Very interesting article on Yahoo finance. The article is linked from Oilpricedotcom. If you also link to "U.S. Oil Glut Story Grossly Exaggerated" also on this site there is an interesting case that the US Numbers are mostly a US government reporting mistake.
A very interesting read
My guess is we are no more than 60 days from some definitive results on the grade. Does that meet your assumptions as well?
Very positive development for oil investors in Argentina
"Buenos Aires, 24 June (Argus) — For more than a decade, one executive was the visible face of opposition to the state-oriented energy policies spearheaded by late former president Néstor Kirchner and his wife and successor President Cristina Fernández de Kirchner: Juan Jose Aranguren, chief executive of Shell Argentina. Now Aranguren could become the country's next energy secretary.
When the outspoken Aranguren steps down from his role as head of Shell's Argentinian affiliate on 30 June, he will take the energy helm at Fundación Pensar, a think tank run by Buenos Aires city mayor and presidential hopeful Mauricio Macri's right-of-center PRO party. That would position him to be the country´s next energy secretary if Macri prevails in this October´s election."
"Trading in the year to date has been in line with management expectations with Group daily production increasing to 1,950 bpd in Argentina and 1,400 bpd in Colombia taking total current production levels to 3,350 bpd. Oil prices in Argentina remain at US$75 per barrel, with Andes receiving a small discount to this, and in Colombia prices are directly linked to Brent.
To add to this the US rig count has now fallen for 28 straight weeks and is 61% below its peak
From todays government report
"U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) decreased by 4.9 million barrels from the previous week. "
Combined shale oil and natural gas output from Argentina's vast Vaca Muerta formation was about 33,000 barrels of oil equivalent per day (boepd) at the end of September, with a trend toward growth, data from the formation's home province of Neuquen showed on Friday.
The information from the province's mining and energy department showed a sharp increase in unconventional oil and gas production when compared with Vaca Muerta output of 13,779 boepd in January 2014 and 4,775 boepd in January 2013.
"The upward trend continued in October, November and December but I cannot say by how much. Fourth-quarter production numbers are not available yet," said a source in the provincial government with knowledge of the situation but who asked not to be named due to being unauthorized to speak to the press.
Conference is going on in Neugeun Argentine from June 23 to 25.
Might see some news purculating out of the conference on what is happening in the play
Agree strongly that more drilling is highly positive. We need results to prove up the story line. I was a little disappointed in the price but again They were over a barrel.
Personally I think in the end Curamhuele will be Madalenas best location. The strong layers with Agrio, Mulichinco and then the deepest target, the vaca muerta shale. Well densities are going to be very tight in this area.
Looking forward to getting results on the 2 well re-entries coming up in the next few weeks.
Below is from the Saudi oil minister, Quite encouraging.
"From the Saudi delegation, the real power in the room was of course the vaunted Oil Minister Ali al-Naimi, who sounded quite confident about a rise in the price of oil in the near future. Naimi was quoted as saying, “I am optimistic about the future of the market in the coming months in terms of the continuing improvement and increasing global demand for oil as well as the low level of commercial inventories.” This, the minister said, “is expected to improve the level of prices.”
Naimi went on to praise the enhanced bilateral cooperation between Riyadh and Moscow, stating that, “This, in turn, will lead to creating a petroleum alliance between the two countries for the benefit of the international oil market as well as producing countries and stabilizing and improving the market.”
Saudis have committed to go to Max output.. Seems to be some debate as to what that actually is. My opinion is they cap out around 11 million bbl per day. What is interesting though is their own rapidly growing internal demand is sucking up much of this increase in output.
Saudis ability to control the market is coming to an end soon
On the positive side we should see more drilling action around the Curemele lease. On the bad side the operates will keep it to themselves.
Comparing the Americas Petrogas assets on page 22 of their presentation to the remaining assets the company has sold the Los Toldos assets totaling 74,000 net acres. The Los Toldos property was held with Exxon and several of these wells are mentioned in the Madalena presentation concerning Curamele section. They also sold roughly 75% of the Loma Rangueles section in which they held 29,000 net acres. These 5 sections are located, east, west and south of Curamele
In my opinion Americas Petrogas simply did not have the cash to support their drilling obilgations. They retain over 900,000 acres in Argentina
Tecpetrol is assuming some debt in addition to getting Americas Petrogas Argentina S.A.
Americas Petrogas will retain significant Argentine properties.
It is not clear exactly which properties are included in the sale. A little additional research is required but a very interesting development.
RAT, Oil trash
Check out Madalena, mdlnf. They are virtually all in Argentina which has its risk but have a huge position in the Vaca Meurta which is miss leading. The play is layered with the Agrio and Mulichinco shales and very deep. They have around 4500 bbl per day production and a nice section just outside the core Vaca Muerta that has just been proved up that is shallow and profitable and will provide cash flow. Very little debt right now
Very high risk but some high reward potential