TheAge.com (Australia) : Chinese whispers work on Woodside: “The group's share price strength - it jumped 42¢ to a record $21.44 a share - was a response to continued speculation that the Chinese oil and gas group, CNOOC, was about to cut a deal with Shell on that group's 34 per cent Woodside stake. While the speculation was considered to be wide of the market, it is proving to be persistent. That persistence is due mainly to the global shake-up at Shell in response to its oil reserves scandal.” (ShellNews.net) 30 Nov 04
By Barry FitzGerald
Resources Editor
November 30, 2004
Woodside Petroleum shares scooted higher yesterday despite disappointment that the high-impact Merou exploration well off the coast of Mauritania had proved to be a fizzer.
The group's share price strength - it jumped 42¢ to a record $21.44 a share - was a response to continued speculation that the Chinese oil and gas group, CNOOC, was about to cut a deal with Shell on that group's 34 per cent Woodside stake.
While the speculation was considered to be wide of the market, it is proving to be persistent.
That persistence is due mainly to the global shake-up at Shell in response to its oil reserves scandal.
CNOOC's $US850 million ($A1.07 billion) bond issue has given the speculation added piquancy.
Woodside and Shell would not comment on the speculation. Shell's 34 per cent stake in Woodside was yesterday valued by the market at $4.85 billion, so CNOOC's bond issue is small beer in the scheme of things.
Meanwhile, the Woodside-led partnership in the Mauritanian exploration program reported that initial results from the Merou well indicated that only thin hydrocarbon-bearing sands had been intersected.
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AdvertisementWoodside has a 53.84 per cent interest. Other local interest holders are Hardman (21.6 per cent) and Roc Oil (3.69 per cent). While Woodside traded higher yesterday, Hardman fell 12¢ to $1.85 and Roc was 8¢ weaker at $1.84.
"The initial assessment is that these (thin sands) are sub-commercial accumulations; however, more detailed analysis is needed before any further comment can be made," Hardman said.
The market now shifts its focus to appraisal-drilling results from the partnership's big Tiof discovery and development work on its $US600 million Chinguetti oil development.
In other exploration news, Oilex NL and Victoria Petroleum were yesterday celebrating a successful exploration/appraisal well on their Rockwood oil discovery in Queensland's Surat Basin.
The market responded by rating Rockwood as a 3 million barrel find, up from its previous rating of about 1 million barrels.
Oilex traded 28¢ higher at $1.20 and Victoria added 0.3¢ to 4.9¢.