WTI $57.15 -59c, Brent $65.28 +43c, Diff $8.13 +$1.02, NG $2.53 n/c
Oil price
Last week saw a slight shift in favour of Brent over WTI, the former ending up gaining $1.83 and the latter losing 17c over the period. It pushed the differential back over $8 mainly due to another set of poor inventory stats which showed yet another build at a time when the market might have expected some relief from the refiners. Remember that it is only a month today until the US driving season starts and we should expect a significant pick-up in demand for gasoline.
The weekly rig count helped a bit with the overall number falling by 22 units to 932, making it the 20th consecutive fall and in oil, rig numbers fell by 31 units to 703 down from the October high of 1,609.
Kosmos Energy
Kosmos is a favoured international stock so it was pleasing to see them make a substantial gas discovery offshore Mauritania. This significant play opening result comes on the Tortue West project, with 107m of net hydrocarbon pay including what the company describe as 'A single gas pool was encountered in the primary objective, which is comprised of three high-quality reservoirs totalling 88 meters in thickness over a gross hydrocarbon bearing interval of 161 meters. A fourth zone 19 meters thick was penetrated within the secondary target over a gross hydrocarbon bearing interval of 150 metres.'
Not only was this a good result for Kosmos and for Mauritania but it also looks interesting for Senegal as the discovery looks like being part of the 'Greater Tortue Complex' which might extend into that country. Kosmos are represented there in the St Louis offshore Profund block to the tune of 60%.
Tullow
The International Tribunal of the Law of the sea ruled on Saturday that the request from the Cote d'Ivoire to try and stop Tullow drilling should be rejected. Accordingly, the TEN development project continues to go ahead but with no new wells able to be drilled. Having drilled enough to be able to produce oil in the meantime Tullow can proceed, the courts will not make a final decision on the situation until late 2017 so this was a relief for Tullow, indeed as I write the shares are actually down on the day…
Falklands drilling.
The 14/20-1 Isobel Deep well being drilled by the Operator Premier Oil, along with
