Falklands : Hydrocarbons Daily Record (26/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 27.06.2006 (Article Archived on 11.07.2006)
there is lots of hysrocarbons news from Latin America today.
HYDROCARBONS DAILY RECORD: MONDAY, 26 JUNE
By J. Brock (FINN)
At 1800 LMT Monday, 26 June 2006 Light Sweet Crude increased .93cents and settled at $71.80 on the New York Mercantile Exchange and Brent Crude increased .77 cents to $70.70 per barrel on London’s ICE Futures Exchange.
TRENDS:
Iraq has promised to pump more oil. Presently the amount produced is 1.5 million barrels per day. Arguably it could produce as much as 2 million a day. Tempering the good news is the raise by 5% in Gasoline futures in the United States.
THE MARKETS
FTSE
At the close of play, the FTSE100 was down 10.9 points at 5,681.2 with the FTSE250 up 1.9 points at 9,197.1 and the FTSE Small caps 9.9 points weaker at 3,322.3. Volume was weak with 2.345 million shares trading in 310,727 deals.
DOW JONES INDEX AND NASDAQ
As predicted the Dow Jones Index and the NASDAQ are fluctuating around the 11,000 mark prior to the Federal Reserve announcement about interest rates.
The Dow Jones Index rose 0.20% and settled at 11,011.42 and the NASDAQ increased 0.37% and settled at 2,129.26.
DEVELOPING FACTORS
(Russia)
A meeting of the Group of Eight (G-8) will convene for a summit in St. Petersburg, and energy security will dominate the summit's agenda. The issue of energy lately has been more important to the future of the global economy and global security than previously. Russia's role in the energy future matters more now and the summit is an opportune moment to revitalize the U.S.-Russian energy partnership. At the St. Petersburg summit, Russia is hoped to paint a compelling picture of its vision and reliability as an energy producer. However, this needs better communication between the players to pay off.
(Uganda)
Hardman Resources, the Australian-based company and its UK partner, Tullow Oil announced that the lowermost zone in Waraga-1 was successfully perforated on June 22, 2006.
According to the announcement, the well-flowed oil to surface and stabilised rate has been established sufficient to derive composition, flow characteristics and key reservoir parameters,” a stock exchange, media release by Hardman reads in part.
The Company announced preparations for the production testing of Waraga-1 early next week. They in advanced stages with all the personnel and equipment on site. Hardman announced testing activity of three zones, expected to take 14 days. The lower most hydrocarbon-bearing interval in the well would be perforated and the flow tested first. Following perforation, initial results show a flow rate of c.1,500 bopd of 33.8 degree API oil through a 36/64 choke. The well is now shut in for pressure build up prior to further flow testing later on June 22. It said they would continue testing the lower zone to be tested over another 48 hours after Thursday, June 29.
Simon Potter, the Hardman managing director and CEO said: “The Hardman exploration programme has delivered three discoveries in the first three wells and now the first oil flow not only for Uganda but also in east Africa, south of the Sudan.”
The hydrocarbons flowing to surface from the first of three potentially productive zones in a single well give further grounds to establish the commercial potential of the region. We also note that these wells are represented in the other wells, which is indicative of the real extent of these sands and play systems. ”Potter however said it was important to bear in mind that Hardman’s exploration programme in Uganda is at an early stage.
LATIN AMERICA
(Bolivia)
Argentina has agreed in principle to pay 47 percent more for Bolivian natural gas under a plan to be signed later this week by President Nestor Kirchner and his Bolivian President, Evo Morales. Difficult negotiations on a pricing accord ensued after the Bolivian government nationalised its hydrocarbons industry on 01 May this year and gave foreign energy firms operating in the country six months to re-negotiate contracts, or leave.
Both presidents are expected to sign the agreement during a brief visit here by Morales on Thursday, Argentine newspapers report that the plan calls for Argentina to pay US$5 (euro3.98) per million British thermal units for Bolivian gas.
Argentina pays $3.38 (euro2.69) per million BTUs to import up to 7.7 million cubic meters (270 million cubic feet) a day in Bolivian natural gas under a contract set to expire at the end of this year. Negotiations have hit a snag because Argentine officials have acknowledged reselling some Bolivian gas to Chile.
Both presidents also are also expected to sign an accord regarding a stalled project to build a pipeline that would bring an additional 20 million cubic meters (700 million cubic feet) a day of gas into Argentina. (Translated from reports in Clarin and La Naceon)
(Venezuela)
Ministers from Argentina, Bolivia, Brazil and Venezuela are meeting on Tuesday in Caracas to start negotiations on a southern gas pipeline, while working groups on Sunday began talks, according to the Latin American Press.
The Argentine Federal Planning and Public representative, the Brazilian Mining and Energy representative, the Bolivian Hydrocarbons representative, and the Venezuelan Energy and Petroleum representative, all at the Ministerial level, will discuss the terms for launching of the proposed project.
Working groups meeting on Sunday delivered an agenda of relevant issues such as market conditions, marketing, fares, and engineering and environment considerations.
According to press reports, the proposed project for the USD 23 billion, 8,000 km, 150 million cubic meter of gas per day gas pipeline is likely to be completed by August. The first stage of the project should be completed in 2009, while full system connections are scheduled for 2017. (Translated from Clarin and La Naceon)
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 26.06.06
Desire Petroleum down 1.5p or 4.5% on the day to stand at 31.5p
Falklands Oil and Gas up 5p or 4.4% on the day to stand at £117.50.p
Rockhopper Exploration up 0.5p or 2.1% on the day to stand at 24.5p
Border and Southern unchanged on the day to stand at 44p
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