Falklands : Hydrocarbons Daily Record: Wednesday, 13 December 2006
Submitted by Falkland Islands News Network (Juanita Brock) 14.12.2006 (Article Archived on 28.12.2006)
Investors are nervous about the world-wide supply of hydrocarbons products ahead of the OPEC meeting scheduled to take place tomorrow.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 13 DECEMBER 2006
By J. Brock (FINN)
At 1800 LMT Wednesday, 13 December 2006 Light Sweet Crude gained .35 Cents on the New York Mercantile Exchange to stand at $61.37 and Brent Crude gained .28 Cents to stand at $61.80 on London’s ICE Futures Exchange.
Investors were nervous about the world-wide supply of hydrocarbons products as well as the heavy demand for heating oil in the northern winter. There were also worries about whether OPEC will cut production. The meeting is on Thursday.
At the close of play on Tuesday, the FTSE 100 was up 36.10 points to settle 6,192.50 and the FTSE 250 gained 48.56 points to end at 10,980.50. FTSE Small Cap gained 11.56 points to settle at 3,787.90.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index gained 1.92 points or 0.02% to settle at 12,317.50 and the NASDAQ gained 0.81 points or 0.03% to settle at 2,432.31. The S&P 500 gained 1.65 or 0.12% to settle at 1,413.21.
On Tuesday, 12 December 2006 Algeria’s government announced in detail the windfall tax on oil production. On 01 August 2007 foreign oil and gas companies must pay a tax on windfall profits with the rate according to the volume of hydrocarbons produced. The tax is applicable when the price of dated Brent crude averages above $30 per barrel in a month. Algeria hopes for two million barrels per day by 2010. It is hoped the new tax will generate a billion dollars in revenue in 2007.
DEVELOPING REGIONAL FACTORS
Barret Resources plc have found an important oilfield in the north Amazon region of Peru in Lot 16. State Oil Company, Petroperu have confirmed that the discovery will allow the Peru to export the crude again. The president of the Energy Consult Consulting Company Aurelio Ochoa said also that the flow in Lot 67 at the Amazon zone of El Marañon was the biggest since the South Andean gas deposit of Camisea was discovered twenty years ago. Geologist Victor Saenz is adamant that if Barret Resources found oil in the Lot 67, it is certain there will be hydrocarbons in the adjoining Lot 68 owned by Repsol Spanish enterprise.
Warning to Potential Investors
Warnings on several company websites state that some prospective investors have been offered shares in a number of companies, including FOGL and Rockhopper, by entities whose name suggests (incorrectly) that they have a connection with a major financial institution and in some cases the communications have suggest a connection with FOGL.
If any organisation with which you are not familiar offers you shares it is recommended that you check the situation very carefully ahead of entering into any contract and/or paying any money. The Companies are not currently undertaking any share offering and if anyone is purporting to be acting on behalf of the Companies in relation to such an issue, it is recommended that you contact them to check the position.
Today Rockhopper Exploration placed their interim report on their website at http://www.rockhopperexploration.co.uk. The report says that processing and interpretation of CSEM has been completed and that the results are positive. Also explained is the de-risking of Rockhopper’s acreage, the completion of the processing of 2D data and the commencement of the 3D programme. This 12-page report is illustrated and also contains the financial outlook. It’s well worth the read.
Share prices at the close of play on Wednesday, 13 December 2006
Desire Petroleum Plc ended unchanged on the day to settle at 35.00.
Falkland Oil and Gas Limited (FOGL) down 0.50 or 1.80% on the day to stand at 84.50.
Rockhopper Exploration ended unchanged on the day to settle at 40.00.
Borders & Southern ended up 0.25 on the day to stand at 40.00
Tullow Oil ended down 3.00 or 0.49% on the day to stand at 403.00