Falklands : Hydrocarbons Daily Record (Wednesday, 15 August 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 16.08.2007 (Article Archived on 30.08.2007)
Tripical storms and inventory reports have helped to increase the price of crude today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 15 AUGUST 2007
Compiled by J. Brock (FINN)
At 1700hrs LMT on Wednesday, 15 August 2007 Light Sweet Crude was trading at $73.33 up 95Cents on the New York Mercantile Exchange and Brent Crude was trading at 71.64 up 28 $1.13 on London’s Ice Futures Market.
ANALYSIS:
A weak tropical storm in the Gulf of Mexico and another tropical storm “D” in the mid Atlantic are causing the jitters in the oil market with the addition of a poor US Department of Energy Administration Inventory report for the week ending Friday, 10 August 2007 helped the price of crude to increase today.
A BRIEF INVENTORY REPORT FOR THE WEEK ENDING 10 AUGUST 2007:
Crude: Down 5.2 million barrels to 335.20 million barrels
Gasoline: Down 400,000 barrels to 201.9 million barrels. Demand for gasoline in the US is 9.6 million barrels a day up 0.4% from this time last year.
Distillates: Up 200,000 barrels to 127.7 million barrels
Refinery Capacity: 91.8% up 0.5%
THE MARKETS (Tuesday, 14 August 2007)
FTSE 100: 6,249.80 up 30.79
FTSE 250: 11,167.20 -0.70
SmallCap: 3,850.00 up 4.64
Note: None available on London Stock Exchange Website today
THE MARKETS (Wednesday, 15 August 2007)
DJI: 12,861.47 down 167.45
NASDAQ: 2,458.83 down 40.29
S&P500: 1,406.70 down 19.84
Note: These are final prices. The S&P500 has all of its gains for the year.
LOCAL DEVELOPMENTS:
Borders & Southern Petroleum plc
(the 'Company')
Placing of 50,000,000 new Ordinary Shares at 30 pence to raise £15 million (the
'Placing')
Notice of Extraordinary General Meeting ('EGM')
Borders & Southern Petroleum plc (AIM: BOR) announces today that it has, subject to the terms and conditions of the Placing and the passing of resolutions by shareholders at the EGM, successfully raised £15 million before expenses through a placing of 50,000,000 Ordinary Shares (the 'Placing Shares') at 30 pence each. The Placing Shares have been conditionally placed with institutional investors by the Company's broker, Ocean Equities Limited, and Panmure Gordon & Co.
The net proceeds from the Placing will be used by the Company to fund the acquisition of 3D seismic data over a number of prospects within its Falkland Islands Acreage. The 3D seismic data will be used to provide information on the potential reservoir distribution, enhance prospect delineation and to assist in the location of exploration wells. In addition the 3D seismic data will be used to investigate the numerous amplitude anomalies identified on the Company's 2D seismic data to authenticate the presence of direct hydrocarbon indicators and thereby reduce the exploration risk.
The Company has received tenders from a number of seismic contractors for the provision of the proposed 3D seismic survey. It is anticipated that, subject to agreeing final terms, the 3D seismic survey will commence in the fourth quarter of this calendar year.
In order to implement the Placing, the Company is today calling an Extraordinary General Meeting of its shareholders to be held at 11.00 a.m. on 10th September 2007 at the offices of Tavistock Communications at 131 Finsbury Pavement, London, EC2A 1NT to seek s80 authority and s89 authority to allot relevant securities on a non-pre-emptive basis in respect of an aggregate nominal amount of £500,000 to enable the Placing Shares to be issued. The Company is also seeking additional s80 authority and s89 authority to allot relevant securities on a non-pre-emptive basis in respect of an aggregate nominal amount of £200,000 to provide the Company with the flexibility to issue additional relevant securities should the Directors deem that it is in the best interest of the Company to do so.
Copies of the circular, which has been sent today to the shareholders of the Company and sets out further information on the Placing and provides notice of the EGM, are available free of charge from the Company's registered office during normal business hours on any weekday (Saturdays and public holidays excepted) until 10th September 2007.
Howard Obee, CEO of the Company, commented:
'I am delighted to announce that we have successfully raised the funds to enable the Company to undertake a 3D seismic programme on our Falkland Islands Acreage.
The work that we have done to date, which has included the acquisition, processing and interpretation of 2,862 km of 2D seismic data, as well as commissioning and completing numerous technical studies, has revealed numerous structural leads. These comprise four-way dip anticlinal closures, three-way dip thrust fault closed structures, and tilted fault blocks. Many of these structures are large. Seven leads have a mapped area of closure of over 50 sq km, with one structure exceeding 130 sq km. Significantly these structures have the potential for stacked reservoirs, providing multiple targets within the same prospect.
The Company believes that its prospects are worthy of exploration drilling. The acquisition of 3D seismic data takes us a step closer to this goal.'
ENDS
For further information please contact:
Howard Obee, Borders & Southern Petroleum plc Tel: 020 7661 9348
Guy Wilkes, Ocean Equities Ltd Tel: 020 7786 4370
Katherine Roe, Panmure Gordon & Co Tel: 020 7459 3600
Christopher Caldwell, Insinger de Beaufort Tel: 020 7190 7022
Simon Hudson, Tavistock Communications Tel: 020 7920 3150
Provided by the Falkland Islands Company Limited
RELEVANT SHARE PRICES:
TLW: 472.00 down 7.00, DES: 27.75 down 0.25, FOGL: 121.50 up 7.00, RKH: 47.50 unchanged, BOR: 29.00 up 1.00, PRE: 13.25 down 0.50, GBP: 6.75 down 0.63
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