WTI (July) $96.35 -$1.91, Brent (July) $102.58 -$2.44, Diff -$6.23 -53c
USNG (June) $3.02 +2c, UKNG (June) 117.4p -3.6p, TTF (June) €47.985 -€1.505

Oil prices

Oil is mixed today, WTI is slightly down, by 26c but Brent is up 61c, last night as optimism waned crude fell as at that time a deal was possible, I wouldn’t bet the shop on it given the nuclear intransigence….

Sintana Energy

I noted last week that Qatar Energy has farmed-in to another block offshore Uruguay, this time they are moving in to AREA OFF-4 which is outboard of AREA OFF-1 as you can see from the map below. AREA OFF-4’s participants are thus now APA (operator), Shell and Qatar Energy – an impressive line-up. 

What is important to note is that some of the shelf-break structures on AREA OFF-1, which Chevron / Sintana have just shot seismic over, are believed to continue into AREA OFF-4, which also is thought to contains basin floor fans similar to those seen in Namibia. Seismic on AREA OFF-4 is scheduled to be acquired in the next seismic shoot season, in tandem with the remaining seismic  on AREA OFF-1.

I view this as yet another very important validation of the current popularity of the acreage offshore Uruguay. Qatar Energy is making a big play in the area and are now positioned in three blocks and who knows whether they have finished yet. 

I also note that on social media senior ANCAP personnel have indicated that there are potentially more farm-ins to follow, and judging by the noises from Sintana interest is substantial both from the wider industry players but also from those in adjacent blocks where contiguity looks very appealing. 

I noted in my recent missive that there was much news to come and that Sintana, following its recent top-up funding which sees it through for at least two years, is extremely well placed to benefit from industry trends. 

At 23p, well short of my somewhat conservative target price of 75p and in such a strong position, with an exceptional portfolio in some of the world’s most exciting basins and fully financed looks, Sintana looks to be a rare opportunity in the sector.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog