Monday, January 29, 2007
VPC buying back it's own shares
Venture Production PLC - Venture Production - Purchase Of Own Equity Shares
RNS Number:3202Q
Venture Production PLC
29 January 2007
Venture Production plc (the 'Company')
Purchase of Own Equity Shares
Venture Production plc announces that on 26 January 2007 it purchased 292,907
ordinary shares of 0.4 pence each at a price of 724.6892 pence each. The shares
so purchased will be held as treasury shares.
Following this transaction the Company holds 3,343,503 ordinary shares in
treasury and has 130,152,790 ordinary shares in issue, excluding treasury
shares.
RNS Number:3202Q
Venture Production PLC
29 January 2007
Venture Production plc (the 'Company')
Purchase of Own Equity Shares
Venture Production plc announces that on 26 January 2007 it purchased 292,907
ordinary shares of 0.4 pence each at a price of 724.6892 pence each. The shares
so purchased will be held as treasury shares.
Following this transaction the Company holds 3,343,503 ordinary shares in
treasury and has 130,152,790 ordinary shares in issue, excluding treasury
shares.
Venture production
Venture Avoids Taxman After Record Year for Output
2007-01-29Herald, The; Glasgow (UK)
By MARK WILLIAMSON
VENTURE Production said it enjoyed a record year in 2006 helped by a big increase in production, but confirmed it did not expect to pay a penny in tax on its earnings. The Aberdeen oil and gas independent, which endured a turbulent spell following production disappointments earlier in the decade, enjoyed a 50per cent increase in output helped by bringing fields onstream and strengthened by acquisitions. In a year of strong oil and gas prices, the growth had a dramatic effect on earnings at Venture, helping the company pass a significant landmark. The company, which was set up to scavenge for so-called "stranded assets" in which bigger fish did not want to invest, generated significantly more cash than it needed to pay to fund huge investment in developing fields for the first time. "2006 was a record year for Venture and we have continued to make great progress in increasing both production and reserves, " said chief executive, Mike Wagstaff. "As we enter 2007, activity is at record levels despite the tight market for equipment and services and we are confident that the momentum that we have established will continue." Although Venture is focused 100per cent on the North Sea, the company confirmed that Chancellor of the Exchequer Gordon Brown's decision to raise the premium payable on North Sea profits from 10per cent to 20per cent from last April had no effect on the firm. Brown's move outraged industry leaders. However, Venture has benefited from other changes made by him in previous years, particularly the decision in 2002 to allow operation and production companies to claim tax relief on 100per cent of investment spending in the first year, rather than claiming it over four. InSeptember, after announcing that it swung from a pre-tax loss of GBP5.9m to a profit of GBP97.7m in the six months ended June 30, Venture said it probably would not have to pay any tax on its 2006 profits. In a trading update yesterday Venture said: "The 2006 tax charge is not expected to result in a cash charge at this time due to the utilisation of capital allowances." Venture said average net production for 2006 was 44,706 barrels oil equivalent daily. The GBP153m takeover of CH4 Energy, the first company acquired by Venture, provided a significant boost to gas production in the southern North Sea. The company brought two new fields on stream and managed to reduce interruptions to pumping. However Venture said production and exploration drilling in the fourth quarter was hit by "unusually poor offshore weather conditions".
2007-01-29Herald, The; Glasgow (UK)
By MARK WILLIAMSON
VENTURE Production said it enjoyed a record year in 2006 helped by a big increase in production, but confirmed it did not expect to pay a penny in tax on its earnings. The Aberdeen oil and gas independent, which endured a turbulent spell following production disappointments earlier in the decade, enjoyed a 50per cent increase in output helped by bringing fields onstream and strengthened by acquisitions. In a year of strong oil and gas prices, the growth had a dramatic effect on earnings at Venture, helping the company pass a significant landmark. The company, which was set up to scavenge for so-called "stranded assets" in which bigger fish did not want to invest, generated significantly more cash than it needed to pay to fund huge investment in developing fields for the first time. "2006 was a record year for Venture and we have continued to make great progress in increasing both production and reserves, " said chief executive, Mike Wagstaff. "As we enter 2007, activity is at record levels despite the tight market for equipment and services and we are confident that the momentum that we have established will continue." Although Venture is focused 100per cent on the North Sea, the company confirmed that Chancellor of the Exchequer Gordon Brown's decision to raise the premium payable on North Sea profits from 10per cent to 20per cent from last April had no effect on the firm. Brown's move outraged industry leaders. However, Venture has benefited from other changes made by him in previous years, particularly the decision in 2002 to allow operation and production companies to claim tax relief on 100per cent of investment spending in the first year, rather than claiming it over four. InSeptember, after announcing that it swung from a pre-tax loss of GBP5.9m to a profit of GBP97.7m in the six months ended June 30, Venture said it probably would not have to pay any tax on its 2006 profits. In a trading update yesterday Venture said: "The 2006 tax charge is not expected to result in a cash charge at this time due to the utilisation of capital allowances." Venture said average net production for 2006 was 44,706 barrels oil equivalent daily. The GBP153m takeover of CH4 Energy, the first company acquired by Venture, provided a significant boost to gas production in the southern North Sea. The company brought two new fields on stream and managed to reduce interruptions to pumping. However Venture said production and exploration drilling in the fourth quarter was hit by "unusually poor offshore weather conditions".
Oil hovers around 55
At 2.14 pm, oil is approx down 40c. Awaits direction from the US @3pm. Copper extends losses to over 3% along with similar fall for Zinc.
Roundup..Cairn energy shares weak (AFX)
LONDON (AFX) - Cairn Energy PLC saw its share prices slip as the gas reserves cut in Bangladesh and the still unresolved pipeline issue in India offset the UK group's plan to return cash to investors in the second quarter.Proved and probable reserves at the Sangu gas field, offshore Bangladesh, have been cut by 187 bln cubic feet to reflect the steady fall in production and the group's decision to re-classify some of the potential resources to the broader proved, probable and possible category.The reduction put booked reserves at Sangu at around 142 bcf, or 6 pct of Cairn's overall reserves, Cairn said in an operational update.The steady fall in Sangu's output is partly behind the 13 pct decline in the group's overall production in 2006 to 24,500 barrels of oil equivalent per day.Cairn will publish revised reserves figures alongside annual results on March 27.In India, Cairn has yet to sort out the pipeline issue with the state-owned Oil and Natural Gas Corp, disappointing analysts who are worried that any delay in the 340 mln usd pipeline project could further push back the 2009 start-up of the Mangala field, its largest oil find in Rajasthan.In the update, Cairn only repeated its earlier statement that talks between Cairn India Ltd, its 69 pct-owned unit, and ONGC are progressing and a resolution will likely be achieved in the first half. Cairn has already delayed first oil target at Mangala twice from the original late-2007 to 2008, then to 2009."Constructive talks continue. We're confident (the issue) will be resolved," said a Cairn spokeswoman, declining to comment on media reports in India claiming the pair have agreed to jointly build the pipeline, with Cairn taking the lead with a 70 pct stake and ONGC holding the remaining 30 pct.The Sangu reserves and pipeline news kept Cairn shares weak, offsetting the group's decision to distribute part of the proceeds from the Cairn India's initial share sale to shareholders in the second quarter.The offer raised 1.9 bln usd, about 600 mln usd of which will be retained by Cairn India. The remaining 1.3 bln usd will be returned to investors and fund various projects of the PLC.Apart from giving a timeline, Cairn failed to say how much it hopes to return to investors and in what form the cash will be paid (i.e. dividends or share buybacks).At 12.08 pm, Cairn shares were off 7 at 1,693 pence.Investec Securities, in a note, called the trading statement "uninspiring" and has placed its 19 stg net asset value for the shares under review following the reserves downgrade."Rajasthan rumbles on, but still no definite detail on the pipeline and the Q2 cash return to shareholders," it said, adding it kept a 'hold' on the stock.The additional oil discovery in Rajasthan could have been a 'bright spot' in the update, but analysts found the flow rate too small to get them excited about it.The latest find in Rajasthan was located in Shakti North East, located 6 kilometres north-east of the Shakti-1 discovery.The well, known as Shakti-NE-1, encountered about "six metres of net pay of oil". It flowed about 83 barrels of oil per day, Cairn said.
Oil softer but propped up by cold weather, fresh Iranian tensions UPDATE
Updates prices, adds details LONDON (AFX) - Oil was a touch softer, with falls limited by expectations of more freezing temperatures in the US Northeast and as political tensions in Iran re-emerged.At 11.56 am in London, front-month Brent North Sea crude contracts for March delivery were down 37 cents at 54.92 usd a barrel, after rising 1.17 usd to settle at 55.29 usd on Friday.Meanwhile, front-month New York light sweet crude contracts for March delivery dropped 32 cents to 55.09 usd a barrel, after rising 1.19 usd to close at 55.42 usd on Friday.Global Insight senior energy analyst Simon Wardell said while the supportive factors continue to prop up prices, further gains may be hard to come by."We've reached a level where its simply not sustaining itself, we'll probably see prices between the 50 and 55 usd level for a while," he said. At around 55 usd, oil has come a long way since hitting an all time high above 78 usd, which it touched in July last year. This year alone, prices have lost just over 10 pct of their value on account of a milder winter. Temperatures have turned lower over recent weeks, however, helping oil prices rise slightly. Private weather forecaster AccuWeather has forecast temperatures in the US Northeast, the world's largest heating oil consumer, to stay below normal for the next 5 days, lifting demand and limiting price slumps."We might see an impact of cold weather in the Energy Information Administration inventory report," said Wardell, commenting on the weekly stock report from the US, due Wednesday. Most analysts are expecting the report to show lower heating oil stocks this week as a result of the recent cold snap. Fresh geopolitical tensions from oil-rich nations Iran and Nigeria are also supporting prices. On Saturday an Iranian parliamentarian said the country had begun increasing its capacity to make nuclear bombs. Though this was later denied by an Iranian nuclear official, the statement will have no doubt brought the Iran nuclear issue back to the foreground, said Michael Davies, Sucden analyst.Further supply woes are feared from Nigeria. On Sunday militants from the Movement for the Emancipation of the Niger Delta torched a police headquarters in Port Harcourt in the Niger Delta in an attempt to free one of their leaders, added Davies."Geopolitical tensions seem to have once again caught the market's attention amid heightened violence in Nigeria, that has once again increased concern about more supply disruptions in the country," explained Davies.
Metals- Copper sinks as stockpiles rise on LME
LONDON (AFX) - Copper prices sank after the LME reported yet another large rise in inventories, which have more than doubled since the start of last year.Falls were limited, however, by continued speculation Chinese buyers will return to the market this year after heavy destocking kept them at bay in 2006.At 11.15 am, LME copper for three-month delivery was down at 5,670 usd a tonne against 5,810 usd at the close yesterday.The LME said in a daily report earlier that copper stocks held in its warehouses rose by 5,975 tonnes to total 213,675 tonnes. Copper stocks are heading comfortably above the crucial 200,000 tonne level, above which they are no longer considered critical.However, Standard Bank analyst Michael Skinner noted that while stocks are piling into warehouses in Europe, they are steadily leaving Asian warehouses."The stock movement reflects our view that Chinese buying is on the increase and we look for this to continue over the medium term," he said.Chinese copper imports rose by an annual 59.4 pct in December. Traders speculate the sharp rise came as a result of consumer restocking.Chinese copper stocks were run down through most of last year as buyers stayed out of the market on account of the high copper prices.By the end of 2006, Chinese destocking helped knock copper some 30 pct off an all time high of 8,800 usd a tonne, reached in mid-May."With China reporting apparent refined copper consumption growth in excess of 15 pct in 2006 it seems the market may have been led into a false sense of security recently as destocking masked the real level of demand," said BaseMetals.com analys William Adams.
Oil stays well bid on cold weather AFX
Oil stays well bid on cold weather, fresh Iranian tensions LONDON (AFX) - Oil stayed close to three-week highs above 55 usd a barrel as more freezing temperatures in the US Northeast seemed likely and as political tensions in Iran re-emerged.Global Insight senior energy analyst Simon Wardell said while the supportive factors continue to prop up prices, further gains may be hard to come by."We've reached a level where its simply not sustaining itself, we'll probably see prices between the 50 and 55 usd level for a while," he said. At 10.20 am in London, front-month Brent North Sea crude contracts for March delivery were down 16 cents at 55.13 usd a barrel, after rising 1.17 usd to settle at 55.29 usd on Friday.Meanwhile, front-month New York light sweet crude contracts for March delivery dropped 14 cents to 55.25 usd a barrel, after rising 1.19 usd to close at 55.42 usd on Friday.
Oil sector erodes early gains
Oil sector gave up early strength this morning. Traders look sceptical about any further upside to oil price on back of cold weather. Oil may be at the top of it's near term trading range. March Nymex crude currently down approx 10c @ $55.30. Interesting to note similar weakness in base metals today also. Copper inventories build of 5975mt on LME this morning. Copper price off over 2%.
Mid morning news from ADVFN
Oil prices were higher in Asian trading hours, driven up by demand for heating fuel in the US during a bout of cold weather there, dealers said.
Light sweet crude for delivery in March was up 0.42 usd at 55.84 usd a barrel on Nymex.
Cairn Energy kicked off what looks like being a busy week with a trading statement in which it revealed plans to return cash to shareholders in the second quarter alongside news it has discovered more oil in its prized Rajasthan field in India.
In Bangladesh, however, the group said the proven and probable reserves have been cut by 187 bln cubic feet following further drilling on the site and a decline and production.
In reaction, Bridgewell repeated its 'overweight' stance, noting that although 2006 production of 24,500 boepd on an entitlement basis fell short of its forecast, management has renegotiated Ravva gas sales prices higher.
Cairn recovered from an opening fall to trade 10 pence higher at 1,710.
Fellow oil stocks were also higher following further recovery by crude prices, with BP adding 3-1/2 pence to 543-1/2 and Royal Dutch Shell gaining 7 pence to 1,726 ahead of its fourth quarter results on Thursday.
Across the commodities floor, mining stocks were also in demand as metal prices also recovered from recent weakness, with gold, silver and copper all starting the week on the front foot.
Lonmin gained 41 pence to 2,970, while Xstrata added 27 pence to 2,374 and Vedanta climbed 9 pence to 1,141.
Light sweet crude for delivery in March was up 0.42 usd at 55.84 usd a barrel on Nymex.
Cairn Energy kicked off what looks like being a busy week with a trading statement in which it revealed plans to return cash to shareholders in the second quarter alongside news it has discovered more oil in its prized Rajasthan field in India.
In Bangladesh, however, the group said the proven and probable reserves have been cut by 187 bln cubic feet following further drilling on the site and a decline and production.
In reaction, Bridgewell repeated its 'overweight' stance, noting that although 2006 production of 24,500 boepd on an entitlement basis fell short of its forecast, management has renegotiated Ravva gas sales prices higher.
Cairn recovered from an opening fall to trade 10 pence higher at 1,710.
Fellow oil stocks were also higher following further recovery by crude prices, with BP adding 3-1/2 pence to 543-1/2 and Royal Dutch Shell gaining 7 pence to 1,726 ahead of its fourth quarter results on Thursday.
Across the commodities floor, mining stocks were also in demand as metal prices also recovered from recent weakness, with gold, silver and copper all starting the week on the front foot.
Lonmin gained 41 pence to 2,970, while Xstrata added 27 pence to 2,374 and Vedanta climbed 9 pence to 1,141.
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