The S&P/ASX200 Energy Index has hit its highest level in over two months today on the back of potential new Trump Administration sanctions on Venezuela spurring a rise in US oil prices.
Oil Search Limited (ASX: OSH) shares are trading 2% higher at $7.80 today. The company announced this morning that it has exercised its right to acquire a 50% interest in 120 leases covering 195,200 acres in the Alaska North Slope area.
Oil Search Managing Director, Peter Botten said: 'The potential of this new area is very exciting and, as Operator, we intend to explore it systematically.'
'[This acquisition] is part of a measured growth strategy in the region, targeting high quality, highly prospective, material value opportunities, which will position the Company for a long and successful future in Alaska.'
The Santos Ltd (ASX: STO) share price is up 1.45% today, extending yesterday's gains after a positive fourth quarter result and record sales for FY18 of $3,696 million. Yesterday's announcement also showed strong production results for the quarter of 15.9mmboe, up 6% on the third quarter.
Not every energy stock is in the green, however. Viva Energy Group Ltd (ASX: VEA) has revised their underlying EBITDA guidance for the full-year 2018 to $125 million, down from $150million. The Viva share price is 1% lower at the time of writing.
The downgrade is a result of poor December refining margins at the company's Geelong refinery. Falling gasoline crack spreads as a result of excess supply in the region have hurt profitability. So far, refining margins have continued to perform poorly in the early stages of 2019.
