- WTI $46.35 -63c, Brent $48.37 -89c, Diff -$2.02 -26c, NG $2.83 -7c
Time flies as they say, it was 37 years ago this week that I started with the mighty firm of Wood Mackenzie, getting off the overnight sleeper and making my way to Queen Street in Edinburgh. With that sort of start in an oil team filled with talented, fun people life in the oil industry was great and I was lucky that I never looked back!
The oil price has drifted off in the last couple of days with the strong dollar post Mrs Yellen’s speech at Jackson Hole providing strength and with little pushing on the oil price itself. Even the API stats last night couldnt excite the market and a build of 942/- barrels was pretty much in line with expectations.
Sound is not letting the grass grow under its feet and following last weeks spud announcement today they say that they have reached the first casing point at the Tendrara TE-7 well. Until this well is complete, further evaluation is on hold but with so much potential good news in the pipeline Sound and its shares are remaining firmly strong.
I was at the PFC meeting yesterday morning which went very well as might be expected with a pretty good set of figures to talk to. The numbers beat the whisper and the company are maintaining their guidance of matching analysts expectations of $440m for the full year. The order book is as good as can be expected but with a very healthy bid pipeline I expect more work later this year and next and mainly from the Middle East and the CIS. PFC is undoubtedly one of the best placed in the services sector and is definitely one of my lead picks at the moment.
I really need a chat with big Jim before I can add much to the process after Lamprell’s highly disappointing announcement which seemed to spread over the long weekend and whether you were in the advisory loop or not. Readers know that I abhor companies sneaking out bad news when they think that no one is watching, funny that good news is rarely, if ever served up at 6pm on a Friday night… After building so many of the same sort of rigs one might have thought that it was like shelling peas and not easy to cut $25m on revenue and $35m on profit but not so here I see. More later but it is difficult to remain too optimistic when this is happening, more orders needed as well.
Range keep delivering and yesterday they announced that the third development well, this one on the Morne Diablo Field had encountered 40? of net oil pay and would continue with perforation and go onto testing in September. With the other two producers coming on nicely all is going according to plan in Trinidad by the sounds of it.
Gulf Keystone has announced this morning that it has launched its Open Offer to shareholders to raise $25m at 0.8314p. This will be worth watching and although comes into the ‘shutting the stable door’ category should also be taken up, if only for insurance purposes.
Providence has announced that Senergy has been appointed for the Druid programme which is extremely important in next years calendar. The well costs have fallen again, today it is down from $46m to $35m, gross which could never have been though possible even when it was first mooted. Barryroe and other farm-outs are still more important to get done but this is further good news for the redoubtable Tony O’Reilly and team.
There should be a bit to say after today’s transfer deadline day is ended but quite why they wait until the last knockings is anyone’s guess.
The cricket yesterday was sublime and yet again showed that on their day England can match anyone in the white ball game at the moment. To see 444 runs scored in quick time was incredible, shame it was a work day!
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