Falklands : Hydrocarbons Daily Record (18 and 19 July 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 20.07.2007 (Article Archived on 03.08.2007)
Demand for gasoline in the US and China has helped the price of crude to increase today.
HYDROCARBONS DAILY RECORD: THURSDAY, 19 JULY 2007
By J. Brock (FINN)
At 1800LMT on Wednesday, 18 July 2007 Light Sweet Crude was trading at $75.05 $1.03 on the New York Mercantile Exchange and Brent Crude was trading at $76.76 up $1.23 on London’s Ice Futures Market.
At 1800LMT on Thursday, 19 July 2007 Light Sweet Crude was trading at $75.92 up 87 Cents on the New York Mercantile Exchange and Brent Crude was trading at $77.67 up 91 Cents on London’s Ice Futures Market.
ANALYSIS (18 and 19 July 2007):
Nervousness about the demand for gasoline by the United States and China helped to increase the price of crude over the past two days.
We are beginning to see scare stories of $80 to £100.00 oil just like we did last year at this time. Some headlines tout the fact that a geopolitical incident could spark a monumental price rise. It is thought that geopolitics prior to the summer drive season helped to spark this year’s round of crude price increases.
In all of this, OPEC’s decision to hold production, while used to frighten crude prices higher earlier this year, has proven to be correct in that there is enough supply to meet demand. If anything it is refinery capacity that drives prices higher, with the ideal capacity being 94. At the end of last week it was 91%.
THE MARKETS (Wednesday, 18 July 2007):
FTSE 100: 6,567.190 down 92.05
FTSE 250: 11,726.00 down 75.01
SmallCap: 4,046.30 down 6.30
DJI: 13,918.32 down 53.33
NASDAQ: 2,699.49 down 12.80
S&P500: 1,546.17 down 3.20
THE MARKETS (Thursday, 19 July 2007):
FTSE 100: 6,640.20 up 73.14
FTSE 250: 11,880.20 up 154.22
SmallCap: 4,063.50 down up 16.68
DJI: 14,000.41 up 82.19
NASDAQ: 2,720.04 up 20.55
S&P500: 1,553.08 up 6.91
INTERNATIONAL DEVELOPMENTS:
(Kazakhstan)
Extract from a press release from Victoria Oil & Gas PLC
Victoria Oil & Gas PLC has announced that Well 62 in Kazakhstan is unlikely to contain commercial volumes of hydrocarbons. It completed drilling the hole, located on the eastern section of the Kemerkol licence block, and encountered hydrocarbons at a depth of between 367 metres and 370 metres.
'The interval will be completed and perforated for testing purposes, but the company does not expect to encounter commercially viable volumes of hydrocarbons,' Victoria Oil said in a statement.
Thus, the group now expects its mid-year production, excluding the impact of the testing programme at Well 73, to reach 450 barrels per day, less than its target of 500 barrels.
The press release went on to say that Victoria Oil & Gas PLC will drill Well 72, located 300 metres north of Well 73. Drilling work will take about four to six weeks.
The Kazakh government has approved Victoria Oil & Gas PLC’s test production project in the western section of the Kemerkol license area and said that “This will extend the permitted production period from three months to three years for all wells drilled in this area, which currently includes Wells 20, 72 and 73.” The project will allow “production to resume at Well 20.”
REGIONAL DEVELOPMENTS:
From a Press Release from Pan Andean Resources Plc
17/07/07
Acquisition of new exploration blocks
* Two new exploration blocks awarded in Peru in competitive bidding round
* Pan Andean 100% ownership in both blocks
Pan Andean Resources PLC ('Pan Andean' or 'the Company') the AIM listed oil And gas producer (AIM:PRE) is very pleased to announce that it has been awarded two new exploration blocks in Peru in a competitive tender process. Pan Andean's new blocks are Block 131 in the central Ucayali basin, and Block 141 located in the Titicaca basin.
Block 131 has a total area of approximately 40 000 square km and is located West of Pan Andean's Block 114 in which exploration activities have been on-going since 2006. The directors consider the block which has approximately 750kilometers of 2D seismic, four wells, and three known oil seeps, to be highly prospective. The minimum work program for this block includes the reprocessing of 500 km of 2D seismic and the presentation of a geological and geo-physical evaluation report in a period of 12 months. Commercial terms are world class.
The Ucayali basin has become one of the most attractive under explored basins In Peru among international oil companies and is also the host of the world class giant Camisea gas condensate field.
Block 141 has approximately 22 000 square km and is northwest of Lake Titicacain the high plains of Peru. The block is in a frontier basin. However, the basin has a working petroleum system having seen successful exploration activities as early as 1875 when the Pirin oil field was discovered. The work program for this block includes regional geological studies, the surveying and processing of aeromagnetic and aero-gravimetric data in a period of 18 months. Commercial terms
are world class.
Managing Director, David Horgan said:
"We are pleased with the important new acreage which has been awarded to Pan Andean. We have identified numerous potentially valuable plays in both blocks and look forward to executing in the near future.
Block 131 is of particular interest, with a recent discovery adjacent to our block and previous drilling resulting in hydrocarbons shows. We believe that our management experience and utilizing modern technologies will allow us to develop the project successfully.
These acquisitions are very much in line with Pan Andean's growth strategy of focusing on prospects with high exploration potential in both Colombia and Peru".
Contacts:
David Horgan, Managing Director + 353 87 292 3500
John Teeling, Chairman + 353 1 8332833
College Hill
Paddy Blewer + 44 (0)20 7457 2074
Nick Elwes
Blue Oar Securities
John Wakefield + 44 (0) 1179 330011
LOCAL DEVELOPMENTS:
(Falkland Islands)
From a press release by Borders and Southern Petroleum:
Preliminary Results for the 18 months ended 31 December
2006
17/04/2007
Borders & Southern Petroleum plc (or “the Company”) (AIM: BOR) is pleased to announce its preliminary results for the 18 months to 31 December 2006.
Highlights
Borders & Southern has completed the processing an interpretation of its Falkland Islands 2D seismic data
The Company has commissioned and completed a number of technical studies aimed at technical risk reduction
A new fold belt play located to the south of the Falkland Islands has been defined, the heart of which is contained within the Company’s 100% owned licensed area
The size of the Company’s lead inventory has increased significantly, and contains numerous structures capable of holding giant oil or gas accumulations
The Company is currently assessing the design and cost of a focused 3D seismic acquisition programme aimed at further risk reduction prior to drilling
The management team is actively seeking to add new projects to its portfolio that are consistent with its strategy and meet its stringent screening criteria Cash balance as at 31 December 2006 was £9.47 million
Harry Dobson, Chairman of Borders & Southern, commented:
“The Company is continuing to make great progress towards its objective of building a successful exploration and production business. The evaluation of the Falkland Islands licences has delivered really exciting results. The 2D seismic programme has produced some spectacular images of large structures within an undrilled fold belt and the subsequent mapping has defined numerous leads with the potential to hold substantial volumes of hydrocarbons.
Earlier last year we invited a small number of companies to review the data with the aim of becoming a joint venture partner. Discussions with some of these companies are ongoing. In the interim, we are continuing to maintain the pace of exploration, looking at ways to further reduce the technical risk with the clear intention of drilling the first well as soon as practical.
In addition to our Falkland Islands work we are currently reviewing additional frontier opportunities with large upside potential with the goal of building the Company’s portfolio consistent with our strategy.”
For further information please contact: Howard Obee – Chief Executive Borders & Southern Petroleum plc Tel: 020 7661 9348
Simon Hudson / Clemmie Carr Tavistock Communications Tel: 020 7920 3150
Telephone: 020 7661 9348 | Email: info@bordersandsouthern.com
RELEVANT SHARE PRICES (Wednesday, 18 July 2007):
TLW: 508.50 down 3.00
DES: 28.75 down 0.25
FOGL: 72.50 down 2.00
RKH: 40.00 unchanged
BOR: 28.50 down 1.00
PRE: 15.25 (New Addition)
RELEVANT SHARE PRICES (Thursday, 19 July 2007):
TLW: 523.50 up 15.00
DES: 27.50 down 1.25
FOGL: 75.50 up 3.00
RKH: 40.50 up 0.50
BOR: 28.50 unchanged
PRE: 15.25 Unchanged
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