RE:RE:RE:help! RBC? Received a file by Email
November 24, 2014
RBC International E&P Daily
IAE; TLM; GENL
Brent Spot: $80.47/bbl, up from $79.60/bbl; WTI Spot: $76.63/bbl, up from $76.26/bbl; US$1.57/£; US
$1.24/€; C$1.12/US$.
Brent crude rose above $80/bbl on Friday, the first weekly gain in two months. The rally was spurred by
China's interest rate cut and the possibility of an output cut by Opec at its meeting in Vienna on Thursday.
International News – Headlines
Ithaca Energy (IAE.TO): Petrofac reiterates Stella first oil in Q3/15
Petrofac’s operating update today has outlined that progress on the Greater Stella Area development in
the UK North Sea continues to advance with construction activities on the FPF-1 modification ongoing.
First production remains due in Q3/15, in line with our expectation. We include C$2.22/share for the
development in our C$2.67/share core Ithaca NAV; the stock is currently trading at C$1.47/share and
has 50% of its current production hedged through to mid-2016.
Source: Company release, RBC Capital Markets estimates
Ecopetrol/ Talisman (EC/TLM.TO): Oil discovery on Block CPO-9, Colombia
On Friday, Talisman announced the success of the Nueva Esperanza-1 well (A2b) Block CPO-9 (EC 55%,
TLM 45%), Colombia. The well, spud in July, reached TD 12,55ft in September. An initial 8-day test
produced a stabilized flow of 910boe/d 8API oil with an ~2% water cut. The well result is being jointly
analysed and an application will be filed with the authorities to place the well on a LTT. The first of two
down dip appraisal wells has spud with further along trend exploration planned.
CPO-9, located in the Llanos Basin, contains the underdevelopment Akacias field (~2.5bn bbls OIIP).
Around 50 development wells are planned in the first phase over the next two years with central
processing facility increasing to 50,000b/d.
Source: Company release
Ineos looking to build upstream business
On Friday, Ineos announced plans to invest $1bn in UK shale gas exploration and appraisal, and yesterday
the Sunday Times highlighted the company’s desire to build an upstream business. A search is ongoing
for a chief executive, a COO and multiple operations directors of North Sea upstream operations to lead
an offshore oil and gas production business. It is understood Ineos wants to control oil and gas assets
to make sure its plants, including the Grangemouth operation, have secure supplies.
Source: Company release, Sunday Times, 23rd November
Priced
RBC Europe Limited
Al Stanton (Analyst)
+44 131 222 3638
al.stanton@rbccm.com
Nathan Piper (Analyst)
+44 131 222 3649
nathan.piper@rbccm.com
Haydn Rodgers, CA
(Associate)
+44 131 222 4911
haydn.rodgers@rbccm.com
Victoria McCulloch, CA
(Associate Analyst)
+44 131 222 4909
victoria.mcculloch@rbccm.com