KEYFACT Energy
WTI $55.80 -$1.42, Brent $65.07 -$1.24, Diff -$9.27 +46c, NG $2.86 +5c
Oil price
So the oil price didn’t hold in the end and by Friday’s close had lost all the gains on the week, this may have been to do with the over indulgence at the IP Dinner but I don’t know what that’s like nowadays!
News though for oil remains generally positive, the rig count last Friday showed rigs down overall by 9 units to 1098 and by 10 in oil to 843. Slightly dodgy economic stats from the US and China which knocked on to South Korea might have put a dampener on things but oil production figures certainly didn’t. Reuters report that Opec production fell to 30.68m b/d in February which is the lowest since 2015 and even Russia are complying and are down to 11.336m b/d.
JOG has announced that well 20/05b-14, the Verbier appraisal well in which they have an 18% interest has spudded. Initial Operator estimates of gross recoverable resources are between 25-130 MMboe with an estimated mean of 69 MMboe. With the plan being to ‘refine the potential volume range in the discovery’ the partners are clearly hoping to find out a good deal more about the block. 3D seismic carried out last year will also be helping the team to analyse the upside potential which could be very impressive.
RBD has announced that their 2A well at Monroe Swell spudded on 2nd March, these two wells, delayed due to bad weather are carried by Reabold to earn into 50%. Should they be successful they will come onto production very quickly and will pay back in a very short space of time as they are very cheap to drill.
Plexus has announced that a contract for POS-GRIP rental wellhead equipment has been signed for a potential 5 year period by its partner Gusar with new client Gazprom. It is the first year of an up to five year programme but I can see no contract value in the RNS. This is a breakthrough order for Plexus who say ‘we are therefore anticipating today’s order will be the first of many’, nothing like a bit of confidence then…
In its update today Egdon announce that since the Ceres field recommenced late October last year it has boosted production from 164 b/d to 238 b/d. With the Springs Road well ahead of schedule and having encountered shale being tested at the moment looking good, the disappointment, apart from Councillors armed with a vote has been at Biscathorpe.
Pantheon Resources
I had to go back to my notes from Friday to check that the Pantheon RNS then was as disappointing as it was given what they have put out today. This time in the primary Nanushuk target at 4,667′ – 4,901 they appear to have oil shows similar to a recent successful well nearby. In the Torok Topset segment at 6,052′ the secondary target had elevated mud gas readings and oil shows.
I am not going to try and second guess this one, it could be a duster but it could be an extension of Horseshoe which as one Twitter comment this morning reminded me, had 1.2bn…. Normally one wouldnt have to give so much data out every time a formation was hit but one way or another the saying ‘ a comprehensive wireline logging programme is going to be needed’ was never truer.