Oil price, Premier Oil, Thalassa, Ophir, Providence Resources, Sundry-Shell-SDX-Egdon etc-Range Resources-AMFW- And finally…

The EIA inventory stats followed the API numbers and reported a healthy draw of 7.6m barrels as predicted here but not by the goons on the Street who had crayoned in 2.3m barrels. Mixed news though with production still high, Libya up again and the KSA slightly exceeding quotas, (but only as predictable summer demand for power kicked in) and the Opec report trimming next year’s demand figure by 60/- b/d.

I would have liked to have been in Pimlico yesterday as Tony Durrant and team celebrated the coming in of the Zuma-1 well offshore Mexico yesterday, reasons to be cheerful, part one and maybe more. Even Woodmac have confirmed that it may even be world class, although the last thing PMO want just now is another discovery with associated costs although it is a nice problem to have. It may just kick them into selling or farming-out something, maybe Tolmount could go, it was after all an unexpected gift to receive.

Today’s trading update therefore has rather a spring in it’s step with production of 82,100 boe/d ahead of guidance of 75/- which itself surely must be revised up after the summer maintenance programme. So, operationally, as has been the case for the last 18 months, things are in pretty good nick, even Catcher looks to still be on time for first oil this year although it is refreshing to see that Solan is still a basket case. The refinancing is just waiting final technicals and will complete by the end of this month which should give the team the chance to get on with the job in hand at last. That should mean FEED on Tolmount and may be farm-out, ditto Sea Lion, Mexico looks genuinely exciting all that remains is to get a bit of cash in on one or two of these projects to keep the bank manager off their backs. A bucket list stock that is at long last repaying a bit of faith put in it…


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