Falklands : Hydrocarbons Daily Record (12/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 13.05.2006 (Article Archived on 27.05.2006)
Desire Petroleum are talking to someone about a rig but aren't saying who.
HYDROCARBONS DAILY RECORD: 12/05/06
By J. Brock (FINN)
At 1800 LMT on Friday, 12 May 2006 Light Sweet Crude was $72.04 per barrel and Brent Crude at $72.32 per barrel.
TRENDS:
Stock markets across the world have recorded losses today and this affected the price of oil by the barrel.
DEVELOPING FACTORS:
(Nigeria)
What has been described as vandalism has caused an explosion on a pipeline near Lagos in Nigeria, killing nearly 200 people. It is understood that people tap into the pipeline and sell the fuel on the black market at less than the going rate. The unaffordable price of fuel has created this black market commodity.
(Iran)
An analyst, Professor Shaul Bakhash from George Mason University in Washington, DC has said publicly that the letter sent to President Bush from the president of Iran may not have been an attempt at dialogue but to establish the moral high ground in his attempt to win the hearts and minds of fellow Muslims. It is thought in some circles that assertiveness by Iran over its enrichment of nuclear fuel for power generation could work against them if they do not make a genuine effort for dialogue and negotiations.
(Russia)
Aside from obviously pointed articles saying that oil and democracy don’t mix in Russia, there has been little rhetoric. Russia stands by its stance that dialogue and negotiations with Iran are better than sanctions.
(Latin America)
Though Venezuela and Bolivia have heated up their rhetoric in Vienna, Brazil and Petrobras have also stood their ground. They have agreed to have talks but Bolivia is firm about not giving back assets that belong to foreign investors. Rumours that Venezuela was interfering in Bolivian affairs were quickly dispatched by Bolivia’s Minister of Foreign Affairs, Mr. David Choquehuanca.
Venezuela’s President Chavez will be visiting Britain this weekend but reportedly will be avoiding the Prime Minister, Tony Blair, who has warned “energy rich states to act responsibly towards their neighbours” when he visited Vienna this week.
(Falkland Islands)
Speculation is ripe that Desire will be procuring an oil rig. It has not been confirmed who the people Desire are talking to are but it is thought to be Shell. Even if one is found, it will still take time for paperwork and for it to be transported to the Falklands. It could be that there won’t be any exploratory drilling in 2006 but this depends on how quickly a rig arrives. Desire Petroleum are ready to get straight to work on several interesting prospects that it has in its tranches in the North Falkland Basin.
A bad day on the London stock Exchange left investors feeling the pain as the FSTE index tumbled back below 6000 for the first time in six weeks with a loss of 129.9 points to 5912.1 this did not help any of the Falklands Exploration Stocks today.
Falklands Exploration Shares end of day price for the 12.0.06
Desire Petroleum down 3.25p or 7.2% and closing price of 42p
Rockhopper Exploration down 3p or 8.6% to close at 32p
Falkland’s oil and Gas down 4p or 2.7% to close at £145p
Border and Southern down 2.25p or 4.4% to close at 49.25p
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