WTI $40.59 -16c, Brent $43.14 -23c, Diff -$2.55 -7c, NG $1.72 -1c
By Malcolm Graham-Wood
Oil is drifting a touch at the moment, with another record largest single day increase in new COVID-19 cases overnight putting a dampener of demand numbers. With Opec+ having broached the 2m b/d number last week but fully aware that they have to tread gently markets remain happy with oil at these levels.
EU leaders have been in their own lockdown over the weekend trying to finalise details of the €750bn recovery plan. Unfortunately the nature of the highly diverse group means that agreements can be hard to come by, in the end Germany will decide.
Finally, the Baker Hughes rig count stayed just negative, overall it was down 5 to 253 units and in oil was down 1 at 180 units.
More good news from Touchstone today as the company announce an independent reserves evaluation of the Cascadura Assessment Area in the Ortoire block onshore Trinidad and Tobago. Gross Discovered Petroleum Initially-in-Place is between 241.2 Bcf at the low estimate through 398.5 Bcf in the best estimate and 571.5 Bcf in the high estimate.
This leads to net peak production of 10,266 boe/d in the 1P forecast, 15,108 boe/d in the 2P forecast and 22,600 boe/d in the 3P forecast. GLJ also give an NPV range from $287.7m at 1P through $519.2m at 2P and a massive $802.9m on a 3P basis.
Paul R. Baay, President and Chief Executive Officer, commented:
“We are delighted to report that the independent reserves report verifies the material size of the reserves yet to be produced in the Cascadura structure and provides the groundwork for a multi-year future onshore development program in Trinidad.”
The company has always had confidence in Ortoire and should be congratulated on bringing what is clearly a huge find in at such difficult times in the industry. If the numbers in the GLJ report are in any way accurate the shares are clearly extraordinarily cheap compared to today’s market cap of around £100m. With Trinidad being a hive of Hydrocarbon activity if the shares dont move up substantially they will surely be in someone elses cross-hairs before long.
Premier has announced that they have signed SPA’s with BP for the Andrew and Shearwater assets on the revised terms already announced.
It is worth noting that ‘Premier is working with a subset of its creditors to agree revised terms for a long term extension to the Group credit maturities which can be recommended to the full creditor group for approval by the end of July. It is expected that a prospectus and circular, which will include terms of the equity funding for the BP Acquisitions, will be published following creditor approval of the refinancing terms’.
So, whilst the deal is by no means done, the foundations appear to have been laid for successful completion of these acquisitions.
Lewis Hamilton cruised the Hungarian GP and never looked in any doubt and heading for Silverstone.
The test match is finely poised, with a day lost to rain and England needing a win to have a chance of winning back the Wisden Cup this morning will be critical.
The FA Cup final will be a London derby as the Gooners beat the Noisy Neighbours and Chelski beating the Red Devils.
Elsewhere in the Prem on Friday night the Hammers were certainly Happy after seeing off the Hornets 3-1 which made league status safe and after which Watford sacked manager Nigel Pearson. The Clarets went to Carrow Road and won 0-2, the Cherries lost 0-2 to the Saints which won’t help their chances of survival whilst Spurs beat Leicester 3-0 which makes the top of the Prem open again.
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Disclaimer: Malcy’s Blog is provided for general information about the international oil and gas industry and the companies that operate within it. It does not constitute investment advice and Malcy does not buy or sell shares, warrants or bonds in any company written about within the blog. Information is taken from publicly available sources and any comment is that of the author who does not take any third party comment in the publication.
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