Falklands : Hydrocarbons Daily Record (23/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 24.06.2006 (Article Archived on 08.07.2006)
Global Petroleum haveannounced their Malta project.
HYDROCARBONS DAILY RECORD: FRIDAY, 23 JUNE 2006
By J. Brock (FINN)
At 1800 LMT Friday, 23 June 2006 Light Sweet Crude increased .01cent and settled at $70.85 on the New York Mercantile Exchange and Brent Crude fell $1.87 cents to $68.08 per barrel on London’s ICE Futures Exchange.
At present there are no significant indicators that would sharply reduce or increase the price of oil per barrel. Factors that keep it from rising sharply include research into and use of alternative fuels, the supply of gasoline in the United States and the calm (ish) weather in the Gulf of Mexico. An exceptionately peaceful atmosphere in places where oil is produced would help to decrease the price significantly. Another indicator would be fiercer competition with alternative fuels.
At the close of play, the FTSE100 was up 8 points at 5,692.1 with the FTSE250 ahead 2.4 points at 9,195.2 and the FTSE Small caps 4.8 points better at 3,332.2. Volume was very poor with only 2 billion shares traded in 282,494 deals.
DOW JONES AND NASDAQ
Nervousness about economic indicators and the feared interest rate directly affected the market today.
The Dow Jones Index fell 0.27% and settled at 10,989.09 and the NASDAQ fell 0.07% and settled at 2,121.47
Global Petroleum have announced today that the German oil and gas company RWE Dea AG farmed in to Global Petroleum's offshore exploration blocks in Malta. As a result, Global's share of the costs of seismic work, and potentially an exploration well, will be carried by RWE Dea.
Global Chairman Dr John Armstrong said that RWE Dea is a welcome party in the joint venture. "This farm-in is very good news for Global shareholders," he said. "RWE Dea is an international oil and gas producer and explorer and is part of the RWE Group, one of Europe's largest companies. It is active in exploration and production as operator and non operating partner in Germany, the UK, Norway, Denmark, Egypt, Dubai and Kazakhstan, and holds exploration licences in Algeria, Libya and Poland. In 2005, RWE Dea's oil and gas production was approximately120,000 boe per day,"
Under the farm-in agreement, RWE Dea earns a 20% interest in the Exploration Study Agreement for Global's Malta Blocks 4 and 5 of Area 3, with Global retaining 80%. RWE Dea plans to undertake seismic studies in the 2nd half of 2006 in the blocks at RWE Dea's cost.
RWE Dea and Global have the option, to be exercised during the term of the Exploration Study Agreement, to enter into a Production Sharing Contract. The minimum work commitment during the first two-year exploration period under this Production Sharing Contract is the drilling of one well. By carrying Global's share of the cost of that well on a dry hole basis, RWE Dea will earn an additional 50% in the venture with Global retaining 30% (including a 3% interest on behalf of Envoi Limited, the UK marketing agency that assisted Global in the farm-in process).
Dr Armstrong said that the Malta blocks are located in the southern region of the Ragusa Trough which contains the Vega oil field in the Italian part of the basin and which extends south from Sicily in the Mediterranean Sea. The blocks contain several leads which will be the principal focus of the planned seismic program with RWE Dea.
The Government of Malta has extended the Exploration Study Agreement for a further six months until 31 December 2006 allowing the planned seismic work program, which will be operated by RWE Dea to proceed.
Falklands Oil Stocks End of Day Price for the 23.06.06
Desire Petroleum up 0.25p or 0.8% on the day to stand at 33p
Falklands Oil and Gas unchanged on the day to stand at £112.50.p
Rockhopper Exploration unchanged on the day to stand at 24p
Border and Southern up 0.50p or 1.1% on the day to stand at 44p