Posted by Malcolm Graham-Wood - Malcy's Blog
Onwards and upwards as a number of things added to yesterday's tick list. The data is coming out re long/short positions built in July and they, unsurprisingly show a substantial build in NSL with a lot of short closing. Elsewhere it was announced that there will be a meeting on 7/8 August in Abu Dhabi of the Opec/Non-Opec ‘technical' committee to assess how the cuts are going. The important thing now is that we have left the tricky 1H behind us and they can assess the 12 months to June 18 now.
The US sanctions against Venezuela have been announced, I suspect not in their entirety so far, as a blanket ban on Venezuelan crude has not been proposed…yet. Finally the product market is getting tighter, with demand increasing dramatically and inventories falling the inevitable is happening, gasoline prices are starting to rise. Country wide the price is $2.35 which is only up 4c on the week but 19c y/y and if nothing changes this might increase, dont forget that this is happening at a time of record refinery utilisation.
Sound has announced that it has received preliminary approval for the route of the gas export pipeline which will connect to the main GME pipeline. Initially for the TE-5 Horst discovery at Tendrara this should lead to early monetisation of this gas asset. This is good news and to an extent shows the value of having good relationships with the important people locally, developed through extensive local social policies.
No surprise that Genel have poor figures this morning, the dramatic loss of production at Taq Taq is clearly hitting them hard. Having said that, elsewhere there are signs for some optimism at Peshkabir where the 2 well tested well and the 3 well is drilling now. The main potential driver is now very much the gas projects at Miran and Bina Bawi where the company appear to be moving reasonably fast to get the developments underway. I look forward with interest as Genel progresses with a new board and a new direction, for the first time in a while, Genel is back on the radar screen.
Empyrean has announced that Sacgasco intends to spud the Dempsey 1-15 well tomorrow, this is important for the company as it is potentially very large and quick and easy to monetise being close to surface gas infrastructure, just needs to come in….
Thalassa has released interim results in a typically brief manner. Revenue, profits and margins are all up and despite there being no comment from the normally ebullient Chairman things seem to be going ok over there.
UKOG has said that it has achieved regulatory approval for the extended well test at Broadford Bridge in the Weald Basin. This is testing multiple zones in the Kimmeridge which appears to be oil bearing across a substantial section and if for any reason it is a success this will be a very substantial field. I dont cover the company formally as I have yet to meet the management and the IR seems sporadic but should be one to watch albeit not without risk.
Yesterday as usual I did my Voxmarkets Podcast, the companies were VOG, AEN, FPM, and PANR and you can watch it on this link.
The test match against the Proteas ended in a hurry yesterday afternoon with a hat trick from Moeen Ali, ironically the third time a bowler was on one in the match at a venue where such a feat has never occurred in a test. The fourth and final match starts on Friday at Old Trafford where anything could happen…
And today sees the start of Glorious Goodwood, arguably the finest race meeting of the summer on the Sussex Downs. Today the crowd will gather to watch Big Orange try to win the Goodwood Cup for the third time but the first as a Group One race.
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