WTI $63.76 -29c, Brent $71.62 -10c, Diff -$7.86 +19c, NG $2.52 -6c
Although most of the news yesterday was positive for oil, ie the EIA stats showing a 1.4m draw and another gasoline stock fall, the price drifted after an early rally despite encouraging economic stats from China. Traders cited profit taking (don’t they always when they can’t think of anything serious) so I will believe them.
I had a number of enquiries yesterday about why I hadn’t written up the Block announcement, it was all very innocent. You will have noticed that i did an early flash blog as I was on the move and my first read of the RNS didn’t make sense as the choke sizes quoted were not comparable. I decided to wait until I could verify the situation and after a long chat with Paul Haywood this morning I am more than comfortable to remain very positive on the shares.
The misunderstanding on the choke size was indeed a simple typo, they have scaled back the choke to 1/8″ in order to cut back production to 700 b/d from 1,100 as they need to ‘upgrade production facilities’ which probably means that they are short storage, after all who thought that this well would be a barn burner…?
However the company is already moving on and in short order will be drilling more wells anyway, they seem to have three sidetracks on the books with one pretty much drill-ready and I know that they are keen to go after all the associated gas with further appraisals there. All in all there is much more excitement ahead for Block and I am having a proper meeting with Paul after Easter.
I really like Jadestone and am not going off them but today’s announcement is not only historic but effectively of no interest given the Montara asset arriving in the period and then shutting down for well earned admittedly, maintenance. The company has exacerbated investor irritation by timing a conference call at 2pm UK time today which given the company is managed from Singapore, has assets in Australia and shareholders in London looks like it is for Toronto, big mistake putting figures out today and the company trying to save time by only doing one call…
All the same, Jadestone is a favourite stock, it has much to offer, id in a very strong position and well funded for potential development.
Last night was vintage European football and although Spurs beat the Noisy Neighbours it might have gone either way, whatever Spurs get the easier semi final against Ajax whilst Liverpool after an easy win at Porto get Barca.
Tonight Chelski host Slavia Prague and the Gooners are at Napoli in the Boropa Cup.
In the Prem this weekend the big game is………………..yes its the Noisy Neighbours hosting Spurs and they cannot lose this one as Liverpool are at Cardiff who play every week against 12 men…Chelski are entertaining Burnley and the Red Devils have a tricky visit to the Toffees whilst the Gooners have the Eagles.
Big weekend for Euro rugby as Sarries take on Munster…
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