The Oil Man: President Energy, Providence Resources, Touchstone

The Oil Man: President Energy, Providence Resources, Touchstone
  1. The Oil Man: President Energy, Providence Resources, Touchstone
    Oil industry analyst Malcolm Graham-Wood has seen it all. He gives Interactive Investor his opinion on the sector's top stories. Article Analysis and Commentary ii Malcolm Graham-Wood (ii AUIIT) Top News …
The Oil Man: President Energy, Providence Resources, Touchstone

WTI $46.54 +46c, Brent $48.91 +49c, Diff -$2.37 +3c, NG $2.98 +2c

Over two dollars up on the week and another 25 odd cents up this morning, after a week in which demand buoyancy overtook supply concerns in people's minds.

With Chinese requirements apparently increasing, (how quickly people forget how that market is growing) and North Dakota falling, albeit by only 10,000 barrels per day, the market tightened aided by stock draws across the board.

Friday saw the rig count which showed no increase overall and a modest rise of two in oil to 765 units. Falling production, albeit temporarily from Nigeria and the Republic of the Congo, also helped slightly.

President Energy

An operating update from President Energy (PPC) this morning, which again shows good progress in the workovers taking place at Puerto Guardian in Argentina. The workovers at PG 21 and Dos Puntitas 15 have brought on new production and the water disposal well at DP 8 is now complete.

A genuine success story has been at CGr-20 on the Canada Grande field, which has not seen production since 2011, and is now flowing at 50-80 barrels per day under natural pressure from a previously untouched and ignored section of the reservoir. This means that the company can now consider other old wells in the field as undrilled prospectivity there.

The rig now moves onto the next workover, which is PG-19, whilst facility upgrades continue to facilitate the extra production in the area. All this is increasingly good news for PPC as it brings on more production especially at a 'new' field on its PG licence.

With its protection from the possibility of any fall in the oil price, increasing production and 34 years remaining on its production licence, almost 20 million barrels of oil equivalent of independently audited 2P Reserves are looking increasingly valuable, something not yet appreciated by the market.

President remains a hidden gem at the moment, but with growing excitement in South America it will surely not remain in the dark for long…

Providence Resources

A technical update from  (PVR) on the Avalon prospect is out today and shows a working petroleum system, where 'significant hydrocarbon potential' could exist. Although a long way off, this shows that there is a lot of potentially exciting upside in PVR's portfolio, although all eyes for the time being will be on the Druid and Drombeg well currently under way.

Touchstone Exploration

A second quarter update from Touchstone Exploration (TXP) who say that production was 1,335 barrels per day at a price of $45.51 per barrel, the company suffered minimally from TS Bret. This has now increased to 1,455 barrels per day in July and shows that production continues …

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