The Oil Man: Range, Europa, Bahamas, Savannah

WTI $45.93 +$1.45, Brent $47.35 +$1.46, Diff -$1.42 +1c, NG $3.00 +4c

Ahead of tomorrow's "OPEC" meeting in Algeria, hope springs eternal, as bulls think a deal will be done. Even if a deal is apparently done, that will only be part of it, as previous deals have shown.

Call me a cynical old sod, but the agreement is only part of it; consummation is rare and I suspect referral to the official meeting on 30 November is likely.

Other factors affecting the oil price include the apparent victory of Hillary Clinton in the first TV debate - of which I am not so sure - and, maybe more apposite, the action by the Niger Delta Avengers Group in closing two export lines yesterday. Inventory stats tonight are expected to show a build of around 2.8 million barrels.

Range Resources

Range has issued a Trinidad waterflood update, which shows that all is going to plan at the moment; the firm says it is making "significant progress" and aims to increase the total recovery factor to over 30% within the next 8 years.

Range's forecast of 2,500 barrels per day (b/d) by the end of 2017 is primarily from these waterflood projects.

With all environmental approvals granted and the 2016 capital expenditure budget of $17 million (£13 million) covered by LandOcean, the stage seems set for Range to concentrate on these waterflood projects above all else, which seems eminently sensible to my eyes.

Europa/Union Jack

Europa has sold 3.34% of its stake in PEDLs 180 and 182 to Union Jack for £600,000, leaving it with 30% of the licences which hold the Wressle Field and Broughton North (see yesterday's blog for CPR).

This values the remainder of EOG's stake at £5.4 million, which, it carefully points out, is around half of its market cap.

For EOG, it gives it some cash to fund other onshore commitments, whilst for Union Jack's part, it has used its recent raise wisely by increasing its stake in these interesting projects, which should be close to throwing off some cash - plus, of course, adding to reserves.

Bahamas Petroleum

I always get a huge amount of stick when I write up Bahamas, partly as my views rarely change and partly as the huge number of shareholders, some of whom I class as friends, think that I am unjustly harsh on them.

This is made worse by the fact that I like Simon Potter and I know that he has been very busy at a time when enticing senior players in the data room is far from easy. Nevertheless, despite the commendable cost-cutting and significant personal salary deferrals, nothing much has changed.

There has been no farm-out, which means that the company has no money and no rig and therefore no drilling. Drilling by April 2017 now looks a rather forlorn prospect - although the one good thing is that, locally, the politicians appear to have been squared off and would likely accommodate extensions if they were needed.

I have no doubt that, when the farm-out happens and the company is funded for an exploration programme, the lure of what are genuinely substantial volumes according to WoodMac will fire up the shares, but in the meantime it takes a leap of faith to be an investor…

Sundry

Savannah Petroleum announces interims today, which are of little or no interest.

However, second-half 2016 is shaping up to be more exciting, what with the placing, the seismic and the potential of an analysts visit to Niger. Although this is a slow burner, Mr Knott has a most interesting play and a blue-chip list of backers.

Providence has announced that its new Chairman is to be Pat Plunkett, who is the former Chairman of Tullow Oil and current Chairman of T5 Oil & Gas, a company scheduled to come to the market in its own right.

And finally

Last night Burnley beat Watford two-nil and tonight sees both Spurs and the Foxes in Champions League action, against CSKA and Porto respectively.

And, for you UFC fans, Conor McGregor will face lightweight champion Eddie Alvarez as he attempts to become the first UFC fighter to hold two belts at the same time. This is scheduled for 12 November at Madison Square Garden.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.