Malcy’s Blog – Oil price, Coro, Kosmos, Cairn, Reabold, AOW & finally

WTI $56.66 +43c, Brent $62.02 +35c, Diff -$5.36 -8c, NG $2.30 -2c

Oil price

So, I go away for a week and the oil price rises by three dollars but not much happens in the sector. Forces on the oil price remain in no particular order the trade talks (getting slightly better), Opec+ production (Ditto), Inventories (slight positive surprise) and the rig count (a lot better at -21 overall at 830 and -17 in oil at 696).

Coro Energy

Coro has been drilling its Tambak-2 well offshore Indonesia and after a particularly upbeat initial comment which delivered a great result stepping out from the Mako South-1 well and giving significant reservoir scale had some modest operational difficulties in conducting a DST after a substantial gas kick.

With, in my view, the market misunderstanding the update from Friday and not accentuating the significant positives I was lucky to get Coro CEO James Menzies into the Core Finance studios to chat about it. As I had thought the market was being too negative and in the chat we had this morning he puts a few things right. He also talks about the other assets in the portfolio and has some interesting comments on M&A in the Far East in the next year or two.

Here is the link, well worth a gander…



Kosmos Energy

Kosmos has has made another ‘major gas discovery’ with its Orca-1 well offshore Mauritania which exceeded pre-drill estimates. The well encountered  36m of net pay in excellent reservoirs in the Albian play and extended into the Cenomanian play fairway by confirming 11m of net gas pay in a down-structure position relative to the original  Marsouin-1 discovery well. In total these two wells have de-risked up to 50 TCF of GIIP, more than enough for a ‘world scale’ LNG project.

Cairn Energy

Not a great morning for Cairn as the Indian arbitration tribunal result has been put back to summer 2020 by which time $1.4bn may not be worth as much as it used to be… It also announced that its Alom-1 exploration well in Block 9, Mexico was a dry hole. With no news from Senegal lately I’m really hoping to link up with the company in Cape Town next week for an update.

Reabold Resources

Reabold has announced that legal/administration issues have delayed the Rathlin Energy swap, no shares will be issued tomorrow as planned, indeed despite ‘significant progress having been made’ there can be no assurance that the Proposed Equity Swap will be completed. I havent heard from the company for a while, I suspect they have been busy with the issue but I’m sure all will work itself out and the share price will recover.

Africa Oil Week

Next week is Africa Oil Week and I, along with many other oil industry colleagues will be in Cape Town. On the Monday evening I have been prevailed upon to chat/interview any of the visiting oil industry leaders who are in town. You are all therefore cordially invited to join us at this event on the Waterfront and I would love to have an informal chat.

“Malcy’s pit lane walk”

on Monday 4th November 2019

From the organisers…

‘If you have a compelling story to tell, we are working with our partners, offering an opportunity to be interviewed on camera by sector analyst and infamous blogger Malcolm Graham-Wood.’

V & A Waterfront
5.30pm till 7.30pm

See you all there…

And finally…

Last weekends fun was all about the RWC where England overcame the mighty All Blacks to get into the final where they will take on the Springboks who just edged past Wales in a game of end to end kicking.

Football wise Liverpool remain at the top after beating Spurs despite going a goal down and of course the Foxes destroyed the Saints scoring more goals than the All Blacks scored points against England…

Lewis won the Mexican GP despite the Ferrari’s having the grid positions and he hung on after some scary decisions about pit stops. Only 4 points needed now so maybe Austin Texas next Sunday may be his chance to win the title.

After the first five games in the World Series the Houston Astros go into game six 3-2 ahead and so far every game has been won by the visiting side, only the third time in history

By Malcolm Graham-Wood

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