Malcy’s Blog – Oil price, Bahamas Petroleum, Providence Resources…

Oil price, Bahamas Petroleum, VOG, Providence. And finally…

WTI $36.17 -$1.22, Brent $37.65 -$1.47, Diff -$1.48 -25c, NG $3.30 +30c

Oil price 

Whilst the huge increase in the virus numbers, particularly in Europe have continued to cause concern, not least for economies, demand numbers are still under pressure. This is clearly troubling oil markets which are worried that with extra oil due on the market now due in two months time the price will tumble.

There are however signs that Opec+ are seriously considering postponing the 1 January increase with Russia, the KSA and now others saying that the decision is not a given. The next major meeting of the Opec and non-Opec Ministerial Meeting is to convene on 1st December but you never know it may be brought forward especially if speculators are deemed to be shorting the crude market.

Bahamas Petroleum (LON:BPC)

Yesterday I had the great opportunity to interview Simon Potter, CEO and Eytan Uliel, Commercial Director of Bahamas Petroleum, the link is here.

A Bright Year-End: Malcy talks to Simon Potter and Eytan Uliel of Bahamas Petroleum

 

Victoria Oil & Gas (AIM:VOG)

from VOG today with more to come after I have spoken to the company. Revenue was $12.6m ($10.7m) giving an adjusted net loss of $0.8m ($3.7m). This gave $6.1m of cash generated from operational activities before working capital movements and led to a debt position of $12.5m (End Dec 2019 $10.7m).

This period saw the end of the ENEO power contract meaning sales from Logbaba fell by 51% to 881 mmscf from 1,785 mmscf 1H 2019. With one new industrial power customer in the period there was a 13% increase in thermal and industrial customer gas consumption compared to 1H 2019.

In Q3 operating highlights there was a net revenue of $35.3m from net sales of 4.7 mmscf/d of natural gas plus a gross 2,438 bbls of condensate. A peak of 6.1m mmscf/d was registered in October and one new thermal power and one new industrial customer will be tied in shortly.

VOG has so far this year lost the CEO and CFO who have been replaced by Roy Kelly and Rob Collins respectively. Chairman Roger Kennedy who as of now is back to being in a Non-Executive role commented.

‘We are pleased with the resilience that our Cameroon business has shown through recent times and the early strides made to replace the gas sales volumes previously allotted to ENEO. The Logbaba reserves reduction reflects adjustments based on the current well stock but leaves the Company with several years of supply with or without the grid power demand even without further development drilling.  The work programme on Matanda has yielded encouraging and significant prospectivity on the licence, in what is a rich hydrocarbon province. We are also encouraged by the interest in our West Med asset’.

 

Providence Resources (AIM:PVR) – Delay, deja vue all over again…

Providence has announced that its farm-out of Barryroe to SpotOn Energy has been delayed to November 30th 2020. I don’t see this as being a problem and this weakness looks to me like an opportunity to buy into this exciting if still delayed deal.

CEO Alan Linn commented;

“Despite the ongoing Covid constraints, we have made excellent progress in agreeing farm-out terms, for an interest in Barryroe, to SpotOn Energy, and are working very closely with them to finalise the agreement documentation. The farm-out is structured to ensure that the development is fully funded and  includes an Early Development Scheme (EDS) work programme for the Barryroe oil and gas field located in Standard Exploration Licence 1/11. It is important that the partnership agreements and work programme are comprehensively documented and this process requires some additional time to complete’’.

And finally…

Plenty of good sport over the Halloween weekend with the star billing tomorrow going to the much delayed 6 nations finale, With Wales v Scotland at lunchtime, Italy v England at teatime and France v Ireland in the evening many different permutations are possible but only Ireland have the title in their own hands.

It is the Emilia Romagna GP on Sunday at Imola with Lewis planning on further domination, a two day meet practice starts tomorrow.

The Prem continues with Wolves v the eagles tonight and tomorrow the Blades host the Noisy Neighbours, Chelski go to Burnley and Liverpool host the Hammers. Sunday sees Villa entertaining the Saints, the Toffees going to St James’s Park, Spurs hosting the Seagulls and the Gooners going to the Theatre of School lunches.

Jump racing sees the Charlie Hall at Wetherby and a good card at Ascot.

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