Falklands : Hydrocarbons Daily Record (20/10/06)
Submitted by Falkland Islands News Network (Juanita Brock) 21.10.2006 (Article Archived on 04.11.2006)
Despite the OPEC cut in production by 1.2 million barrels pre day the price of crude dropped sharply today.
HYDROCARBONS DAILY RECORD: FRIDAY, 20 OCTOBER 2006
By J. Brock (FINN)
At 1800 LMT Friday, 20 October 2006 Light Sweet Crude lost $1.58 Cents to stand at $56.82 on the New York Mercantile Exchange and Brent Crude lost $1.19 Cents to stand at $59.68 on London’s ICE Futures Exchange.
TRENDS
Crude prices dropped sharply today regardless of OPEC’s agreeing to cut production by 1.2Million barrels a day.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 0.77 points to settle 6,155.20 and the FTSE 250 gained 16.47 points to end at 10,356.50. FTSE Small Cap closed up 6.49 points to settle at 3,628.90.
DOW JONES AND NASDAQ
After the excitement of the DJI passing the 12,000 mark on Thursday, the index topped out and declined slightly today – but closed above 12,000 for the second straight day.
At the end of play today the Dow Jones Index fell 9.36 points or -0.08% to settle at 12,002.37 and the NASDAQ gained 1.36 points or 0.06% to settle at 2,342.30. The S&P500 was up 1.64 or 0.12% to settle at 1,368.60 and the NYSE gained 1.22 points or 0.01% to settle at 8,702.03.
DEVELOPING FACTORS
(Exploration)
WESTERN SIBERIA
Baltic Oil Terminals PLC announced that a geochemical study of Privolny block in Kurgan, Western Siberia showed two potential targets in Privolny licence area, in addition to strong drilling prospects in Petukhovsky, Orlovo-Pashkovsky and Lebyazhevsky blocks.
SAKHALIN
Russia’s Natural Resources Minister Yury Trutnev has announced that the Sakhalin-2 oil and gas project must comply with Russian environmental laws or face being shut down. Sakhalin-2 development cost estimate hiked, business model may change. Sakhalin Energy, the operator of the Sakhalin-2 hydrocarbons development, has raised its estimate of the cost of the project to 21.9 bln usd from 9.9 bln, Interfax news agency quoted Deputy Industry. Royal Dutch Shell is reported to be a partner in exploring this region.
CANADA
In the Jeanne d'Arc Basin, approximately 900 square kilometres of 3-D seismic was completed. This program was shot in the vicinity of the White Rose and Terra Nova oil fields to evaluate future exploration areas.
CHINA
Husky signed three petroleum contracts with China National Offshore Oil Corporation (CNOOC) for three exploration blocks in the South China Sea. that cover approximately 16,871 square kilometres. Blocks 35/18 and 50/14 are located in the Ying Ge Hai Basin, west of Hainan Island and cover a combined 7,606 square kilometres.
Block 29/06, located in the Pearl Mouth Basin, is adjacent to Block 29/26, which contains the Liwan 3-1-1 discovery. This discovery contains an successfully sidetracked and cored the Liwan 3-1-1 well confirming the pay zones encountered in the original well. Husky also completed a 400 square kilometre 3-D seismic program over the Liwan discovery in September. Further drilling is planned to delineate the discovery.
DEVELOPING REGIONAL FACTORS
(Falkland Islands)
Share prices at the close of play Friday, 20 October 2006
Desire Petroleum Plc ended down 0.25 points or 0.73% on the day to settle at 34.00.
Falkland Oil and Gas Limited (FOGL) ended up 1.00 point or 1.27% on the day to stand at 79.50.
Rockhopper Exploration ended down 1.50 points or 3.37% on the day to settle at 43.00.
Borders & Southern ended unchanged on the day to stand at 39.75
Tullow Oil ended up 5.50 points or 1.37% to stand at 408.00
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