WTI $45.70 +79c, Brent $48.60 +43c, Diff $2.90 -36c, NG $2.56 -3c

Oil price

With a small rise on Friday both WTI and Brent were able to show gains on the week albeit fairly sparse, 68 cents for the former and $1.13 for the latter. Despite stock markets being under pressure and a sort of back track from Ms Yellen on rates, oil held up reasonably well under the circumstances. Stocks were down again and even at Cushing but they are still incredibly high, in products the situation is worse so fundamentally things aren’t that clever. On the theme of ‘modest’ numbers the rig count came in minus four overall and the same number in oil, another fall but by not very much, even so it's another week of decline.

Shell

Shell has announced that Burger J is dry, at least commercially and so ends exploration activity offshore Alaska for the ‘foreseeable’ future. This is probably a blessed relief as it means that whilst having tried and found it dry, it is no longer on the hook for a long, expensive and environmentally draining campaign although it is not going to be exactly cheap to shut this one down.

Amerisur Resources

Interims from Amerisur were as is always the case entirely predictable, much more interesting was the accompanying release about progress on the OBA interconnector, complete with pictures. Revenue was down and whilst operating cash flow was also down it was not out at $8.1m giving a strong cash position of $55.6m.  So, the interconnector is still on track for first oil transport by the end of this year. Make no mistake this is some considerable achievement, a combination of a significant reduction in costs and increase in production will  be transformational and when it goes ahead it will mark a shift in dimension for the company. It is therefore not a surprise that ‘the board looks to the future with confidence’, shareholders have good reason to be pleased as well and with the year end not far away real progress appears to be just around the corner, at change from 24p the shares look like outstanding value.

Bowleven

News today from the Bomono permit in Cameroon where the Moambe well has reached TD and wireline logging is complete. Hydrocarbons were encountered and detailed log evaluation is continuing, preparations for an EWT are underway before moving back to Zingana. The company is…

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