Opinion

Oil Price, Far Limited, RockRose Energy, Petro Matad, and Finally…


WTI $69.36 +8c, Brent $79.83 +5c, Diff -$10.47  -19c, NG $3.14 -11c

Oil Price

Dangerous times we live in especially when one of the hands on the wheel of international diplomacy is President Erdogan, let alone MbS and Mr Trump. despite all this turmoil the oil price is weak for choice, down another dollar this morning following Khalid Al-Falih's comments to TASS yesterday where he said that he could raise output to 11m b/d in the near future and 12m b/d would not be a problem. Indeed in the winter when exports grow as a proportion of production a shortage of oil is unlikely.

Far Limited

Far has announced that its Samo-1 well offshore The Gambia commenced drilling on block A2 yesterday. The Samo prospect has two key reservoir intervals and is assessed to contain a combined prospective resource of 825m barrels of oil. Any success here would not just be transformational for Far, who own 40% of block 2 as well as the same in the adjacent southerly block 5,  but pour oil on the fire of what is already a very hot region in West Africa.

RockRose Energy

RRE has announced a tender offer to buy in 20% of the issued share capital at 560p which is a 20% premium to the 60 day VWAP. The management are absolutely clear that the shares are seriously undervalued and that by hopefully taking out as many sellers around these levels as they can they can achieve a re-rating of the stock.

This does indeed provide a very decent liquidity event for shareholders and it is worth looking at the process from two angles. For someone with say, for arguments sake, 3.1m shares to sell this year they would have had to start on May 23rd, do 50% of the daily volume every day for the five months and would have received an average price of 434p. (Also bearing in mind that companies can only deal in 25% of the VWAP) The other angle is that for the company, who's last cargo of oil went out at $88, would only have to part with four months worth of cashflow above budget to come up with the £17m needed to buy the shares in.

This is the sign of an aggressive management team that has done deals in the last two years or so that have significantly increased the value of the company to a level that they believe is not appreciated in the market. They are saying that they will offer a liquidity event to those who may not be able to sell in large numbers and then see how the value settles. If it remains too low then this may prompt the directors to take further action, one could not rule out the company going private in a move to capture value…

Petro Matad

Over in Western Mongolia Petro Matad have spudded the Wild Horse-1 well in the Baatsagaan Basin in block IV of the country. The target is substantial prospective resources of 480m barrels of oil and the rig has been modified to enhance its operability in the low temperatures expected as the 30-45 days needed to drill and log the well will take them into December. Just like the last well, should this come in it will be a game changer for MATD with a current market cap of just £44m….

And Finally...

The Gooners beat the Foxes 3-1 last night winning their 10th game in a row and going above Spurs in the table…

Tonight the Noisy Neighbours travel to Shakhtar Donetsk whilst the Red Devils welcome what is probably the best Juventus side ever, just what they needed…

England are playing the dead rubber in the ODI series against Sri Lanka and have started badly as is often the case when there's nothing to gain, SL are 132-0 after 18 overs.


Visit source site

https://malcysblog.com/2018/10/oil-price-far-limit...

oil priceMalcyMalcysMalcy's BlogMalcy'sFar LimitedRockRose EnergyPetro Matad

More items from malcy


Oil Price, Empyrean Energy, and Finally…

WTI $56.46 +21c, Brent $66.62 +50c, Diff -$10.16 +29c, NG $4.04 -80c Oil Price Hardly a word to say this morning after eight companies in the blog yesterday, the and finally might be the longest part! Interestingly the oil price was up yesterday in spite of what looked like awful EIA invento ...

Malcolm Graham-Wood - Malcy's Blog


Posted 2 days agoOpinion > oil priceEmpyrean EnergyMalcy +3

Oil Price, Sound, Echo, Zenith, Faroe/Cairn, Premier, Wentworth, Enteq, and Finally…

WTI $56.25 +56c, Brent $66.12 +65c, Diff -$9.87 +9c, NG $4.84 +74c Oil Price A modest rally in crude yesterday but at one stage it was way better, a two dollar rise was eaten into and although today is better again there is little trust in the commodity at the moment. Having said that, word c ...

Malcolm Graham-Wood - Malcy's Blog


Posted 3 days agoOpinion > MalcyMalcysMalcy's +10

Oil Price, Faroe Petroleum, Jersey Oil & Gas, and Finally…

WTI $55.69 -$4.24, Brent $65.47 -$4.65, Diff -$9.78 -41c, NG $4.10 +31c Oil Price Another bad day at the office, primarily led by the Opec monthly report which cut demand forecasts, even the much touted 100m b/d demand figure has been pushed back to 3Q 2019. The Opec meeting is 3 weeks tomorr ...

Malcolm Graham-Wood - Malcy's Blog


Posted 4 days agoOpinion > oil priceFaroe PetroleumJOG +6

Oil Price, President, Hurricane, Reabold/Upland/United, Providence, Velocys, and Finally…

WTI $59.93 -26c, Brent $70.12 -6c, Diff -$10.19 +20c, NG $3.79 +7c Oil Price The rally that started yesterday morning failed to take any hold and oil prices ended down on the day and today has started weak again. There is little doubt that the December 6th meeting is going to be crucial as th ...

Malcolm Graham-Wood - Malcy's Blog


Posted 5 days agoOpinion > oil pricePresident EnergyHurricane Energy +10

Oil Price, Rockhopper, Jersey Oil & Gas, Zenith Energy, and Finally…

WTI $60.19 -48c, Brent $70.18 -47c, Diff -$9.99 +1c, NG $3.72 +18c Oil Price Another poor week for oil, after what was intended to be a good start with sanctions coming into place on Monday there were more waivers than expected from the US who weren't as brutal as they had threatened to be. W ...

Malcolm Graham-Wood - Malcy's Blog


Posted 6 days agoOpinion > oil priceRockhopperRockhopper Exploration +7
All posts from malcy