WTI $60.67 -$1.00, Brent $70.65 -$1.42, Diff -$9.98 -6c, NG $3.54 -1c
Sometimes its the b obvious that doesnt sink in as quickly as it should….Way before November 5th the Iran situation was in the price and when the US were a touch more generous to buyers of their crude this week fuel was added to the flames. Opec+ Ministers who meet in Abu Dhabi this weekend are going to have to ensure that the December 6th meeting seriously considers production cutbacks, possibly back to the November ’16 levels if this price malaise is not to get a whole lot worse.
The week has been intense but a great success and the quality of the speakers has been very good. Yesterday morning was back to the big boys with the likes of Tullow on Global Funding Strategies and M&A for African Upstream, even the title scares me. Later it was very much a gas day with the FLNG project in Cameroon providing useful food for thought and later the outlook for gas sales panel was very good. Obviously Jay B held up the Aminex corner but the speaker from the Ghana National Gas Company spoke more sense than I have heard for a long time.
Far has announced that the Samo-1 well in The Gambia was unsuccessful with the main target horizons being water-bearing. Whilst this is a surprise and a massive disappointment to the company, data retrieved was very interesting. Oil shows were encountered at several levels and indicate an access to a hydrocarbon charge system. In addition the well also encountered excellent reservoir and seal facies indicating that all the key components for a successful trap are present.
Far should not lose hope here, this well de-risks a portfolio of prospects and leads in blocks A2 and A5 which should unlock the hydrocarbon potential in the area. The result was not what the company expected and as this was the first offshore well here for 40 years I think that the results will be looked at long and hard before anyone throws in the towel, certainly not Far.
Infrastrata announced late yesterday…that it has received a LOI from a ‘major (blue chip) gas trading company regarding potential utilisation of its off-take at the Islandmagee storage facility. Things are really moving apace at INFA with much going on in recent months. This news is very positive as the FID case has to be enhanced by having a trader on board, still much to do but looking very positive.
The Gaffney Cline estimates for Block 29/11 in the Pearl River Mouth Basin have been upgraded by 9% to 884 MMbbl (814). The Jude and Topaz GCOS are now 32% and 30% respectively and confirms EME’s view on the potential size and attractiveness of these projects. To be honest I would consider that these plays are not only potentially much bigger and with a better GCOS that GCA have given but that is only to be expected, onward and upwards for Empyrean.
A bit abridged again but England comfortably beat Sri Lanka this morning by 211 runs to go 1-0 up in the three match series.
F1 is at Interlagos in Brazil for some more formalities and the constructors trophy.
In the footy it’s all about the Manc derby with the Red Devils visiting the Noisy Neighbours. Liverpool are hosting Fulham which looks a formality just now, whilst Chelski take on the Toffees, the Eagles welcome Spurs and the Gooners have Wolves at home. And of course the First Round of the FA Cup.
A year ago England v the All Blacks at Twickenham might have been close but at the moment probably a work in progress for Eddy Jones’ team. Scotland play Fiji, Wales face the Wallabies and Ireland host the Pumas.
It’s Bellew v Usyk as well with the scouser very much odds against but never rule him out…
On today's podcast: W Resources provide an update on progress at La Parrilla, its tungsten-tin mine in Spain. Emmerson completes the Environmental Baseline Study at their potash project. Malcy talks about: Eco Atlantic O&G, Range Res, Bahamas Petroleum & Hurricane Energy. John Stepek author of Sceptical Investor.
SP Angel daily look at commodities and miners, featuring: Bluebird Merchant Ventures* (BMV LN) – Funding raised to complete pre-construction phase for Gubong gold mine Cora Gold* (CORA LN) – Sanankoro oxides demonstrate up to 97% gold recoveries Chaarat Gold* (CGH LN) – Joint venture to build gold mine in Kyrgyzstan Strategic Minerals* (SML LN) – Moving to 100% ownership of Redmoor
John Peters, Managing Director of Strategic Minerals, commented: "The recent resource upgrade has highlighted the potential world class nature of the Redmoor Tin/Tungsten project and has given the Board confidence to consolidate control.”
Five financial stories, trending today in a 70 second podcast, including: Accrording to the the British Chambers of Commerce, UK companies look set to cut investment by the most in 10 years in 2019 because of Brexit, even if Prime Minister Theresa May gets a deal to ease the country out of the bloc.