Energy Summary for June 2, 2016
2016-06-02 20:18 ET - Market Summary
by Stockwatch Business Reporter
West Texas Intermediate crude for July delivery added 16 cents to $49.17 on the New York Merc, while Brent for August added 32 cents to $50.04 (all figures in this para U.S.). Prices were down in early trading after OPEC failed to reach an agreement on a production cap during today's meeting in Vienna. They then rallied after the market: (i) remembered that OPEC inaction was essentially a foregone conclusion; and (ii) saw new U.S. data showing both a drop in crude inventories and the lowest weekly crude production since September, 2014. Western Canadian Select traded at a discount of $11.80 to WTI ($38.24), down from a discount of $11.75. Natural gas for July added 2.4 cents to $2.405. The TSX energy index added 2.03 points to close at 189.89.
***looks like a turnaround today on this NG producer, up 37.5%
Canadian Spirit Resources Inc. [SPI]
[alternate symbol CSPUF]
HIGHLIGHTS [update May 30, 2016]
CSRI ended the first quarter 2016 with a strong working capital position and no debt.
Despite difficult equity markets, in December 2015 and January 2016 the Corporation raised a total of $3.5 million of equity capital to drill, in the first quarter 2016, a 100% working interest vertical stratigraphic test well at c-69-H/94-B-1 in West Farrell Creek for land retention and resource delineation, and for general corporate purposes.
The c-69-H/94-B-1 well was successfully drilled and cased, and was rig released on March 6, 2016 at a final total depth of 2,762 metres. The tenure on 8.35 sections of lands, CSRI (8 sections at 100%) and joint venture (1 section at 35%), has been extended for an additional 10 years. While drilling through the Doig and Montney formations, extremely high pressures were encountered. Although validation through further testing is required, the presence of these higher pressures could result in a larger natural gas resource in place than currently recognized on CSRI's 100% working interest lands. To that end, the Corporation announced on May 18, 2016 that it proposes to raise, via private placement, the funds necessary to complete the testing of the c-69-H/94-B-1 well during the third quarter 2016. The proximity of this land base to the Spectra Energy pipeline and existing, expandable infrastructure has the potential to match some of the most prolific natural gas production in the region.
As previously announced, the Corporation and its joint venture partner shut in their natural gas production at Farrell Creek effective March 31, 2016. The natural gas processing facility and associated wells will be reactivated once natural gas prices return to a profitable situation.
Management and the Board of Directors of CSRI are continuing to focus on and pursue strategic alternatives for the Corporation. These include but are not limited to considering alternative financing methods and meeting with potential acquirers or merger partners.
Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.
Gold Summary for May 27, 2016
2016-05-27 19:45 ET - Market Summary
by Stockwatch Business Reporter
New York spot gold fell $6.70 to $1,212.80 on Friday. The TSX Venture Exchange lost 11.39 points to 668.54 while the TSX Gold Index fell 5.03 points to 204.37. Canadian gold miners ended the week on a losing note. Kinross Gold Corp. (K) dropped 34 cents to $5.52 on 13.09 million shares while Iamgold Corp. (IMG) lost 23 cents to $4.14 on 5.57 million shares.
Luis Baertl and Marc Leduc's Luna Gold Corp. (LGC), up one-half cent to 19 cents on 73,000 shares, has a new partner for its grassroots project surrounding the old Aurizona mine in northern Brazil. AngloGold Ashanti Ltd. has agreed to spend $14-million (U.S.) on exploration over four years in exchange for a 70-per-cent interest in the project. The deal excludes the Aurizona mine, its nearby Tatajuba extension, the Touro claims and other more advanced parts of Luna's big property. AngloGold has committed to spending $2-million (U.S.) in the next year but it may quit the deal at any point thereafter.
Check out this Michael Belkin interview:
Gold and Oil correlation?
Gold and Oil correlation?
NEGATIVE OIL PRICE VIDEO:
Geologist Arthur Berman explains why today’s low oil prices are not here to stay, something investors and consumers alike should be very aware of. The crazy-low prices we’re currently experiencing are due to an oversupply created by geopolitics and (historic) easy credit, not by sustainable economics.
And when the worm turns, we are more likely than not to experience a sudden supply shortfall, jolting prices viciously higher. This will be a situation not soon resolved, as the lag time for new production to come on-line will be much longer than the world wants.
The same things that always drive prices in the end it’s always about fundamentals. The markets are peculiar and they change every day. But the fundamentals of supply and demand at some point markets come back to those and have to adjust accordingly. Not on a daily basis, maybe not even on a monthly basis. But eventually they get it right. So this oil price collapse is really straight forward as far as I can tell, and it has to do with cheap stupid money because of artificially low interest rates that resulted in over-investment in oil — as well as lots of other commodities that are not in my area of specialty, but that’s what I see. And over-investment led to over-production and eventually over-production swamped the market with too much supply and the price has to go down until we work our way through the excess supply.