WTI $39.82 +55c, Brent $42.03 +76c, Diff -$2.21 +21c, NG $1.67 -8c

Oil price

Oil is better again after positive inventory stats from both the API and the EIA in the last 24 hours with Brent expiry taken in good stead. The EIA stamped the API with a 7.2m barrel fall and refinery capacity rose again by 0.9% and whilst product numbers were a bit mixed, gasoline added with distillates drawing overall gas demand remained solid.

With US markets shut tomorrow for the Independence Day holiday, positions are likely to be flat and risk-off, whilst the extent of the amount of travelling and gasoline consumption will be important as will the virus numbers for the immediate future.

Premier Oil

An update from Premier in which it says that creditors have approved the Andrew Area and Shearwater assets under amended terms. The BP acquisitions remain conditional on the finalisation of the sale and purchase agreement, the refinancing of Premier’s existing credit facilities, equity funding and customary other approvals, including shareholder approval.

The Company also has support from a subset of creditors on the terms of the “Stable Platform Agreement” to waive the Company’s financial covenants through to 30 September 2020 and will be put to the creditor group for their formal approval by 8 July 2020. Under its current financing arrangements, Premier is required to provide a covenant compliance certificate to its lenders within 90 days of 30 June.

Finally, it seems that the acquisition of a further 25% of Tolmount from Dana Petroleum is now not going ahead. Whilst I initially found this slightly odd, as I have always been a huge fan of the Tolmount project, I can understand that right now it has less strategic appeal that the Andrew and Shearwater acquisitions, needs some ongoing capex and of course would up the size of the upcoming equity deal. Given the natural fit of Tolmount the opportunity there isn’t likely to go away any time soon so best get the other deals closed now.

Reabold Resources

A Romania update from Reabold which to be frank, I wasn’t expecting as it looks a little early to be calling the rates etc. Whilst gas hasn’t flowed to surface yet it is likely to need acidisation as relatively commonplace in the area and I expect much more news from this well in coming weeks.

KeyFacts Energy Industry Directory: Malcy's Blog