Malcy’s Blog – Oil price, Amerisur, Petro Matad, Pantheon Resources – And finally

WTI $55.30 -$1.48, Brent $61.93 -$1.73, Diff -$6.63 -25c, NG $2.29 -3c

By Malcolm Graham-Wood

Oil price

Oil fell again towards the close yesterday with the usual jumble of news affecting it. With data from so-called ‘money managers’ showing them taking money off the table the risk is definitely off at the moment until….the US navy takes down an Iranian drone and all bets are off. Brent is up 95c as I write but will probably close down on the day…

Amerisur Resources

An announcement from Amerisur just now has said that the company has launched a strategic review following ‘receipt of interest in the company and its assets from other industry participants’. In order to maximise value for shareholders and aware of the recent high level of interest in the Colombian E&P sector the company is conducting a formal review of all its strategic options.

With very little to go on in this very basic, preliminary announcement one can offer little at the moment in the way of judgement. Until there is an offer for all or part of the company it is usually best to stand pat and see what happens.

Petro Matad

Petro Matad has announced that it has spudded the Heron-1 exploration well which is targeting 25 MMbo of mean prospective recoverable resource and we should know the answer in around 40 days. Should testing be needed the company has a separate rig ready and a contract for that has been signed.

If you read the write-up of my recent meeting with MATD CEO Mike Buck you may be slightly confused by the description of the well as an ‘exploration well’ and even more so as in the first paragraph of the RNS, it is described as both an exploration and appraisal well. Indeed the important line is as follows ‘The well is an appraisal of the T19-46 oil field immediately to the north in Block XIX’ which I read as appraisal but apparently the answer is that when you move across the block boundary it immediately becomes an exploration well, I hope you got that…Wells doesn’t come much more crucial than this so an important time for shareholders.

Pantheon Resources

Pantheon has had yet another raise, this time ahead of the farm-out of the Alaskan assets in order to put them in ‘better position’ when negotiating which is fine but given there is no independent report on the assets investors are on somewhat of a wing and a prayer. The raise is $10.7m at 18p which is a modest discount and the issue was ‘significantly oversubscribed’ which should help the aftermarket.

I have been asking the company for a meeting for nearly a year now, certainly since the reverse into Great Bear Petroleum switched their asset base to Alaska with all those connotations and have not been able to meet the new management so I have to keep an open mind for the time being, the jury is definitely out on this one now.

And finally…

A much quieter weekend for sport, The Open Championship continues and as I write Fleetwood is in the lead but all the usual suspects are right on his heels.

Dillian Whyte takes on Oscar Rivas at the O2 tomorrow night and Dave Allen and David Price are also on the bill.


By Malcolm Graham-Wood


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