Malcy's Oil Report - PMG

Friday, Nov 20 2015 by
Malcys Oil Report  PMG

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 A bit late now as by most calculations the best part of £300bn of capex has been withdrawn by the majors since market share wars started.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…

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Parkmead Group plc is an upstream oil and gas company. The Company is an independent oil and gas, exploration and production company. The Company operates through two segments: oil and gas exploration and production segment, which invests in oil and gas exploration and production assets, and energy economics segment, which provides energy sector economics, valuation and benchmarking, advising on energy policies and fiscal matters, undertaking economic evaluations, supply benchmarking services and training. The Company produces from approximately four gas fields in the Netherlands and holds interests in approximately 40 exploration and production blocks. The Company has oil and gas development opportunities across the United Kingdom and Netherlands, including the Greater Perth Area oil development located in the Central North Sea. The Company also holds interests in a portfolio of exploration prospects alongside international partners. more »

LSE Price
64p
Change
-0.3%
Mkt Cap (£m)
63.5
P/E (fwd)
n/a
Yield (fwd)
n/a



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1 Comment on this Article show/hide all

Mark Carter 20th Nov '15 1 of 1

"Ali al-Naimi urge continued investment ‘in order to guarantee the stability of the market for the long and short term’"

I'm completely puzzled by this. Surely if you're an oil producer you want the prices to be high, not low. And if prices are down, then presumably that means that supply is outstripping demand. You've got too much capacity, so you should reduce investment, not increase it.

Answers on a postcard, please.

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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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