Oil price, Frontera, RockRose, Touchstone And finally…
Paul Kettle
Malcy's Blog
13:38, 12th October 2018

WTI $70.97 -$2.20, Brent $80.26 -$2.83, Diff -$9.29 -63c, NG $3.22 -6c

Oil price

As expected oil came back to earth with a bit of a bump this week and if it hadn’t been for a bit of a rally this morning may have been 5 bucks down on the week. Put into context though and things aren’t that bad, give an oil executive WTI above $70 and Brent over $80 a while ago and they would have had your arm off, even the STEO isn’t as bad as it might have been. And when you look at the gas price you can be even more comforted, at $3.28 yesterday it is positively basking.

This week’s worries have been based around global growth forecasts which have been trimmed, no more and they knocked on to the Opec growth estimates for next year, also slightly trimmed. Next year they expect growth of 1.36m b/d with the usual concerns about emerging markets, Fed policy and rising Non-Opec supply. Having said all that the Chinese crude import figure showed a rise to 9.05m b/d, hardly sloppy under the circs. Finally the inventory stats have been poor for three weeks now, again a seasonal factor that won’t change until it gets cold. With utilisation rates back to 88.8% and another 6m b’s adding to stocks the numbers are climbing back to the five year average, yet again nothing to panic about.

Frontera Resources 

Someone has forced FRR into announcing things it has announced before as the share price has been very volatile. Last week’s presentation was, I understand very well received and the shares rose after it but they had been subject to some technical pressure I am told. So today we get confirmation, if any was needed, that the company is still in discussions with two major oil companies with a view to operational collaboration, nuff said.

Catch up, links etc

This week has been mad, many interviews, hopefully linked below and mainly flash blogs of limited success, apologies. A couple of news items slipped though the net so here goes.

RockRose Energy 

RockRose has been a very strong performer recently and yesterday announced that the Arran deal had completed. Another excellent deal that will give RRE 30.43% and in due course 6/- + b/d net to them. Shell operates and one can only assume that Mr Austin has more deals up his sleeve.

Touchstone Exploration 

Q3 production at Touchstone was 1,758 b/d and the company beat its target of 2/- b/d during October. It has drilled 8 of the planned 14 wells already and another 4 are in pre-drill mode. It appears that there has been only one duster at the Coora 2 Block so they will move from the Upper Cruse to the Forest formation next instead.

Links

Firstly Monday’s VoxMarkets Podcast

VOX Markets podcast: Malcy on Amerisur Resources, Echo Energy, Savannah Petroleum, President Energy, Chariot Oil & Gas and i3 Energy

Secondly I was lucky enough to interview Ed Story CEO of Soco International on Tuesday, a fascinating chat.

Core Finance CEO interview: Ed Story of SOCO

And on Wednesday I caught up with Andrew Hockey, CEO of Independent Oil & Gas for a chat about his gas hub strategy.

Core Finance CEO interview: Andrew Hockey of Independent Oil & Gas

 

And finally…

With yet another dire international break there is little to offer up, England play in Croatia but even their fans won’t see it as the match is being played behind closed doors after the infamous swastika incident. Northern Ireland are in Austria and we wont mention Scotland and Wales this time.

But, the Rugby European Champions League is back with some tasty fixtures all over the weekend.

It’s the Cesarewitch at Newmarket as we come towards the end of the season with Champions Day next Saturday.

In the baseball, the Dodgers take on the Milwaukee Brewers in game 1 of the NLCS tonight and then the Red Sox face the Astros at Fenway Park tomorrow. We could still see a repeat of last years World Series although both Houston and LA will have to win away if they want to progress.

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