Oil price, Rockhopper, Sundry- Cape- RockRose Energy- Falcon-, Aminex/Solo, And finally ...

Oil price

Just as I said that the inventory stats would remain helpful we got one that rather unsettled the market. With the EIA showing a build of 2.3m barrels after an API draw and forecasts of a draw of around 2.4m the market was flummoxed especially as refinery rates were up. It turns out that imports had a big week and indeed adding to the confusion there were substantial draws in gasoline and distillates. Finally Libya announced the gradual opening up of pipelines but nothing that can really rock the Opec ship at the moment.


I had a very useful update with Sam and Fiona at RKH yesterday, following their recent update I wanted to find out how things were going. It is easy to use the debt trouble that Premier are in to write off the Sea Lion development but that would be far too broad brush an attitude. Of course it is true to say that PMO have their minds on other things at the moment but that doesn't mean that RKH cant get on with the day to day work in progressing the FEED requirements and with continually updated economics it is genuinely still getting cheaper with life of field costs of $35 pb and a phase 1 break even cost of $45. I get the strong impression that there are potential partners out there and with such excitement around Exxon's Liza development in Guyana and the Cairn find offshore Senegal it would be odd if this billion barrel prospect with capex to first oil of $1.5bn didnt attract industry interest.

But RKH has diversified into the Greater Mediterranean and from Italy and Egypt is now producing around 1,350 boe/d which with increased gas prices makes a meaningful contribution to G&A costs. Indeed costs across the board are falling and with the merger of the Salisbury and London offices will fall further next year. RKH is continuing to look at other opportunities in the Greater Med and I wouldnt be surprised if they did another deal in the area, indeed North Africa has proved to be of significant industry interest lately with high value production and exploration upsides. There are always some worries about payments in Egypt but given the recent IMF loan and floating of the Egyptian Pound it looks like the payment situation in Egypt should improve in 2017.  The Ombrina Mare case continues with the company attempting to get compensation and damages from the Italian Government.

Rockhopper still has a valuable asset in Sea Lion and with the significant cut back in capex in the last two years has a project that stacks up every bit as well as other international ones and probably better. With production from the Greater Med and cash of $80m at the upper end of guidance, RKH looks decidedly attractive with a market cap of £103m.


Cape has announced a five year contract extension with EDF for support on its coal and gas portfolio which is a useful win at this time.

RockRose Energy has announced that it has signed an agreement with Maersk Oil for non-operating interests in Wytch Farm (7.43%), Scott (5.16%) and Telford (2.36%). The shares will remain suspended until final conditions have been satisfied.

Falcon has announced that the final results from the extended production test at the Amungee NW-1H well were very good coming in at 1.11 mmcf/d over the 57 days and will be a useful determinant for commerciality. Hanging over Falcon of course is the moratorium on unconventional hydrocarbons but if one can assume some sort of settlement Falcon is as cheap as it gets.

And Aminex along with Solo has spudded the Ntorya-2 well in Tanzania, an appraisal one should get the results early in 2017.


I did a podcast on Vox Markets on Monday talking about the latest find by Hurricane, its in here

VOX Markets podcast: includes Malcy on Hurricane Energy

And finally…

After the rather disappointing test series in India captain Cook is looking a tad isolated in his position. With many months before the next test match there is no reason to do anything silly right now so I would see how things look in the spring.

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


Malcy's BlogRockhopper ExplorationRockRose EnergySolo OilAminex

More items from malcy

Oil Price, Savannah, Range, Pantheon, and Finally…

WTI $45.88 -$2.29, Brent $54.35 -$2.89, Diff -$8.47 -$1.57, NG $3.58 -14c Oil Price Whether you call it a risk off moment after the Fed and others warned about the economy next year or just a supply worry that Opec+, ie Russia won't cut production next year the oil price retreated and will li ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceSavannah PetroleumSVP +6

Oil Price, Faroe, President, Range, Wentworth, and Finally…

WTI $47.20 +96c, Brent $57.24 +98c, Diff -$10.04 +2c, NG $3.73 -11c Oil Price A rally yesterday after a handy set of inventory numbers but oil is down again today after world markets did not like the rate rise from the Fed. The EIA announced a crude draw of around half a million barrels which ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceFaroe PetroleumPresident Energy +6

Oil Price, Reabold, Angus, IOG, and Finally…

WTI $46.24 -$3.64, Brent $56.26 -$3.35, Diff -$10.02 +29c, NG $3.84 Oil Price Another very bad day for oil yesterday and whilst news is still not good it is certainly not as bad as this price suggests. Today is Fed decision day and we are led to believe that another rise is on the cards but f ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > oil priceReabold ResourcesAngus Energy +6

Petrofac, President, IOG, Infrastrata, IGas, Cairn/Far, Aminex

Petrofac Trading update from PFC this morning, all in line with expectations, indeed I would venture that this is a pretty good update given where company has come from. The $5bn order intake is impressive giving a backlog of $10.2bn and with over $15bn of tenders out the outlook for 1H 2019 is ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > PetrofacPresident EnergyIOG +10

Oil Price, DGO, Block Energy, and Finally…

WTI $52.58 +$1.43, Brent $61.45 +1.30, Diff -$8.87 -13c, NG $4.12 -1c Oil Price It looks like the oil price will be roughly even on the week, today it is down a touch on the poor Chinese economic data but the better than expected inventory data from the API, EIA and Genscape have also shown s ...

Malcolm Graham-Wood - Malcy's Blog

Posted 1 year agoOpinion > MalcyMalcysMalcy's Blog +5
All posts from malcy