Posted by Malcolm Graham-Wood - Malcy's Blog
WTI $72.28 +20c, Brent $81.87 +67c, Diff -$9.59 +47c, NG $3.08 +4c
The oil price remains strong as concerns remain about production, as Opec+ say that all customers are being supplied as to their needs this looks like a trader inspired ramp to me. At the UN the President blamed Opec for the high price but must be aware that it is mostly of his own doing. With the API reporting a build adding insult to injury there shouldnt be any justification for further run ups, unless the EIA report a big draw later today….
The conference call is this afternoon so I will briefly cover the numbers then add anything else tomorrow. As with a number of companies the results, being historic are fairly meaningless, more so in this case as the months since the period end have already beaten them into the proverbial cocked hat. The results showed increases in turnover of + 275%, revenue, operating profit and EBITDA which itself rose from minus $1.4m to plus $6.1m. Production climbed to over 2,000 boed and the 12 well workover programme boosted Rio Negro reserves also, the management estimate that ‘already substantial 2P reserves of 27 MMboe by 1m MMboe.
‘Major advances in all key performance indicators emphasise substantial and rapid progress being made by President'. To this I would add that the recent acquisition has made the Estancia Vieja gas a whole new project, not just supplying all the internal requirements but now with pipeline access should deliver external sales as well.
More later but yet again this stock looks way to cheap on any sensible metrics.
AMER yesterday announced the result of the Pintadillo-1 well, the ‘N' sands were dry but oil was present in the ‘U' and ‘T' sands with net pay of 15′ and 12′ respectively. If these sands test positively then the oil will be quick and easy to add into the OBA export route. Whilst this is a disappointment and not what they expected these things happen and maybe thoughts got a little over optimistic. The good news is that Indico-1 remains on target to spud in October and there are still a number of prospects with serious upside in the very substantial drilling programme over the next year.
Figures yesterday from Rose were by the by, it is the progress in the Paradox Basin in Utah that is coming along very nicely. the 3D seismic shows ‘multiple prospects and leads' and a well is likely probably this year. The company has built up an incredible acreage position in one of the most interesting post codes onshore the US and makes for significant potential upside for Rose. Worth checking out what CEO Matthew Idiens said yesterday, “Following a period of intense activity, we are at a really exciting time in the Company's development as we look to evolve from an oil explorer to an oil producer in the next quarter.”
An RNS earlier in the week showed that CEO Andrea Cattaneo now has a 7% stake in the company in addition to shares being owed as he is taking stock in lieu of salary. This shows commitment that is about to be tested, with October looking incredibly busy with new kit, new people and a busy work programme faith in the project will be proven…
Monday's Podcast covered the following stocks and the link is below.
Yesterday I was very fortunate to interview Andrew Knott, CEO of Savannah Petroleum who was able to talk me through his recent deal as well as give me a catch up on operations in Niger and Nigeria, link below.
Briefly today, The Rams had an amazing victory in the Haribo Cup last night at Old Trafford, I know its a Mickey Mouse tournament but the United faithful won't like it, one bit… Tonight the big fixture is Liverpool v Chelski, how seriously will these guys take it?
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