WTI $44.55 -79c, Brent $47.42 -46c, Diff -$2.87 +62c, NG $2.88 n/c
By Malcolm Graham-Wood
Oil dithers waiting for tomorrow’s Opec+ meeting at which extending the 2m b/d production is in my view in the price, anything else would create uncertainty. Markets in general have rallied on the back of better international economic data and the UK Government approving the Pfizer vaccine this morning.
Good news from Genel this morning, following first oil production last week, first liftings have taken place from the Sarta field (Genel 30% WI).
The Sarta-3 well is producing at an initial rate of over 5,000 bopd, with an API gravity of c.27 degrees, in line with expectations at this stage. Tanker loadings are now underway, with oil being transported to Khurmala for offloading into the export pipeline.
Zephyr announce overnight the grant of final approvals required to proceed with the State 16-2 well. These approvals include surface rights and rights to drill from the Utah School and Institutional Trust Lands Administration (“SITLA”), federal Right of Way approvals from the Bureau of Land Management (“BLM”), and Application to Drill (“APD”) approval from the Utah Division of Oil, Gas and Mining (“DOGM”). In addition, the Company has received all necessary consents from its joint-venture partner on the Paradox project.
Colin Harrington, Zephyr’s Chief Executive said “I am delighted that we have secured the final approvals and consents required to facilitate the commencement of drilling of the State 16-2 well.
“I would like to thank all parties involved in this process for their commitment, flexibility and hard work in enabling us to reach this major milestone within the required timeframe.
“With work on the ground already underway, we are in the final stages of operational preparations to ensure the safe and successful spud of the well by our year-end goal.”
Holders of Zephyr and of course historically Rose, are enjoying an exciting ride now that the company is in its final run to the subsidised well in the Paradox Basin. Stay aboard for the ride and by the looks of it there won’t be a long wait…
Yesterday I managed to get Andrew Austin, Chairman of new market entrant Kistos in front of a camera to chat about the company that is inevitably being called the son of RockRose. It was an interesting chat and worth waiting for the end where he makes it quite clear that this is designed to make money for the shareholders, spooky that….
Echo Energy, has confirmed ‘the conclusion of the change in the Argentine VAT status of Eco Energy (I think Echo), the Company’s subsidiary which holds a 25% interest in the Santa Cruz Sur assets (of Echo’s total 70% interest). As a result and with effect from 1 December 2020, the Subsidiary will not be required to pay VAT retentions on invoiced domestic income. Prior to confirmation of this change, the Subsidiary had been required to pay VAT retentions of 10.5% on domestic sales revenues’.
The Company’s subsidiary, Eco Energy CDL Op Ltd ,which holds Echo’s remaining 45% interest in Santa Cruz Sur, has not had to pay VAT retentions on invoiced domestic income since 1 April 2020. As previously advised on 17 November 2020, reclaims regarding VAT owed to the Subsidiary and to Eco Energy CDL Op Limited related to operations at Santa Cruz Sur totalling US$1.4 million remain in progress.
United Oil & Gas
UOG has announced an Operational Update in Egypt this morning. The EDC-50 rig has been contracted to commence a drilling programme on the Abu Sennan concession and drilling will start with the ASH-3 development well, which is planned to commence in the ‘coming weeks’.
UOG suggest that expected follow-on targets include a low-risk exploration well, and a further development well on the ASH structure. In addition the company has advised that the Working Interest production from the Abu Sennan is on target to exceed previous guidance of 2,300 boepd for H2 2020 and that the ASH gas pipeline is to boost production from start of 2021.
In last night’s Champions League the Noisy Neighbours drew 0-0 in Porto and Liverpool beat Ajax 1-0. Tonight Chelski travel to Sevilla and the Red Devils host PSG.
After the withdrawal of Lewis Hamilton after testing positive for the COVID 19 virus it has been announced that Williams rookie George Russell gets the drive.
And England thrashed the Proteas by 9 wickets in the final T20 match and won the series 3-0, the 3 ODI’s start on Friday.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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