Falklands : Hydrocarbons Daily Record Monday, 25 February 2008
Submitted by Falkland Islands News Network (Juanita Brock) 25.02.2008 (Article Archived on 10.03.2008)
On the later, I feel that dwindling demand means there is no reason to increase production. Demand is cut because prices are extortionately high.
HYDROCARBONS DAILY RECORD MONDAY, 25 FEBRUARY 2008
By J. Brock (FINN)
At 1930hrs LMT on Monday, 25 February 2008 Light Sweet Crude was trading at $99.23 up 42 Cents on the New York Mercantile Exchange. Brent Crude was trading at $97.01 up 77 Cents on London’s ICE Futures Market.
Among the several factors leading to an increase in crude prices today are the incursion in Iraq, a cold snap in the US and a nearing OPEC meeting where it is expected that a decision will be taken to either keep production the same or cut production. On the later, I feel that dwindling demand means there is no reason to increase production. Demand is cut because prices are extortionately high.
SHARE PRICES AND THE MARKETS:
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Monday, 25 February 2008.
TLW: 623.00 unchanged, DES: 46.50 up 12.25, FOGL: 126.00 up 6.50, RKH: 56.50 up 4.50, BOR: 60.00 up 5.75 PRE: 13.75 up 1.00, GBP: 7.00 down 0.13, GPK: 425.00 down 1.00, BLT 1626.00 up 11.00, RDSA: 1843.00 up 27.00 RDSB: 1815.00 up 34
New York Stock Exchange:
XOM: 89.13 up 1.96 (USD)
THE MARKETS (25/02/08)
FTSE100: 5,999.50 up 111.02, FTSE250: 10, 275.30 up 224.32 SmallCap: 3,258.40 up 50.13
DJI: 12,570.22 up 189.20 NASDAQ: 2,327.48 up 24.13 S&P500: 1,371.80 up 18.69
CERA expects unconventional supplies—a mixture of light hydrocarbons like condensates and products from gas-to-liquids plants and ultra-heavy oils like bitumen that require enhanced recovery methods to produce and special refining technologies to upgrade—to account for around 40 per cent of global supplies by 2015. Today, they account for a little less than 25 per cent, up from 16 per cent in 2000.
What do China's explosive industrial growth and Venezuela President Hugo Chavez' oil antics have in common? They may both be working against the rate of new public offerings in the U.S. If so, these focused sources of global and U.S. inflation may also be simultaneously contributing to a slowdown in American startups.
(Argentina, Bolivia and Brazil)
Brazil has declined to cede any of its imports of Bolivian natural gas to Argentina, which is struggling to find more energy sources to avoid supply shortages that could derail its fast-growing economy.
Though all arrangements are on track for Exxon's offshore exploration programme, drilling may not commence until after mid 2009, by which time the seismic work would have been completed, says Petroleum Manager at the Guyana Geology and Mines Commission (GGMC) Newell Dennison.
US oil major Exxon Mobil is still willing to negotiate with President Hugo Chávez's government to reach a friendly agreement in connection with the Venezuelan state's takeover of the firm's stake in heavy crude oil projects, after the corporation won court orders to freeze up to USD 12 billion in assets belonging to state-run oil giant Pdvsa, a senior official with Exxon Mobil said on Monday.
BNamericas reported that a Venezuelan vessel that will carry out seismic work to identify gas deposits in Ecuador's Gulf of Guayaquil is due to arrive on March 20, the latter country's mines and oil ministry said in a statement. The announcement follows a visit by Ecuador's mines and oil minister Galo Chiriboga to Caracas, where he met with his Venezuelan counterpart Rafael Ramírez.
(Ecuador and Venezuela)
Ecuadorian President Rafael Correa, while accepting drilling services offered by Venezuela at a discounted rate, has hailed his country's oil and gas "integration" with its South American neighbor.
DESIRE SHARES SOAR AS FARM-IN AGREEMENT IS ANNOUNCED
By J. Brock (FINN)
At 0730hrs UK tome today the Board of Desire Petroleum plc requested a temporary suspension
of trading in the Company's shares on Alternative Investment Market. This suspension had been
made pending an announcement later today at 1530hrs UK time when a farm-in agreement was
announced. The Company press release reads:
“The Board of Desire Petroleum plc is pleased to announce that it has accepted the terms of
an offer from a significant party to farm-in to three of the eighteen exploration prospects
identified by Desire in the North Falkland Basin and currently carried in the Company's
The farm-in remains subject to certain awards and approvals by the Falkland Islands
Government which are being applied for and a further announcement, including the final
terms of the farm-in, will be made once the necessary awards and approvals are in place.
If successfully approved, the farm-in will involve the drilling of two exploration wells,
including the mobilization and demobilization costs associated with the two wells, at no
cost to Desire.
At current rig rates, in addition to the two wells above, Desire has sufficient resources to
be able to drill two wells for its own account in the North Falkland Basin. Thus, in
combination with the two-well commitment entered into by BHP Billiton south of the
Falkland Islands, there is now the potential to hire a rig for a minimum six-well
drilling programme, thus defraying mobilization/demobilization costs for all parties.
Desire continues its efforts to hire a suitable rig in partnership with all of the other
companies involved in Falklands exploration.
Given the size of Desire's exploration inventory, the Company may seek other farm-in partners
for other prospects, in addition to any wells drilled for its own account, and further
discussions, which may lead to additional farm-ins, are under consideration.”
For further information please contact:
Desire Petroleum plc 020 7436 0423
Dr Ian Duncan, Chief Executive Officer
Stephen Phipps, Non-executive Director
Jonathan Wright 020 7107 8000
Buchanan Communications 020 7466 5000
Desire Petroleum plc has announced that it has accepted the terms of an offer from a significant party to farm-in to three of its eighteen exploration prospects in the North Falkland Basin.
However, the farm-in remains subject to certain awards and approvals by the Falkland Islands government, which are being applied for.
Desire Petroleum PLC said it has accepted terms to farm-in three of the 18 exploration prospects identified in the North Falkland Basin.