MARKET REPORT
THE FTSE 100 rose above 6300 for the first time since May 2008 before
falling back.
Banks led the charge with HSBC up 6.80p to 717.10 as GOLDMAN SACHS brokers
urged snapping up the stock.
BARCLAYS rose two per cent to 305.85 with Goldman giving it a target of
350.
ITV fell 1.70p to 114.10 as it splashed out £56million on London
Television Centre.
Argos-owner HOME RETAIL dived seven per cent to 124 as MORGAN
STANLEY downgraded the stock, while DEBENHAMS, also downgraded,
fell three per cent to 102.20p.
THE FTSE 100 ROSE 9.96 TO 6294.41
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Email: steve.hawkes@the-sun.co.uk
A SECOND British firm is sitting on a potential oil and gas bonanza in the
tinderbox Falklands, it was revealed yesterday.
Tensions with Argentina could soar again after BORDERS SOUTHERN PETROLEUM
declared its find, the most recent, could be a big winner.
Its shares rocketed 14 per cent yesterday after Borders said the Darwin
discovery to the south of the islands was “commercially viable”.
Last year ROCKHOPPER EXPLORATION sold control of its commercial
discovery to the north to British oil and gas giant PREMIER OIL.
The finds will fuel speculation of a future “black gold” windfall for the
Treasury from the South Atlantic.
But a referendum on the islands’ sovereignty is only weeks away and
Argentina’s leader Cristina Kirchner is demanding their “return”.
The islanders are expected to vote on March 10 and 11 to remain British.
Borders’ chief Howard Obee refused to be interviewed by The Sun, blaming the
political tensions. But in a short statement yesterday he said: “I am
delighted with the company’s progress to date and extremely grateful to all
those that have contributed to our success.”
Last year, Borders said it was sitting on up to 250million barrels of gas
condensate — a petrol-like light oil — at the Darwin field. Yesterday it
disclosed that even if oil prices dropped to $65 a barrel — today’s world
market price is almost DOUBLE that — the find would still be
commercially viable.
Like Rockhopper, it admitted it would have to bring a bigger company on board
given the cost of development could hit £2.4billion.
Analysts said Borders’ feasibility study showed that the Falklands could
become the latest oil and gas frontier in the world.
Sanjeev Bahl, oil analyst at stockbroker NUMIS SECURITIES, said: “This
confirms our view that Darwin is a commercial stand-alone development,
viable with existing technology.
“In our view Darwin will attract significant industry interest.”
Shares in Borders, which finished the day on 27.38p, crashed last summer when
it came up dry at a second prospect — Stebbing — to the east of the Darwin
find.
End the rip-off fuel cost
THE Office of Fair Trading was last night urged to “be brave” and end
Britain’s petrol rip-off.
It will decide this week whether to launch a major probe into petrol pricing
by big supermarkets and oil giants.
The Petrol Retailers Association said it was time for new OFT chief
Clive Maxwell to “come out of the shadows”.
PRA boss Brian Madderson told The Sun: “Our members see out of town
hypermarkets fight like dinosaurs to kill off competition — then put prices
up.
“Oil companies charge their independent franchisees so much they cannot
compete. The OFT needs to be brave.”
Hotels in five-star revamp
BUDGET hotel chain TRAVELODGE is putting “five-star beds” into its
rooms in a £223million expansion drive.
Boss Grant Hearn said nearly £60million will go on sprucing up “tired” suites
— including £1,200 mattresses — admitting he was losing out to PREMIER
INN.
Another 12 UK hotels will open this year — creating 420 jobs.
It is the first new investment plan since Travelodge restructured its finances
in August.
Mr Hearn told the Sun: “We are absolutely focused on the customer and are
going after our rivals to get some of our business back.”
The firm’s lenders wrote off £720million debts last summer.
Ryanair's fare play
RYANAIR will top profit forecasts this year after an eight per cent
rise in average fares in the run-up to Christmas.
High demand pushed ticket prices up to £43 in the three months to December —
while passenger numbers rose by three per cent to 17.3 million in the
quarter.
Revenues were up 14 per cent to £3.5billion.
Ryanair boss Michael O’Leary put the boost down to “improved customer
service”.
£530k for Prem star
THE boss of Hovis-to-Sharwoods group PREMIER FOODS is off — after
pocketing the first slice of a lucrative “recruitment award”.
Michael Clarke leaves with £530,000 — half of a bonus plan drawn up when he
joined 18 months ago. Chairman David Beever denied Mr Clarke left because of
he wanted more money.
Ex-CABLE WIRELESS exec Gavin Darby replaces him.
Spar seems to Bedouin well
CUT-price convenience chain SPAR is off to the oil-rich plains of Saudi
Arabia.
The grocer, which runs 2,500 shops in the UK, wants to open 30 stores in the
Middle East by 2015. These include eight in Abu Dhabi and sites in Oman and
Saudi over the next three years.
Spar chief Gordon Campbell said: “Our focus will be on a range of fresh foods.”