Posted by Malcolm Graham-Wood - Malcy's Blog
The oil market is now almost shut for the Christmas holiday and was solid yesterday on the back of pretty good US economic data. It is worth keeping an eye on the natural gas price which remains firm and is probably likely to remain so. Preliminary numbers on US natural gas consumption for December are out and they show the US, particularly in residential and commercial use, increasing dramatically. The first three weeks of the month show consumption of 92 bcf/d which is up 21% y/y and 17% up on the 5 year average.
AMER has announced that it has spudded the Plat 24 well, the second of two infill wells which will take around 30 days to drill and test and cost around $4m on a dry hole basis. The outlook is bright for AMER with the OBA open and hopefully expanding its throughput and a fully funded drilling programme for next year.
Victoria Oil & Gas
VOG has announced that it has successfully completed phases 11 and 111 of the Banaberi pipeline extension. This is 15km of pipe and spur lines giving meters to seven new customers who will take at least 600/- scf/d. The pipeline extends VOG's reach into the western industrial area and new industrial links. Meanwhile the batch drilling of La-107 and 108 is making up for lost time and has completed the 17 1/2″ sections and is moving to the 12 1/4″. All this is very positive news and when the story gets told early next year may show quite how cheap VOG is…
I spotted an announcement yesterday in Faroe (To their credit Vox Markets alert on stocks one follows) that Delek have taken a 13% stake in Faroe from Dana/KNOC in an off market trade. I havent any more details at the moment but would consider this to be good news for Faroe, not that they would worry about the stake but Delek have shown a degree of responsibility in having a stake in Ithaca as far as I am aware…
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