Falklands : Hydrocarbons Daily Record (05/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 05.09.2006 (Article Archived on 19.09.2006)
Hydrocarbons shares generally are up today on lowering crude prices and good economic news.
HYDROCARBONS DAILY RECORD: TUESDAY, 05 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 05 September 2006 Light Sweet Crude fell .64 Cents to stand at $68.55 and Brent Crude gained .54 Cents to stand at $68.25.
Iran does not yet know what sanctions will be levied against it for not complying with a UN request to stop enriching nuclear fuel for peaceful means. This has caused the price of crude to lower today.
A deep water oil strike in the Gulf of Mexico has produced excitement with a test well producing 6,000 barrels a day has also been instrumental in the lower crude price. The acreage promises to produce the most Light Sweet Crude since Prudhoe Bay was discovered.
With the Labour Day holiday over, the summer drive season has also come to an end in the US. Demand for winter heating fuel has not figured in to the trend.
Mixed results today were due to poor performance on technical stocks as well as declining economic factors.
At the close of play today, the FTSE 100 was down 4.94 points to settle 5,981.70 and the FTSE 250 was up 1.20 points to end at 9.761.00. FTSE Small Cap closed up 11.78 points to settle at 3,482.20.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index increased 5.13 points or 0.04% to settle at 11,469.28 and the NASDAQ closed up 12.54 to settle at 22,205.70.
It’s now official. Philippe Calderon is the President Elect of Mexico, much to the chagrin of Lopez Obrador, the leftist candidate. It appears that sour grapes will entertain while leftists come to terms with their disappointment.
Vast oil deposits in Norwegian waters near the Arctic Circle could be a secure source of energy for the 21st century, according European Union experts who are considering them as an alternative to Russian gas supplies that proved to be undependable last winter. Becoming increasingly dependent on foreign imports of oil and gas to meet its energy needs, Europe particularly relies on gas from Russia, which supplies around 25 percent of the Union’s crude oil and 20 percent of its natural gas. Demand is expected to increase exponentially as domestic resources dwindle. The European Commission forecasts an increase in energy consumption from foreign sources from 50 to 70 percent by 2030.
Chevron has announced that its acreage – some 300 Sq. miles, could produce as much as 50%of the United States’ supply of light sweet crude.
DEVELOPING REGIONAL FACTORS:
Hugo Chavez of Venezuela isn’t the only South American President to woo his neighbours about hydrocarbons. President Kirshner of Argentina has been on a fence-mending in Peru. A main point of discussion is increasing trade links and soothing words about his not attending President Alan Garcia’s inauguration.
PRESS RELEASE FROM GOLD OIL Plc
In the offshore San Pedro field wells have drilled some 500 - 600 feet of Palaeozoic and the wells are completed "bare foot" with casing set at the top of the Palaeozoic but none across the Palaeozoic.
In San Alberto-1X Gold drilled 2,300 feet of Palaeozoic and because of severe wear on the drilling equipment it was agreed with Perupetro to stop drilling at 5,113 feet, 135 feet short of the obligation in our Block XXI licence. The original plan was to drill to 6,500 feet but because of the geology encountered in the well Perupetro agreed with our view that at 5,113 feet the well had more than adequately evaluated the Palaeozoic.
The well was logged and some 250 feet of potential hydrocarbon bearing Palaeozoic sands were interpreted by our specialists using their experience and Schlumberger software. 90% of the hydrocarbons are in a single zone below 4,570feet with formation water below it.
Given the experience of San Pedro it was decided to test the well "bare foot".
The drilling rig was moved off the location and a workover hoist moved on together with tanks and testing equipment. To reduce the bottom-hole pressure, and so allow the well to flow, completion fluid was swabbed out of the well and the well flowed highly saline formation water at 960 bwpd. We believe that this water is flowing from the zone below the hydrocarbon zone and is preventing any flow of hydrocarbons from above the water zone.
We need to pull the un-cemented slotted-liner so that we can shut off the water and definitively test the hydrocarbon leg. Discussions with the contractor are in hand to mobilise appropriate equipment to the well site.
Once the Palaeozoic test is complete we will test the higher Verdun sands which have some 315 feet of potential hydrocarbon bearing sands in both the equivalent gas producing Upper Verdun sands in the nearby Las Casita field and the deeper thicker Verdun sands that are not present in Las Casita.
© Gold Oil Plc
More feel good news about our own reserves means that Desire Plc and Rockhopper Exploration share prices have risen today. This has been a good day generally for oil shares.
Share prices at the close of play on Tuesday, 05 September 2006
Desire Petroleum Plc was up 0.75 points or 1.96% on the day to settle at 39.25.
Falkland Oil and Gas Limited (FOGL) fell 0.50 points or 0.42% on the day to stand at 117.50.
Rockhopper Exploration ended up 6.00 points or 15.38% on the day to settle at 45.00.
Borders & Southern ended unchanged on the day to stand at 45.25.