Falklands : Hydrocarbons Daily Record (10/11/06)
Submitted by Falkland Islands News Network (Juanita Brock) 11.11.2006 (Article Archived on 25.11.2006)
Traders taking profits and an IEA report on world demand for energy has caused a decline in crude prices today.
HYDROCARBONS DAILY RECORD: FRIDAY, 10 NOVEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Thursday, 09 November 2006 Light Sweet Crude fell $1.57 Cents on the New York Mercantile Exchange to stand at $59.59 and Brent Crude lost $1.61 Cents to stand at $59.71 on London’s ICE Futures Exchange.
TRENDS
Traders taking profits and an International Energy Agency (IEA) report on world demand for hydrocarbons products contributed to the drop in crude prices today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 23.13 points to settle 6,208.40 and the FTSE 250 gained 62.74 points to end at 10,653.60. FTSE Small Cap fell 16.22 points to settle at 3,678.90.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index gained 5.13 points or 0.04% to settle at 12,108.43 and the NASDAQ gained 13.71 points or 0.58% to settle at 2,389.72. The S&P500 gained 2.57 points or 0.19% to settle at 1,380.90 and the NYSE gained 14.25 points or 0.16% to settle at 8,827.98.
DEVELOPING FACTORS
(Canada)
Under-production in refineries throughout the US has caused Enbridge Inc. a distribution company to cut back on supply shipped on its oil pipeline system from Western Canada. In a prepared statement a Company spokesman, Jim Rennie said that the supply going into the system is exceeding that being taken out, so the Company has slowed the flow rate. Mr. Rennie added that he did not have volume statistics resulting from the decision. The Canadian system distributes approximately 2 million barrels a day of oil and other hydrocarbons to the United States and Eastern Canada.
(DEVELOPING REGIONAL FACTORS)
(From a Press Release)
CALGARY, Alberta, Nov. 9 /CNW/ -- Gran Tierra Energy Inc. (OTC Bulletin Board: GTRE.OB) -- On November 3, 2006, the License Contract for the Exploration and Exploitation of Hydrocarbons covering Block 122 in Peru between Gran Tierra Energy Peru and PeruPetro S.A. was ratified by Supreme Decree and is now effective. With a 100% working interest, Gran Tierra Energy is operator of the block.
Block 122 is located on the eastern flank of the Maranon Basin in northern Peru, on the crest of the Iquitos Arch and covers 1.2 million acres. The License Contract defines a seven-year exploration term divided into four periods, each involving a minimum work/financial commitment. The minimum commitment for the first work period, which is mandatory, is $0.5 million. The potential commitment over the seven-year period is $5.0 million and includes technical studies, seismic acquisition and the drilling of one exploration well. The License Contract defines an exploitation term of thirty years for commercial discoveries of oil.
Dana Coffield, President and Chief Executive Officer of Gran Tierra, stated, "The completion of this transaction marks the completion of our first stage of growth, building a base of production and prospective land in three target countries in South America. Our entries into Argentina, Colombia and Peru have each taken different approaches: via strategic property additions in Argentina, via a corporate acquisition in Colombia, and now via a wildcat exploration license in Peru. The combination provides a mix of production/cash flow, low risk drilling opportunities and higher risk/higher reward drilling opportunities that we intend to pursue aggressively over the coming years."
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The Company now holds interests in producing and prospective properties in Argentina, Colombia and Peru. To date, the Company has pursued a strategy that focuses on establishing a portfolio of producing properties, development and exploration opportunities, through selective acquisitions, to provide a base for future growth. Additional information concerning Gran Tierra is available at www.grantierra.com . Investor inquiries may be directed to info@grantierra.com or 1-800-916-GTRE (4873).
(Falkland Islands)
Share prices at the close of play on Thursday, 09 November 2006
Desire Petroleum Plc ended down 0.25 or 0.74% on the day to settle at 33.50.
Falkland Oil and Gas Limited (FOGL) ended up 1.00 or 1.20% on the day to stand at 84.50.
Rockhopper Exploration ended unchanged on the day to settle at 40.00.
Borders & Southern ended unchanged on the day to stand at 37.50
Tullow Oil ended up 12.75 points or 3.08% on the day to stand at 427.00
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