Oil price, iog, Cairn, Union Jack – And finally…

WTI $58.41 +40c, Brent $64.27 +62c, Diff -$5.86 +22c, NG $2.47 +6c

Oil price

Another up day yesterday although that was by no means certain trading hours early on. On the plus side President Trump said that we are in the final throes in reaching an agreement with China so maybe 15th December may go alright…

The API stats were indifferent, the teenage scribblers got their numbers wrong as they usually do and the stock build of 3.6m barrels was about 3.2m more than they expected. Distillates built a huge 4.4m but you only have to keep an eye on the weather to get that one right. Interestingly today the prices are stable so no panic going on ahead of the EIA numbers later and with Thanksgiving tomorrow prices are usually high wide and handsome in other markets.


A big day for newly named iog yesterday, no I havent lost the capital I on my computer the new Monica avoids confusion apparently. They also announced some management changes with Rupert Newall being made CFO and going on the board whilst James Chance takes over his portfolio as Head of Corporate Finance and IR.

Of more importance was the analysts presentation which was well attended and well received. The updated presentation, now available on the website is aimed at defining the delivery of the Core development with partner CER, part of Berkshire Hathaway Energy and with the exception of the decision on Harvey by CER all is ready to rumble.

They are now fully funded to develop the 6 gas fields totalling 421 Bcfe which will deliver peak annual production of 140 MMcfe/d with incremental appraisal opportunities via the efficient hub strategy which to be fair has always been an iog concept. Overall the company were able to point out that the Core development delivers strong returns and significant cash flow with, importantly a very low carbon footprint. Over to the company now with rebooted management team and an exciting project to deliver.

Cairn Energy

Cairn has announced that it has sold its remaining Norwegian assets to Solveig for $100m +/- which delivers a reduction in commitment exploration and development capex of c.$100m. Gives Longboat an idea of prices in the market at least…Read More – Source