QEC Running Again Today On BC News

Aug 27, 2008 02:15 ETTranseuro and Questerre Commence Liard Shale Gas Test
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2008) - Transeuro Energy Corp. ("Transeuro", or the "Company") (TSX VENTURE:TSU)(OSLO:TSU) and Questerre Energy Corporation ("Questerre") announced today that joint operations are under way to test the deeper shale's in the Liard basin, northeast British Columbia, Canada. These shale's are Mississippian in age and are located approximately 100 km to the east of the Horn River shale play.
There are two existing producing tight gas/shale wells (A2 and A7) which Transeuro and Questerre both have 50% ownership and that Questerre has operated for over two years with relatively low decline rates. Compression was recently added to A2 with very promising initial results. Production from the A2 increased to over 4.0mmcf per day which is near its original peak production rate of 4.5mmcf per day. The continued good production performance of these shallower wells together with recent work by Questerre and Transeuro indicate that there is also strong potential for the deeper Devonian shale's. Gas in place numbers for this area for the Mississippian siltstone/shale sequence are confirmed at over 1 tcf per section (discovered resource) based on independent work by Nederland, Sewel & Associates Inc. Transeuro has a 50% interest in 35 sections with take away capacity in place.
The current operation is a re-entry of the A5 well. Three intervals will be perforated and minor stimulations will be conducted to evaluate reservoir and rock mechanical properties prior to an inflow test. The gross thickness of these prospective deeper shale's that are confirmed with good gas shows are in excess of 500m and these tests will assist in identifying the net productive reservoir intervals. If the results of the inflow tests are promising, a full stimulation will be carried out in a future operation to test for commercial flow rates.
Michael Binnion, President of Questerre commented "We have great control of land and infrastructure in this area. Expertise gained from our Quebec shale play has allowed us to re-evaluate our past results. We believe we have been able to correlate the results to particular shale qualities which greatly encourage us that a predictive model can be created. The very high gas in place numbers and promising production results from our two wells in the Liard shale's make this test very interesting."
Hal Hemmerich, President of Transeuro commented "We are excited about the prospects of the Liard basin shale and we see the similarities to the Horn River shale. The license has six existing well bores, the surface infrastructure and the export line that all add significant commercial advantage. We also see the value in the continuation of the development of the upper shale's which have produced strongly over the past two years and believe this work program will highlight the shale commerciality in the Liard Basin."
This resource is not classified as reserves, contingent resources or unrecoverable resources at this time until determination of the appropriate completion and stimulation techniques and the determining of areas of maximum natural fracturing to maximize recovery of this discovered resource. There is no certainty that it will be economically viable or technically feasible to produce any portion of the reported discovered resource.
Discovered resources are defined in the COGE Handbook, "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively."
Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, Ukraine and, through majority ownership in Eaglewood Energy Inc, in Papua New Guinea.
On behalf of the Board of Directors
Harold Hemmerich, President and CEO
This press release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States.
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.

U.S. data buoys stocks, oil rises above $118

GLOBAL MARKETS-U.S. data buoys stocks, oil rises above $11808.27.08, 9:00 AM ET

United States - * Durable goods data lifts stocks, Wall Street prospects

* Dollar falls back from 2008 highs
* Oil rises above $118 a barrel

(Updates throughout with moves after U.S. data)
By Jeremy Gaunt, European Investment Correspondent

LONDON, Aug 27 (Reuters) - Surprisingly robust U.S. durable goods data lifted European stocks out of negative territory on Wednesday and set up the prospect of a positive start on Wall Street.
Oil prices climbed for the third day in a row, however, and the dollar slipped back from recent highs.
New orders for long-lasting U.S. manufactured goods jumped a surprising 1.3 percent in July on strong civilian aircraft sales, while a gauge of business investment also rose unexpectedly, the U.S. government reported.
This added some positive sentiment to stock markets weakened for most of the day by earnings concerns, worries about banking stress, Western tensions with Russia over Georgia and a gloomy outlook for the world economy.
"(The data) bodes well for capital spending in the third quarter. It doesn't seem like the credit crisis is impacting capital spending, said Matthew Moore, economic strategist at Banc of America in New York.
MSCI's main gauge of world stocks was higher on the day but still trading around a two-year low.
It has lost more than 17 percent so far this year, on track for one of its worst annual performances in more than 20 years.
European shares reversed course after the data after being deep in the red. The FTSEurofirst index of pan-European shares was flat having earlier been almost 1 percent lower on the day.
Banking stocks were weighing. "Financials have been under pressure due to concerns about the speed of the economic slowdown and worries that there is still further fallout from the subprime credit crunch issues," said Henk Potts, equity strategist at Barclays (nyse: BCS - news - people ) Stockbrokers.
Societe Generale noted that troubles at U.S. mortgage agencies Freddie Mac (nyse: FRE - news - people ) and Fannie Mae (nyse: FNM - news - people ) were a threat to U.S. commercial banks, which it estimated hold some $1 trillion in the agencies' debt, or 9 percent of the banks' balance sheets.
Earlier, Japan's Nikkei average dipped 0.2 percent, led lower by exporters such as Honda (nyse: HMC - news - people ) and property shares which dropped after the collapse of another builder.
Sohken Homes filed for protection from creditors with 33.8 billion yen ($308 million) in debt, the latest in a string of collapses in the property and construction sectors.
GUSTAV LIFTS OIL, DOLLAR SLIPS
Barclays' Potts said stock investors were still concerned about the high price of oil and its effect on inflation and sentiment despite the price of crude now being well off its recent, all-time highs.
Oil rose for a third straight session, above $118 a barrel, on worries that Tropical Storm Gustav will threaten oil and natural gas installations in the Gulf of Mexico.
Crude for October delivery rose $1.82 to $118.09 a barrel, after settling up $1.16 on Tuesday.
Gustav was downgraded to a tropical storm on Wednesday after it slammed into Haiti on Tuesday, but forecasters expect wind speeds to regain hurricane force, and it could be the first major storm to threaten oil and gas production in the Gulf of Mexico since 2005.
The euro and yields on euro zone government bonds rose to session highs after Bloomberg quoted the European Central Bank Governing Council Member Alex Weber as saying talk of a euro zone interest rate cut is "premature".
"The market became too confident that rate cuts were on the card," said a bond trader in London.
Weber, widely considered to be among the most 'hawkish' and influential of ECB policymakers, said there is no scope for rate cuts and hinted that there might even be room to raise them if the economic outlook improved toward the end of the year.
The euro jumped on the headlines and was up 0.6 percent at around $1.4737.
The dollar index, a measure of the greenback's value against six major currencies, fell 0.5 percent on the day to 76.87, having hit a 2008 high on Tuesday at 77.619.
Euro zone government bond yields climbed after the Weber comments promoted a sell off.
The interest rate-sensitive two-year Schatz yield was up 11 basis points at 4.092 percent, while the 10-year Bund was up 6 basis points at 4.172 percent. (editing by Mike Peacock)

Pescod Talks Oil

The company now has a beautiful portfolio of high,
medium and low risk plays (including those tantalizing

Bakken plays). One to watch that almost no analysts are following so far.

QEC Houses Today

Pescod and Andy G Talk Stock

PDP and More

Oil Dips But...

GOLD $829.80 -35.00

CRUDE OIL $114.45 -0.75

To many of us who have participated in the commodities
rally over the last few years, Don Coxe of BMO fame
and editor of the much looked-forward to Basic Points is
probably the high priest of that belief (which I guess
means that Josef Schachter would be the high priestess).

While Schachter was saying last week and the week
before that it was time to start loading up on oil stocks
again, his suggestion looked more than a little early and
on a day like this where oil is down almost $1.00, but oil
stocks are acting as if they were down $20.00, one wonders
if panic is hitting the commodities market particularly
on the mining side where gold today is down thirty some
bucks and a chart on gold looks absolutely bleek.

For those who received Coxe’s Basic Points late last
week and had time to review it over the weekend, you
might have been feeling hopeful for this week’s activity.

Certainly not today…

As far as his investment recommendations for looking
ahead, he writes:

1. This is not the end of the commodity bull market.
Bear Stearns, F&F and other crisis will one day seem
trivial. The new global middle class that is repricing
commodities never will.

2. Remain underweight the banks and financial stocks
(which we note today, aren’t paying attention to him
and are actually doing quite well).
As a new recommendation he suggests, “Clients begin
taking preliminary positions in companies which stand to
benefit most from the possible onset of realism in US energy
policies. When—if not—offshore drilling finally gets
the nod, the majors and service companies should benefit
enormously.”

He makes an interesting comment on natural gas and
notice how natural gas prices have gone off a cliff over
the last while. He writes, “Natural gas supplies have exceeded
expectations because of the Barnett Shale and
coal bed methane booms, and because this summer has
not been as hot as had been feared. We recommend the
natural gas-oriented producers with above-average reserve
life indices.”


Natural gas is very much dependent on weather.
For those bullish on natural gas, you hope for hot
summers which would see air-conditioning increase
demand for electricity, cold winter which would increase
demand for electricity for heating and of course
hurricanes, which would shut down production facilities
in the Gulf of Mexico. It hasn’t happened.
As far as other recommendations, Coxe takes a
look at the fertilizer companies and suggests they
“have delivered the most impressive earnings gains of
any other commodity group. Nevertheless, their share
prices have fallen in recent weeks along with other
commodity groups on days when traders have been
buying banks and dumping commodities. They probably
have the most predictable earnings of all the major
commodity sectors.”
Coxe also remains a believer in gold and writes,
“Gold remains the asset that offers unique risk reduction
features in equity and balanced portfolios. As to
investment strategies, the ETF outperforms during
gold bullion selloffs, but the stocks outperform when
bullion rallies. We believe investors should have exposure
to both kinds of asset, but leave the weighting
to be resolved on individual portfolio risk/reward considerations.”

He adds,

“We keep reading forecasts predicting
falling inflation and gold prices because of a US recession,
but insisting that the recession will be neither
deep nor long. Recession actually proved to be an
aphrodisiac for gold lovers in the Seventies.”

We have seen a huge and painful correction in commodity
and stock prices, bigger than we would have
thought possible.

Here’s hoping the economies of
China, India and Asia keep chugging and can rescue
those commodity prices and ourselves.

Petrolifera Petroleum Limited secures drilling rig

Petrolifera Petroleum Limited secures drilling rig for upcoming Colombia and Peru drilling campaignscnwCALGARY, Aug. 11 /CNW/

- Petrolifera Petroleum Limited (PDP - TSX) announced today it has signed a letter of intent with Petrex S.A ("Petrex") whereby Petrex has agreed to provide a heli-transportable drilling rig for a 24 month period from commencement of well operations in Colombia with an option for a further 12 month period. The formal contract is currently being finalized and rig mobilization is expected to begin shortly, with a view to being on location at the La Pinta prospect, situated within the Sierra Nevada I License in the Lower Magdalena Basin onshore Colombia, on or before September 30, 2008.

It is anticipated it will take 75 to 90 days to drill the La Pinta well. Thereafter, Petrolifera plans to drill the Brillante prospect on the same license.After completion of the initial two well drilling program in Colombia, Petrolifera anticipates it will mobilize the rig to Peru for the drilling of the company's first Peruvian exploratory well, currently anticipated to be drilled on Block 107 in the Ucayali Basin onshore Peru.

Petrolifera Petroleum Limited is a Calgary-based crude and natural gas exploration and production company with significant operated interests in ten blocks in Argentina, Colombia and Peru in South America. These blocks cover approximately seven million acres. Current crude oil and natural gas production is derived from the Puesto Morales/Rinconada Concession in the Neuquen Basin onshore Argentina.

The company's capital program for 2008 is anticipated to reach $108 million, with increased expenditures in Colombia and Peru compared to levels in 2007, as new exploration programs are presently underway. Simultaneously, the company is maintaining an active capital expenditure program in Argentina.

Pescod says

Friday is one of those days

At noon: Oil, the new bear

Friday, August 08, 2008
Friday is one of those days when it pays to overlook the carnage in Canada and instead focus on those money-losing investments in the United States, which are now looking up.
The S[amp]amp;P/TSX composite index was down 78 points, to 13,307, at midday – an improvement from more severe losses at the start, but still a dismal showing after you factor in the lower Canadian dollar. The loonie fell below 93.7 cents (U.S.), down 1.3 cents as the U.S. dollar took flight against a number of global currencies.

Among Canadian stock market subindexes, materials were the biggest drag, falling 3 per cent thanks to a poor showing from Potash Corp. of Saskatchewan Inc. and a number of gold producers. Potash Corp. fell 3.2 per cent and Barrick Gold Corp. fell 1.9 per cent. Gold traded at $855 an ounce, down $18 – representing a 15 per cent decline from its record high this year.

Meanwhile, Canada's energy subindex fell 2.8 per cent, with the price of crude oil falling further into bear market territory, defined as a drop of 20 per cent or more. Oil traded at $116.13 a barrel, down $3.89, or 21 per cent, below its high. The recent decline has erased all of the gains since early May.

In the United States, though, the surging dollar and plunging price of oil have been good news for the stock market. The Dow Jones industrial average rose 195 points, to 11,626. The broader SP 500 rose 17 points, to 1283.

There, economically sensitive consumer discretionary stocks led the way, up 3.8 per cent. Energy-sensitive industrials rose 2.7 per cent. However, the gains were widespread: 82 per cent of the stocks in the S[amp]amp;P 500 were in positive territory, while 27 of the 30 stocks in the
Dow were up.

© Copyright The Globe and Mail

Schachter says...

Banks Dive In USA

The close: A good bank is hard to findRTGAMNorth American stocks were hit hard on Thursday after investors grew increasingly nervous about financial earnings and the state of consumer spending after major U.S. chains released dismal statistics on same-store sales.The Dow Jones industrial average closed at 11,431.43, down 224.64 points, or 1.9 per cent. The broader S&P 500 closed at 1266.10, down 23.09 points, or 1.8 per cent. In Canada, where investors followed the U.S. lead, the S&P/TSX composite index closed at 13,385.17, down 68.34 points, or 0.5 per cent, despite rising energy stocks.Financial stocks began the day as the biggest drags on the stock market and finished that way, too, a day after American International Group Inc. announced a whopping second-quarter loss that reignited wider concerns about writedowns, slashed dividends and equity requirements within the financial sector.AIG plunged 18.1 per cent - the biggest one-day loss in its nearly 40-year history as a public company, according to Bloomberg News - and dragged down just about every insurer and bank in its wake. Citigroup Inc. fell 6.2 per cent, Lehman Brothers Holdings Inc. fell 13.6 per cent and Fannie Mae fell 14.2 per cent, blowing big holes in the recent impressive rebound in financial stocks.In Canada, the Big Banks and major insurance companies were also the biggest laggards. Royal Bank of Canada fell 3.2 per cent, Bank of Nova Scotia fell 2.6 per cent and Manulife Financial Corp. fell 3.4 per cent.Meanwhile, Wal-Mart Stores Inc. fell 6.3 per cent - just one day after hitting a four-year high, when investors considered it a safe stock - after the world's largest retailer handed investors evidence that it, too, could be a victim of slower U.S. economic growth. Sales at stores open for at least one year are expected to rise between 1 and 2 per cent in August, well below expectations.Earlier, investors had been operating under the belief that Wal-Mart and a number of other discount retailers were likely to profit from the U.S. economic downturn, since strapped consumers tend to seek better deals lower down the retail food chain. That belief has now been shredded.Copyright 2001 The Globe and Mail

Oil rises to near $120 in Asia

Oil rises to near $120 in Asia

ALEX KENNEDY

Thursday, August 07, 2008SINGAPORE — Oil prices rose Thursday in Asia to near $120 (U.S.) a barrel, halting a four-week slide on concerns that tension over Iran's nuclear program could lead to conflict.

Light, sweet crude for September delivery rose $1.18 to $119.76 a barrel in electronic trading on the New York Mercantile Exchange by late afternoon in Singapore. The contract dropped 59 cents overnight to settle at $118.58 a barrel.

“The market has been ignoring supply-side concerns lately, but it's looking like the world powers will go forward and place more sanctions on Iran,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.

The five permanent United Nations Security Council members and Germany agreed Wednesday to pursue new sanctions against Iran, which will probably take months to implement.
Tehran has refused to curb its uranium enrichment and may be trying to run out the clock on the Bush administration in hopes of getting a better offer from a new U.S. president next year, the State Department said.

Iran says it isn't seeking nuclear weapons and won't scale back a legitimate energy-production program.

Before the rebound, Nymex front-month crude futures had fallen around 20 per cent since reaching a record high of $147.27 on July 11.

“The market got oversold,” Mr. Shum said. “People have been overwhelmingly preoccupied with poor U.S. oil demand.”

The U.S. Energy Department's Energy Information Administration said Wednesday that crude supplies rose 1.7 million barrels in the week ended Aug. 1, slightly more than the 1.2 million-barrel increase expected by analysts surveyed by energy research firm Platts.

The EIA said inventories of distillate fuel, which include diesel and heating oil, jumped 2.8 million barrels. The analysts had expected an increase of 2.3 million barrels.

Meanwhile, EIA data showed gasoline stockpiles fell 4.4 million barrels last week, much more than the 1.4 million drop expected by analysts. The big drop in gasoline stocks surprised some oil market traders, but analysts said it likely signals that gas distributors have taken more deliveries from the refiners as the summer driving season enters its last month — not that U.S. motorists are suddenly ramping up their driving amid recent pullbacks in pump prices.

Lending support to that idea, the EIA said demand for gasoline for the month ended Aug. 1 topped out at about 9.4 million barrels a day, 2.3 per cent lower than for the same period last year.
In London, September Brent crude was up $1.20 at $118.20 a barrel on the ICE Futures exchange.
A fire Wednesday on a Turkish section of the Baku-Tbilisi-Ceyhan pipeline — a major supplier of crude to Western markets — disrupted the flow of oil and helped support prices.
The overnight blaze forced workers to shut down two valves along the pipeline as a precaution, halting the flow of all oil being sent to Ceyhan terminal from the east. Shipments were not affected.
The U.S.-backed 1,760-kilometre pipeline allows the West to tap oil from Azerbaijan's Caspian Sea fields, estimated to hold the world's third-largest reserves, and bypass Russia and Iran. The pipeline can pump slightly more than 1 million barrels of crude oil per day, more than 1 per cent of the world's daily crude output.
In other Nymex trading, heating oil futures rose 2.53 cents to $3.2632 a gallon while gasoline prices gained 3.67 cents to $2.986 a gallon. Natural gas futures rose 7.5 cents to $8.848 per 1,000 cubic feet.
© Copyright The Globe and Mail

Wednesday erases Tuesday

Wednesday erases Tuesday

Canadian stocks rebounded strongly on Wednesday in a widespread rally that lifted nine of the 10 subindexes in the benchmark indicator and erased all but 43 points of the sharp downturn on Tuesday.The S&P/TSX composite index closed at 13,453.51, up 211.31 points, or 1.6 per cent.

Research In Motion Ltd. was the big winner, rising 5 per cent and adding 29 points to the index, even though there was little news for the BlackBerry maker other than one analyst upgrade. More likely, it was caught up in investor enthusiasm for other big-name technology stocks after Cisco Systems Inc.'s strong fourth quarter results on Tuesday.As well, Potash Corp. of Saskatchewan Inc. rose 4.9 per cent after rival fertilizer company Agrium Inc. released upbeat second quarter results and reminded investors that profits in this sector are booming. Energy stocks rose 2.3 per cent.In the United States, the Dow Jones industrial average closed at 11,656.07, up 40.3 points, or 0.4 per cent.

The broader S&P 500 closed at 1289.19, up 4.31 points, or 0.3 per cent.While that might sound like a defeat after Tuesday's rip-roaring rally, it represents a strong turnaround from earlier losses. Investors were initially put off stocks after Freddie Mac reported dismal earnings that suggested more mayhem for financial firms. In the end, though, investors decided to reserve their venom for Freddie Mac (and its cousin, Fannie Mae) and leave most of the rest of the market alone.

Freddie Mac shares plunged 19.3 per cent and Fannie Mae shares fell 14.7 per cent.The big winners for the day were the technology stocks, following better-than-expected results from Cisco Systems on Tuesday. Cisco rose 5.7 per cent, Microsoft Corp. rose 3.1 per cent and Apple Inc. rose 2.2 per cent.Copyright 2001 The Globe and Mail

Black gold, black day

Market News: After the BellThe close: Black gold, black dayRTGAMYou can argue that India's and China's thirst for energy has not abated one drop with the decline of the U.S. economy. And you can say that analysts and executives have used very conservative estimates for oil prices when forecasting earnings for energy producers.But on a day when crude oil crossed the $120 (U.S.) a barrel threshold on the way down, few investors seemed to be listening.

Oil closed in New York at $119.17 a barrel, down $2.24 and down 19.5 per cent from its record high of $147.27. That put gold on the run as well, since gold is seen as a hedge against inflation, and pricey oil is one of the main causes of inflation.Add it up and it wasn't a good day for the S&P/TSX composite index: It closed at 13,242.2, down 254.33 points, or 1.9 per cent. Energy stocks fell 4.3 per cent, with Suncor Energy Inc. down 6.7 per cent, Talisman Energy Inc. down 5 per cent and EnCana Corp. down 3.9 per cent.Materials stocks, composed largely of gold producers, fell 8.3 per cent.

However, Potash Corp. of Saskatchewan Inc. - another materials stock - was the biggest single drag on the benchmark index. The fertilizer producer, usually a darling of the market when commodities are strong, tumbled 12.8 per cent and accounted for 77.6 points in the index's loss. It used to be the top company in the benchmark index, based on its weighting, but has now fallen to fourth spot.In the United States, major indexes enjoyed their sharpest one-day rally since April, as investors welcomed the lower commodity prices along with greater confidence that the Federal Reserve will not raise interest rates before the end of the year.The Dow Jones industrial average closed at 11,615.77, up 331.62 points, or 2.9 per cent. The broader S&P 500 closed at 1284.88, up 35.87 points, or 2.9 per cent.

The gains were remarkably widespread, with 91 per cent of the stocks in the S&P 500 - and all 10 subindexes - ending the day higher.Even energy stocks and materials stocks rose, despite the drop in crude oil and gold. However, financials and consumer discretionary stocks were the big winners, rising 5.1 per cent and 4.5 per cent, respectively - even though these two sectors were the only two in the index to see their earnings fall in the second quarter. In the third quarter, maybe investors see yesterday's dogs as tomorrows stars.Copyright 2001 The Globe and Mail

Ivanhoe to Produce Crude in Ecuador in 9 Months, Comercio Says

Ivanhoe to Produce Crude in Ecuador in 9 Months, Comercio Says
By Stephan Kueffner
Aug. 4 (Bloomberg) -- Ivanhoe Energy Inc., a Canadian oil and natural-gas producer, will begin production of crude in Ecuador in nine months, Quito-based newspaper El Comercio reported, citing Luis Jaramillo, president of PetroEcuador, the country's state-owned oil company.
Vancouver-based Ivanhoe might produce 108,000 barrels of heavy oil a day at the Pungarayacu field, Jaramillo was quoted by the newspaper as saying.
The Canadian company plans to invest close to $5 billion in the project, and Ecuador will pay it $37 per barrel for extracting the oil, El Comercio said.
To contact the reporter on this story: Stephan Kueffner in Quito at skueffner@bloomberg.net Last Updated: August 4, 2008 10:08 EDT