Falklands : Hydrocarbons Daily Record (27/11/06)
Submitted by Falkland Islands News Network (Juanita Brock) 28.11.2006 (Article Archived on 12.12.2006)
The threat of a further OPEC production cut as well as forecasts of cold weather in the US winter as well as an attack on a northern Iraq oil facility added to the price of crude today.
HYDROCARBONS DAILY RECORD: MONDAY, 27 NOVEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Monday, 27 November 2006 Light Sweet Crude gained $1.08 Cents on the New York Mercantile Exchange to stand at $60.32 and Brent Crude gained 27 Cents to stand at $60.30 on London’s ICE Futures Exchange.
TRENDS
The threat of further OPEC production cuts, a colder forecast for the US this winter and an attack on an oil facility in northern Iraq helped to increase the price of crude today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 71.97 points to settle at 6,050.10 and the FTSE 250 lost 96.59 points to end at 10,493.60. FTSE Small Cap lost 26.25 points to settle at 3,674.20.
DOW JONES AND NASDAQ
The weaker US Dollar as well as the rise in crude prices caused losses on Wall Street today.
The Dow Jones Index lost 158.38 points or -1.29% to settle at 12,121.79 and the NASDAQ lost 54.34 points or -2.21% to settle at 2.405.92. The S&P 500 lost 19.00 points or -1.36% to settle at 1381.95 and the NYSE lost 112.66 points or -1.26% to settle at 8,820.78.
DEVELOPING FACTORS
(From a Press Release)
Global Resource Corp. (OTC Bulletin Board: GBRC) is pleased to announce that it has received a valuation of its recently purchased technology from CRC, Inc. of$150,000,000 US from Corporate Valuation Advisors, Inc. (CVA).
The assets were valued by Corporate Valuation Advisors, a Wisconsin based firm that has over 20 years experience in the valuation of private and public assets, using both the fair market and income approaches to valuation.
The process allows for a low emission reactor that meets or exceeds guidelines for "green processing" in many states and municipalities,allowing scrap tires to be broken down efficiently into their component materials at low cost, and results in by-products that have significant value, including tire derived fuels (TDF).
The valuation of the business enterprise was based upon the application of the Income and Market Approaches. The Cost Approach was considered, but determined to be inapplicable to the valuation of the Company.
The Income Approach was based upon the use of a discounted pro forma cash flow model for the operating entity and produced an equity value indication of $154.34 million.
In addition to valuing the equity of CRC, CVA has also estimated the value of its technology rights. The technology rights were valued in order to demonstrate economic support for the equity valuation. In valuing the technology rights, CVA applied an Income Approach based upon the royalty income method. The royalty income method is premised upon the assumption that the Company is sublicensing its rights to the technology to others in exchange for a royalty payment rather than build and operate recycling plants of its own.
Based upon the valuation procedures employed, CVA places a Fair Value of equity at $150,000,000 and a Fair Value of Technology Rights at $144,000,000.
Global President Frank Pringle stated, "This process competes with heating and burning technologies well, especially as communities are more cognizant of the pollution elements associated with burning. Our process is like a computer, but the burning is like the abacus. It just is better in every way. If you examine cost, benefits and current availability of institutional debt for physical facilities, you would be excited about our growth potential. We are ecstatic with where our company is going. With the assets, we purchased from CRC, Inc. and with our other acquisitions underway we feel that we will be the industry leader in our market. This valuation is not even inclusive of the technologies we are acquiring from Mobilestream Oil which will also include our petrochemical applications."
About Global Resource Corporation:
Global Resources has a patent pending process that allows for removal of oil and alternative petroleum products at very low cost from various resources, including shale deposits, tar sands and waste oil streams with significantly greater yields and lower costs than are available utilizing existing known technologies. The process uses specific frequencies of microwave radiation to extract oils and alternative petroleum products from secondary raw materials, and is expected to dramatically reduce the cost for oil and gas recovery from a variety of unconventional hydrocarbon resources.
Global's technology will not only be developed to extract oil from shale, but from depleted oil fields in the US and elsewhere, many of which still contain more than half of the hydrocarbons originally in these fields, because the residual hydrocarbons are too viscous to extract with conventional technology.
Contact:
Global Resource Corporation
Phone: (856) 767-2450
Fax: (856) 767-2490
inquire@Globalresourcecorporation.com.
DEVELOPING REGIONAL FACTORS
Evo Morales, Bolivia's President, has visited the Hague on Monday, during a three-day visit to Holland
He says that his country wants "partners, not owners" of Bolivia´s now nationalised natural resources, and not expel them. Saying that "investments will always be respected," Morales, at the Dutch Foreign Ministry building after meeting Foreign Minister Bernard Bot, also praised the accountability and honesty Bolivia offers foreign investors. He continued that Bolivia´s government wants to buy the Royal Dutch Shell´s shares in Transtredes so it can be the principal shareholder of the Bolivian gas pipeline company and he added that the measure is part of the country´s decision to nationalise hydrocarbons. He stressed that his government seeks to hold a good dialogue with Shell and to end up with from 50 to 60 percent of the shares in the operational station. Royal Dutch Shell has 25 percent of Transredes, and has administrative control of the Bolivian firm, together with other foreign companies. President Morales will return to Bolivia on Monday night, after meeting Prime Minister Jan Peter Balkenende and an audience with Queen Beatrice.
(100X Translation Service)
(Falkland Islands)
Share prices at the close of play on Monday, 27 November 2006
Desire Petroleum Plc ended down 1.00 point or 12.84% on the day to settle at 34.25.
Falkland Oil and Gas Limited (FOGL) ended down 6.50 or 8.23% on the day to stand at 72.50.
Rockhopper Exploration ended up 0.25 or 0.63% on the day to settle at 40.25.
Borders & Southern ended unchanged on the day to stand at 37.50
Tullow Oil ended down 7.50 points or -1.87% on the day to stand at 394.50
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