Posted by Malcolm Graham-Wood - Malcy's Blog
A very quiet day according to traders, oil was firmed by the continued weakness in the greenback and the comments from Iraq suggesting that all members of Opec were playing the game but some drift was provided by talk of US production increasing, but that's a given surely?
More good news from AMER this morning as they announce that Platanillo 24 has been tested and placed on commercial production of 420 b/d of natural flow. The interval of 7 feet was perforated in the lower U sand only and brings the OBA system up to 3,100 b/d which is another step in the right direction.
I notice that Kuwait Energy has announced the signing of a farm-out agreement for a 25% participating interest in the Abu Sennan Concession in Egypt to Global Connect Limited. Global Connect is a ‘recently established E&P company with a focus on the MENA region'.
Readers will know that other participants in this concession are Dover Investment Ltd and Rockhopper who own 28% and 22% respectively and Kuwait Energy with its remaining 25% and will continue as Operator. It will be interesting to see if anyone pre-empts this deal but I suspect not as it seems the implied valuation appears to be materially higher than Rockhopper paid. Either way it looks like a win-win situation from RKH who have been quietly adding to their Greater Med portfolio.
So, farewell Bernie Ecclestone who has been moved upstairs at the age of 86, its been a good knock, as they say and i'm sure he can still afford a paddock pass...
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