Oil price, Predator
Malcys Blog
Malcy's Blog - 3 min Read
10:34, 31st March 2020

WTI $20.09 -$1.42, Brent $22.76 -$2.17, Diff -$2.67 -75c, NG $1.69 +2c

Oil price

Well, today is the last day of the month and, more importantly the quarter, it is also the Brent rollover.  Historically today would see window dressing as Fund Managers and Hedgies tried to ‘set’ prices to make the quarter look better in the rankings. There is less chance of this nowadays but it probably wouldnt be a bad thing to close the odd short just to log in some of those profits….

Yesterday Trump spoke to Putin and they agreed that their energy Ministers would talk to try and steady the market place, don’t stand on one foot waiting for that as the Saudis continue to let it flow.

My favourite day of the week and now more important than ever, it’s retail gasoline stats day and the prices are falling big time. Average price across the US is now 2 bucks, dead on, down 11.5c w/w, 41.8c m/m and 68.6c y/y and yet no one is driving to take advantage…..

Predator Oil & Gas Holdings Plc (PRD)

A very positive update from PRD this morning in which they maintain that the fundamentals are unchanged and so they are. Predator is well capitalised after its recent raise, it has low overheads and revenues are expected from Trinidad in due course. Indeed, Trinidad operations will be profitable even at the lower oil prices of c. $20 for WTI and the Innis-Trinity field remains operational despite restrictions on movement of the people.

Phase 2 of the CO2 EOR pilot project has been encouraging, with downhole pressure build-up the next step is to inject CO2 at even higher pressures. The additional time gives the company the opportunity to expand the CO2 EOR operations in Trinidad for a very low capital investment and therefore potential for additional revenues.

Meanwhile Morocco is affected by restrictions on rig crew and service personnel and the rig is stacked ready to be reactivated. Planning is still continuing at a minimal cost and no commercial contracts have been or will be entered into until new operations are resumed.

Having raised money very recently Predator is ‘very well placed to ride out current worldwide issues which will subside’ and is also in an excellent position to take advantage of any acquisition opportunities that may arise. Predator is one of a very few stocks that has discretion over spending, one potentially two exciting opportunities and the CO2 EOR operation could make the company into a  genuine winner in the race to low or zero carbon oil production and with absolutely top drawer management.

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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