Market Update & Important Indicators
U.S. stocks retreated Tuesday, a day after the Nasdaq Composite rose above 5000 for the first time in nearly 15 years. The Dow dropped 85 points, or 0.5%, to 18203. The S&P 500 fell 10 points, or 0.5%, to 2108, and the Nasdaq declined 28 points, or 0.6%, to 4980. Traders said Tuesday's decline in equities was to be expected as it came a day after the Dow industrials and the S&P 500 index closed at all-time highs and the Nasdaq Composite rose above the 5000 level for the first time since March 2000.
European stocks closed lower Tuesday, as investors favoured a cautious approach ahead of a European Central Bank monetary policy meeting this week. The Stoxx Europe 600 index closed 0.9% lower, reversing earlier gains of about 0.2%, which came on the back of figures showing German retail sales rose much faster than expected in January. Also unsettling some investors, Ukraine's central bank in a shock announcement Tuesday said that it was jacking up its refinancing rate to 30% from 19.5% on Wednesday as part of a package of measures aimed at stabilizing the country's financial system. Ukraine's hryvnia has rapidly lost value in recent weeks with the conflict in the country's east draining reserves and scaring off investors.
China's shares fell Tuesday as worries about a slowing economy trumped enthusiasm for the central bank's latest interest-rate cut, while the Australian dollar climbed against the U.S. dollar after the Australian central bank stood pat on interest rates. The Shanghai Composite fell 2.2% to 3263.05, its biggest one-day decline in a month, while Hong Kong's Hang Seng Index fell 0.7% to 24702.78, after a surprise rate cut by China over the weekend failed to sustain market gains. The Nikkei Stock Average was down 0.1%.
Copper futures closed lower on the London Metal Exchange Tuesday, as the metal relinquished gains made in the previous session due to a firmer greenback. Brent crude jumped 2.2% to $60.86/bbl and gold finished flat at $1,203/oz.
In This Issue
Sino Gas & Energy (SEH)
SEH has reported its first Reserve upgrade since commencing production with net 1P of 350 Bcf (up from 129 Bcf) and 2P of 448 Bcf (up from 291 Bcf). Net 2C and P50 Resource decreased to 739 Bcf (from 850 Bcf) and 649 Bcf (from 1,023 Bcf) respectively as Resources were re-classified into Reserves. SEH has total 2P+2C gas of ~1.2 Tcf. RISC, (The Reserve auditor), has given the Expected Monetary Value (EMV) net to SEH’s share of the Resource of over US$3.1b (up 36% from US$2.3b).
In the context of the last year, since the last upgrade, this reserve increase is an excellent result. SEH has grown from an exploration company into a full-fledged gas producer underpinned by significant reserves and current production (4.0 mmscf/d at Sanjiaobei, SJB). Importantly SEH have been producing from 5-7 wells for 3 months experiencing negligible decline rates and no water cut. 2015 will continue to be catalyst rich for SEH with production from SJB expected to increase to 8 mmscf/d in March and the Linxing (LX) central gathering station due to be commissioned mid-2015 increasing the production capacity a further 17mmscf/d and taking pilot production to 25mmscf/d.
Recent Contacts & Presentations
Dacian (DCN), West African Resources (WAF), Northern Star (NST), Saracen (SAR), Doray (DRM), Troy (TRY), Resolute (RSG), Gold Road (GOR), Regis (RRL), Independence Group (IGO), Energia Minerals (EMX), Rewardle (RXH), Doray (DRM), Alexium (AJX), Orbital (OEC), IMF Bentham (IMF), Metals X (MLX), Pura Vida (PVD), Image Resources (IMA), Tangiers (TPT), ABM Resources (ABU), Centaurus (CTM), Rox (RXL), Pacific Energy (PEA), MMA Offshore (MRM), Tox Free (TOX), Commodities Group (COZ), Pioneer Credit (PNC), Rift Valley (RVY), Orion Gold (ORN), Austal (ASB), Ausdrill (ASL), Gage Roads (GRB)