Malcy's Oil Report - FOG, TRP

Wednesday, Jul 15 2015 by
1
Malcys Oil Report  FOG TRP

WTI $53.04 +84c, Brent $58.51 +66c, Diff $5.47 -18c, NG $2.84 -2c

Oil price

So, at long last we have a deal and provided it gets ratified in all the appropriate places sanctions will slowly be lifted. The ratifications are by no means taken as read, it may need Presidential veto in the US as Republicans grumble but let's assume it will happen. The oil price, which as I wrote first thing yesterday fell initially, before rising later, will have more downward pressure but don't expect a flood of Iranian crude any time soon. Indeed I expect, with the exception of oil stored afloat that not much meaningful crude will be added for about a year or so. Maybe something short of half a million barrels to go into the Opec equation which given how much they are over producing doesn't stack up to much.

Any major production increase will depend on investment and I do expect this to happen gradually. The arrivals lounge at Tehran airport will be full of Texans, Dutchmen, Chinese and the French to name but a few and inward investment should flourish. But this will take time and I don't expect any return to 2-4m b/d anytime soon but it may just happen in time for the oil price rise one can expect further down the line.

As to the here and now, the API inventory stats gave the market a nice little push, analysts expecting a draw of 1.2m barrels were yet again foxed by the reality which turned out to be as high as 7.3m, EIA numbers tonight boys…

Falcon Oil & Gas

A major milestone for Falcon this morning as it has announced that it has spudded the Kalala S-1 well in the Beetaloo Basin, Australia. The first fully funded, uncapped well in the three well 2015 programme is operated by Origin. Part of a 9 well programme, the drilling should last between 35-50 days and will tell the partners that interestingly include shale specialists Sasol, much about the prospects here and patient shareholders now have something to watch out for. Falcon is a well managed play, with proper financing and excellent partners so is definitely worth keeping on the radar screen. (Go to www.malcysblog.com for an interview with CEO Philip O’Quigley)

Tower Resources

A quick word on Tower which has historically not been a value trap for investors, today it announces that it…

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Falcon Oil & Gas Ltd. is an international oil and gas company. The Company is engaged in the acquisition, exploration and development of petroleum and natural gas properties. The Company's principal interests are located in over two underexplored basins in Australia, South Africa and Hungary. The Company's principal oil and gas interests include Exploration Permit EP-76 (Beetaloo Basin, Northern Territory, Australia) covering a gross area of approximately 1,891.3 square kilometers; Exploration Permit EP-98 (Beetaloo Basin, Northern Territory, Australia) covering a gross area of over 10,320 square kilometers; Exploration Permit EP-117 (Beetaloo Basin, Northern Territory, Australia) covering a gross area of approximately 6,410 square kilometers; Technical Cooperation Permit, (Karoo Basin, South Africa) covering a gross area of over 30,327.9 square kilometers, and Mako Production License (Mako Trough, Hungary) covering a gross area of approximately 994.6 square kilometers. more »

LSE Price
13.75p
Change
 
Mkt Cap (£m)
129.5
P/E (fwd)
n/a
Yield (fwd)
n/a

Tower Resources plc is an upstream oil and gas exploration company. The Company has exploration projects in Cameroon, South Africa, Zambia, and Sahawari Arab Democratic Republic (SADR). The Company has two segments: Africa and Head Office. The Company is an operator of international licenses with a focus on projects in Africa. It holds an interest in Thali Production Sharing Contract (PSC) in Cameroon, which covers an area of approximately 120 square kilometers (kms) and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. It holds an interest in Algoa-Gamtoos license, South Africa, which covers an area of approximately 11,800 square kms. It also holds an interest in the offshore Guelta and Imlili blocks, and the onshore Bojador block in the SADR, which covers an area of approximately 72,700 square kms. It has interests in blocks 40 and 41 of the frontier Zambezi Basin, which covers an area of approximately 6,950 square kms. The Company has no revenues. more »

LSE Price
0.725p
Change
 
Mkt Cap (£m)
4.2
P/E (fwd)
n/a
Yield (fwd)
n/a



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About Malcolm Graham Wood

Malcolm Graham Wood

Malcolm has over 30 years' experience in the Oil & Gas sector and is a widely used media source. He often appears in print and on screen, and also writes an acclaimed daily blog read by much of the resources industry as well as investors both institutional and retail.Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.He started his career at Wood Mackenzie in 1979. He was an inaugural member of the No 1 Extel rated James Capel Oil & Gas team and also headed up corporate broking, acting for the Government in sales of British Gas, Britoil and other utilities. Subsequently he became Head of Equities and main board Director at Williams de Broe before moving to Teather & Greenwood. Following that, he ran his own consultancy for several years, acting for a number of quoted and private companies as well as being a board member and advisor. He has been a Director at Noble and then Westhouse Securities and has extensive contacts in the Oil & Gas sector globally. More recently Malcolm has been the lead advisor to an HSBC Zurich trust on oil, gas and energy investments as well as working with the oil team at VSA Capital.- See more at: http://www.malcysblog.com/about/#sthash.Jdn1d7dK.d... more »

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