WTI (Apr) $66.90 -68c, Brent (May) $70.56 -51c, Diff -$3.66 +17c
USNG (Apr) $4.05 +3c, UKNG (Apr) 103.24p +1.82, TTF (Apr) €42.235 +€0.925

Oil price 

Oil is unchanged this morning as I write, no fun expected from the Fed this afternoon but action from Ukraine is still filling news inches and without any certainty about any potential result. 

Re my chat about the Trump effect on oil prices, all his policies working in different directions. I note that speaking at CERA Week the legendary Harold Hamm said that ‘Drill baby Drill’ needs $80 oil and almost as legendary Scott Sheffield, founder of Pioneer Natural Resources said that the policy won’t work at sub $60 oil. Couldn’t agree more…

Waiting for the EIA inventory stats, last nights API data was very mixed, crude built by 4.593m barrels against the whisper of +1.17m although gasoline drew 1.708m and distillates also drew by 2.146m as one might expect, let’s see tonight’s stats then…

Diversified Energy Company

Diversified Energy announced on November 12, 2024 a dividend in respect of the quarter ended September 30, 2024 in the amount of 29 cents per share (the “Q3 2024 Dividend”.) The Company will pay the Q3 2024 Dividend on March 31, 2025 to those shareholders on the register on February 28, 2025.

The Company announces that shareholders who have elected to receive their dividends in GBP sterling will receive an equivalent dividend payment of 22.241 pence per share, based on the March 17, 2025 exchange rate of GBP 0.76693=US $1.00.

As always I just put this in for information just in case data slipped through.

Serica Energy

Serica has announced that, following conversations with the operator, Dana Petroleum, regarding the timeline required to deliver the scope of work, production from the Triton FPSO is now not expected to recommence before May. It was previously anticipated that critical repairs following the aftermath of Storm Éowyn in January would be completed, and production would then resume, in mid-to-late March.

Due to the ongoing maintenance issues and the performance of the Triton FPSO over the last 12 months, the Company is discussing with Dana all options to secure a lasting improvement in the operating performance of the FPSO.

Chris Cox, Serica’s CEO, stated:
“Our frustrations with the ongoing performance of the Triton FPSO have been well documented – it is not good enough for Serica, and it is not good enough for our shareholders. Our drilling results around Triton have been tremendous, and these need to be converted into sustained production and cashflow. We are working closely with Dana to help support them with the current work, and to drive the change required to deliver a more predictable production performance going forward.”

It’s difficult to add very much to my last comment on Triton but frustrations have certainly built up, with Chris Cox’s comments showing clear annoyance that the Triton FPSO has not been maintained to the standard that Serica would themselves have done so.

But as I said before, whilst frustration is understandable, there are offsetting pluses such as the drilling on the Triton wells showing much better results than expected, the fact that production is deferred and not lost and of course that some upgrade work on the FPSO will enable extension of field life in the longer term.

Accordingly, I remain sanguine about short term news given that the value of Serica is not hit by such an engineering blip and remain confident about its position in the Bucket List.

Angus Energy

Angus has announced Deferred Consideration and Update on New Compressor, Deferred Consideration, Interest Shares and Total Voting Rights.

Pursuant to the Revised Forum Arrangements previously announced on 22 February 2024, the Company has received a conversion notice from Forum for £1,000,000 of the Deferred Consideration. The conversion notice covers principal payments due up to and including 31 December 2024 and will be converted into 427,893,123 Angus Energy Ordinary Shares. The Company will also be issuing a further 137,145,481 Angus Energy Ordinary Shares (together, the “Deferred Consideration Shares”) in relation to accrued interest until 31 December 2024.

The new shares will rank pari passu with the Company’s existing shares and application has been made for the Deferred Consideration Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the Deferred Consideration Shares will commence at 8:00 am on or around 24 March 2025.

Paul Forrest, on behalf of Forum said: 
“As a committed shareholder, this conversion reflects our confidence in the Company’s future and its continued growth potential. This is a long-term commitment, and we look forward to the Company returning value to us all.”

For the purposes of the FCA’s Disclosure and Transparency Rules (“DTRs”), following Admission of the new Ordinary Shares, the total issued share capital of the Company will consist of 4,986,893,414 Ordinary Shares, each with equal voting rights.

Booster Compressor update

The installation of the new booster compressor is progressing well with commissioning and start-up on track to occur before the end of March 2025. The compressor will allow Angus to operate Saltfleetby at lower well head pressure, increasing production levels and field recovery.

Good news today for Angus on both fronts, Paul Forrest’s comments are important and their faith and long term confidence is not only important but also financially highly supportive.  

And of course the installation of the new booster compressor will vastly improve efficiency and econometrics should get better thus confirming my view that Angus shares are very attractive at these levels. 

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog