Falklands : Hydrocarbons Daily Record (27/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 27.09.2006 (Article Archived on 11.10.2006)
Hardman's latest project did not produce the expected results.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 27 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT Wednesday, 27 September 2006 Light Sweet Crude GAINED .61 Cents to stand at $61.62 and Brent Crude gained $2.09 Cents or 3.5% to stand at $62.21.
TRENDS
Indicators point to fear that OPEC might cut production due to excellent crude inventories in the United States. Speculators feel that a cut in production will increase the price per barrel.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 56.55 points to settle 5,930.10 and the FTSE 250 gained 66.90 points to end at 9,911.80. FTSE Small Cap closed up 6.88 points to settle at 3,502.80.
DOW JONES AND NASDAQ
Fears about an OPEC cut in production caused nervousness that prevented the Dow Jones Index from reaching an all time high, though it deserves credit for having the highest average since 2000 when it reached 11,722. The highest point ever reaches, but not at closing, was 11,750.
At the end of play today the Dow Jones Index gained 20.65 points or 0.18% to settle at 11,690.04 and the NASDAQ gained 2.05 points or 0.18% to settle at 2,263.39.
DEVELOPMENTS
(Australia)
When Hardman announced that no significant hydrocarbons had been detected in the vaunted Flamant-1 gas well near the stuttering Chinguetti oil project, it dashed speculation it would confirm a major reservoir containing more than five trillion cubic feet of gas. Hardman’s share price dropped to the offer price of $2.02 before it closed 1˘ down at $2.03 on Tuesday, significantly lower than its Monday high of $2.09, as hopes of a rival bid eased. As reported on Monday, Hardman managing director Simon Potter said the board recommended the Tullow bid. After a string of high-profile “dusters” at the Woodside Petroleum-run Mauritanian joint venture, including at the potential 170-million barrel Colin oil prospect, Flamant had been seen as an indicator the area’s chances of becoming a future LNG supplier, possibly to Europe.
DEVELOPING REGIONAL FACTORS
(Bolivia)
Bolivia has admitted lack of production capacity to boost its natural-gas exports and acknowledged current output is just enough to honour contracts with Argentina and Brazil and to meet domestic demand. Vice President Alvaro Garcia said in remarks published Tuesday in the local media that Bolivia had plenty of natural gas underground but "not at the wellhead." He blamed the lack of production capacity on previous governments, particularly the 2001-2002 administration of former President Jorge Quiroga, that allowed multinational oil companies to avoid prior commitments to invest in production infrastructure.
(Falkland Islands)
Share prices at the close of play on Tuesday, 26 September 2006
Desire Petroleum Plc ended up 0.75 points or 2.11% on the day to settle at 36.25.
Falkland Oil and Gas Limited (FOGL) were down 8.00 or 8.21% on the day to stand at 89.50.
Rockhopper Exploration ended unchanged on the day to settle at 41.00.
Borders & Southern ended unchanged on the day to stand at 41.00
Tullow Oil ended up 10.75 points or 3.08% to stand at 360.00
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