WTI $73.19 -95c, Brent $78.06 -18c, Diff -$4.87 +77c, NG $2.85 +1c

Oil Price

Oil drifted yesterday led by WTI after the EIA inventory figures disappointed (compared to API) although they were a bit mixed. Crude built 1.245m barrels as opposed to scribblers guesses of a draw of 5.2m but stocks at Cushing drew 2.1m b/d and gasoline stocks drew on a 0.4% fall in refinery utilisation.

The KSA announced that June production was 10.488m b/d so had jumped the gun a tad but it hasn’t worried money managers who are again increasing long positions.

Hurricane Energy

Hurricane has announced the completion of well operations at Lancaster and the rig has left the field. Both production wells for the development are now ready to be tied-in to the subsea infrastructure. This was the first of the three main elements of the installation campaign, in addition the mooring installation is underway to be followed by SURF installation. These are the key elements prior to the arrival of the FPSO and first oil remains on target for 1H 2019.

Just in case anyone was away at the time, I recently interviewed CEO Dr Robert Trice on Core Finance TV and the link is here.

Core Finance CEO Interview: Dr Robert Trice of Hurricane Energy

Echo Energy

Echo has announced that the mobilisation of the Quintana 01 testing/completion rig to FC, FD and LLC assets in Argentina is under way. Work is expected to commence the week beginning 8th July and will start at ELM 1004 for 2-3 weeks, after which the rest of the wells in the four well programme will be done in an order yet to be decided. This is because the design of the EMS-1001 is still to be finalised and its position in the order uncertain dependent on that design.

Echo has said that whilst they have the rig on contract they are considering a number of additional well interventions and workover in Estancia La Maggie, FC and FD to either restore or increase well productivity from existing wells. I put Echo in the bucket list in February as although I knew that quite a lot of the work was likely to be 2H of 2018 and beyond they might get an early wiggle on, thank goodness I did, the shares are up 32.4% since inclusion and are in 6th position as a result. (All being well the interim Bucket list will be in Monday’s blog)

Links

Yesterday I was delighted to interview Brian Mitchener, Exploration Director of Sound Energy who came in to talk about the huge amount of technical work that he and his team have been doing in Morocco. The link is here and it does give an interesting insight into the detailed studies that have been going on in this exciting basin.

Core Finance interview: Brian Mitchener, Exploration Director of Sound Energy

I was also in the Core Finance studios yesterday with myself and Tim Gregory, Chief Investment Officer of Vermeer Investment Management being interviewed by Core CEO Nick Batsford. We talked about oil in the context of Tim’s overall investment strategy within his portfolio.

Core Finance interview: Brent Oil up 19%, NASDAQ up 9%, Bitcoin down 58%p;

And Finally…

What a weekend of sport is approaching, indeed this very afternoon we have Uruguay v France and this evening Brazil v Belgium. Tomorrow of course sees England play Sweden and Russia take on Croatia.

Not just that but the F1 British Grand Prix is on Sunday with Lewis and Mercedes trying to do better than last week’s disaster….

The cricket this weekend is two more ODI’s against the visiting and very good Indian team who are at the moment certainly better than us and out No 1 world ranking must be in jeopardy…

And at Sandown it is the Coral-eclipse Stakes with a small but quality field headed up by Derby winner Masar.

Wimbledon continues and situation normal for England as by the end of the first week only one player remains in the competition. Good luck to Kyle Edmund in the next round….

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