Falklands : Hydrocarbons Daily Record (03/01/07)
Submitted by Falkland Islands News Network (Juanita Brock) 03.01.2007 (Article Archived on 17.01.2007)
The price of crude has dropped significantly today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 03 JANUARY 2007
By J. Brock (FINN)
At 1800 LMT on Wednesday, 03 January 2007 Light Sweet Crude closed down $2.73 to settle at $58.32 on the New York Mercantile Exchange and Brent Crude lost $2.47 to settle at $57.96 on London’s ICE Futures Market.
TRENDS:
It seems that the undertaking by OPEC to further cut production of crude is not yet on the minds of investors who operate on a hair-trigger when there is a slight change in the news one way or the other.
THE MARKETS:
FTSE 100 closed at 6,319.00 up 8.07 points
FTSE 250 closed at 11,315.90 up 3.82
FTSE Small Cap closed at 3.941.70 up 15.89
DJI closed at 12,474.52 up 11.37
NASDAQ closed at 2,423.16 up 7.87
S&P500 closed at 1,416.60 up 1.70
WORLD-WIDE DEVELOPMENTS:
JAVELIN ENERGY INC. (From a Press Release) is pleased to announce that the Corporation has successfully completed 3 Triassic zones in its 100% working interest Clear Prairie well located at102/15-11-91-12W6M. The well 102/15-11-91-12W6M was flow tested for 48 hours and produced sweet gas at an initial unstabilised average rate of 1.1 MMcf/day (approximately 180 Boe/day) and sweet oil at an unstabilised average rate of approximately 150 Bbls/day. The 102/15-11 well represents Javelin's first oil discovery in the Clear Prairie area, where the Corporation's current production is 100% gas.
The well is immediately adjacent to the existing Clear Prairie gas gathering infrastructure and the Corporation plans to have the well tied-in and on production as soon as possible in January 2007.
The 102/15-11 well was drilled to a total depth of 1,341 metres and encountered well log indicated hydrocarbons in six zones. A lower Triassic zone was initially completed in the well 102/15-11-91-12W6 but was unable to produce hydrocarbons at an economic rate.
As announced in its news release of December 20, 2006, Javelin has also successfully drilled and cased a second well on its Clear Prairie property located at 100/10-14-91-12 W6M, which was drilled to a total depth of 1,337 metres and encountered five zones with well log indicated hydrocarbons. It is Javelin's intention to commence completion operations on the 10-14 well within the next seven days. Results from such operations will be reported as they become available.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION: Javelin Energy Inc.
Peter Aubrecht, President and Chief Executive Officer
(403) 290-0193 (403) 290-0194 (FAX)
Or Javelin Energy Inc.
Tom Johnson, Chief Financial Officer
(403) 560-3262
REGIONAL DEVELOPMENTS:
(Falkland Islands)
Relevant Share Prices for Wednesday, 03 January 2007:
Tullow Oil down -3.75 to settle at 405.50
Desire Petroleum down –o.50 at 33.50
FOGL up 5.00 or 2.90% to settle at 105.50
Rockhopper Exploration unchanged at 40.00
Borders & Southern unchanged at 39.00
Falkland Oil and Gas Limited
Grant Of Options
Unapproved Option Scheme
Falkland Oil and Gas Limited (”the Company”) announces that on 27 December 2006, Tim Bushell, Chief Executive, was granted an option over 194,595 ordinary shares of 0.002p each in the Company (“Ordinary Shares” ) at an exercise price of 92.5pence per Ordinary Share. The option may be exercised between 27 December 2009 and 26 December 2013 subject to the satisfaction of performance criteria relating to the compound annual increase in the Company’s
share price over the period 27 December 2006 to 26 December 2009 (“the Performance Period”). The option shall not be deemed to be exercised at all unless the price of an Ordinary Share increases by more than 10 per cent compound during the performance period. If the price of an Ordinary Share increases by 10per cent compound per annum during the Performance Period the option may be exercised as to 25per cent of the shares under option and if the price increases by 50 per cent compound per annum during the Performance Period the option may be exercised in full. The option shall be deemed to be exercisable over a reduced number of Ordinary Shares for increases between 10per cent and 50per cent calculated on a straight line basis.
Long Term Incentive plan
The Company also announces the introduction of a Falkland Oil and Gas Long Term Incentive Plan (the “LTIP”). The remuneration committee of the board of directors of the Company (the “Remuneration Committee”) has taken this step to further synchronise the long term aspirations of the Company, Executive Management and shareholders.
The LTIP is an unapproved employee share option plan under which options over Ordinary Shares may be granted to any employee or director of the Company or its subsidiaries (the “Group”) and any consultant to the Group. The exercise price per Ordinary Share of options granted under the LTIP shall, unless otherwise determined by the Remuneration Committee be the nominal value of an Ordinary Share.
Under the terms of the LTIP, the Company announces that, on 27 December 2006, Tim Bushell, Chief Executive, was granted an option (the “Option”) over 194,595 Ordinary Shares of 0.002p each in the Company at an exercise price of 0.002p per Ordinary Share. Subject to the terms of the LTIP, the Option will be deemed to be exercised on 27 December 2009, being the third anniversary of the date of grant of the Option. Exercise of the Option is, however, contingent upon two performance conditions being satisfied over the three year period following the date of grant of the Option (the “LTIP Performance Period”), being:
i. The achievement of a specified performance target related to the market prices of an Ordinary Share; and ii. The relative performance of the market price of an Ordinary Share as compared against the share price performance of a group of 18 comparator companies chosen by the Remuneration Committee (the “Comparator Companies”).
The Option shall not be deemed to be exercised at all unless:
i. The market price of an Ordinary Share increases by at least 20% per annum over the LTIP Performance Period; and ii. The increase in the market price of an Ordinary Share over the LTIP Performance Period is not less than the share price increase achieved by the 9th ranked company in the Comparator Companies.
The option shall not be deemed to be exercised in full unless:
i. The market price of an Ordinary Share increases by at least 50% per annum over the LTIP Performance Period; and ii. The increase in the market price of an ordinary Share over the LTIP Performance Period is more than the share price increase achieved by at least 17 of the Comparator Companies. The Option shall be deemed to be exercised over a reduced number of Ordinary Shares for performance between these levels (on a straight line basis) and the Option shall lapse on 27 December 2009 to the extent that the performance conditions are not met.
Interest in shares
Prior to the above grants Mr Bushell owns 60,000 Ordinary Shares in the Company and has options over 457,627 Ordinary Shares granted under the Company’s Unapproved Share Option Scheme exercisable at 118p subject to the satisfaction of performance criteria.
Enquiries:
FOGL
Richard Liddell, Chairman
David Hudd, Deputy Chairman
020 7563 1260
020 7563 1260
College Hill
Nick Elwes / Paddy Blewer 020 7457 2020
KBC Peel Hunt
Jonathan Marren 020 7418 8900
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