Posted by Malcolm Graham-Wood - Malcy's Blog
WTI $56.46 n/c, Brent $66.76 +14c, Diff -$10.30 +14c, NG $4.27 +23c
Not much more to add really, after the crashing falls earlier in the week the modest rally at the end still left WTI down $3.73 on the week and Brent down $3.42. Markets are poor and with a strong dollar providing headwinds as well as the three agencies increasing Non-Opec supply forecasts, the December 6th meeting assumes ever greater relevance.
The Sunday Times had a story that Ineos were in talks with Conoco Philips over a potential $3bn deal to buy the latter's UKCS asset which are on the market. The article suggested that Jim Ratcliffe's company has put down a deposit in return for three months' exclusivity. unsurprisingly the article also suggests that Neptune and Chrysaor are standing by in case the talks fall through.
Sound has announced results from its TE-9 well in Eastern Morocco, the first of a three well programme to explore ‘non-related' play concepts in the Tendrara area. The well penetrated both the TAGI primary target and the Paleozoic secondary target. Interpretation of the wireline logs has not established the presence of producible gas and the well will be p&a'd without testing. However, the core of the secondary Paleozoic seismic target remains untested as TE-9 appears to be on the downdip limit of the large Paleozoic closure.
Sound will now take the rig directly to the TE-10 site which is ready for it and the well will target a large TAGI structural-stratigraphic play with a mid-case of 2.6 Tcf GOIP. As these wells are not correlated the result on TE-9 should not be considered as any sort of indication as to what TE-10 might find. Unsurprisingly the share price has been hit this morning but I suspect that certainly at the off, it was overdone. The company confirmed today that it was still preparing for the FID for its TE-5 discovery as planned with the FEED ‘conducted and paid for by the Enagas Consortium' scheduled to complete around the end of this year. It is also worth noting that Sound has cash balances as at 14 November of more than $30m.
The rugby was a mixed bag it has to be said, Ireland beat the All Blacks, who scored no tries which must be a rarity, England beat Japan but struggled for 50 minutes, Scotland lost to the Springboks and Wales thrashed Tonga.
England beat Croatia in the latest Mickey Mouse Cup, Scotland won 0-4 in Albania, Northern Ireland lost 1-2 to Austria and Wales lost 1-2 to Denmark in a bad tempered affair.
England won the second test against Sri Lanka taking a 2-0 lead in the three match series.
And after forgetting to mention Enable after her last victory in the USA it is good to see that she will remain in training next year.
At the final MotoGP of the season in Valencia, the race was red flagged after 14 laps due to the torrential rain causing numerous crashes, even catching out Marquez and later Rossi. Despite still raining it was restarted for a 14 lap dash (take note Silverstone !)which saw Dovizioso's Ducati take his 4th win of the season followed by Alex Rins improving Suzuki and Pol Espargaro getting the KTM factory's first MotoGP podium in 3rd.
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