Falklands : Hydrocarbons Daily Record (23/07/07)
Submitted by Falkland Islands News Network (Juanita Brock) 24.07.2007 (Article Archived on 07.08.2007)
An announcement by OPEC that it could decide to increase production at its September meeting has helped to lower the price of crude today.
HYDROCARBONS DAILY RECORD: MODAY, 23 JULY 2007
By J. Brock (FINN)
At 1800LMT on Monday, 23 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.
ANALYSIS
An announcement made on Sunday by OPEC President and United Arab Emirates Energy Minister Mohammed al-Hamli has caused a decline in crude prices today. The OPEC President said that oil's strength was a worry but the world economy was still growing in spite of it. He went on to say that OPEC expresses concern over near record prices and could pump more crude if needed. When OPEC meets in September it could decide to increase production but it is too late for the summer drive seasons in the People’s Republic of China and in the US. Crude at $75.00 is artificially high and OPEC's research division saying a fair price for producers and consumers would be around $60-$65.
Prices could remain artificially high if refinery capacity in Europe and the United States doesn’t improve significantly. There is no use in having huge stockpiles of crude if you cannot efficiently process it into gasoline and distillates.
THE MARKETS (Monday, 23 July 2007):
FTSE 100: 6,624.40 up 39.17
FTSE 250: 11,782.20 down 37.24
SmallCap: 4,061.20 down 0.84
DJI: 13,943.42 up 92.34
NASDAQ: 2,690.58 up 2.98
S&P500: 1,541.57 up 7.47
REGIONAL DEVELOPMENTS:
(Peru)
AIDESEP, Peru's Amazon Indian organisation, has sought a court order to stop oil exploration and drilling in parts of the Peruvian Amazon that are home to indigenous and un-contacted Indians. Two of the companies involved - Repsol YPF of Spain, and Barrett Resources of the USA - plan to visit the Indians' territory as soon as possible. Already discovered is an oil field hailed as the largest find in Peru’s Amazon for 30 years.
(Ecuador)
Ecuador's next energy minister, Galo Chiriboga, has told the Latin American Press he will maintain his predecessor's plan to increase the state's participation in private oil companies' production.
(Mexico)
Mexico's President Felipe Calderón has announced his government’s 2007-12 “infrastructure development plan.” According to plan documents, the investment entails US$76.5bn for the production of hydrocarbons. Key objectives of the plan includes increasing Exploration and Production activities while reducing the divide between hydrocarbons extraction and the incorporation of new reserves. President Calderón's government wants to reduce the country's declining oil output in order to have a 2.5Mb/d level in 2012. In 2006 production was 3.256Mb/d.
LOCAL DEVELOPMENTS:
(Falkland Islands)
Falkland Oil & Gas Limited
(the "Company" or "FOGL")
Falkland Oil & Gas Limited (the "Company" or "FOGL") notes the price movement in the Company’s share price and confirms that it is in advanced discussions which may or may not lead to a major resources company farming in to certain of its assets. Any such transaction, if agreed between the two parties, would be subject, inter alia, to the approval of the Falkland Islands Government.
A further announcement will be made in due course.
23 July 2007
Enquiries:
FOGL 020 7563 1260
Tim Bushell, Chief Executive
KBC Peel Hunt (Nominated Adviser) 020 7418 8900
Jonathan Marren / Matt Goode
College Hill 020 7457 2020
Nick Elwes / Paddy Blewer
www.fogl.com
Falkland Oil and Gas Ltd announced today on its website that it is in advanced discussions for a possible farm-in deal with a 'major resources' company, “justifying the recent price movement in its shares”. On June 13, Falkland Islands Holdings PLC, which runs a range of businesses in the Falkland Islands and the UK's Portsmouth Harbour Ferry Co, gave an upbeat view of the future after it reported increased annual profits. Falkland Islands Holdings owns 16.3 pct of Falkland Oil and Gas.
Falkland Islands Holdings (FKL)share prices increased by 80 points, from 305.00 to 385.00. Recently Falkland Islands Holdings plc had announced that it was company policy to encourage its employees to buy shares in the company.
RELEVANT SHARE PRICES (Monday, 23 July 2007):
TLW: 516.00 down 5.00
DES: 32.25 up 4.00
FOGL: 123.00 up 42.00
RKH: 46.00 up 6.00
BOR: 34.00 up 6.25
PRE: 15.50 up 0.25
GBP: 9.00 up 1.50 (New)
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