Falklands : Hydrocarbons Daily Record (23/10/06) Submitted by Falkland Islands News Network (Juanita Brock) 24.10.2006 (Article Archived on 07.11.2006)
Crude prices dropped today over scepticism about OPEC's production cut and a decrease in demand.
HYDROCARBONS DAILY RECORD: MONDAY, 23 OCTOBER 2006
By J. Brock (FINN)
At 1800 LMTMonday, 23 October 2006 Light Sweet Crude lost .52 Cents on the New York Mercantile Exchange to stand at $58.81 and Brent Crude lost .48 Cents to stand at $59.20 on Londonís ICE Futures Exchange.
Crude prices dropped today over scepticism about OPECís decision to cut production by 1.2 Million bpd.The market reaction leads buyers to feel that OPECís actions either werenít enough, or more likely the production cuts came too soon and that they should have been instituted from a benchmark price much less than $60.00.The weakening demand will get weaker if alternative energy sources become more cost-effective than hydrocarbons products.
At the close of play today, the FTSE 100 was up 10.91 points to settle 6,166.10 and the FTSE 250 gained 4.68 points to end at 10,361.20.FTSE Small Cap closed lost 8.54 points to settle at 3,620.40.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index gained 114.54 points or 0.95% to settle at 12,116.91 and the NASDAQ gained 13.20 points or 0.57% to settle at 2,355.56.The S&P500 was up 8.42 or 0.62% to settle at 1,377.02 and the NYSE gained 34.56 points or 0.40% to settle at 8,736.59.
According to Zambiaís President Levy Mwanawasa, his country has discovered petroleum for the first time. He said that a cabinet-level commission is to oversee development of several fields in the north-western part of the country. Of 12 sites tested by government geologists, 12 tested positive for oil and six tested positive for natural gas.Deposits were discovered in two districts: Chavuma and Zambezi, in NorthwesternProvince near Zambiaís border with Angola. Exploration is needed to determine the sizes of the fields and whether exploration should be expanded to other areas.FINN Will keep readers posted as to which companies will be doing more detailed exploration.
Majellan Petroleum Corporation announces that the Keeley prospect is located on the western side of the Spencer High, approximately 11 km west-southwest of the Raven gas field, 5 km north-northwest of the Spencer West oil field and 8 km west-northwest of the Kiana oil field. Keeley-1 will test a combined Permian anticlinal closure and stratigraphic trap in the southern Patchawarra Trough in PEL 107. The Keeley prospect is considered prospective because of its similarities with the Raven gas field. The Keeley prospect is a robust closure and volumetric estimates put its best estimate prospective resource at approximately 10 bcf of gas. It has a high estimate prospective resource of approximately 29 bcf of gas if stratigraphic trapping is also involved.Keeley-1 Details: Petroleum Title: PEL 107, South Australia Location: approximately 11 km WSW of the Raven gas field, 5 km NNW of the Spencer West oil field and 9 km WNW of the Kiana oil field. Coordinates: Latitude: 28 degrees 08' 04.32" South Longitude: 139 degrees 46' 51.277"East (GDA 94). Drilling Rig: Century Rig 3 Proposed Total Depth: 3023 meters RT Objectives: Primary -- the Patchawarra Formation which is productive in the Raven gas field. Secondary -- the Toolachee Formation, the Epsilon Formation and the Tirrawarra Sandstone. Current Operations: Keeley-1 spudded at hr (CST) on October 22 and at hr on October 23 (CST) was at a depth of 289 meters RT and drilling ahead in 12 1/4" hole. Participants in Keeley-1 are: Magellan Petroleum Corporation 30.0% * Beach Petroleum Ltd (Operator) 40.0% Great Artesian Oil and Gas Limited 30.0% (* subject to a commercial discovery Magellan will issue routine weekly drilling reports during its 2006 Cooper Basin drilling program.Statements in this release which are not historical in nature are intended to be, and are hereby identified as, forward-looking statement for purposes of the Private Securities
DEVELOPING REGIONAL FACTORS
The South American Press are reporting that estimates of resources in some of Boliviaís natural gas fields are incorrect.There has been an audit in fields run by Brazilís state run operative, Petrobras, where the inadequacies were discovered.This is a developing story, so watch this space.
Share prices at the close of play Monday, 23 October 2006
Desire Petroleum Plc ended down 0.25 points or 0.74% on the day to settle at 33.75.
Falkland Oil and Gas Limited (FOGL) ended up 0.50 points or 1.63% on the day to stand at 80.00.
Rockhopper Exploration ended up 0.50 points or 1.16% on the day to settle at 43.50.
Borders & Southern ended unchanged on the day to stand at 39.75