Opinion

Oil price, Premier Oil, Echo Energy, Ophir Energy, And finally…


Oil price

The edging up of the oil price on friday meant that the week ended up +$1.61 for WTI and +$1.74 for Brent. The best was yet to come as at a meeting in Beijing it seems that the Saudi and Russian Oil Ministers have ‘seen the need to prolong the current deal through the first quarter 2018'. As I write both crudes are over a dollar up at $49.04 for WTI and $52.05 for Brent. Now, little confirmation on the detail of the agreement has yet been announced but if this is a genuine agreement then I would expect the price to rise more as these two heavyweights will carry the rest of the group with them. Having said that, the usual large dose of cynicism will undoubtedly exist and proof of the pudding will be demanded by the market.

Premier Oil

A trading, operational and refinancing update this morning ahead of wednesday's AGM, the period covers the first four months of the year. The good operational performance continues with production of 82.6 koepd,up 44% on this time last year although guidance remains at 75/- for this year excluding Catcher and until the summer maintenance plan is fully known. Solan remains a basket case but Catcher is on time and will deliver first oil this year, indeed with good results from the wells drilled already there is some thought being given to increasing the FPSO capacity.

Operating costs are $13.7/boe which is 11% below budget and well below FY guidance. Capex guidance for this year is down from $390m to $350m partly due to Solan whilst the FEED contracts for Tolmount have been awarded ahead of sanction early next year. Sea Lion is expected to be sanctioned in 2018 which remains a disappointment but it is-just- still on the agenda and might move faster with a farm-out.  The company, or at least its engineers, are excited about the high risk/high reward Zama project in Mexico and that well is expected to be drilled this month. The refinancing implementation is underway, net debt is $2.8bn after ‘marginally positive cash flow' in the period. I have to say that I still think that things are going fairly well for Prems and with a chance that the oil price might help them out, the good most definitely outweighs the bad and with projects such as Tolmount and Sea Lion to follow Catcher the future is indeed rosy…

Echo Energy

Echo has announced this morning that it has signed its first institutional funding with an enlarged loan on the same terms as announced before. Greenberry has agreed to subscribe for €20m with the right to purchase another €5m on the same terms with the warrants as previously announced. With a potential £26m of cash after the equity raise later this month, the company is well set to deliver on its aim of acquiring assets in South America as part of its Latin American gas strategy.

Ophir Energy

Ophir has announced that the Ayame-1X well offshore the Cote D'Ivoire is dry as although oil was encountered it was not in commercial quantities. At a recent meeting with the company there was optimism for this well but it really was always a wildcat and life goes on.

And finally…

In the Premiership the top five all won at the weekend, (Man United must be tired of going to a stadium that is being closed down at the end of the season), so it looks like the Gooners are hoping that the Noisy Neighbours will slip up in at least one of their two remaining games and let them qualify for next year's Champions League, those teams are the Baggies and the Hornets, ho hum…

Lewis steamed past Sebastian Vettel to win the Spanish GP so closing the points gap, this is going to be fun, Monaco up next in two weeks time where anything could happen.

Sarries won the European Champions Cup and head for the Premiership semi-finals on saturday with much to prove…


Visit source site

malcysblog.com/2017/05/oil-price-premier-oil-echo-...

Malcy's BlogPremier OilEcho EnergyOphir Energy

More items from malcy


Oil price, Faroe Petroleum, Echo Energy, Tullow Oil, Range Resources, Petrofac, And finally…

Oil price New best friends Russia and Saudi Arabia are underpinning the market, to a degree although longevity is always uncertain. The KSA after having surprisingly ‘unadhered' to its own quota in May has now accepted its punishment and will cut back more in August and September. The Russians are ...

Malcolm Graham-Wood - Malcy's Blog


Posted 2 hours agoOpinion > Malcy's BlogFaroe PetroleumEcho Energy +3

Oil price, Pantheon Resources, And finally…

  Oil price Brent was never going to hold over 50 bucks, not this time anyway as predicted last week, a run up during the week had the air taken out of it on Friday when it became clear late on that deeper production cuts were not on the agenda for today's meeting in St Petersburg. Indeed it s ...

Malcolm Graham-Wood - Malcy's Blog


Posted 3 days agoOpinion > Malcy's BlogPantheon Resources

Oil price, Aminex, Cabot Energy, Sundry-Falcon-Columbus- And finally…

Oil price The oil price rose again reaching levels last seen on 6th of June but Brent also hitting the big figure obstacle which it has struggled to break through in recent  attempts. The EIA inventory stats were mainly full of good news, the crude draw of 4.7m barrels was 1.2m more than forecasts ...

Malcolm Graham-Wood - Malcy's Blog


Posted 7 days agoOpinion > Malcy's BlogAminexCabot Oil & Gas +2

Oil price, Premier Oil, Thalassa, Ophir, Providence Resources, Sundry-Shell-SDX-Egdon etc-Range Resources-AMFW- And finally…

Oil price The EIA inventory stats followed the API numbers and reported a healthy draw of 7.6m barrels as predicted here but not by the goons on the Street who had crayoned in 2.3m barrels. Mixed news though with production still high, Libya up again and the KSA slightly exceeding quotas, (but onl ...

Malcolm Graham-Wood - Malcy's Blog


Posted 14 days agoOpinion > Malcy's BlogPremier OilThalassa Holdings +5

Oil price, Sound Energy, Echo Energy, President Energy, Amerisur Resources, SDX Energy, Empyrean Energy,And finally…

Oil price With the US market shut for Independence Day the oil market was extremely quiet, nothing to report. Sound Energy It's never a dull moment at SOU as today they report excellent news from Sidi Moktar where the Koba-1 well has come in as a ‘producible gas accumulation' that can move rap ...

Malcolm Graham-Wood - Malcy's Blog


Posted 21 days agoOpinion > Malcy's BlogSound EnergyEcho Energy +4
All posts from malcy