Oil price

A quiet day in the markets according to my man at the bourse, oil gained modestly as reports of the Saudi export cutbacks to the USA and Far Eastern clients via price rises and restrictions fed through to markets. As we enter the peak of summer in the Gulf, with its highest domestic use of oil for domestic power generation this will hurt the KSA more than ever but they are sticking to their guns, as it were…

Faroe Petroleum

FPM has announced the results of its Brasse appraisal well this morning and they appear pretty good, certainly enough to make further plans even though an increase in reserves is a little way off. The well, 2km SE of Brasse found an 8.5m column of gross oil bearing sands in the Jurassic reservoir importantly above the oil/water contact. The company say that they have ‘discovered oil in a sand rich reservoir of very good quality with good pressure communications within the reservoir’. The company are performing a DST and considering either a side-track or a second appraisal well. With good local infrastructure this confirms Brasse as a discovery and makes a significant value impact on the portfolio.

Wentworth Resources

Wentworth has announced this morning that a farm-out at Tembo-1 in Northern Mozambique is underway. P50 gas of 1.7 TCF and oil of 219 mmbbls prospective resources are encouraging as is the fact that payments for Mnazi Bay gas are coming through. A slow burner this one as finances are a bit stretched but I remain a believer for the longer term.

Sundry

Petrofac has announced a $35m training contract with the KOC, the company are in the throes of the SFO investigation but trying hard to keep business as usual with contract announcements.

Echo Energy has completed its financing as the Pegasus subscription closes the £10m side of the raise. Now fully cashed up, with a new CEO about to join and ready to go   #sambatime..

SOCO has a trading and operational update out to go with AGM statement, no change in production guidance at 8-9/- boepd and  a strong balance sheet with cash of $150.8m the company remains very strong.

Touchstone has announced Peter Nicol as a new non-executive director, a wise move imho, I am meeting with the company today post their recent, rather meagre raise so will comment more in due course.

Chariot also has an AGM statement today and actually says that there is ‘no new news’ in it which after recent announcements is not surprising. CHAR is working hard behind the scenes in a year that has no drilling ahead of what might be busier next year.

Sirius Petroleum has confirmed months of gossip by noting that it is indeed in talks with BP about a possible offtake agreement for the Ororo field. Bit by bit things are coming together at SRSP and you never know, the long awaited action could be on the cards…

And finally…

With the greatest of ease, the Golden State Warriers have won the NBA Championship beating the Cleveland Cavaliers 4-1 in the finals.

A topsy turvey game between Sri Lanka and Pakistan yesterday meant that the latter will play England in the first semi tomorrow and India will play the Bangas on Thursday.

Mixed news for The Lions as Stuart Hogg goes home after his injury last week and potentially worse as Courtney Lawes has taken a knock today. In this morning’s game v the Highlanders it is 10-10 at halftime.

Another febrile soccer friendly tonight this time England take on France…

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