Falklands : Hydrocarbons Weekend Record 01 to 03 December 2006
Submitted by Falkland Islands News Network (Juanita Brock) 03.12.2006 (Article Archived on 17.12.2006)
We await the outcome of Venezuela's elections. It is expected that the people will re-elect President Hugo Chavez for a second six year term.
HYDROCARBONS WEEKEND RECORD: FRIDAY, 01 TO SUNDAY, 03 DECEMBER 2006
By J. Brock (FINN)
At 1800 LMT Friday, 01 December 2006 Light Sweet Crude gained 30 Cents on the New York Mercantile Exchange to stand at $63.43 and Brent Crude gained 36 Cents to stand at $64.62 on London’s ICE Futures Exchange.
TRENDS
Monday, 27: The Threat of further OPEC Production cuts, a colder winter in the nUS and an attack on a Nigerian oil facility helped to increase the price of crude today.
Tuesday, 28: Causing today’s rise in crude prices today was the forecast of cold winter weather in the United States.
Wednesday, 29: An unhappy inventory as well as predictions for colder weather in the US added to the increase in crude prices today.
Thursday, 30: OPEC is due to meet on 14 December and it is expected that they will propose a further production cut. Ditto for an unhappy inventory today as well as predictions for colder weather both added to the price of crude today.
Friday, 01: Crude prices gained significantly today on news that there would be colder weather than anticipated in the US this winter and shaky inventories to add to the nervousness. Also on the watch list is the 14 December OPEC meeting where it is expected that another production cut will be agreed. Finally, the US Economy could be heading downwards and this reflected in the price of crude as well.
THE MARKETS
FTSE
At the close of play on Friday, the FTSE 100 was down 27.35 points to settle 6,021.50 and the FTSE 250 gained 24.95 points to end at 10,698.90. FTSE Small Cap gained 32.94 points to settle at 3,683.90.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index fell 27.80 points or 0.23% to settle at 12,194.13 and the NASDAQ fell 18.56 points or -0.76% to settle at 2,413.21. The S&P500 was down 3.92 or 0.28% to settle at 1,396.71 and the NYSE fell 19.93 points or 0.22% to settle at 8,949.07.
DEVELOPING REGIONAL FACTORS
As Petroleos Mexicanos (PEMEX) moves to deeper waters and the need for further exploration and evaluation of potential fields arise, PEMEX will require more resources in 3D acquisition, seismic modeling, reservoir geophysics, seismic attribute analysis, seismic interpretation, geophysical and geotechnical studies, operation optimization, field optimization, risk management, reports Innovation Norway’s office in Houston.
PEMEX is Mexico’s national oil and gas enterprise. The company is solely responsible for the development of the hydrocarbons resources in Mexico. PEMEX activities go from exploration to production of hydrocarbons, and cover the production, storing, distribution and commercialisation of oil derivates. Pemex is the third-largest producer of crude in the world, and the ninth largest integrated major oil company.
(Falkland Islands)
PHYL RENDELL’S REPORT ON OFFSHORE ACTIVITIES FOR NOVEMBER 2006-12-03
FIG had an exhibition stand at the Perth meeting of the AAPG convention held from 5-8 November. 2,600 visitors attended. Phil Richards from BGS provided an excellent backdrop of posters that displayed opportunities for exploration in both northern and southern basins. The DMA was able before the convention to meet with Hardman Resources, a partner of FOGL, who has its headquarters in Perth. Howard Obee and Bruce Farrer from Borders & Southern Petroleum, attended the event and presented a paper on the prospectivity of their licensed area in the South Falkland Basin. Colin More from FOGL was present throughout the week as well. Marketing venues for the first half of 2007 are now being considered with FIG’s operators.
Rockhopper Exploration’s contractor, CGG, has started a 3D survey in the licensee’s northern acreage in the North Falkland Basin. Weather conditions in late October slowed progress and a port call was required to repair damage from excessive winds but the vessel the Laurentian has, in the last week, been in steady production. CGG’s support vessel Ibis, has been in and out of Stanley to transport supplies and crew to the vessel. The survey is expected to continue until early February. Keith Williams, Rockhopper’s technical consultant, visited Stanley last week.
FOGL’s contractor, Wavefield, has mobilised their vessel MV Bergen Surveyor to the Islands and is expected to arrive in the survey area in the South Falkland Basin this week.
FOGL also plan a CSEM or Controlled Source Electro-Magnetic survey (CSEM) in their acreage starting in mid January. OHM, a company previously employed by Rockhopper Exploration, has been contracted to do the work.
Desire Petroleum has also been active progressing their plans to drill three wells in the North Falkland Basin once a rig can be contracted. Meetings with BGS and DTi are in hand to finalise well designs and other technicalities related to drilling.
Argos Resources representative, Ian Thomson, is in the Islands this week and has been briefing the DMA on progress with their licence activities.
Share prices at the close of play on Friday, 01 December 2006
Desire Petroleum Plc ended unchanged on the day to settle at 33.00.
Falkland Oil and Gas Limited (FOGL) ended up 1.50 points or 2.03% on the day to stand at 75.50.
Rockhopper Exploration ended down 0.75 points or 1.86% on the day to settle at 39.50.
Borders & Southern ended up 1.50 or 4.00% on the day to stand at 39.00
Tullow Oil ended up 1.50 or 0.37% to stand at 406.75
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