FINN (COM) Daily Record for 07 January 2004

Cairn (CNE) has recently been a favourite among various institutional brokers that follow the Mid 250 sector. Its shares have been steadily rising from about 300p last summer to test 400p. However they have retreated from 412p to 396p after Williams de Broë advised sell on 26 November.

Today Cairn updates on an extensive exploration and appraisal programme in South Asia, across a 5,000 sq km exploration block in the Rajasthan Basin.

Of the fourteen wells drilled on the block to date 10 have encountered hydrocarbons, although some have mixed results. Remember, news about 'finding substantial hydrocarbons' as some companies are apt to declare, does not necessarily imply the discovery will be commercial. Much depends on the nature of oil bearing sands, reservoir quality and so on.

Cairn is open as regards exploration drilling on the Central Basin High located in the southern part of the block. Wells targeting the shallow Thumbli and Dharvi Dungar plays have encountered variable reservoir quality and sand thickness. Without copying a lot of technical detail from the announcement, I sense it is fair news for investors - and there is still plenty of potential, with a significant amount of additional drilling and evaluation work.

Since taking a positive stance on the shares various times in the low 300p area, and feeling they merited holding with the rise from 350p, I would be inclined to run gains if one are already in. It intrigues me how the City is apt to latch on to favourite oil exploration shares in the Mid 250 - Premier (PMO) is another in vogue. Both companies' exploration progress and potential ought to support the shares, despite re-ratings last year. The main caveat is a downside surprise for the oil price, but as things stand the prospect looks positive.

It is some five years since Desire Petroleum (DES) caught punters' imaginations with its Falkland Island drilling campaign - and after setbacks the company is still trying.

After soaring to the stratosphere the shares are bumping around the 10p level, little changed on today's update about commencing a 3D seismic survey over Tranches C and D in the North Falkland Basin before the end of January. Good summer weather there is expected to enhance the rate of data acquisition and quality. The objective is 'to refine the definition of what are currently considered to be the three largest, potentially oil-bearing prospects in the North Falkland Basin.

So the prospect dangled from Desire is one of potential news, if highly speculative in my opinion. This kind of share is liable to fizz if the exploration campaign is early stage and hopes run high - but the bubble burst on Desire some years ago and punters have deserted. For this reason, even though I do not have high expectations and am not a buyer, I am interested to keep an eye on progress. The oil exploration business has lots of potential to surprise.

By Edmond Jackson

©2004 Citywire

Wildlife charity Falklands Conservation is launching a new Grants Scheme in early 2004 designed to promote and encourage environmental and wildlife projects around the Falklands.

The Falklands Islands Conservation Grants Scheme, to be made available to all those normally resident in the Falkland Islands, is one of the initiatives to celebrate FC’s 25th Anniversary in 2004.

Five grants of up to £1000 will be made available annually from funds left to Falklands Conservation by the late Mrs Joan Kenneally, for the purposes of conservation, education and protection of wildlife around the Falklands archipelago. Conservation Officer Becky Ingham said " For many years Falklands Conservation has been incredibly well-supported by the local people of the islands. We hope that this grants scheme will encourage people to look at the opportunities and identify something that we can help with, that will benefit the environment or wildlife of the Falklands and enable us to put something back into the local community".

There are no strict rules as to what sorts of projects will be funded. Some examples of relevant work might be restoration of damaged habitat, tussac planting for example, removal of pests or invasive plants, wildlife or baseline plant surveys, provision of hides, shelters or information for tourists, or enhancement of certain sites, such as the construction of artificial nests. The main guiding principle is that it must be of benefit to wildlife or the environment in some way, and must be carried out within the Falklands. If you have any doubts as to the suitability of a project, contact the Conservation Office for confidential advice.

COURT NEWS:

The Magistrates Court is opening up again today after the Christmas break. First up at 0900 was Gene Berntsen, who is charged with breaching his Community Service Order. Roana Ruiz has already pleaded guilty to a speeding charge and appears for trial and Mario Soto will make a first appearance on a charge of driving with defective brakes.

Gene Berntsen was fined £300.00 this morning for breaching his Community Service Order. Senior Magistrate, Nick Sanders, warned him that if he breached the order again, he would be sent to prison. The Court heard that on the 21st of December he failed to turn up for Community Service and received a warning from Social Work Team Leader, Sarah Jane Rich. On Christmas Eve, his sister had called and asked if he was supposed to be doing Community Service because he had gone for drinks with his work colleagues. When he did appear, he was judged to have drunk too much to work for health and safety reasons and was ruled to be in breach of the order. He was originally sentenced to 150 hours of community service on 04 November for assault, resisting arrest and threatening behaviour. Despite the breach, the Court heard the probation officer felt Berntsen was committed to community service and had carried out his work so far to a good standard. He was ordered to return to Court in four weeks’ time for a review.

Sodexho worker, Roana Ruiz, had her licence taken away for three months and was fined £250.00 for speeding on the MPA Road. She pleaded guilty to the charge after Police clocked her travelling between 66 and 73 MPH on both gravel and tarmac back in November. Mr. Sanders said the speeds were extremely excessive to the point where it starts to become dangerous.

Mario Soto pleaded guilty to driving with defective brakes after his Land Rover rolled across the road from Sparrowhawk Guest House and into the fence of the Children’s Playground on the 28th of October. The Court heard he had left the vehicle parked overnight in the car park next to the guest house with the hand brake on and a brick under its wheel. He had difficulty starting it next morning and while he was looking under the bonnet, it started to roll backwards. Police tested the brakes and found them all to be faulty. He admitted that he had driven the vehicle the day before. He was fined £150.00 and asked to make a £50.00 contribution to costs.

CONSERVATION VIDEOS:

A conservation group is to hand out videos to fishermen in Southern Seas explaining how to catch fish without killing seabirds. The Southern Seabirds Solutions Trust is an alliance of fishing companies, environmental groups and Government Departments working together to reduce the number of fishing related seabird deaths in the Southern Hemisphere. The 20 Minute video called "Fishing: The Seabirds Smart Way," will be handed out to fishermen in Chile, Peru and New Zealand. Spokeswoman, Janice Malloy, said the good news is that solutions do exist. It’s just a case of fishermen adapting these to suit the circumstances of their own particular vessels. They are hoping that the video will encourage experimentation and spark exchanges of information, technology and experience.

HARBOUR NEWS:

There’s a Korean Jigger in Stanley Harbour collecting her licence and the Atlantic Crusader Cargo Ship that came in yesterday has already left.

UK VISITOR:

Wildlife in the Falklands has a special visitor from the UK, at the moment. Mike Pinkufski is Chairman of the Charity, "UK Overseas Territories Conservation Forum." The Organisation offers support to environmental groups in the Overseas Territories and he is here on a familiarisation visit to help him get to know the Islands and their wildlife.

NEW GOVERNMENT EMPLOYEES:

There are a total of six people taken under Government’s wing last month in a variety of jobs. Sara Cole and Claire Butler are two new faces in the hospital in the role of Staff Nurses. Sherilee Colins joined the Police Force as a WPC, Matthew Kelly was appointed as Meat Hygiene Inspector with the Department of Agriculture, Shona Strange joined the Customs and Immigration Department and Teslyn Barkman as a clerk in the Public Service. There were two promotions, both of these within the Royal Falkland Islands Police. Tom Whistler was promoted from Leading Constable to Sergeant and Suzie Clarke has filled the empty space of Leading Constable. There were seven completion of contracts, three re-appointments and two resignations.

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