(MENAFN- ProactiveInvestors) WTI $77.40 -$1.25 Brent $82.34 -$1.05 Diff $4.94 +20c NG $4.26 -16c
Oil price
Crude prices are back at their lows after various comments and actions yesterday. Iraq followed Saudi Arabia’s move on pricing by cutting prices to US customers whilst holding them or increasing to European and Asian buyers this should come as no surprise. Meanwhile the Opec Secretary General called for calm in global oil markets and the Kuwaiti oil Minister said that he thought that he ‘didn’t think that there would be any cut in Opec production’ at the upcoming meeting. In a way he is right as unless the cartel is able to stand firm and defend a much higher price there is no advantage in just giving away market share.
Retail gasoline and diesel prices are at odds in the US at the moment users of gasoline primarily automobiles have seen another fall this week gas is $2.94 a gallon down another 5.2 cents week on week whilst diesel is up 5.4 cents on the week at $3.68 a gallon which may prove that the trucks and big hauliers are stepping up demand…
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has released a Nigeria update whereby it tries to be upbeat about its offshore developments. At Ebok the CFBx jacket has been installed and should be completed in January 2015. Meanwhile the Ameena East well on OML 115 has spudded. While these pieces of news may be good operationally the market is more concerned about the state of governance and management at the company yesterday I mentioned the departure of a non-executive Director more may follow which overshadows current trading.
Egdon ()
As is often the case a set of results rarely adds anything to one’s sum knowledge of the situation and todays finals to July prove the point. Egdon produced 86870 barrels of oil equivalent last year up from 79947 giving revenue of £2.96m against £3.34m last year. In the period Egdon acquired Alkane’s shale gas interests farmed-out to Total as well as doing an option deal with them which smartly has carried them very substantially for the future. Add in the Scottish Power option and two fund raises totalling £10m along with the Wressle well ‘indicating hydrocarbons’ then all seems set fair for Egdon to be a leading participant in the exciting prospects in both conventional and unconventional exploration coming up in the next 18 months.
Sundry
() has lost its latest Court battle in the US with their attempt to oust Claims Administrator Patrick Juneau who they believe is at best unsympathetic to them being thrown out. As usual are considering appealing the decision which comes as no surprise as clearly the legal department hasn’t got enough to do already.
Shock Horror probe Prof Green is leaving () what on earth is going on Operationally the company is asking us to concentrate on the Moroccan well KSR-2 in the Sebou Permit after which this rig will be de-mobilised and returned to another operator. Tunisia which caused such excitement is now being farmed-out with plenty of expressions of interest apparently but the costs of the well is ‘at the top end of the Board’s expectations’ but will not impact on plans going forward. Circle’s shares had a huge spike in August when the Tunisian well ‘came in’ making a ‘potential large discovery’ to the portfolio but are now back below where they were then the market has taken its toll but it appears that there is a degree of market sceptisism at the moment which wont be helped by the departure of the Prof or will it
Another favourite another candidate for the bucket list Parkmead () carries on doing its job in this case picking up acreage in the 28th round. Like Faroe with whom it is a partner it has picked up useful blocks in the Central and Southern North Sea all of which it will operate. Three are near the Perth/Dolphin/Lowlander hub others elsewhere with more to come in areas such as West of Shetland and with assorted partnerships it has strengthened its position in its core areas. Tracking the oil price may keep Parkmead in the doldrums for the time being but long term confidence will eventually be rewarded.
And finally…
Over at the tennis Andy Murray has a must win match at the O2 although even if he beats Milos Raonic he may have another must win match against Roger Federer in order to qualify…
David Moyes is returning to football management as he joins Real Sociedad where he will face a language barrier poor performance and no money but isnt that what he’s just left…..
And the BBC reveal that Ched Evans is back in training with Sheffield United…
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