Malcy's Oil Report - GKP, SLE, FAST, BLVN, COP

Monday, Jun 01 2015 by
1
Malcys Oil Report  GKP SLE FAST BLVN COP

WTI $60.30 +$2.62, Brent $65.56 +$2.98, Diff $5.26 +36c, NG $2.64 -6c

Oil price

Last week the oil price was weak mainly due to the dollar strength but it picked up sharply right at the end. A combination of inventory draw and the continued fall in the rig count, which was down 13 oil rigs at 646, gave bulls fresh impetus. Accordingly, WTI was up 58 cents on the week and 67 cents on the month while Brent recorded a rise of 19 cents and a fall of $1.22 respectively, hardly busting out all over. With a fall of nearly 250/- b/d from Canada due to the fires the local market is quite tight.

This week sees the Opec meeting on Friday and all the signs are that it will rollover the December agreement, maintaining the 30m b/d target. Obviously the ‘target’ has been missed by as much as a million barrels a day since then and will continue to be so but the Gulf states will hope that by the time of the December meeting demand will have risen and supply fallen. Certainly the outlook for 2016 looks considerably better and while US shale producers appear to be living with $60 WTI, capex cuts from the majors will take a lot of crude off the market starting next year.

And if you believe the EIA then the Saudis can afford the pain being created by market share gains. According to their numbers the Kingdom will lose $39bn in 2015 which is only 5% of the $733bn that is in their Sovereign Wealth Fund…

Gulf Keystone

So the market rumours that have placed Jón Ferrier at the helm of GKP are true and in the latest bout of management changes CEO John Gerstenlauer has been replaced. This means that the company has replaced the Chairman, two CEO’s and one CFO in recent times and this is the latest roll of the dice. I have a great deal of time and respect for John Gerstenlauer and I hope that he reappears before long, maybe after a well deserved break.

Mr Ferrier has what looks like an admirable CV with experience in many companies and indeed time in Kurdistan with Maersk. I have spoken to former colleagues who rate him very highly as an oilman and a ‘people person’ and if he lacks anything it will be a shortage of market experience, with the amount of noise…

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Gulf Keystone Petroleum Limited (Gulf Keystone) is a holding company, which is engaged in the oil and gas exploration and production. The Company operates in the Kurdistan Region of Iraq. It operates through segments, including Kurdistan Region of Iraq and United Kingdom. The Kurdistan Region of Iraq segment consists of the Shaikan, Ber Bahr blocks and the Erbil office, which provides support to the operations in Kurdistan. The United Kingdom segment provides geological, geophysical, engineering and corporate services to the Company. It operates in the Shaikan oil field. The Shaikan block is situated over 85 kilometers northwest of Erbil, covering an area of over 280 square kilometers. more »

LSE Price
239p
Change
2.8%
Mkt Cap (£m)
532.8
P/E (fwd)
8.3
Yield (fwd)
4.4

San Leon Energy Plc is an oil and gas company. The Company develops conventional and unconventional assets in Europe and North Africa, from exploration to monetization. Its segments include Poland, Morocco and Ireland. The Company holds participating interest in the Durresi Block, offshore Albania. The license area, which covers approximately 4,200 square kilometers, contains the A4-1X gas/condensate discovery and several undrilled oil and gas prospects. The Company holds over 2.4 million acres of licenses in France, which are under application. It holds a net profit interest (NPI) on the Barryroe License, which is located in the North Celtic Sea, offshore Ireland. The Company has interests in the Tarfaya and Zag license areas and offshore licenses, Foum Draa and Sidi Moussa. It holds approximately seven licenses in Poland. The Company holds approximately four licenses in Cantabrian-Pyrenees basin, five licenses in Ebro basin and one license in Duero. more »

LSE Price
30.5p
Change
0.7%
Mkt Cap (£m)
139
P/E (fwd)
n/a
Yield (fwd)
n/a

Amryt Pharma plc is a commercial-stage specialty pharmaceutical company focused on developing and delivering treatments for patients with rare and orphan diseases. The Company is building a diversified portfolio of proprietary drugs to help address some of rare and debilitating illnesses. The Company’s lead products include AP 101 and AP102. AP101 (Episalvan) is a potential treatment for Epidermolysis Bullosa (EB), and it is in Phase III clinical trials. AP102 is focused on developing novel, next generation somatostatin analogue (SSA) peptide medicines for patients with rare neuroendocrine diseases. The Company holds an exclusive license to sell Lojuxta (lomitapide) for adults, across the European Union (EU) and other territories, including the Middle East, North Africa, Turkey and Israel. Lojuxta is used to treat a rare life-threatening disease called Homozygous Familial Hypercholesterolemia, which impairs the body’s ability to remove LDL cholesterol (bad cholesterol) from the blood. more »

LSE Price
134p
Change
-5.0%
Mkt Cap (£m)
67.5
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:GKP fundamentally strong or weak? Find out More »


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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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