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Fri 24 Nov 2006
Jeruk field update
Further to Singapore Petroleum Company Limited ("SPC") announcements (SGXNET announcements No. 4, No.16 and No.3) on 2 August 2006, 14 July 2006 and 5 January 2006 respectively, SPC wishes to provide an update on the Jeruk Field in the Sampang Production Sharing Contract ("Sampang PSC").
Santos Limited ("Santos"), co-venturer and operator of the Sampang PSC, issued an announcement on the Jeruk Field on 24 November 2006. The following is an extract from the Santos announcement:
"The Jeruk oil discovery is located in the Sampang PSC, offshore Indonesia, approximately 42 kilometres from the city of Surabaya.
As foreshadowed in Santos' ASX releases following the Jeruk-3 appraisal well (dated 14 July 2006 and 2 August 2006), technical work has been ongoing to integrate all well and seismic data to better determine the most likely oil resource range.
This analysis is now largely complete and whilst there are substantial remaining reservoir uncertainties, the upside recoverable oil resource for Jeruk is most likely to be less than 50 million barrels.
Opportunities to commercialise Jeruk are being pursued, however plans for additional appraisal drilling have been placed on hold pending the review of development scenarios and the resolution of commercial and technical issues which may potentially impact the viability of any development."
SPC holds its interest in the Sampang PSC through its wholly-owned subsidiary, Singapore Petroleum Sampang Ltd ("SP Sampang").
As advised on 5 January 2006, SPC's economic interest in the Jeruk Field has been reduced to 21.8% following a revenue and costs sharing arrangement with Medco Strait Services Pte Ltd ("Medco Strait") in which SP Sampang transferred an 18.2% economic interest in the Jeruk Field to Medco Strait in exchange for Medco Strait reimbursing SP Sampang of its proportionate share of past Jeruk cost and in-kind premium that Medco Strait was entitled to receive from Santos following SP Sampang's reinstatement in the Jeruk Field.
SP Sampang's agreement with Medco Strait would enable SPC to benefit from early cash flow from a future Jeruk production at its current effective economic interest of 19.6%, proportionately adjusted to include PT Petrogas Oyong Jatim's ("Petrogas") 10% participation in the Sampang PSC, subject to finalisation of documentation.
SPC continues to hold a 36% interest in the other parts of the Sampang PSC, adjusted to include Petrogas 10% participation in the Sampang PSC, subject to finalisation of documentation.
FINANCIAL IMPACT
The Group does not expect the above to have any material impact on the earnings per share and the net tangible asset per share of the SPC group of companies for the current financial year.
By Gavin Evans
Nov. 23 (Bloomberg) -- Crude oil traded near $59 a barrel in New York after falling yesterday when a report showed U.S. oil supplies jumped to a five-month high as demand declined.
Inventories in the world's biggest oil user rose 5.16 million barrels to 341.1 million last week, the highest since June, the Energy Department said. Analysts surveyed by Bloomberg News expected a gain of 700,000 barrels. Daily product demand fell to 20.3 million barrels, the lowest in seven weeks.
``I wouldn't be surprised to see demand coming off for the next couple of weeks,'' said Chris Mennis, owner of oil broker New Wave Energy in Aptos, California. ``After that it's up to old-man winter.''
Crude oil for January delivery was at $59.35 a barrel, up 11 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:00 a.m. in Singapore.
The contract fell as much as 3 percent to $58.35 yesterday, before closing at $59.24, a 93-cent decline. Oil rose 2.3 percent the day before when high seas in the Alaskan port of Valdez cut oil shipments.
The drop in U.S. demand was the biggest since the week ended March 3 and took daily consumption below 21 million barrels for the first time in six weeks. The department's measure, based on deliveries from refineries, usually rises going into a holiday
weekend.
again..the risk takers might be having the last lauff :P SPC 4.40 breached! hee...
A rebound in energy price would be positive for oil-refiner SPC. Although refining margins in 3Q were affected by the fall in energy price and the scheduled turnaround of the Residue Catalytic Cracker at SRC, the company expects refining margins to improve in 4Q driven by seasonal factors and the resumption of optimal production at SRC. Given the backlog in new refining capacity, SPC expects demand for refined products to remain favourable in the year ahead.
With the stock now trading around $4.30, the price trend is within epectations and we now see opportunities to re-accumulate the stock. Look for an initial 23.6% upward retracement to $4.60 followed by $4.80 (38.2% upward retracement) in the week(s) ahead. Stop loss triggered if the stock falls below $4.24 on a closing basis.
With the stock now trading around $4.30, the price trend is within epectations and we now see opportunities to re-accumulate the stock. Look for an initial 23.6% upward retracement to $4.60 followed by $4.80 (38.2% upward retracement) in the week(s) ahead. Stop loss triggered if the stock falls below $4.24 on a closing basis.rebound due to oversold...
how come SPC share price goes up when oil price comes down ?
well...time will tell.....hee...looks like profit locking now :D
I think is a technical rebound. It has yet to find a support level.
"Riverstone IPO"
Heard the big boy are coming in this afternoon to pick up some goodie.
Bought 10 lots at 0.305 just in case.
good luck
A rebound in energy price would be positive for oil-refiner SPC. Although refining margins in 3Q were affected by the fall in energy price and the scheduled turnaround of the Residue Catalytic Cracker at SRC, the company expects refining margins to improve in 4Q driven by seasonal factors and the resumption of optimal production at
SRC. Given the backlog in new refining capacity, SPC expects demand for refined products to remain favourable in the year ahead.
In our November 20th Business Times Chart Point write-up, we had advocated a sell for SPC at $4.78. With the stock now trading near $4.24, the price trend is within expectations and we now see opportunities to re-accumulate the stock. Look for an initial 23.6% upward retracement to $4.60 followed by $4.80 (38.2% upward
retracement) in the week(s) ahead. Stop loss triggered if the stock falls below $4.24 on a closing basis.
Crude prices have fallen from a peak of USD79.45 per barrel in mid-July to a low
of US$54.86 last week. However charts now suggest a bottoming scenario for oil
prices and the possibility of a technical rebound within the near term.
The following factors could put supply pressure on the oil front:
1. Energy demand in the northern hemisphere could rise with the start of the
winter season. Although this year?s winter forecast is 2% warmer vis-à-vis the
30-year average, the National Oceanic & Atmospheric Administration (NOAA)
predicts this winter season to be about 9% colder compared to last year.
2. Supply dip uncertainty. Algerian energy minister announced on Sunday that
OPEC may call for deeper production cuts at the December meeting in
Nigeria so as to ensure oil price stability. Qatar?s energy minister also
indicated OPEC could cut output beyond the 1.2mil barrels per day agreed
upon in October.
A wave count of Light Sweet Crude price action indicates that last week?s fall
below US$57.4 per barrel is the wave 5 of A of the correction that started in mid-
July. Short-term support is at USD57. Look for a B-wave technical rebound in
prices to USD64.2 per barrel (38.2% upward retracement) in the week(s) ahead.
If the retracement achieves 50%, oil price could hit US$67.1 per barrel.
but dun dare to over joy yet, this stock has been yo-yo for the past few mth.... so at any time it will yo-yo to any position.
as we speaks....it has crossed the barrier of 4.38...wow! it is looking promising siah :P