Falklands : Hydrocarbons Daily Record (04/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 05.07.2006 (Article Archived on 19.07.2006)
Speculation that Desire are talking about getting a rig is ripe.
HYDROCARBONS DAILY RECORD: TUESDAY, 04 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 04 July 2006 Light Sweet Crude was unreported due to the US Independence Day holiday. Last Friday’s quote was $73.93 on the New York Mercantile Exchange and Brent Crude dropped .80 cents to $72.59 per barrel on London’s ICE Futures Exchange.
TRENDS:
Indications are that the gasoline supply in the United States remains unscathed after the heavy road usage during Independence Day celebrations. Conflicts in Iraq and Gaza contribute to general nervousness as conflict in the mid east puts a price tag of many USD on the per barrel price of crude. Weather in the Gulf of Mexico remains unthreatening.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was just 0.9 points down at 5,883.5. The FTSE250 was up 8.8 points at 9,505.6 and the FTSE Small caps ahead 13 points at 3,412.4. Volume was thin with just 1.889 billion shares changing hands in 231,936 deals.
DOW JONES AND NASDAQ:
Both markets were closed due to the 4th of July holiday.
The Dow Jones Index closed up 0.07% and settled at 11,228.02 and the NASDAQ closed up0.84% and settled at 2,190.43on Monday, 03 July 2006.
DEVELOPING FACTORS
LATIN AMERICA:
(Venezuela)
Venezuela has joined MERCOSUR, a trading block comprising Argentina, Brazil, Paraguay and Uruguay. The country has seven years to drop trade sanctions with the partners. It has been reported that Venezuela wants free trade but with its Latin American Neighbours and not with the United States.
(Mexico)
Supporters of leftist Sr. Andres Manuel Lopez Obrador have vowed to take to the streets if there is not a re-count of ballots in Mexico’s Presidential Election held on Sunday, 02 July 2007. Sr. Felipe Calderon has secured a lead of less just over .01% or 400,000 votes. Both candidates have claimed victory. At stake is Mexico’s philosophy concerning their economic future, with Sr. Obrador wanting to nationalise the hydrocarbons industry and Sr. Calderon wanting free trade markets to dictate his country’s wealth.
(Falkland Islands)
The latest speculation is that Desire Petroleum are in very advance stages of negations with Woodside Petroleum Ltd who are based in Australia. Seeing that Dr Jungles is Executive Chairman of Rockhopper and is on the board of Woodside and Chairmen of offshore Hydrocarbon mapping Plc, there could be substance to the speculation. Shell Energy Holdings Australia Ltd own nearly 35% holding in Woodside and are the largest shareholder and means Shell can have a direct interest in the NFB.
http://www.woodside.com.au/Home.htm
No official announcement has been made about these numerous reports that have come to FINN from many sources. When the announcement comes, it will be published in this forum.
From the FIH Report:
Falkland Oil and Gas ('FOGL') and Falkland Gold and Minerals ('FGML') in which the Company has significant shareholdings of 16.3% and 14.4% respectively, continued their exploration efforts. FOGL raised a further £10 million from investors in May 2005 and we subscribed £2 million in that placing. We took the opportunity in February 2006 of recouping that cash outlay when we sold 1.8 million shares generating proceeds of £2.4 million and a profit of £2.1 million.
Falklands Oil Stocks End of Day Price for the 4.7.06
Desire Petroleum up 0.25 or 0.7% on the day to stand at 35.75p
Falklands Oil and Gas up 3.5 or 3.2% on the day to stand at £114.00p
Rockhopper Exploration up 1.0 or 3.1% on the day to stand at 33.5p
Border and Southern unchanged on the day to stand at 44p
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