Posted by Malcolm Graham-Wood - Malcy's Blog
WTI $68.05 +35c, Brent $74.00 +14c, Diff $5.95 -21c, NG $
A very short blog, I am out of my office and running on borrowed internet time. Oil was up yesterday and again today, after all the French kissing Macron went and ruined it all by saying something stupid like, I dont really like what you stand for Mr President. The stuff about I Ran went down like the proverbial and Donald is likely to go his own way to keep the musical analogy going, accordingly geopolitics continues to dominate the short term oil price.
Jersey Oil & Gas
It was a very good year for JOG but now we are looking front and centre and the company is in very good nick. With cash of £25.4m and the summer drilling and seismic programme planned to be at the top end of the forecast £9-11m of capex, JOG is set fair. Statoil is planning a Verbier appraisal well and possibly a sidetrack and with the seismic programme looking for Verbier analogues there is much scope for upside. At 210p JOG looks astonishingly undervalued.
Readers will know that I have been much more positive on GENL in recent months and today's Tawke PSC updates gives a clue to all the good things going on at the company at the moment. The company announce that 15/- b/d of production from 2 Peshkabir wells is to be co-mingled with 90/- b/d from Tawke to be exported through Turkey.
Meanwhile three new wells at Peshkabir have been fast-tracked with the 4 well on production testing, the 5 well drilling ahead at 2,250m and the 6 well spudded last week and will also be an exploration well for the deeper Triassic formation. All looking good and i'm looking forward to a big session with the company's senior management next week.
Two links today, firstly my Monday Voxmarkets Podcast where I had much to say about the following companies…
And secondly I was very fortunate to have in for my Core Finance CEO interview slot, Andrea Cattaneo of Zenith Energy, here is the full interview.
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