The Independent on Sunday: The Week Ahead: “…Oil Quest Resources… won a crucial new licence earlier this month to explore for oil in the North Sea…”: “…ExxonMobil, BP and Shell… also won licences.”: Sunday 18 Sept 2005
In the energy sector, the news is expected to be more upbeat. Monday will mark the return of the oil and gas company Cairn Energy to the FTSE 100 after it dropped out of the top flight in March. The promotion will coincide with its interims and broker William de Broë expects it to report net income of £16.1m, down from £21.5m a year ago. Investors, however, will be even more interested in the expected update on the company's Rajasthan oil fields, where reserves are now estimated to be 2.5 billion barrels.
There is optimism too at the energy minnow Oil Quest Resources, which won a crucial new licence earlier this month to explore for oil in the North Sea 90 miles east of Newcastle. Due to post full-year results on Tuesday, it will be prospecting beside some giant rivals, such as ExxonMobil, BP and Shell, which also won licences.
Opec meets tomorrow to grapple with the vexed issue of whether to increase output in light of the continuing rise in oil prices and the loss of refineries during Hurricane Katrina. Observers say it will be a tough call and an increase in production, especially after the release of US strategic reserves, is by no means a foregone conclusion.
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