Falklands : Hydrocarbons Daily Record (17/05/07)
Submitted by Falkland Islands News Network (Juanita Brock) 18.05.2007 (Article Archived on 01.06.2007)
The shut-down of a Louisiana refinery and of a pipeline in NE US has caused crude prices to increase today.
HYDROCARBONS DAILY RECORD: THURSDAY, 17 MAY 2007
By J. Brock (FINN)
At 1800LMT on Thursday, 17 May 2007 Light Sweet Crude was trading at $64.86 up $2.31 on the New York Mercantile Exchange and Brent Crude was trading at $70.27 up $2.30 on London’s Ice Futures Market.
ANALYSIS:
Today’s price rises for Light Sweet Crude were caused by a refinery shut-down in Louisiana and another of a pipeline in the North-east US. This has caused general worry about the supply of gasoline. Analysts say that gasoline could reach $4.00 a gallon. A variety of complications could make crude sky-rocket this summer. Unrest in the Mid-east as well as in the Niger Delta top the list. Last year crude prices peaked at 78.40 on 14 July due to the same conditions that could drive them past that point this year.
THE MARKETS:
FTSE100: 6,579.30 up 19.85
FTSE250: 12,143.60 up 40.98
SmallCap: 4,126.70 up 6.00
DJI: 13,476.72 down 10.81
NASDAQ: 2,539.38 down 8.04
S&P500: 1,512.75 down 1.39
The hike in oil prices eroded investor confidence and caused a drop in share prices today.
REGIONAL DEVELOPMENTS:
(Ecuador)
Petro-ecuador President Carlos Pareja has announced that his company expects to receive an offer by Royal Dutch Shell this week. The offer should include a facility to help improve the country's largest refinery, now operating at less than 50% of its up to 95,000 barrels of oil per day capacity.
(Falkland Islands)
Falkland Oil and Gas Limited
16 May 2007
Wednesday 16 May 2007
Falkland Oil and Gas Limited
('FOGL' or 'the Company')
Annual General Meeting
The following statement will be made by FOGL's Chairman, Richard Liddell, at the Company's Annual General Meeting to be held today:
'The last nine months have seen continued progress as we enter what we see as a crucial year in the Company's development as we continue to pursue our aggressive exploration programme in the South Atlantic.
Two surveys are currently underway: The 2D infill seismic programme and Controlled Source Electro-Magnetic ('CSEM') survey. These started respectively in December last year and February this year and both are progressing satisfactorily. To date approximately 8,500 kilometres of 2D seismic have been acquired. The survey is expected to be completed in June 2007. Good progress has also been made with the CSEM survey, with four out of the planned eight lines acquired to date. The second phase of the survey will commence shortly. Interpretation of the CSEM data is expected to be completed in the second half of 2007.
These surveys are designed specifically to reduce the exploration risk andidentify the best prospects to target for the Company's future drilling campaign. The Company's cash reserves remain sufficient to carry out the current programme.
The strategy and focus for the next 12 months remain unchanged. We continue to look to introduce suitable farm-in partners whilst at the same time evaluating the rig options. This is in combination with our operations programme which will enable us to select the best prospects for drilling. It is against this robust programme that a number of different scenarios and interesting opportunities could develop for the Company during the next year. The Board believes that the current exploration programme will lead to an exciting drilling programme that could see the development of a new petroleum province in the South Atlantic.'
Enquiries:
FOGL 020 7563 1260
Richard Liddell, Chairman
Tim Bushell, Chief Executive
KBC Peel Hunt (Nominated Adviser) 020 7418 8900
Jonathan Marren / Matt Goode
College Hill 020 7457 2020
Nick Elwes / Paddy Blewer
www.fogl.com
RELEVANT SHARE PRICES:
TLW: 378.25 up 11.25
DES: 26.75 up 0.75
FOGL: 84.00 unchanged
RKH: 44.50 up 1.00
BOR: 22.00 down 1.00
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