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Credit crisis losses total $1.4-trillion -- IMF

Tuesday, October 07, 2008
WASHINGTON — The International Monetary Fund Tuesday increased its estimate of global losses from the financial meltdown to $1.4-trillion (U.S.) and warned that the world's economic downturn was deepening.

“Declared losses on U.S. loans and securitized assets are likely to increase further to about $1.4-trillion,” the IMF said, increasing the loss estimate from $945-billion in April and slightly up from $1.3-trillion it cited last month.

In its quarterly assessment of global capital markets, the IMF said global economic activity is slowing down as growth in advanced economies decelerates and emerging economies start to lose momentum.

“Despite better-than-expected performance early this year, rising financial turmoil has led to a downgrade in the IMF's baseline forecast for global economic growth in 2008-09,” it said.
The IMF called for a well co-ordinated response to restore confidence and to avert a more protracted economic slowdown, but warned that central banks would need to continue injecting cash to calm the unprecedented turmoil.

“The risk of a more severe adverse feedback loop between the financial system and the broader economy represents a critical threat,” the IMF said.

“The combination of mounting losses, falling asset prices, and a deepening economic downturn has caused serious doubts about the viability of a widening swath of the financial system,” it added.

Separately, a senior International Monetary Fund official said Tuesday that globally co-ordinated policy actions are needed to address the current financial crisis, but not all measures need to be exactly the same.

“Co-ordinated action can help alleviate what is now a difficult situation in financial markets,” Jaime Caruana, director of the IMF's monetary and capital markets department, told a news conference.

© Copyright The Globe and Mail

Questerre On Verge Of Testing Utica Commerciality: Dundee
Dow Jones Newswires

TORONTO (Dow Jones)--Questerre Energy Corp. (QEC.T) is on the verge of testing commerciality of the Utica shale play in the St. Lawrence Lowlands of Quebec, leading Dundee Securities to initiate coverage of the company at buy with a stock-price target of C$8.25.

Recent improvements in horizontal drilling and completion methods have opened up many tight reservoirs and shale plays that have previously been uneconomic, including those in the St. Lawrence Lowlands, Dundee analyst Victor Rodberg said.

He added that, based on his model of the well economics of the Utica shale combined with well test data to date, he believes Questerre has the makings of a commercial project. He noted several near-term catalysts for Questerre's share price, which is at C$2.84 in Toronto Friday, up nearly 22%.

The largest near-term catalyst by far, he said, is horizontal initial production rates from Forest in the deep Utica. Drilling is underway with Forest and Rodberg expects to hear news on initial production rates in October. Additionally, Talisman Energy Inc. (TLM) has recompleted a previous well with Questerre that provided an 18-day well test of the Utica but should also give us a future glimpse at the prospectivity of the Lorraine shale.

Questerre is also drilling a well with Gastem Inc. (GMR.V) to test the shallow acreage of the Utica shale. Dundee doesn't have an investment-banking relationship with Questerre, nor does Rodberg have a stake in the Calgary company. Company Web site: http://www.questerre.com -

Tara Zachariah, Dow Jones NewsWires;

(c) 2008 Dow Jones & Company, Inc.