WTI $47.81 -72c, Brent $51.33 -59c, Diff $3.52 +13c, NG $2.47 n/c
Oil price
A slightly quieter day in the oil markets with the EIA inventory stats just taking the edge off the recent rally. Analysts had been expecting a build, even after the API report of a modest draw and so seeing stocks up by 3.1m barrels was disappointing but not by much. The bullish news around the crude patch has mainly come from the EIA STEO which as I mentioned yesterday is moving towards the IEA stance, and of course the increasingly obvious fall in US shale production. Indeed, speaking in London yesterday, EOG Resources boss Mark Papa went as far as to say that there would be a ‘pretty dramatic downturn in US shale’ as the debt problem really starts to sink in.
Tethys Petroleum
It seems like there is something going on almost every day at Tethys and yesterday there were two significant moves. Firstly, Nostrum decided to withdraw their proposed offer which had needed all three major shareholders to agree to, in this case Pope Asset Management didn't so that potential offer went west. One must assume that with the possible backstop of an offer from Olisol the shareholder was able to take such a stance. Not long after all this Tethys then announced that AGR Energy were back on the case with a letter of intent offering a potential equity fund raise at C$0.165 a share and a $5m loan to support short term liquidity. In addition AGR want the option to subscribe for another $20m worth of stock at the same price. Pick the bones out of that lot I challenge you…
Sundry
Pantheon has announced that testing has started at its VOBM#1 well and this should last 10-14 days all being well. Clearly this is an important time for the company and the market is quietly confident of success but it must be borne in mind that whatever this result turns out to be there are other opportunities in the next well which is already drilling.
Tullow has announced that it has reached agreement with authorities in Gabon and following that can confirm guidance for production of 66,000-70,000 bopd.
And finally…
It's back to the Euro qualifiers tonight and it will be a nail biting time across the board. Northern Ireland can get through tonight and play bottom of the table Greece to…
