HYDROCARBONS DAILY RECORD: TUESDAY, 11 SEPTEMBER 2007
By J. Brock (FINN)
At 1830hrs LMT on Tuesday, 11 September 2007 Light Sweet Crude was trading at $78.23 up 74 Cents on the New York Mercantile Exchange. Brent Crude was trading at $75.71 up 23 Cents on London’s ICE Futures Market.
ANALYSIS:
Omar Farouk Ibrahim, spokesman for the Organization of Petroleum Exporting Countries, announced late on Tuesday that OPEC would increase its production by 500,000 barrels per day to begin on 01 November. The increase would be based on the group's current production - meaning the 12-nation group was adding actual oil to the market. Despite this announcement the price of crude increased today. Though initially the price decreased slightly, gains quickly overtook crude prices.
It is thought that the increase came at the wrong time in that the summer drive season is winding down and the major factor for increases – the supply of gasoline in the US and the ability to produce it from crude – would not weigh as heavily on investors’ fears. The hurricane season thus far has not affected infrastructure off the US in the Gulf of Mexico.
Hints of $100.00 per barrel crude are unhelpful and could backfire when people seek alternatives. Here in the Falklands savings have been made on energy by using power from our new wind farm and waste heat from the Power Station. We are also importing solar panels to help reduce the cost of imported fuel. There is even talk of hybrid vehicles using alternative fuel for energy generation.
THE MARKETS: 11 SEPTEMBER 2007:
FTSE100: 6,280.70 up 146.57, FTSE250: 11,212.30 up 237.48, SmallCap: 3,746.90 up 47.36
DJI: 13,308.39 up 180.54, NASDAQ: 2.597.47 up 38.36, S&P500: 1,471.49 up 19.79
INTERNATIONAL DEVELOPMENTS:
(Russia and China)
Russia’s largest oil producer (Lukoil) and their counterpart in The Peoples’ Republic of China (China National Petroleum or CNPC) are set to form a joint venture on oil and natural gas production. Vagit Alekperov, the president of Lukoil, and Jiang Jiemin the chairman of CNPC, signed the agreement in Beijing. It is hoped the new joint venture will increase co-operation on current projects with a view to work on production, exploration and refining of oil, gas and other hydrocarbons products abroad. CNPC is the biggest oil company in China.
In related regional news, the leaders of China and Kazakhstan, last month agreed to finance and build a network of pipelines to supply China with oil and natural gas from the Caspian Sea region.
REGIONAL DEVELOPMENTS:
Venezuela's state run energy company, PDVSA, has announced that their net income fell 16 percent to $5.45 billion, in 2006. Decreased profits occurred despite sales rising to $99.3 billion. A company press release explained that the PDVSA funded social projects from their profits in 2006. Based on actual cash payments rather than the amounts shown in the Statement of Net Income, the government’s portion reached $39.21 billion.
LOCAL DEVELOPMENTS:
Press Release
For immediate release: 10 September 2007
Rockhopper Exploration receives final processed 3D data volume
Rockhopper Exploration plc (“Rockhopper”) is pleased to announce it has received the final processed volume of 3D data collected by CGG between November 2006 and January 2007. The survey covered an area of over 850 km2 and the additional time taken to process this data was used to further improve the quality of the data.
Interpretation of this data will now commence and is likely to be completed within three months.
The data was collected over licences PL032 and PL033 where Rockhopper holds a 100% interest in both licences. Two wells were drilled by Shell on this acreage during 1998. Live oil was recovered from one, while oil and gas shows were found in the other.
NB: This statement has been approved by the Company’s geological staff who include David Bodecott (Exploration Director), who is a Member of Petroleum Exploration Society of Great Britain (PESGB) and the American Association of Petroleum Geologists (AAPG) with over 30 years of experience in petroleum exploration and management, for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.
For further information, please contact:
Rockhopper Exploration plc www.rockhopperexploration.co.uk
Sam Moody - Managing Director 01722 414 419
Aquila Financial Ltd www.aquila-financial.com
Peter Reilly 020 7202 2601
Yvonne Fraser 020 7202 2609
Landsbanki Securities (UK) Limited – Corporate Finance
Andrew Matharu 020 7426 9000
Tom Hulme
Notes to editors
www.rockhopperexploration.co.uk
The Rockhopper Group started trading in February 2004 to invest in and carry out an offshore oil exploration programme to the north of the Falkland Islands. The Group, floated on AIM in August 2005, is currently the largest licence holder in the North Falkland Basin and has a 100 per cent. interest in four offshore production licences which cover approximately 5,800 sq. km. These licences have been granted by the Falkland Islands government.
RELEVANT SHARE PRICES 11 SEPTEMBER 2007:
TLW: 555.50 up 5.50, DES: 29.25 down 0.25, FOGL: 154.00 down 1.00 1.00, RKH: 49.00 unchanged, BOR: 33.00 down 0.25, PRE: 12.50 unchanged, GBP: 9.00 unchanged, GPK: 422.00 unchanged.
