Posted by Malcolm Graham-Wood - Malcy's Blog
Still not much going on, the Saudi Oil Minister said that he sees the oil market ‘improving' but then he would, wouldn't he? The market is waiting on more Chinese data today and on the subject of data the API inventory stats showed a substantial build of 11.6m barrels which should that be reflected in the EIA numbers would concern the market which is about 50 cents down on the news.
Not much of interest from the Cairn numbers this morning, it has been a good year for the company following up from the Senegal discovery and they are still carrying very low numbers for that find. They are in a strong position financially and have been seen in all the best data rooms around town and are definitely getting the cheque book out, see below. The interesting thought is whether they are also getting the paying in book out and might sell a bit of Senegal in the process…
When I first took a serious interest in Sound, some years ago, the Badile prospect made up a large portion of the upside for the company, I seem to remember having 50p of upside in my numbers and the shares were only 15p or less at the time. Wind on this far and way later than planned, the company announce the spudding of the well, located outside Milan and which will take around 100 days to complete or more hopefully. The better news is that whilst keeping an eye on the Italian acreage, the company decided to go somewhere that would take three months for approvals not three years and found Tendrara. This makes the Badile well significantly less important overall but in the history of Sound is no less important. Post this rather hurried blog I am headed to Milan to catch up with the board and go back to Badile which was a field last time I saw it….
I mentioned that Cairn had the cheque book out and today have farmed-in with Providence on FEL2/14 where the 53/6a well is due to be drilled this summer. Cairn have taken a 30% stake and will pay for 45% of the well with a $42m cap and also pay their share of the sunk costs of $2.82m. This is extremely good news for PVR as they will now drill Druid and Drombeg which was uncertain before and of course they get some cash in. It leaves them with 56% which will still make them heroes if it comes in, another huge well for investors to watch this summer.
Cairn have been busy as they have also farmed into 70% of block 16/19 with EOG the seller. Again this is good for EOG as although behind PVR this will enable them to get all the seismic this year and interpretation next year and if successful will start delivering for them.
Aminex has confirmed that Ntorya-2 has successfully tested and has a 51m gas reservoir interval with a stable flow rate of 17 mmcfd which is astonishingly good. A newcomer to the bucket list AEX should go better again and if Jay ever comes down from the ceiling I hope to get an interview with him…
I have been looking again at Northern Petroleum and met up with them last week, they appear very happy with their Canadian operations and today announce a modest addition to their Rainbow asset. With JV partners High Power Petroleum they have acquired six wells of which four have been shut in plus a bunch of facilities, worth watching…
Gooners fans look away now………………………………….With a modest 5-1 thumping from the away leg the plan was to score first and score often in last nights return at the Emirates. They did score first but the plan went SNAFU and Bayern scored often, over the two legs they won 10-2…..
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