Falklands : Hydrocarbons Daily Record (15/02/07)
Submitted by Falkland Islands News Network (Juanita Brock) 16.02.2007 (Article Archived on 02.03.2007)
Uncertainty over warmer weather caused a flat reading on crude prices today.
HYDROCARBONS DAILY RECORD: THURSDAY, 15 FEBRUARY 2007
By J. Brock (FINN)
At 1800 LMT on Thursday, 15 February 2007 Light Sweet Crude down 9 Cents to settle at $57.91 on the New York Mercantile Exchange and Brent Crude gained 17 Cents to settle at $57.60 on London’s ICE Futures Market.
TRENDS:
Uncertainty over warmer weather caused a flat reading on crude prices today. While it is hopeful the weather in the US will be warmer – sometime – forecasts of winter storms could bring pennies to crude prices before the weather changes.
THE MARKETS:
FTSE 100 closed at 6,433.30 up +12.04
FTSE 250 closed at 11,574.60 +33.32
FTSE Small Cap closed at 4,072.90 up +19.84
DJI closed at 12,765.01 up +23.15
NASDAQ closed at 2,497.10 up +8.22
S&P500 closed at 1,456.81 up +1.51
REGIONAL DEVELOPMENTS:
(Bolivia and Brazil)
Mutual energy interests topped the agenda on Wednesday when President Luiz Inacio Lula da Silva met with Bolivia’s President Evo Morales to discuss how much Brazil should pay Bolivia for natural gas. Today is is announced that Brazil will pay about 11 percent more for natural gas from Bolivia under a deal their presidents signed.
(Falkland Islands)
MINERAL RESOURCES COMMITTEE REPORT (15/02/07)
By J. Brock (FINN)
A meeting of the Mineral Resources Committee took place at 1330hrs on Thursday, 15 February 2007 in the Mineral Resources Department. Present were Cllrs Cockwell (Chair) and Summers as well as Mrs. Phyl Rendell (DMR) and Miss Ros Cheek (Attorney General’s Chambers). Apologies came from Cllr Clausen (Richard Cockwell stood in for her) and Chris Simpkins (Chief Executive).
Minutes of the meeting held on 01 December 2006 were confirmed and signed.
The Director of Agriculture and Mineral Resources, Mrs. Phyl Rendell, gave her report, which began with the news that Rockhopper Exploration have completed their 3D Seismic Survey and that bad weather slowed things down with the crew of the CGG Marine Vessel, Laurentian, contracted to carry out the work receiving high praise for a job well done. She also reported that FOGL had two 2 D Seismic Surveys on going but that severe weather was slowing things down. An electromagnetic survey (CSEM) will follow the 2D Seismic. OHM is contracted to do the CSEM. Tim Bushell and Colin Moore from FOGL visited mid January to give a detailed briefing to FIG on their current activities and data interpretation. Borders & Southern representatives Dr Howard Obee and Mr. Bruce Farrer visited the Falklands in January to update FIG, with Mr Farrer giving the Mineral Resources Committee a full briefing on the company’s acreage. Dr. Obee briefed the committee about plans for future work. Desire Petroleum will come to the Falklands later on but are at present consulting with British Geological Survey (BGS)and the Department of Trade and Industry (DTI) about their drilling programme They are working closely with BGS and FIG in anticipation of contracting a rig to work in the North Falkland Basin.
Mrs Rendell went on to say that FGML, in accordance with their licencing agreement, have relinquished 50% of their acreage on 16 January 2007. This was brought out during the FGML AGM held in the Falklands in November 2006. A notice will appear in the Gazette. Mrs Rendell said that this will not affect the on-going exploration work. Fieldwork has progresses well throughout the summer. Dr. Phil Stone, FIG’s consultant, will be in the Islands from the 28th of February. It is hoped that there will be yearly meetings of the FGML Board in the Falklands.
Cllr Summers asked if the acreage that has been relinquished had been explored. Mrs Rendell said that it was including trenching and stream bed exploration and that an electromagnetic had been conducted on it but the acreage was not that attractive.
Cllr. Summers mentioned that some of the trenches in the area were not filled in and he mentioned that the land should be left as the company found it. Mrs. Rendell said there were some difficulties in filling in the trenches but she would check it out and report back.
The draft budget for the next financial year was discussed with Mrs. Rendell saying that all of the fat had to be trimmed out of it. With reference to the £250,000.00 for consultancies, BGS would like to raise their prices but were persuaded not to at this time due to the amount of work they were doing. When things heat up then the Standing Finance Committee could be asked for more funding. Charging for acreage in the North Falkland Basin would be different than the newer acreage elsewhere. Acreage was ready to be relinquished but the rents would go up in the North Falkland Basin so income would stay the same. In the other, newer areas, income would go down once acreage was relinquished. At £300,000.00 income projected for next year, earnings are healthy.
Cllr Summers asked if the projections for income were right and Mrs. Rendell said that was an unknown because income was paid in USD and the exchange rate fluctuates. It would be open ended but would be discussed in April after the Falklands Forum in the UK.
Relevant Share Prices for Thursday, 15 February 2007:
Tullow Oil up +0.50 to stand at 399.75
Desire Petroleum up +0.25 at 31.25
FOGL unchanged at 88.00
Rockhopper Exploration unchanged at 44.50
Borders & Southern up +0.50 at 33.50
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