BoE Interest rates Meeting

Bank of England are expected to keep interest rates on hold tomorrow but there’s a growing belief that interest rates may rise sooner than most think. Barclays Capital economist Simon Hayes said “Thursday is 99.9 percent certain to be a non-event.” END.

TheShareHub BoE interest rate Poll currently shows early indications that 31% of investors think rates will rise from 0.5% to 1%. And 21% think a 0.25% rise is likely with 20% suggesting no rise will occur at all. A combined 28% think that rates could end the year as high at 1.25% to 1.5%. Clearly a mixed bag but a couple of weeks left of voting and it changes fast by the minute.

The Poll closes on Jan 31st so get your votes in sharpish. The Poll’s act as a great way to measure views/sentiment and it will be interesting to see how accurate the results are in just over 11 months time.

OIl rising on Alaska leak

Oil prices have continued to rise as a main Alaskan pipeline remained all but closed for a fourth day.  The pipeline is important because it carries almost 12% of US crude output, typically 630,000 barrels per day.

Ithaca Energy is just one of many producing oil companies that are set to benefit significantly from rising oil prices. An update from IAE this morning revealed that their Athena project is underway and set to complete in Q3 with first production due in Q4. Athena will add 5000bopd to IAE’s production.

Gulf Keystone – looking lively

Great day all round today with FTSE bouncing up 1%+ and with general sentiment up I was a tad surprised to see GKP trade flat in the morning session. However, equally, I didn’t expect such a spike up on increased volume post 3pm. The sp closed at 177p based on the UT, a gain of 11.25p (6.8%). This was higher than the previous high for the day. Normally a bullish sign. As mentioned last week – GKP are presenting at the Oil Barrel Conference on Thursday 13th January. It’s possible that they may want to reassure investors over the recent legal dispute but also on operations. Due to market rules, nothing can be discussed in the conference that is not already out there in the public domain. Thus, an RNS would be required before Thursday’s market open.

Volume was ok today but nothing massive. It will be interesting to see what the volume is like tomorrow.

Dominion tests 7p+

Great momentum with Dominion at present. Late in 2010 thesharehub highlighted the significance of breaking 6p. (see DPL breaks sp).

Dominion may be about to announce a partner for its Alpha prospect. Recently, an independent audit suggested the Alpha prospects in deep-water Tanzania could contain 1.1 billion barrels of oil and 7 trillion cubic feet of gas. Recent news on France’s Total looking for entry into Africa has also helped with raising the profile.

France’s Total In Talks To Enter Congo Oil Block – Sources –

A long way to go for DPL as drilling any prospects is still some time off. But the prospect of drilling Alpha is enough to see the early speculators getting on board. A risky stock but one that could be very rewarding should they succeed with Alpha. DPL is on the alternative 2011 hotlist – the ‘B’ List.

On the move – PPC

After a recent sell off from 96p highs, PPC (President Petroleum) dropped back to test 77p after hitting some delays on their Kafoury-3 drill. Recent drill data from Sonlite suggests they are now ready to continue drilling after setting casing/liner. If this drill proves successful – it could add significant upside to PPC’s share price (currently 82.5p). If it fails – then a retrace to 50p ranges could be on the cards. Not one for the faint hearted but they do have other key /significant assets and thus Kafoury-3 is not the begin and end all. Drill news/TD may not be far away now. Previous comment was given on Dec 27th 2010.