Is Sinopec in action? Read this reply by Kuxe0.
Posted by: kuxe0
In reply to: Nightdaytrader who wrote msg# 2143 Date:11/9/2006 6:39:07 PM
Post #of 2179
Is Sinopec in action ?
Two stones of the big puzzle seems to hint to silent action of Sinopec.
Read the following two news in context. First one was posted by Nightdaytrader, thanks.
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Stone 1:
Egypt, China to jointly build 3 oil rigs by 2007
11:21 AM ET Oct 22, 2006
CAIRO (Zawya Dow Jones) -- Egypt signed three agreements with China involving cooperation in the oil and gas sectors, largely through building oil rigs, Al-Hayat newspaper reported Sunday.
The pan-Arab daily said Egyptian Minister of Petroleum Sameh Fahmy signed an agreement creating a joint Egyptian-Chinese company with China Petroleum & Chemical Corp., or Sinopec, specializing in building oil rigs.
The company, named Sino-Tharwa, is set to deliver three rigs by 2007, another seven by 2008 and aims at raising production to 20 rigs by 2010.
The rigs will help boost exploration activities in Egypt, in light of an increased demand for rigs and the rising cost of hiring rigs, Fahmy was quoted as saying.
A second agreement signed during Fahmy's recent visit to China was with China's Sinoc to cooperate in international tenders that Egypt announces for exploration and discovery.
The third agreement was signed with Sinopec to increase the firm's activities in Egypt and raise the number of its oil rigs from two to seven in two years' time.
-By Maha El Dahan, Dow Jones Newswires, +20122267850, mahaeldahan@yahoo.com
Copyright (c) 2006 Dow Jones & Company, Inc.
-Contact: 201-938-5400
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Stone 2:
Centurion says in talks on possible transaction
Tue Oct 31, 4:56 PM
By Jeffrey Jones
CALGARY, Alberta (Reuters) - Centurion Energy International Inc. , a small oil firm operating in Egypt and West Africa, said on Tuesday it is in talks with an unnamed company about a possible transaction, sending its shares up nearly 5 percent.
Calgary-based Centurion, whose stock had already jumped by about 20 percent in the past week, gave no assurances a deal would result from the discussions. Nor would it predict what form a transaction might take.
The company said talks began with an unsolicited approach from the third party.
Centurion Vice-President Paul McDougall said he could add nothing to the brief statement that was issued by the company in response to queries from Toronto Stock Exchange officials about brisk trading activity in its stock in recent days.
"We'll keep everybody informed through press releases as things go on," McDougall said.
The shares jumped 41 Canadian cents to C$9.21 in Toronto, putting a market value on the company of more than C$830 million ($740 million).
Centurion's London-listed stock ended the session 10.4 percent higher at 449-1/2 pence.
The company produces about 32,000 barrels of oil equivalent a day and aims to pump 38,000 by the end of this year.
Earlier this year, the stock was under pressure following disappointing drilling results in Centurion's Egyptian operations.
Investors had been closely watching the fifth of a five-well drilling program as part of a joint venture with Royal Dutch Shell Plc , and had wondered if Shell would continue, said Warren Verbonac, an analyst with Octagon Capital in Calgary.
"The observation I would make is that Centurion's asset value at the end of last year was C$5.30 a share, so it would be a very, very expensive transaction for somebody to make if they're going to pay a premium to the current price," Verbonac said.
He said it was possible that Centurion could use its own stock to make an acquisition.
Fraser Mackenzie analyst Vic Vallance said he believes the company is in play, regardless of whether the current talks yield a deal, and that a buyer will have to give "significant consideration for the potential of the joint venture lands in Egypt."
"We would suggest that at a minimum C$12 per share would be acceptable for buyer to pay up for the risk-adjusted potential today," he wrote in a research note.
($1=$1.12 Canadian)
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Aha..., Centurion would be of interest for Sinopec in both ways: Sinopec recently published Egypt interest + the JDZ interest. Centurion owns 9,5 % on bloc 4 and posts fantastic figures about bloc 4 reserves on their Centurion Webpage.
BTW: imho there is even a 3. stone in the puzzle which points to Sinopec and that ERHC might be involved ...
AI
