WTI $40.54 -21c, Brent $44.18 +4c, Diff $3.64 +25c, NG $2.28 -7c
Oil price
WTI made an appearance below $40 again yesterday, if it keeps doing that it’s only a matter of time…A big conference in Bahrain yesterday heard Ali al-Naimi urge continued investment ‘in order to guarantee the stability of the market for the long and short term’. A bit late now as by most calculations the best part of £300bn of capex has been withdrawn by the majors since market share wars started.
Probably the most influential market commentator, David Hufton is however increasingly worried. Todays Daily Telegraph reports him as saying ‘the world is floating in oil, the numbers we are seeing now are dreadful, this is unprecedented’. Certainly if the Northern hemisphere has a mild winter, as a number of forecasters are suggesting, then the stock situation is indeed precarious.
Parkmead
Parkmead, whose stock continues to make new lows, has final results this morning. Whilst the figures themselves were expectedly disappointing the statement is upbeat, indeed having raised $21m in May of this year and with cash balances of $60m the Chairman is relatively positive. First commercial gas has flowed at Diever West in the Netherlands and production is expected to be 29 million cubic feet a day, equivalent to 5/- boe/d and the company are rightly proud of coming on production only 14 months after discovery. With 9 blocks awarded in the 28th round, mostly nearby existing production, Parkmead hopes to speed up value added exploration.
Sundry
Ophir announced yesterday that their G4/50-11 Gulf of Thailand wildcat exploration well ‘encountered oil in primary and secondary targets but but were below commercial threshold for a commercial discovery’. Now just usual detailed analysis etc…
Pantheon had results too today but they are totally irrelevant, at the moment it’s all about the current drilling campaign. So far we know that the first well is a big success story and the second well has already found an unexpected oil bearing zone. We are now waiting for the well to reach TD which is expected around the middle of next week, after that logging and hopefully testing…. My target remains at 200p but will be adjusted after this current well.
Range Resources are further ahead on their GY 180SE, first development well on the Beach Marcelle field where logging is underway and testing is imminent.
And finally…
The RFU has announced that Eddie Jones is to be their…
