Malcy’s Blog – Oil price,Aminex/Solo, Predator and finally

WTI  $54.47 -76c, Brent $58.23 -$1.25, Diff -$3.76 -49c, NG $2.23+9c

By Malcolm Graham-Wood

Oil price

The usual see-saw continues with the tariff wars bringing out the worst in the two Presidents if that is remotely possible. Yesterday it was a case of getting your retaliation in early as first one leader and then the other upped the stakes. Also, the inventory situation was at best confusing this week with all the numbers slightly out of sync.


A Ruvuma farm-out, operational and corporate update from Aminex this morning with comments from Solo with regards to its strategy as well. Both companies are still waiting for Tanzanian Government approval for the Ruvuma farm-out to ARA and the ongoing review of all oil & gas companies PSA’s in-country continues to be the cause of the delay.

Both companies address Kiliwani North operations with the re-processing of the 2D seismic complete as forecast and sourcing of the equipment to perform the re-entry and remedial work continues.  ‘The re-entry, which has been designed to be carried out at minimal costs, is of value to investigate fluid levels in the well and provide an accurate bottom hole pressure measurement which will provide useful reservoir data for future operations and production and equipment are being ordered’.

Aminex continues to reduce its G&A expenditure and has fallen by 34% in 2018 on a like for like basis under the restructured management team.

At Solo, the board’s new strategy to diversify the business in terms of geography and asset type is proving to be the right one giving the company ‘greater control over our future’. I see this as a continued positive indication from Solo’s new Board as they move to implement the new strategy outlined earlier in the year. With the quality of the individuals involved and their reputations for delivering and executing deals, it makes Solo a much more interesting play than hitherto and I continue with my watching brief….

Predator Oil & Gas

Interims to June for Predator where a good deal of hard work was put in to ensure a potentially very exciting second half to the year. The loss of £0.512m was reduced and cash is £o.728m with a further £1.18m held as restricted cash. In the period the company was awarded the Guerat Petroleum Agreement in North Morocco by ONHYM which includes the Moulouya Tortonian Prospect and is being prepared for early drilling.

Meanwhile, LO 16/30 ‘Ram Head’ was extended by one year to 30th November  2019 and since the period end the CO2 EOR project has moved on and well workovers are to begin shortly and the company announced a CPR giving contingent, development-pending, resources of 5.3-8.9 MMboe.

The next 6 months will be a very exciting time for Predator with drilling in Morocco and progress to production in Trinidad with Ireland also moving forward leading to ‘some exciting medium-term M&A opportunities. Shareholders have been patient but are believers in this well-run company with masses of upside.

And finally…

In the footy, the big game in the Prem is when Spurs travel to the Noisy Neighbours on Saturday evening. Elsewhere Chelski host the Foxes on Sunday and Liverpool go to the Saints.

Racing is at Newbury for the Geoffrey Freer Stakes and there is a card at Newmarket as well.

In the cricket it quite a lottery with England all out for 250 odd and the Aussies are 80-4 as I write.

By Malcolm Graham-Wood

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