Energy Biz Replay: ATP Oil & Gas SPIKES, Diamond Offshore’s CHARGES
Shares of ATP Oil & Gas Corporation (NASDAQ:ATPG) spiked Monday and backed off just a bit, probably on partner Isramco’s report on details describing an Israeli natural gas discovery reported earlier in July. Isramco says the Shimson well offshore Israel was flowing at 40.2 million cubic feet per day subsequent to a 54-hour test. The former holds a 39 percent investment in the project, while ATP holds 40 percent.
Congressman Ed Markey (D-MA), the top Democrat on the House Natural Resources Committee, wants the Obama administration to issue a conditional block on the proposed merger between Cnooc Limited (NYSE:CEO) and Nexen, Inc. (NYSE:NXY). Markey contends that Nexen has drilled for oil in the United States without paying royalties, and that a “massive transfer of wealth” would be given to China at the expense of the American taxpayer.
Shares of the insurance firm Loews Corporation (NYSE:L) moved down on Monday, after registering a slump in quarterly profit, impacted by impairment charges at its 50 percent-owned Diamond Offshore Drilling, Inc. (NYSE:DO). However, Barron’s sees the fall in shares as a buying opportunity. The charges should be expected, since oil companies have experienced the unstable worldwide growth and also lower prices in the past quarter.
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