More drift yesterday as oil markets found the assorted communiques from the Kuwait meeting confusing which was probably the idea from the start. Russia is talking the talk but is yet to fully deliver and as we approach monthly confession time oil may have a bumpy ride. If all is well then as we approach month four and compliance stays in the 90’s you never know things may pick up, also in April my readers allow me to talk about the D season and its implications. Inventory stats will also show this week how much effect the 300/- b/d from Saudi is being missed…
Sound has announced the results from the TE-8 well, a 12km NE step out from the last discovery which establishes the westward extension from Algeria into Morocco. The presence of the TAGI sands in this well, albeit of a lower quality, will ‘materially uplift’ discovered volumes. The well identified and penetrated a full sequence of Westphalian sands in the Palaeozoic which had gas shows and although a test was not possible it is believed that they are permeable and should produce with stimulation. This Westphalian discovery is able to materially de-risk the original 3-10 TCF case announced in February and the success of the Paleozoic success here cannot be underestimated. Although things never go quite as planned, Morocco is still very much a key and the size of the prize is still very substantial with a number of opportunities presenting themselves.
FAR has announced that it has secured an 80% WI with operatorship in blocks A2 and A5 offshore The Gambia, these blocks, which are on trend and adjacent to their Senegal blocks have above average potential. Bought from Erin Energy Corp for an upfront payment of $5.18m, the farm-in requires FAR to pay up to $8m of Erin’s costs for an exploration well due to be drilled by late 2018. Prior to that FAR expect to complete seismic reprocessing and interpretation work some of which has already given up valuable potential.
There are several large prospects and the company has already mapped three potentially drillable prospects and leads and the two blocks between them contain prospective resources of in excess of 1bn barrels of oil on an unrisked, best estimate 100% basis. It is no surprise to see FAR going back to their roots of West African exploration and this looks most exciting to me, maybe they have got in on the ground floor again….
Bowleven interims today and worth even less of a glance than usual as events have rather overtaken results. The COC reign of terror continues, having COC’d up the number of directors they need for a majority another vote is required so peace is at a premium. What COC has done is alert every buyer in the market that Etinde is in play again, word on the street is that they have a sweetheart deal with Steve Lowden at NewAge in the pipeline…
Not a good day for Genel where a huge write down of Taq Taq reserves is announced, from 171.8 to 59.1 mmbbls which is bad enough but then there’s the impairment cost of $181m…
And Petrofac has announced the win of a $1.3bn contract for the KOC’s gathering project in the Burgan field in the South East of the country.
Two interviews yesterday with links below, both carry right up to date commentaries of news from Hurricane and Jersey Oil & Gas
Not much doing i’m afraid, the ECB has announced that there will be a big Twenty20 tournament starting in 2020 would you believe hoping to rival other international events.