WTI (Nov) $70.39 -19c, Brent (Dec) $74.22 -3c, Diff -$3.83 +16c
USNG (Nov) $2.37 -30c, UKNG (Nov) 98.84p -1.35p, TTF (Nov) €39.82 -€0.62

Oil price

Oil is quiet today, waiting for further activity in the Middle East as Israel contemplates its next move. The API stats after the bell showed a draw of 1.580m barrels against a forecast of a build of 3.2m b’s and perhaps more importantly a substantial draw of 5.926m barrels of gasoline and 2.672m of distillates down was very encouraging even taking into account the effects of the hurricane. 

Finally, as I write there are news reports of the death of the Hamas leader, Yahya Sinwar in Gaza, without confirmation as of yet.

Genel Energy

Genel has notified Nordic Trustee AS that the Company calls $75 million of the outstanding bond amount relating to ISIN NO 0010894330 with a maturity date in October 2025 and a fixed coupon of 9.25% per annum, at a price equal to 101.85% of the nominal amount. The total amount outstanding before the call is $300 million, resulting in $225 million remaining after the call option is exercised. The Company will cancel the bonds that it holds, leaving $66 million outstanding. The call will have settlement date on 30 October 2024 and record date on 28 October 2024.

Another $75m has been called by the company which is a very wise move given the cash in the balance sheet and until something else comes up it is a highly efficient way of deploying resources. 

Union Jack Oil

Union Jack notes media speculation regarding the planning permission for further development of the Wressle well site.  

The Company confirms that it is aware of a letter that has been addressed to North Lincolnshire Council, informing the Council of an intention to challenge its decision to grant planning permission for an extension to the Wressle well site, long term oil and gas production and construction of an associated pipeline at Wressle (see announcement dated 16 September 2024).

Union Jack holds a 40% interest in the Wressle development and Europa holds a 30% interest in the Wressle development.

A further announcement will be made when appropriate.

No great surprise here, just when the companies involved thought that there had been an extension for Wressle then mysteriously a letter allegedly purporting to challenge that decision arrives in time to overturn the decision.   

In my view this looks like another kick in the teeth for the UK energy sector, I am expecting the Council to give in to the protest and prove how right it was for UJO to move stateside where they can produce oil & gas and profitably as well. 

Europa Oil & Gas

Europa notes media speculation regarding the planning permission for further development of the Wressle well site.

The Company confirms that it is aware of a letter that has been addressed to North Lincolnshire Council (the “Council”), informing the Council of an intention to challenge its decision to grant planning permission for an extension to the Wressle well site, long term oil and gas production and construction of an associated pipeline at Wressle (see announcement dated 16 September 2024).

Europa holds a 30% interest in the Wressle development.

A further announcement will be made when appropriate.

As above, I can’t help feeling that this challenge will be sustained and yet another obstacle put in the way of providing safe, low carbon hydrocarbons for UK domestic consumers. EOG has also been wise enough to spread its risk and has other exciting projects outside the UK and may have to develop other areas of the portfolio using Wressle cash flow.

KeyFacts Energy Industry Directory: Malcy's Blog