WTI $82.12 -52c, Brent $84.47 -20c, Diff -$2.35 +32c, NG $4.27 -59c, UKNG 228.12p +54.25p

Oil price

Not much to add to my previous bullish comments, I have just watched the IEA’s Fatih Birol being interviewed on CNBC by Brian Sullivan and it was boy v man. Basically, as I’m sure that we will find out in next week’s monthly report demand has clearly been more ‘resilient’ in his words than they expected and expect a climb down next week.

Advance Energy

Advance Energy has provided an update on the Buffalo-10 well being drilled offshore Timor-Leste.

The Operator, Carnarvon Petroleum Timor, Lda., has advised that, since the last announcement on 6 January 2022, the 13 3/8” casing has been successfully cemented in place and the well head installed.  The 12 ¼” hole section was then drilled down to a depth of approximately 2,707 metres measured depth (“MD”).

The rig is now setting and cementing the 9 5/8” casing before drilling ahead in the 8 ½” section hole to a planned depth of approximately 3,500 metres MD.

For operational efficiency, the 9 5/8” casing is being set at approximately 2,700 metres MD, with the geological markers in the 12 ¼” hole section having been intersected within the pre-drill range.

The Elang reservoir is anticipated to be encountered in the 8 ½” hole section.  Wireline logs will be run over the Elang reservoir before determining if the well will be completed and suspended for potential future production.

The Buffalo-10 well is being drilled offshore Timor-Leste within the TL- SO T19-14 Production Sharing Contract in a water depth of approximately 30 metres with a target depth of approximately 3,500 metres.

The well is being drilled to test for the presence of commercial quantities of high-quality light oil that is expected to lead to the early re-development of the Buffalo field.

Leslie Peterkin, CEO of Advance Energy, commented:
“We are pleased with the progress reported by the Operator, and the fact that we remain on prognosis is an encouraging indication that the geophysical interpretation is as we predicted. This bodes well as we prepare to drill ahead into the target Elang reservoir, and we look forward to offering further updates to the market in due course.”

I have commented a number of times that this well offers significant potential upside with pretty low risk exposure for investors and that the company is providing plenty of updates as drilling continues. The management and indeed the board in total have impressed me with their strategy and I look forward to seeing the results of this well. 

I recently interviewed Leslie Peterkin on my Core Finance CEO slot, in case you missed it the link is below.

Core Finance CEO Interview: Leslie Peterkin, Advance Energy

KeyFacts Energy Industry Directory: Malcy's Blog