WTI $39.95 -72c, Brent $41.99 -66c, Diff -$2.04 +6c, NG $2.61 +9c
As ever, mixed news for the oil sector with yesterday’s initial news of hopes being dashed for a new stimulus package bringing prices down, later it seemed President Trump changed his mind. Against that was the news on the Norwegian oil strike which this morning seems to be on the verge of spreading to the Johan Sverdrup as commented by Lundin, the next crew rotation is 14th October…
Finally the EIA inventory stats which actually looked modestly better than forecasts, crude rose by 501/- barrels but gasoline and distillates both drew on higher product demand, on higher refinery utilisation.
3Q production was 13,600 bopd down from 14,300 in the 2nd quarter and since 11th September Lancaster is producing 14,500 from the 6 well alone with a 19% water cut and is exhibiting a limited decline in oil production rate accompanied by a limited increase in water cut.
Average production guidance of 12,000 – 14,000 bopd for the period 1 September 2020 to 31 December 2020 remains unchanged.
The decommissioning bond agreement has been terminated and cash of GBP16.8m is being held in trust to meet the company’s obligations.
Surprisingly at this stage it appears that there was no comment from the CEO, at least I couldnt find one, likely my error.
An operational update from MATD where the Block XX exploitation licence has still not been approved in what seems to be delays in finalising nominees for the Petroleum Sub Committee of the MMHI. Whilst the company is clearly working hard on this the timing (and I’m assuming the substance is aok) it is not in their gift and there will still be an unquantifiable delay. This is despite the approval of the DEIA for the Heron development which is very good news.
Finally the company announce the retirement of CFO John Henriksen wef December 2020.
Mike Buck, CEO of Petro Matad said:
“Whilst the delay in progressing the Block XX Exploitation Licence application has been unfortunate, we are doing all we can to support the authorities to expedite the MRPC meeting and we have completed all the necessary preparations to be ready for the subsequent phases of the approval process.
Meanwhile, securing the approval of the DEIA is a major achievement and we are pleased to have this in hand. We also continue to carefully manage our cash resources whilst we pursue the permits we need while investigating various funding options for our future operations.
H1 results yesterday from Getech which are up with previous updates from the company. More important is the change of direction from the company who are still growth focused but are moving away from oil & gas and into mining, geothermal energy and the hydrogen economy.
In this respect the company has received 5 MOU’s from potential partners and is looking at over 100 acquisitions of which 7 have been taken to due diligence and 2 are still in negotiations. Again, I couldn’t find a comment from the CEO.
At the Euro footy tonight Northern Ireland is in Bosnia-Herzegovina, the ROI are in Slovakia and Scotland play Israel.