Falklands : Hydrocarbons Daily Record (23/08/07)
Submitted by Falkland Islands News Network (Juanita Brock) 24.08.2007 (Article Archived on 07.09.2007)
Easing worries about supply from Mexico have helped to increase the price of crude today.
HYDROCARBONS DAILY RECORD: THURSDAY, 23 AUGUST 2007
Compiled by J. Brock (FINN)
At 1700hrs LMT on Thursday, 23 August 2007 Light Sweet Crude was trading at $69.83 up 57 Cents on the New York Mercantile Exchange and Brent Crude was trading at $69.86 up $1.16 on London’s Ice Futures Market.
ANALYSIS:
Eased worries about the loss pf production from Mexico have helped to add to the price of crude today.
THE MARKETS (Wednesday, 22 August 2007)
FTSE 100: 6,196.90 up 0.90
FTSE 250: Not available
SmallCap: 3,774.90 up 20.20
DJI: 13,235.88 down 0.25
NASDAQ: 2,541.70 down 11.10
S&P500: 1,462.50 down 1.57
INTERNATIONAL DEVELOPMENTS:
(Extract From a Company Press Release)
Tullow Oil plc (Tullow)announces the successful drilling and testing of the Mputa-3 appraisal well in Uganda's Block 2 which the Group operates with a 100% interest. The well was drilled to a total depth of 973m and encountered hydrocarbons in three separate zones. One zone was tested and produced at an average rate of 1,986 barrels of oil per day. Pressure and sampling data from the other two zones indicates that all three zones could flow at a combined rate in excess of 4,000 barrels of oil per day.
Mputa-3, the second of three wells in the Kaiso-Tonya area appraisal program, was drilled 1.5km southeast of the 2006 discovery well. The primary objectives of the well were firstly to confirm the presence of oil at this location to underpin the reserves and field development plan and secondly to confirm the lateral extent and quality of the reservoir sands to verify the geological model.
The well intersected three oil bearing zones with total net pay of 19.5m, the best result to date in the Kaiso-Tonya area. The first two zones, 4.5m and 5.0m, were encountered at 803m and 837m respectively. These zones were not production tested but pressure testing and sampling indicated moveable oil with very good permeabilities. The third zone, a 10m sandstone at 867m, was production tested for two days at an average rate of 1,986 barrels of 33º API oil per day through a 3/4 inch choke. Pressure data acquired during the test confirmed that the sands are extensive with a permeability in excess of 1 Darcy.
The well is now being suspended as a future producer. On completion the rig will move to the Mputa-4 location, 1.2km north-east. Mputa-3 is an important component of the overall appraisal program and has provided key information for understanding ultimate reserve potential and for development planning. Data from this well will be integrated with the results from the upcoming Mputa-4 well and the 3D seismic which is to be acquired by year-end.
Commenting today, Aidan Heavey, Chief Executive of Tullow said:
"We are very pleased to have continued our sequence of successfuldrilling in Uganda having encountered producible hydrocarbons in all seven of the wells drilled to date. The Mputa-3 well has exceeded our pre-drill expectations in terms of sand development and production performance and has also provided important regional geological information. The appraisal program is progressing well and remains on schedule to sanction the Early Production System in the fourth quarter this year."
In South America Tullow has high impact exploration interests in Trinidad and Tobago, French Guiana, Suriname and the Falkland Islands.
REGIONAL DEVELOPMENTS:
Guillermo Aruquipa, president of YPFB has announced that Russian company Gazprom and Bolivia's Yacimientos Petroliferos Fiscales Bolivianos have began talks with a view to to boost cooperation and form a joint venture. Gazprom has voiced interest in taking on the risk of exploration in 33 YPFB reserved areas. Assessment of the risk and other studies should take a year at least. Depending on the results, both countries plan to set up a joint venture in 2008 similar to Petroandina YPFB with Venezuela, in which YPFB controls 60 percent of shares.
RELEVANT SHARE PRICES:
TLW: 494.75 up 11.75, DES: 27.00 up 1.25, FOGL: 136 up 14.50, RKH: 46.50 up 2.50 BOR: 27.25 up 1.00, PRE: 12.50 unchanged, GBP: 7.25 up 0.50
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