Opinion

Oil price, Shell, Petrofac, Sound Energy, And finally...


Oil price

Traders told me yesterday that the market was looking to have a correction so when the EIA inventory stats came out, although initially pleasing, they found some dirt. That was in the fact that although there was a useful draw of 2.6m barrels, better than forecast and the API number it was ‘in the wrong place' as in on the West coast and in fact at Cushing it was a build. You can only please some of the people some of the time.

Shell

It is sad to see Simon Henry leaving Shell, for me and many others he has been Mr Consistent as head of IR and then CFO. But he deserves the rest it will become and a life of luxury although I suspect many non-exec jobs beckon. He is replaced by Jessica Uhl who was with Enron in Panama before which is scarier than it really is one hopes…

Petrofac

I will come back to PFC and other OFS companies later in the week, time is short today but the trading update this morning is a bit mixed. Net profits are expected to be in line with expectations at around $410m with the Group, ex IES, better at $465m but a worse situation at IES of a loss of $55m. The sooner Ayman can boot that lot into touch the better. As one might expect revenues are ‘record' and the company is running very efficiently but order intake at $1.4bn is low field and the backlog is only $14.5bn. The market remains ‘challenging' but I expect order inflow to pick up sharply in 2017 as delayed orders come through.



Sound Energy

An update from Sound this morning, at TE-7 the reservoir pressure correlates with previous wells which is further good news from Tendrara. They also announce that TE-8, the step-out well is going to be a full 12km from TE-7 a confident call and they will drill for the TAGI and the Palaeozoic there. As for numbers they have announced that they have put 1.5 TCF as the top end for TE-8 alone which puts the range at 0.5 (up from 0.3) – 1.5 TCF. After all that the company will produce a CPR and if all goes to plan add more value to the play. With this and Badile likely to spud also in February the momentum at Sound continues and shareholders have much to look forward to next year.

I will catch up with a number of other results etc tomorrow.

And finally…

A busy night of football last night as Chelski cemented top spot in the league and wins for the HubCap Stealers, Spurs, the Noisy Neighbours and the Red Devils keeping the pot boiling.


Visit source site

malcysblog.com/2016/12/oil-price-shell-petrofac-so...

Malcy's BlogShellSound EnergyPetrofac

More items from malcy


Oil price, Echo Energy, Cairn/FAR, Sundry-Ophir-Faroe-Various broadcasts- And finally…

Oil price Momentum seems to be the watchword in what is a particularly lethargic market at the moment, general blaming of Opec and Non-Opec production from Nigeria, Libya and the US is deemed to cover the situation. Whilst on those organisations it seems that Opec compliance in May was 108% and No ...

Malcolm Graham-Wood - Malcy's Blog


Posted 1 day agoOpinion > Malcy's BlogEcho EnergyCairn Energy +3

Oil price, Sound Energy, Rockhopper, President, Sundry-Enteq-Bahamas Petroleum- And finally...

Oil price The oil price rallied yesterday on no particular reason, Opec production was up a little but mainly due to Nigeria and Libya who are outside the agreement. The API stats which come out after the close were poor showing a build of 2.8m barrels of crude and prices have dropped modestly thi ...

Malcolm Graham-Wood - Malcy's Blog


Posted 7 days agoOpinion > Malcy's BlogSound EnergyRockhopper Exploration +3

Oil price, Faroe, Wentworth, Sundry-Petrofac-Echo-SOCO-Touchstone-Chariot-Sirius- And finally...

Oil price A quiet day in the markets according to my man at the bourse, oil gained modestly as reports of the Saudi export cutbacks to the USA and Far Eastern clients via price rises and restrictions fed through to markets. As we enter the peak of summer in the Gulf, with its highest domestic use ...

Malcolm Graham-Wood - Malcy's Blog


Posted 9 days agoOpinion > Malcy's BlogFaroe PetroleumWentworth Resources +6

Oil price, Amerisur, President, Echo/Rockhopper, Sound, Sundry-EOG-Trinity- And finally…

Oilprice A poor week for oil as well documented supply issues took the best part of 4% off the prices. Friday recovered slightly as Nigeria suffered a pipeline incident and the outage ensured that Shell played hard ball. The rig count grew again, overall the count was up 11 units at 927, in oil it ...

Malcolm Graham-Wood - Malcy's Blog


Posted 10 days agoOpinion > Malcy's BlogAmerisur ResourcesPresident Energy +5

Oil price, Providence Resources, And finally…

Oil price The oil price did rally yesterday for a while as the market rather enjoyed the Chinese import data which showed that May was the second highest month ever and that demand was picking up. Later in the day though, the market drifted on nothing much apart from gossip about Nigerian producti ...

Malcolm Graham-Wood - Malcy's Blog


Posted 13 days agoOpinion > Malcy's BlogProvidence Resources
All posts from malcy