Malcy’s Blog – Oil price, Columbus, Wentworth & finally

WTI $53.94 -$1.16, Brent $58.26 -40c, Diff -$4.32 +76c, NG $2.36 +7c

By Malcolm Graham-Wood

Oil price

More of the same as tariff worries continue and US data is starting to show some concern, meanwhile, the greenback has strengthened. Bloomberg has said that the results of its latest survey indicate that Opec production has risen by around 200/- b/d although to be fair from a very low level.

Columbus Energy Resources

Interims from CERP this morning but as always they are of very limited interest particularly as the oil price was firmly stuck in the SPT range. The first half has been used in preparation for what will be a  most interesting second half and cash flow optimisation has been at its peak.

This has all been leading up to the drilling of an exploration well in the SW Peninsula expected in the late part of Q3 and is the culmination of ‘many years of commercial negotiations, technical analysis and operational planning to get to this point’. The South West Peninsula has been the holy grail for Columbus and hence the concentration on this important part of the island.

Elsewhere CERP have been continuing with the technical and commercial preparations for the commencement of the CO2 project with Predator and success here could have a number of potential positives for both companies. We have been expecting an announcement with regard to a new country entry for some time now but still, believe it is imminent….All in all an interesting second half coming up for CERP and with the assets of Range Resources having been franked at a high price the valuation looks light.

Wentworth Resources

Yesterday saw the Wentworth interims which were also of very limited interest. It was a busy time for the company though with the de-listing from Oslo, the exit from Mozambique and the continued build of the M&A book.

Most important was the arrival of the promised dividend which, at £0.45 per share costing $1m, ‘clearly distinguishes us from our peer group’. The payout which puts the company on a yield of around 6.7% as part of a 1/3 2/3 payment process and adds to the attraction of the company. With the potential of further M&A, shareholders have an added incentive to be holders of Wentworth.

And finally…

The second test in the Ashes series started this morning at Old Trafford whereas I write Australia, having won the toss and elected to bat are 61-2.


By Malcolm Graham-Wood

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