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Gold/Mining/Energy : Sodra Petroleum -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (54)	8/31/1998 4:36:00 PM
From: Greywolf	Read Replies (1) \| Respond to of 133

SHELL CONTINUES NEWS BLACK-OUT AS EXPLORATORY WELL IS COMPLETED (FINN) Shell are about to complete their first exploratory well in the North Falklands Basin. Given the speculative mode of the press thus far as wells were finished and the Borgney Dolphin moved, Shell will not be releasing information to the media for at least two months. The broader picture shows that the hopefulness expressed by many in the Falklands has changed into a wait and see attitude, this due to the recent drop in the price per crude per barrel. That hovers around $12.00 plus or minus. Earlier this year the oil producing nations got together and cut production, thus raising the per barrel price to $14.00 but that was short-lived and some of the countries that agreed to cut production did not fulfill their promise. One of the benefits of the news blackout from the rig is that Desire Stock prices are not fluctuating so severely. What will make the difference is when Shell announce the findings of their exploratory well. This is only stage one, however. After the initial period of exploration there will be a long period of inactivity while the companies analyse their data and make plans for any exploitation. This will bring a calming effect on the stock and thus the investors, who are hoping that the results are good. The whole scenario depends upon the price of crude per barrel and whether it is cost-effective to extract the oil from the North Falklands Basin. Those costs won't be known until the industry is ready to extract the oil. that could be a long wait.