Current $63.06 and has risen off a 6 wk low of $61.24. Do not expect any fireworks today, we'll see if 500 can be held, are you in or out ahead of the w/end? Presently I have no choice as I have missed many chances to close from recent 640. My masterly inactivity strategy is not going well. Plain stubborn or plain stupid?
OSLO, Norway, May 28 (UPI) -- Norwegian energy company DNO said Thursday it plans to invest more on its assets in the Kurdish north of Iraq as the business cycle improves.
"We are ramping up production, export and local sales following the recently completed Tawke capacity expansion," Executive Chairman Bijan Mossavar-Rahmani said in a statement. "We will dust off investment plans as our revenue stream continues to grow."
DNO in a quarterly statement early this month said weak sales to the Kurdish market and the low price of oil forced it to cut capital spending on the back of reduced revenues.
For first quarter 2015, production from the DNO-operated Tawke field in the north of Iraq was 104,925 barrels of oil per day, of which about 8 percent was sold in the local Kurdish market. For the current quarter to date, the company said production averaged 146,309 bpd, of which roughly 18 percent was sold in the local market.
The Organization of Petroleum Exporting Countries said in its latest monthly market report total Iraqi oil demand declined by about 100,000 bpd in March, the tenth straight month of decline.
DNO in early May completed a two-year investment program to double the number of wells in the Tawke prospect and improve pipeline capacity. It set a daily production record at Tawke of just over 150,000 barrels of oil and installed capacity to hit the 200,000 bpd mark.
Main reason for the pullback is the drop in oil price, plus worries over the imminent OPEC meeting - and of course other factors such as Iran hitting record levels of production and Saudi doing direct deals with China to take extra oil. Oil price is doing pretty much what i expected and hence why i sold when i did - plus any other oilies that i held as they'd had a good run but as is always the case with any correction it tends to be overdone on sentiment (same as drops are often overdone - Brent hitting $45 being a good example! - unless there is some really bad company specific news). This is still one of those where i think a takeover could come out of the blue at any time - more so than most other producers i can think of. In terms of the GKP rise today i think that was to do with talk of another payment coming imminently.
DNO has said that they have achieved record production from Tawke and have got up to 170/- b/d of which 30/- b/d is for local consumption, the rest for export. With upgrades complete one can expect up to 200/- b/d which bodes well for Genel (LON:GENL) which is ludicrously cheap having come over 100p off the recent high for no sensible reason.
I do think that some of the difference would definitely made up if there was an offer for Genel. I actually think the Kurd troubles are costing more than 100p to be honest, any takeover offer would have to be well well above the 530p that we are currently sitting at.
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