which 15 metres are net reservoir  sandstones of moderate to good reservoir quality. Preliminary gross volumes of recoverable hydrocarbons for the Hades prospect are estimated to be 19 – 113 mmboe, exceeding pre-drill estimates.

The Iris well directly below, encountered a ‘218 metre, high net-to-gross sandstone interval, within the Jurassic Garn Formation, containing a 93 metre column of gas/condensate' within the column the reservoir is thought to be 85m of sandstones of ‘moderate to excellent quality'. Here recoverable hydrocarbons are thought to be in the 19-132 mmboe range, also exceeding pre-drill estimates. The discoveries are conveniently located near to infrastructure with the Morvin Field 8km away and the Asgard complex 20km distant. Exceptionally good news from Faroe who yet again have exploration success, sometimes from acreage that has been in the portfolio for some considerable time.

Such success has caught the eye of DNO who have paid well above market price (125p) for a 15.37% stake in the company previously owned by Delek Group who have also done very well out of their investment. This is like Ithaca all over again pretty much as predicted when Delek took the stake although this time they arbed the holding on. It is also exactly what I have been saying of late with respect to the oil sector valuations, if the price in the Stock Market is lower than it costs to go drill for the stuff you dont need to be a rocket scientist to know what will happen. DNO say they are there to ‘support the Faroe management', the last time I looked Faroe management didnt look like they needed any ‘support', this is a Trojan horse if ever I saw one….

And Finally...

The only thing to concentrate on tonight is the Champions League match at Anfield where the HubCap Stealers take on the Noisy Neighbours. The scousers are one of the few clubs to have beaten the mancs this season and with Aguero injured there is never a better chance to strike.

And that Ronaldo goal………………………….

Visit source site


MalcyMalcy'sMalcy's Blogoil priceAmerisur ResourcesFaroe PetroleumOPECAMER

More items from malcy

Oil Price, President, Echo, VOG, Zenith, and Finally…

WTI $69.12 +47c, Brent $79.78 +47c, Diff -$10.66 +2c, NG $3.25 +5c Oil Price With various pulls on the oil price exerting their pressure last week oil prices fell again, WTI by $2.22 but Brent was only off 65c, this morning both have rallied modestly. We still have the Khashoggi incident over ...

Malcolm Graham-Wood - Malcy's Blog

Posted 2 hours agoOpinion > MalcyMalcy'sMalcys +7

Sound, Trinity, Amerisur

Sound Energy Sound has announced that its TE-9 well at Tendrara in Eastern Morocco will spud today. The first of a three well campaign it will test the A1 prospect and it is intended to drill both the TAGI as a primary target and also the underlying Paleozoic as a secondary and the well is expec ...

Malcolm Graham-Wood - Malcy's Blog

Posted 4 days agoOpinion > Sound EnergyTrinity E&PTrinity Exploration & Production +5

Oil Price, Sound Energy, Podcasts, and Finally…

WTI $71.78 +44c, Brent $80.78 +35c, Diff -$9.00 -9c, NG $3.24 +8c Oil Price The oil price did end up on the day yesterday but at one stage looked like it was going to be nearer two bucks rather than the change that it turned out to be. With ‘KhashoggiGate' in full swing the worries about a fu ...

Malcolm Graham-Wood - Malcy's Blog

Posted 6 days agoOpinion > MalcyMalcysMalcy's Blog +3

Oil Price, Hurricane, Echo, Zenith, President, Columbus, and Finally…

WTI $71.34 +37c, Brent $80.43 +17c, Diff -$9.09 -20c, NG $3.16 -6c Oil Price I'm not sure that I can add much to what I have already opined on the oil price. It went up preparing for US sanctions on Iran but that was pretty much in the price when it peaked at around $85, Opec+had met but had ...

Malcolm Graham-Wood - Malcy's Blog

Posted 7 days agoOpinion > MalcyMalcysMalcy's +6

Oil Price, Frontera, RockRose, Touchstone, and Finally…

WTI $70.97 -$2.20, Brent $80.26 -$2.83, Diff -$9.29 -63c, NG $3.22 -6c Oil Price As expected oil came back to earth with a bit of a bump this week and if it hadn't been for a bit of a rally this morning may have been 5 bucks down on the week. Put into context though and things aren't that ...

Malcolm Graham-Wood - Malcy's Blog

Posted 10 days agoOpinion > oil pricefrontera resourcesRockRose Energy +5
All posts from malcy