RP Newsletter

RP would like to wish all our clients and consultants a very Merry Christmas and a prosperous and happy 2008.  We thank you for your great support during 2007 and we look forward to an even more successful 2008. 

Please note that RP will not be sending out Chrismas Cards this year and will instead make a donation to our favourite charity. 

There will be no newsletter publication for January.

Oil and Gas Reserves

An oil and gas company's asset base is largely reflected by the volume of petroleum resources that they own or have entitlement to. The term "reserves" is commonly loosely used to refer to the volume of petroleum that can be recovered from an oil or gas field. However, these recoverable volumes can be classified into various categories depending on their stage of maturation and currently there is no internationally accepted standard for the definition, estimation and auditing of recoverable petroleum resources. For example, petroleum companies who are listed on the US stock exchanges have to abide by the reserves guidelines of the Securities and Exchange Commission (SEC). These companies also have to observe the requirements of the regulatory authorities in the countries that they operate in, and this sometimes can be significantly different from the SEC's requirements.

The Society of Petroleum Engineers (SPE) has been involved with reserves standards and definitions since 1987. This year the SPE, in conjunction with the World Petroleum Congress, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers, has issued the Petroleum Resources Management System (SPE-PRMS. This provides definitions, classifications and standards for the estimating, reporting and auditing of petroleum resource information. While much work still needs to be done, it is hoped that the SPE-PRMS will become the global standard for all companies and regulatory bodies involved in the petroleum industry. The SPE Oil and Gas Reserves Committee plans to work closely with other organizations to maintain the SPE-PRMS and issue periodic revisions to keep up to date with evolving technologies and changing commercial opportunities, whilst engaging with various stakeholders internationally to seek acceptance of the SPE-PRMS.

RP Integrated will be using the 2007 SPE-PRMS as the default standard for all reserves estimating, reporting and auditing work (unless otherwise requested by the client). The SPE-PRMS can be downloaded from www.spe.org/spe-app/spe/industry/reserves/index.htm.

RP Brew's Own Beer

RP Staff try their hand at brewing

RP's Real Pale Ale was launched amid much pomp and fanfare on the last Thursday of November, with the numerous guests clamouring for a taste of the 'beautifully crafted' pale brown nectar.

The brew lovingly hand-made by RP's staff at "U-Brew It" in Osborne Park and left to mature for a month before it was brought out for the November tasting. And the punters at the session were not disappointed with the product. We even had our youngest ever guest at the event, Adrian, the six-week-old son of Monica and Luis Riera.

Barmaidens	Our youngest guest, Adrian Riera

Crude Oil Prices

After a roller coaster session in November, prices of both marker crudes fell below the US$90 mark at the end of trade on Nov 30. The fall represented their biggest weekly percentage loss since 2005 and was the first time that prices of WTI and Brent crudes declined more than US$10 after the previous week's intraday high. WTI settled at US$88.71 while Brent crude closed at US$88.26 a barrel.

The fall was triggered by speculation that OPEC members may elect to add 500,000 barrels a day or more to production at their meeting on December 5th. Expectations of an interest rate cut by the Federal Reserve on December 11 and the prospect of slower economic growth in the U.S was also influencing traders.

Meanwhile Morgan Stanley has raised its 2008 price outlook to US$80 a barrel from US$65 and to US$83 in 2009. The analyst, Douglas Terreson said it was the company's view that the petroleum industry would require higher prices to justify further investment than previously envisioned. "While rising prices usually lead to rising returns, the upward trend in exploration and production costs is significant, moderating growth in returns," he said in a note to investors.

Market Commentary

US equity markets have traded lower in recent weeks amid ongoing credit concerns and heightened expectation that the US economy may slip into recession next year. Consumer spending, considered to be the key determinant of the US economy (accounting for over 70% of US economic activity), is under pressure due to an erosion in consumer confidence stemming from an ailing housing sector and high oil prices.

The latest bout of share market weakness places the S&P500 Index marginally ahead of where it started this calendar year.

Selected World Share Market Performance
S&P 500 (US)	+ 0.8%
FTSE 100 (UK)	- 1.5%
Nikkei 225 (Japan)	- 6.8%
Han Seng (HK)	+ 38.3%
Shanghai Comp. (China)	+ 155.4%
S&P/ASX 200 (Aust)	+ 17.2%

Source: IRESS. Returns Calculated as at 21 November 2007

The US Federal Reserve now faces a dilemma at its 11 December policy meeting - whether to cut interest rates to protect economic growth or leave them steady to quell inflation. Minutes from its 30-31 October meeting indicate the decision to lower rates was a "close call" and that risks of weaker growth and higher inflation were balanced. The bond market has priced in a high likelihood of another 25 basis point cut (at the December meeting) and it appears likely that equity markets will remain volatile ahead of this key decision.

Domestically, the resources consolidation theme has gained momentum with a series of corporate events in recent weeks. The highlight of which was BHP-Billiton's (BHP) proposed US$360bn merger with Rio Tinto (RIO), offering three of its shares for each RIO share. RIO rejected the proposal saying it "significantly undervalues RIO and its prospects". RIO plans to put forward its case at an investor seminar in London next Monday, focusing on the leverage it offers to an expected surge in iron-ore prices and its expanded aluminium business following the Alcan acquisition.

Investors believe Xstrata's recommended A$23.00 per share cash bid for West Australian nickel miner Jubilee Mines (JBM) is a near certain bet to be uncontested, with its shares trading at just a handful of cents above the offer price. 

Speculation of corporate activity involving zinc company, Zinifex (ZFX) has once again resurfaced, with Oxiana Resources (OXR) and Xstrata viewed as the likely bidders. 

S&P/ASX 100 Companies - Expected Event Calendar
Last Updated: 26 November 2007
Week 1	Mon 26 Nov	Tues 27	Wed 28	Thurs 29	Fri 30
				Option Expriy Day
	ZFX:AGM		BHP:AGM		TTS:AGM
	TAH:AGM		ABS:AGM		MCG:AGM
			JHX:XD US12c uf		FXJ:AGM
					SHL:AGM
					SYB:AGM
Week 2	Mon 3 Dec	Tues 4	Wed 5	Thurs 6	Fri 7
	CCL : Trading  update     (early Dec)	MTS:P
Week 3	Mon 10	Tues 11	Wed 12	Thurs 13	Fri 14
	LNN:XD 21c ff			WBC:AGM
Week 4	Mon 17	Tues 18	Wed 19	Thurs 20	Fri 21
				XJO Option Expiry Day
		ANZ:AGM	SGB:AGM		ORI:AGM
			TEL:XD 8.24c uf
Week 5	Mon 24	Tues 25	Wed 26	Thurs 27	Fri 28
	ASX markets close at 14:10 Sydney time	Christmas Closed	Boxing Day Closed

Important Notes

This information is based on company announcements, web sites and other sources.

These dates and details are indicative only and subject to change without notice.

Data covered represents a selection of the market only and should not be considered to be complete.

Ex-dividend (XD) dates are included only where information is obtainable

Additional XD dates and dividended amounts will be added as dividends are declared

Sentinel Financial Group accepts no responsibility for the accuracy of completeness of this informaion

Abbreviations

P = Profit Result

XD = Ex-devidend )ff = fully franked, pf = partly franked, uf = unfranked)

AGM = Annual General Meeting

Qtr = Quarterly sales

Qrt rep = Quarterly Report

TCB = to be confirmed

Upcoming ASX Flaots
Company Name	Date	Code	Price	# of Share
ADVANCED SURGICAL DESIGN	NOV 30	AMT	0.60	4M
ASIA DIVERSIFIED FUND LTD	DEC 11	AJA	1.00	90M
ASIAN MASTERS FUND LTD	DEC 04	AUF	1.00	50M
AURORA INFRA. BUY-WRITE	DEC 18	AIB	10.00	1.5M
AUSMINERALS LTD	DEC 10	AUE	0.20	25M
AUSTEX OIL LTD	NOV 30	AOK	0.40	50M
AUSTRALIAN GOLD INVEST. LTD	JAN 07	AGV	0.20	20M
AVANCO RESOURCES LTD	DEC 07	AVB	0.20	20M
BELLEVUE RESOURCES LTD	DEC 14	BVE	0.20	17.5M
BELL FINANCIAL GROUP LTD	DEC 12	BFG	2.00	13.8M
BOTSWANA METALS LTD	DEC 12	BML	0.20	56M
BRIERTY LTD	DEC 07	BYL	1.00	60M
BT INVESTMENT MANAGEMENT	DEC 18	BTT	1.00	292M
COPPERMOLY LTD	DEC 19	COY	0.25	80M
CREDIT SUISSE PL 100 - EMERGING	DEC 19	CSU	1.00	25M
DIPLOMA GROUP LTD	DEC 05	DGX	0.50	12M
E&A LTD	DEC 18	EAL	1.00	13.7M
EARLY LEARNING SYSTEMS LTD	DEC 04	ELY	1.00	34M
EAST ENERGY RESOURCES LTD	DEC 19	EER	0.25	18M
EMMERSON RESOURCES LTD	DEC 17	ERM	0.20	75M
EXOMA ENERGY LTD	DEC 14	EXE	0.20	40M
GLOBAL GEOSCIENCE LTD	DEC 06	GSC	0.20	10M
JAMESON RESOURCES LTD	DEC 12	JAL	0.20	12M
KINGROSE MINING LTD	DEC 14	KRM	0.20	12.6M
LODESTAR MINERALS LTD	DEC 12	LSR	0.20	25M
LOGICAMMS LTD	DEC 11	LCM	1.00	10M
MACARTHURCOOK INDUSTRIAL	DEC 05	MIF	1.10	18M
MACQ. HARBOUR MINING LTD	DEC 04	MHM	0.20	30M
MCM ENTERTAINMENT GRP LTD	DEC 19	MCX	0.20	15M
NEX METALS EXPLORATION LTD	DEC 03	NME	0.25	24M
NOAH RESOURCES NL	DEC 14	NOA	0.20	15M
OROCOBRE LTD	DEC 06	ORE	0.25	31.25M
SAUNDERS INTERNATIONAL LTD	DEC 05	SND	0.50	78.8M
SENEVENS INTERNATIONAL LTD	DEC 07	SVN	0.20	11.25M
SINOVUS MINING LTD	TBA	SNV	0.20	40M

Source: ASX & IRESS

Codes are proposed ASX codes and are subject to change. Listing dates are proposed dates outlines in the Prospectus and are subject to change. Times Displayed are in Eastern States Standard Time (AEST).

This list represents a selection of companies only. A complete and up-to-date listed can be viewed at www.asx.com.au
 

RP is pleased to provide a regular monthly newsletter in conjunction with Sentinel Financial Group.

Publishing Credits:
 
RP Writer & Newsletter Editor: Angela-Tan Dominic
Sentinel Contribution: Norm Robinson
Layout & Mailing: Faith Narey