Oil Price, Savannah Petroleum, Echo Energy, and Finally…

WTI $73.94 -21c, Brent $77.30 -$2.14, Diff -$3.36 -$1.93, NG $2.86 -6c

Oil Price

There was little change in the market fundamentals although the differential closed up with August Brent expiring making all look worse than it was, both crudes are up this morning. The market could have been forgiven for being worse, Reuters suggested that the Saudis were already up to 10.7m b/d and Russia to 11.7m b/d which shouldn't come as a surprise except to those bears with very little brains.

Savannah Petroleum

SAVP has updated the market today which is very wise as there are people out there who worry about the Seven Energy Transaction not completing. The company are completing formalities and whilst these cannot be taken for granted are expected to complete in the 3rd quarter of 2018. As a reminder the company has previously received a letter of authorisation to proceed from the authorities in Nigeria, and I note the quotes from both the Accugas banks and private equity partner AIIM in the release giving their support.

On the production front, average daily numbers from Jan-May were 18.8 kboepd of gross gas with sales down Q2/Q1 due to power plant maintenance which should be back to normal in H2. With the Accugas GSAs are subject to take or pay provisions higher than anticipated 2018 production volumes, and it's reassuring to see Andrew Knott talking about the impact the World Bank payment guarantee is having on cash flows. Also they have applied to extend the Accugas pipeline network, which is part of the growth story to generate more, higher paying customers. Finally, the company are cancelling the share premium account which will provide the directors the flexibility to pay dividends and buy back shares.

SAVP might have been held back by length of time the completion has taken but with such success in Niger once these technicals have been seen to I consider that the shares should move materially higher.

Echo Energy

Echo has announced that drilling has started on CSo-2001(d) in Fracción D in Argentina. It is targeting a Tobifera high identified by 2D data and looking for 19 bcf of gross best case contingent resources plus a further 18.7 bcf gross best case of prospective resources all identified by Gaffney Cline in their CPR.

And Finally...

Last night saw yet more exciting footy in this years World Cup as after Brazil despatched Mexico Belgium left it late to finally beat Japan 3-2 with 15 seconds left on the clock. This afternoon it is Sweden v Switzerland and this evening Colombia take on England….

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


oil priceSavannah PetroleumSVPEcho EnergyMalcyMalcy's BlogMalcy's

More items from malcy

Oil Price, Savannah, Range, Pantheon, and Finally…

WTI $45.88 -$2.29, Brent $54.35 -$2.89, Diff -$8.47 -$1.57, NG $3.58 -14c Oil Price Whether you call it a risk off moment after the Fed and others warned about the economy next year or just a supply worry that Opec+, ie Russia won't cut production next year the oil price retreated and will li ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceSavannah PetroleumSVP +6

Oil Price, Faroe, President, Range, Wentworth, and Finally…

WTI $47.20 +96c, Brent $57.24 +98c, Diff -$10.04 +2c, NG $3.73 -11c Oil Price A rally yesterday after a handy set of inventory numbers but oil is down again today after world markets did not like the rate rise from the Fed. The EIA announced a crude draw of around half a million barrels which ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceFaroe PetroleumPresident Energy +6

Oil Price, Reabold, Angus, IOG, and Finally…

WTI $46.24 -$3.64, Brent $56.26 -$3.35, Diff -$10.02 +29c, NG $3.84 Oil Price Another very bad day for oil yesterday and whilst news is still not good it is certainly not as bad as this price suggests. Today is Fed decision day and we are led to believe that another rise is on the cards but f ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceReabold ResourcesAngus Energy +6

Petrofac, President, IOG, Infrastrata, IGas, Cairn/Far, Aminex

Petrofac Trading update from PFC this morning, all in line with expectations, indeed I would venture that this is a pretty good update given where company has come from. The $5bn order intake is impressive giving a backlog of $10.2bn and with over $15bn of tenders out the outlook for 1H 2019 is ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > PetrofacPresident EnergyIOG +10

Oil Price, DGO, Block Energy, and Finally…

WTI $52.58 +$1.43, Brent $61.45 +1.30, Diff -$8.87 -13c, NG $4.12 -1c Oil Price It looks like the oil price will be roughly even on the week, today it is down a touch on the poor Chinese economic data but the better than expected inventory data from the API, EIA and Genscape have also shown s ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > MalcyMalcysMalcy's Blog +5
All posts from malcy