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Premier Oil PLC
27 June 2019
Premier Oil plc
("Premier")
Significant resource upgrade at Zama following conclusion of appraisal
campaign
27 June 2019
Premier is pleased to announce that it has significantly increased its
resource estimate of the Zama field offshore Mexico, following its evaluation
of the data acquired from the highly successful Talos Energy-operated Block 7
Zama appraisal campaign. The campaign comprised two appraisal wells (Zama-2
and Zama-3) and a vertical side-track (Zama-ST1) which was flow tested.
The latest appraisal well, Zama-3, has proven the lateral continuity of the
reservoir 2.4 kilometres to the south of Zama-1 with the quality of the
reservoir sands encountered at the upper end of expectations.
A comprehensive set of data was acquired during the campaign, including high
resolution wireline logs, extensive fluid sampling and pressure data, together
with the recovery of over 400 metres of core and a drill stem test to confirm
well productivity.
The data has demonstrated reservoir properties at the upper end of
expectation, including a higher net-to-gross ratio, better porosity and
increased hydrocarbon saturation. This has resulted in a higher estimated
oil-in-place and ultimate recovery from the Zama field. Consequently,
Premier has refined its gross resource estimate of the Zama structure to
670-810-970 mmboe (P90-P50-P10).
Tony Durrant, CEO, commented:
"We are delighted with the results of the latest Zama appraisal well which,
together with the positive results from the earlier appraisal wells, has
caused us to significantly upgrade our resource estimates of the Zama
structure. Our focus now turns to selecting the optimal development for the
field, ahead of taking a final investment decision next year."
I presume that target was based on filling the gap which has now been done.
Well done, if you closed it out.
From a TA perspective Capra was absolutely correct, however the support at 67.6 held and formed a double bottom which also coincided with unexpected news events ECB / Iran etc.
I too am gutted at missing out on 68, however still have a large holding.
GL
SINGAPORE, June 21 (Reuters) – Brent oil may gain more into a range of $66.43-$68.07 per barrel, as suggested by a retracement analysis and a double-bottom.
The range is formed by the 50% and the 61.8% retracements of the downtrend from $73.40 to $59.45. The contract is testing a resistance at $64.78.
Based on the current strong bullish momentum, this resistance may be broken. A break could open the way towards $66.43. The double-bottom forming around $59.45 has been more or less confirmed. It indicates a target around $68.07.
A fall below the June 10 high of $64.10 could signal the failure of the contract to break the resistance at $64.78. Oil may then retrace towards $62.74.
On the daily chart, another retracement analysis on the uptrend from $49.93 to $75.60 marks various supports and resistances. It appears that these levels are better supports than resistances. The resistance at $65.79 may be ignored.
DBNO, be careful, once the herd pile in this could move up quite rapidly.
Pumped and dumped, notice the absence of yesterdays cheerleaders.
Still waiting for 55p.
GLA.
Trump could turn around US / China trade, however I foresee an escalation as more likely.
What do you think would happen to POO if China resumes purchasing oil from Iran? WTI @ $40?
Not sure of your logic regards 63p, supports at 67.6, if that fails and its dipped below already today then next stop 55p followed by 45p imo.
GL.
MrEMC2, I suspect the reduction may need to be revised possibly in the next update due to the falling oil price, may not meet guidance imo.
Can anyone confirm at what oil price the debt reductions were calculated at?
Either events could create a small blip in the downtrend but as demonstrated last week with the tanker incidents, these were simply selling opportunities.
The trend is down, PMO hit new lows today already.
May need to revise down my targets soon :)
GLA.
MT,
750k b/d no problem if this was a one off event, there's 365 days in a year and you're quoting IEA prediction of increase 1.38m b/d surplus. Unless there's a major escalation in the middle east which no-one wants or a break through in US/China trade again equally unlikely I expect a further deteriation in the POO and ti see previous lows hit again.
It's a SELL btw imo.
MT, it's not balanced or even close to becoming so according to the IEA data you've presented. You've described a 1Q 750k b/d surplus with a worsening situation through 2019 / 2020 based on increased supply / demand. Its absurd to argue that this is positive for oil / PMO.
MT,
With all due respect, that's nonsense.
You stated "what is the current global supply / demand deficit?", however there isn't a supply / demand deficit for oil, there's a surplus hence the builds in crude. I can't explain it any simpler for you, the figures are in the OPEC monthly report.
And if you want any more substance that PMO / POO is going down look at the share price, FF5.
GL
Target 55p
Out of interest what is the current global supply / demand deficit?
MT, it's not in deficit, supply is greater than demand with the situation expected to worsen in 3Q. Opec are hoping to rebalance by the end of the year 4Q.
Take a look at Opec MOMR June.
GL.
Target 55p
MT, I agree look beyond the headlines, look at global trade, freight is down year on year. The markets are slowing while US oil production continues to increase, POO is down reflecting this, the Iran risks are doing little to sustain the decline. Until POO bottoms out it will continue to take PMO with it.
GL
Target 55p.
Balanced?!?!
EIA are reporting builds almost every week.
The Saudis are hoping balance by the end of year, assume that's with continued OPEC cuts?
Drawdowns would be typically expected in the summer period but there's builds, what do you think will happen at the end oc the summer driving season, hope am wrong but I'm expecting the situation to worsen.
GL
Target 55p
No, it's been dropping since April, when the market changes, get out or be left holding the baby imo.
The larger II won't hold, they'll close out regardless whether it's a loss or not if they suspects its further to go.
Target 55p.
Hope you managed to get out of that last trade.
The trend is your friend......
Target 55p
No chance imo, it's in a downtrend, the rises are not sustainable and being sold in to, expect POO to retest the recent lows but will it break below?
Target 55p