Recruitment Specialists in Upstream Oil & Gas

RP Newsletter January 2007

Resource Personnel provide individual specialists to full managed teams on a short to medium term basis to meet specific objective based outcomes for the client. These can range from short peer reviews, audits, data rooms, opportunity screening and Joint Venture representation up to the full definition of field development plans.  

Our teams can be made available within 30 days.

 
On behalf of RP, we are pleased to provide a regular monthly newsletter on the stockmarket, courtesy of Sentinel Financial Group

General Market Review

The Australian market raced ahead to new highs in December, continuing its incredible performance since breaking back above 5150 in late September. The market was helped along by solid leads from offshore, with the DOW also breaking new highs, and Germany's DAX and UK's FTSE trading at their highest levels in over 3 years.

Commodities however continued their recent slide, with all major categories recording falls for the month. The worst hit was Copper, which continued to slide on fears of a reduction in global demand - fears which were exacerbated by reports that Copper inventories as measured by Comex have almost quadrupled since July.

Global Indices

 

Price

Monthly Change (%)

 S&P ASX200 (Australia)

5,670

3.4

 Dow Jones (US)

 12,463

2.0 

 S&P 500 (US)

 1,418

 1.3

 FSTE 100 (UK)

6,221

2.8

 Commodities

 

Price

Monthly Change (%)

 Gold

$636 USD/oz

-1.8

 Oil (West Texas)

$60.85 USD/bbl

-3.4

 Copper

$6,290 USD/t

-9.3

 Nickel

$34,205 USD/t

-1.4

Sources: IRESS. Data as of 31/12/2006.

 

Energy Focus

Movers and Shakers

S&P/ASX 300 Energy Index - The Month's Best

Company

ASX Code

Gain

Last Price

Comment

Paladin Resources

 PDN

 +26%

 $8.90

Uranium price surges past US $70/lb.

Sydney Gas

 SGL

 +14%

 $0.40

Renewed interest in coal bed methane companies.

Worley Parsons

 WOR

 +11%

 $21.28

Broker upgrades following recent contract awards.

Source: Sentinel Financial Group & IRESS. Last prices and returns as at 31/12/2006.

S&P/ASX 300 Energy Index - The Month's Worst

Company

ASX Code

Gain

Last Price

Comment

Arc Energy

 ARQ

 -10%

 $1.325

Unsuccessful Lyginia-1 oil exploration well.

Roc Oil

 ROC

 -6%

 $3.09

Fallout from $219m rioghts issues @ $2.70.

Amadeus Energy

 AMU

 -5%

 $0.955

Australian Renewable Fuels investment declines.

Source: Sentinel Financial Group & IRESS. Last prices and returns as at 31/12/2006.

 

Who's Making News

A selection of significant recent oil and gas headlines.

Company

ASX Code

News Summary

Further Info

Antares Energy

 AZZ

Four US exploration wells in progress.

www.antaresenergy.com

Baraka Petroleum

 BKP

Initial Mauritania well results disappoint.

www.barakapetroleum.com

Coogee Resources

 N/A

Withdrawals $380m IPO.

www.coogeeresources.com.au

Hardman Resources

 HDR

Tullow takeover effected.

www.hdr.com

Metgasco

 MEL

Major gas sales agreement & farm-in.

www.metgasco.com.au

Global Petroleum

 GBP

Spuds first Kenyan exploration well.

www.globalpetroleum.com.au

Queensland Gas

 QGC

AGL takes 27.5% stake in QGC.

www.qgc.com.au

Source: Sentinel Financial Group & ASX.


Tin Rattlers

Recent ASX Capital Raisings

Company

ASX Code

Date

Details

Aurora Oil & Gas

 AUT

 Dec 2006

$8.2m placement for US drill program.

Golden Gate Petroleum

 GGP

 Dec 2006

$5.7m placement for US gas projects.

Impress Ventures

 ITC

 Dec 2006

$4.6m placement for Cooper Basin drill program.

Petsec Energy

 PSA

 Dec 2006

$39.6m placement/SPP for US & China projects.

West Australian Metals

 WME

 Dec 2006

$1.9m placement for Namibia uranium exploration.

Source: Sentinel Financial Group & ASX.



Float Hopefuls

Company

Amount Sought

Summary

Further Information

Bowen Energy

$5m

Qld coal and uranium focus.

www.bowenenergy.com.au

Energy One

$10m

East coast electricity supplier.

n/a

L&M Petroleum

$20m

NZ oil and gas explorer.

www.Impetroleum.net.nz
Source: Sentinel Financial Group & ASX.

 

Australian Stock Market News

The domestic stockmarket showed broad based strength in December, with all of the major sectors advancing with the exception of Materials, which were held lower by softer commodity prices. Despite being the only major sector unable to record a positive month, Materials did still show resilience, falling only 0.27% - substantially less than the declines recorded in most of the major commodities their prices tend to move so closely in line with.

Global diversified mining heavyweights BHP and Rio Tinto continued to lag behind the pure metal plays such as Zinifex in the past month. The diversified miners appear to be plagued by continuing concerns regarding the macro economic outlook in both the US and Europe, with worries about the strength of the US housing market particularly concerning.

The standout performer for the month was the Insurance sector, surging 9.25%. Confirmation of a quieter than expected hurricane season in the US aided those stocks with significant offshore earnings (particularly QBE which issued a profit upgrade), whilst domestically, continued merger and acquisition speculation ensured a healthy takeover premium for many, and strong equity markets helped keep investment earnings strong as well.

A selection of significant company news:

Company

ASX Code

  Details

BHP

BHP

Ravensthorpe Nickel project budget has been increased by 64%to $2.2 billion.

Zinifex

ZFX

Added to S&P/ASX 50 Index.

Publishing and Broadcasting

PBL

S&P downgrades PBL credit rating to BBB+, following the creation of the PBL Media entity.

Coles Group

CGJ

KKR continues to watch Coles' woes closely, with potential for second bid in 2007.

ANZ Bank

ANZ

ANZ CEO John McFarlane announces resignation plans for end of December 2007.

Australian Securities Exchange

ASX

ASX changes name to Australian Securities Exchange, after merger with SFE.

Sigma Pharmaceuticals

SIP

SIP revises down takeover offer for Australian Pharmaceuticals (API) from $2.50 to $2.20.

Zinifex

ZFX

ZFX and Umicore to combine to form the world's leading producer of zinc.

CSL Limited

CSL
Upgrades FY07 profit forecast by 10%.
Source: Sentinel Financial Group & AEGIS. Data covered represents a selection of the market only and should not be considered to be complete. Sentinel Financial Group accepts no responsibility for the accuracy or completeness of these details.

 

Key Dates of interest (dividends and upcoming events)

S&P/ASX 100 Companies

Date

ASX Code

Company Name

Event

Dividend Amount

Wed 17 December

RIO

Rio Tinto

Quarter Report

N/A 

Thu 4 January

TBG

Tutt Bryant Group

Half yearly result

 N/A 

Thu 4 January

PRG

Programmed Maintenence Services

Half yearly result

N/A 

Fri 5 January

RCY

RiverCity Motorway Group

1st quarter result

N/A 

Mon 22 January

OXR

Oxiana

Quarter Report

 N/A 

Wed 24 January

Options

Options expiry day

N/A  

Wed 24 January

STO

Santos

Quarter Report

N/A  

Thu 25 January

BHP

BHP

Quarter Report 

N/A  

Fri 26 January

Australia Day!

N/A

N/A  

Mon 29 January

LHG

Lihir Gold

Quarter Report

N/A 

Tue 30 January

OSH

Oil Search

Quarter Report

N/A 

Wed 31 January

NAB

National Australia Bank

AGM

N/A 

ff = fully franked;  pf = partly franked;  uf = unfranked;  TBA = to be announced;  TBC = to be confirmed

Please note, all dates and amounts shown are preliminary and subject to change without notice. Data covered represents a selection of the market only and should not be considered to be complete. Sentinel Financial Group accepts no responsibility for the accuracy or completeness of these details.

  

Stock in Focus - Seven Network (SEV)

Seven Network is a commercial television broadcaster in Australia, operating nation wide. Aside from Seven's interest in television it also has a complete ownership interest in Pacific Magazines. The Company also has publishing and entertainment through investments in Text Media. They have recently demonstrated an interest in forming alliances with internet based and other media companies.

In December, Seven announced that they had formed a joint venture with Telecom New Zealand which will be called Yahoo! Xtra. The site will provide online content and application services for New Zealanders and is expected to be a premium provider of such content. Telecom will have a 49% equity stake in the joint venture with Yahoo 7, which is again another joint venture between Yahoo! Inc and the Seven Network holding 51%. The move will see Seven expand its reach into NZ and develop a foothold in the ever increasing online content and application sphere.

A little closer to home, Seven also released confirmation that it had acquired a 14.9% equity holding in West Australian Newspapers Limited, as the government relaxed its media cross-ownership laws. The move makes it the top shareholder in WAN.

The company's stock price responded well to both announcements and moved from the $10.40 mark early in the month to a $11.30 in the last days of December.

Source: Sentinel Financial Group, AEGIS and IRESS. Sentinel Financial Group accepts no responsibility for the accuracy or completeness of these details.


Sentinel Portfolio Services

Are you considering Investing in the Stock Market?

Do you currently own shares or feel your portfolio is not performing?

If so, you should consider speaking with Sentinel Portfolio Services.

We provide Portfolio Advice, Management and Reporting to enable you to professionally and successfully invest in the Stock Market.

"Building your wealth through personal share investment"

A Plan To Build Wealth.

History has shown that shares outperform most other major types of investments over the long term. To achieve optimum results, investment in the stockmarket requires careful planning and organisation.

Sentinel Portfolio Services provides a comprehensive plan, strategy and structure enabling you to generate income and build wealth through the stockmarket.

...With A Disciplined Approach.

Sentinel Portfolio Services has the specific aim of assisting private clients to build their wealth through consistent, methodical and effective portfolio investment techniques. Our Portfolio Services have been designed to introduce a disciplined approach to your stockmarket investments whilst maintaining a personalised style to portfolio investing.

...And Professional Assistance.

Sentinel Portfolio Services is a specialist advisory division of the Sentinel Financial Group which is both a participant of the Australian Securities Exchange and the holder of an Australian Financial Services License.

We adopt a professional approach to your portfolio investment providing key functions such as investment management, asset selection and reporting.

...To Provide A Complete Investment Package.

When these core components are combined, investors are presented with a comprehensive wealth-creation framework supported by expert guidance and systems.

Bulletin Board (Current Offers from Sentinel)

  1. Open an account and receive free access to our daily market report
  2. Enquire about our latest division specialising in CFDs
  3. Interested in effectively managing your tax bill? Speak to Sentinel today about a range of alternatives including:
  4. Margin Lending
  5. Protected Loans
  6. Options
  7. Do you have holdings in the market that you would like to protect? Our advisers can show you how options and other derivatives can be used to hedge your positions in these volatile markets.

For further information on how Sentinel can help you with your investment and trading needs, contact Peter Bell on (08) 9225 0027, or by email at pbell@sentinelgroup.com.au

About Sentinel Financial Group

Sentinel Financial Group Pty Ltd is the parent corporation to a number of financial services organisations providing specialist financial knowledge to private and corporate clients. Our focus is on building client wealth through the provision of reliable service, quality advice and personalised investment strategies. Our group is comprised of:

  1. Sentinel Stockbroking - Sentinel Stockbroking specialises in the provision of advice and execution on all forms of ASX traded equities and derivatives. The company is a participating organisation of the Australian Stock Exchange Group and provides services including:
  2. Stockbroking Execution and Advice - Offering efficient trading and execution services, with the benefit of professional research and advice from your own personal Investment Adviser.
  3. Portfolio Management Services - Sentinel Portfolio Services will help you to design, construct and maintain a share portfolio specifically tailored to your needs. Our experienced Investment Advisers then assist you to monitor and review your portfolio on an ongoing basis and recommend changes where necessary.
  4. Income Generating Strategies - Take advantage or our wealth of experience in utilising options strategies to generate an attractive, lower risk income stream in any market environment.
  5. Sentinel CFD - Sentinel CFD is a dedicated CFD business offering comprehensive advisory, research and order execution functions. Our primary focus is to provide informed ideas and strategies to enable our clients to effectively utilise CFDs. Clients can choose from the following services:
  6. CFD trading recommendations - Sentinel CFD draws on the resources, infrastructure and research of SFG to provide a comprehensive advisory service to our CFD clients. Our in-house research process incorporates fundamental, technical and event analysis to deliver regular, timely and specifically tailored long and short trading strategies and investment ideas to CFD investors.
  7. Online CFD trading platform - Self directed traders are able to take advantage of our state of the art trading platform, giving live trading access to over 500 of Australia's top companies. Combined with our high interest cash account and convenient online reporting functions, we are able to provide a complete online trading solution.
  8. Sentinel Partners - providing a wide range of accounting services including taxation advice and return lodgment; personal and business accounts and reporting; GST and BAS reporting; establishment and management of self managed superannuation funds and companies; and much more.\

Please visit our group website for more information - www.sentinelgroup.com.au

OR call to speak to an adviser on (08) 9225 0027

 

Disclosures & Disclaimers

All information in this newsletter is provided courtesy of Sentinel Financial Group for the sole use of clients and contacts of Resource Personnel.

DISCLAIMER

Sentinel Financial Group Pty Ltd (ABN 26 104 456 288) is an Australian Financial Services Licensee holder (ASFL No. 230542) and a Participating Organisation of the Australian Stock Exchange. Sentinel Financial Group's directors, officers, representatives, authorised representatives, members and agents believe the information contained in this document is correct and that any estimates, opinions or recommendations in this document are reasonably held at the time of compilation, but may change without notice. No guarantee or warranty is given, or representation made, as to accuracy or completeness. Past investment or trading performance is not a reliable indicator of future performance. To the extent permitted by law, Sentinel Financial Group disclaims all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything in or omitted from this document. Advice included in this document is general advice, based solely on consideration of the investment or trading merits of the securities alone without taking into account the investment objectives, financial situation and particular needs (i.e. financial circumstances) of any particular person. You should not act on any recommendation issued by Sentinel Financial Group without first consulting your investment advisor in order to ascertain whether the recommendation (if any) is appropriate having regard to your investment objectives, financial situation and particular needs.

DISCLOSURE

Sentinel Financial Group Pty Ltd (ABN 26 104 456 288), its directors, officers, representatives, authorised representatives, members and agents declare that they deal in financial products as part of their business and consequently they may have a relevant interest in the financial products recommended. Sentinel Financial Group receives brokerage or other benefits from dealing in financial products and its authorised representatives, or introducers of business, may directly share in the brokerage or benefits. Sentinel Financial Group, its authorised representatives and their respective associates may have positions in the financial products mentioned, which may change.

COPYRIGHT & DISTRIBUTION

This document and any information included within is Copyright and the property of Sentinel Financial Group Pty Ltd. All information should be viewed as confidential. If you are not the intended recipient of this document, you should destroy all copies and contact the sender or Sentinel Financial Group's office.

 
 


This newsletter is brought to you courtesy of

Resource Personnel Pty Ltd
Unit 3, 94 Hay Street,
Subiaco Western Australia 6008
Telephone: (+61) 08 - 6380 2467
Fax: (+61) 08 - 9388 6825
Email: info@resourcepersonnel.com

 

 




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