Falklands : Hydrocarbons Daily Record (25/10/06)
Submitted by Falkland Islands News Network (Juanita Brock) 26.10.2006 (Article Archived on 09.11.2006)
Disappointing US inventory reports caused crude prices to gain significantly today.
HYDROCARBONS DAILY RECORD: WEDNESADY, 25 OCTOBER 2006
By J. Brock (FINN)
At 1800 LMT Wednesday, 25 October 2006 Light Sweet Crude gained $2.05 Cents on the New York Mercantile Exchange to stand at $61.85 and Brent Crude gained $2.19 Cents to stand at $62.05 on London’s ICE Futures Exchange.
TRENDS
Crude prices gained significantly when the weekly inventory report showed an alarming drop in supplies. It is hoped that those responsible for buying in supplies will do so when the price per barrel is low.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 32.09 points to settle 6,182.50 and the FTSE 250 gained 40.40 points to end at 10,401.60. FTSE Small Cap closed up 15.81 points to settle at 3,636.20.
DOW JONES AND NASDAQ
Results were mixed today due to tomorrow’s meeting of the Federal Reserve Bank, where a decision will be made about interest rates.
At the end of play today the Dow Jones Index gained 10.97 points or 0.09% to settle at 12,127.88 and the NASDAQ lost 10.72 points or 0.46% to settle at 2,344.84. The S&P500 was up 0.36 or 0.03% to settle at 1,377.38 and the NYSE gained 13.48 points or 0.15% to settle at 8,750.07.
DEVELOPING FACTORS
(United Kingdom: From a Press Release)
- Grove Energy Limited ("Grove")(TSX-V & AIM:GRV), the oil and gas exploration company with assets in Europe and the Mediterranean Margin, is pleased to announce that it has sold a majority of its UK North Sea portfolio to EnCore Oil plc (AIM: EO.) ("EnCore"), while keeping a direct 10% interest in Block 42/13 and surrounding acreage. Grove will receive 9.9 million shares of EnCore and the other Virgo participants are to receive 27.1 million EnCore shares. This transaction has resulted from the previously announced Virgo Oil & Gas plc consolidation strategy. Grove has retained a 10% interest in Block 42/13 and surrounding acreage located in the north western part of the UK Southern Gas Basin. The 42/13 structure was mapped from 3D seismic data as a structural trap that was targeted by well 42/13-2 drilled in 1997 by Mobil. Well 42/13-2 encountered a 140 metre gross gas column and studies to date indicate the potential for significant reserves in a very large structure. The sale includes Grove's 30% interest in Blocks 21/22 and 21/28b in the Northern North Sea and 15% interests in Blocks 42/13 and 42/12, 42/14, 42/8 and 42/9 in the Southern North Sea. Additional information about Grove and Encore may be found at: http://www.groveenergy.com and http://www.encoreoil.co.uk.
(From a Press Release)
-- BP's third quarter replacement cost profit was $6,975 million, compared with $4,410 million a year ago, an increase of 58%. For the nine months, replacement cost profit was $18,358 million compared with $14,882 million, up 23%.
-- The third quarter result included a net non-operating gain of $1,225 million compared with a net non-operating charge of $921 million in the third quarter of 2005. This includes significant gains on upstream asset disposals. For the nine months, the net non-operating gain was $1,214 million compared with a net non-operating charge of $1,201 million for the nine months of 2005.
-- Compared with a year ago, the third quarter trading environment reflected higher oil realizations and higher retail margins but lower refining margins and lower gas realizations.
-- Net cash provided by operating activities for the quarter and nine months was $5.1 billion and $23.2 billion compared with $6.4 billion and $22.5 billion a year ago.
-- The ratio of net debt to net debt plus equity was 16%.
The quarterly dividend, to be paid in December, is 9.825 cents per share ($0.5895 per ADS) compared with 8.925 cents per share a year ago. For the nine months, the dividend showed an increase of 10%. In sterling terms, the quarterly dividend is 5.241 pence per share, compared with 5.061 pence per share a year ago; for the nine months the increase was 8%. During the nine months, the company repurchase 1,024 million of its own shares at a cost of $12 billion. The full press release can be found at: http://www.bp.com or http://www.bp.com/investors
DEVELOPING REGIONAL FACTORS
(Brazil and Bolivia)
Reports in the Latin American press say that at least two companies will finalise contracts for exploitation of Bolivia’s natural gas reserves. Brazil and Bolivia are hoping to complete an agreement over exploration and exploitation of Bolivia’s natural gas, according to Brazilian Mines and Energy Minister Silas Rondeau. He is expected to travel to Bolivia on the weekend to finalise the agreement. If this fails it is possible that Petrobras will leave Bolivia.
(Argentina and Bolivia)
According to the Bolivian Information Agency, an agreement on selling Bolivian gas to Argentina forbad Enarsa to resell gas to Chile. Enarsa will explore for and exploit gas, oil and other hydrocarbons in Bolivia. The contract ensures the sale of up to 27.7 million cubic meters of gas every day and the two parties expect to increase sale gradually to reach the maximum export level in 2010.
(Venezuela and the United States)
Shipments of Venezuelan oil to the United States have dropped by an estimated 40,000 bpd, or 3.3 percent from 1.19 million bpd in June to 1.15 million bpd in August. The monthly numbers were provided by the Energy Information Administration (EIA) - the statistical arm of the US Department of Energy
(Falkland Islands)
Share prices at the close of play Wednesday, 25 October 2006
Desire Petroleum Plc ended unchanged on the day to settle at 33.50.
Falkland Oil and Gas Limited (FOGL) ended down 3.00 points or 3.80% on the day to stand at 76.00.
Rockhopper Exploration ended up 0.50 points or 1.15% on the day to settle at 43.00.
Borders & Southern ended unchanged on the day to stand at 39.75
Tullow Oil ended up 3.00 points or 0.474% to stand at 409.00
|
