Today’s Oil & Gas Update – Union Jack Oil and more…

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Market Update: Tuesday 27 April 2021

Reabold Resources (AIM:RBD): RBD share offer to acquire additional 13.12% of Corallian

Union Jack Oil* (AIM:UJO): New corporate website

Egdon Resources (AIM:EDR): Interim results, Wressle to have a material positive impact this year

Energy Prices         

Brent Oil US$66.3/bbl vs US$65.2/bbl yesterday

WTI Oil US$62.6/bbl vs US$61.3/bbl yesterday

Natural Gas US$2.87/mmbtu vs US$2.72/mmbtu yesterday

Oil Price News 

• Given the ongoing imbalance between global oil supply and demand in the wake of the major waves of Covid-19 that hit the world last year, news that Libya is now targeting 1.45MMbopd of oil output by the end of this year, 1.6MMbopd within two years and 2.1MMbopd within three to four years will compound a negative price sentiment on oil pricing for many traders
• Although the most bullish of forecasts, principally from oil companies and state producers talking their own book, look for demand to catch up with supply by the very end of this year, more independent authorities take a less optimistic view
• Elsewhere, the world’s largest oil company and biggest oil exporter, Saudi Aramco, has resumed tendering and development work on major offshore oil expansion projects that would give Saudi Arabia another 1.15MMbopd of production capacity by 2024
• After the oil price and demand collapse last year, to which Saudi Arabia itself contributed by breaking up the OPEC+ pact for a month, Aramco idled offshore rigs and postponed the start of the expansion of several projects
• Offshore drilling contractors Noble Corporation and Shelf Drilling were notified in June 2020 by Saudi Aramco that their rigs offshore the Kingdom would be suspended for up to one year
• Now the Company is moving forward with the postponed start of the development work
• Aramco has issued tenders for development work at the offshore Zuluf oilfield with a capacity of 825,000bopd, which is planned to be increased by 600,000bopd
• The expansion project, initially expected to start up in 2023, is now postponed with a few months and is expected to start operations either late into 2023 or in early 2024
• Work on the expansion of two other offshore oilfields, Marjan and Berri, had already started at the end of March
• The 400,000bopd Marjan field is set to boost its capacity by 300,000bopd, and the Berri field, currently with a capacity of 300,000bopd, will see its production capacity rise by 250,000bopd by 2023

Gas Price News 

• Natural gas prices surged yesterday, and the rest of the company complex as the dollar continued to trend lower
• Strong demand from manufacturing helped buoy natural gas prices
• US Durable Goods orders are stoked by manufacturing demand that has been building since last fall
• According to the Commerce Department, new orders for durable goods increased by 0.5% to US$256.3bn in March compared with February
• According to the National Oceanic Atmospheric Administration, the rally in natural gas comes despite warmer than expected weather that will cover most of the United States for the next 2-weeks

Company News

Reabold Resources (AIM:RBD): RBD share offer to acquire additional 13.12% of Corallian

Share Price: 0.7p, Market Cap: £58m

• RBD has announced that it has conditionally offered to acquire additional Corallian Energy shares from existing Corallian shareholders, in exchange for RBD shares, at a ratio of 474 RBD shares for 1 Corallian share, potentially increasing the Company’s shareholding in Corallian to a maximum of 49.99%. 
• Assuming a full take up of the Offer,…