Secretary of Administration Neale F. Lunderville has released General Fund revenue results for the month of July, the first month of Fiscal Year 2010. General Fund revenues totaled $83.54 million for July 2009, +$0.62 million or +0.75% above the $82.91 million consensus revenue forecast for the month and year-to-date.“While the General Fund finished above target for the first month of the new fiscal year (FY 2010), this was achieved only after the FY 2010 target was reduced on July 16th,” said Secretary Lunderville. “The pattern of quarterly reductions that we saw throughout FY 2009 has continued into the new fiscal year,” said Lunderville.The monthly targets reflect the recently revised Fiscal Year 2010 Consensus Revenue Forecast that was adjusted downward by the Emergency Board on July 16, 2009. The State’s Consensus Revenue Forecast is normally updated two times per year in January and July. However, with the unstable economic situation, the Emergency Board has been scheduling interim revenue reviews. The next consensus forecast is scheduled to be reviewed by the Emergency Board in mid-November, 2009.Personal Income Tax receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds. Personal Income Tax receipts for July were $45.35 million, +$1.51 million or +3.44% ahead of the monthly target. Sales & Use Tax fell short of target by -$0.06 million (-0.33%) and Rooms & Meals Tax was +$0.40 million (+4.32%) above target for July. Corporate Income Tax receipts of $0.90 million significantly fell below target for the month by -$0.99 million or -52.42%.The remaining tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and “Other” (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage tax, Fees, and Other Taxes). Results for July were as follows: Insurance Tax, $0.36 million (-6.44%); Estate Tax, +$0.46 million (+43.74%); Property Transfer Tax, +$0.06 million (+9.26%); and other, -$0.72 million (-10.28%).Transportation FundSecretary Lunderville also reported on the results for the non-dedicated Transportation Fund Revenue, revenue of $15.99 million for the month or -$0.45 million (-2.73%), below the monthly target for July. Revenue from the Gasoline Tax, Diesel Tax and Motor Vehicle Purchase & Use Tax were all below target for the month of July, while Motor Vehicle Fees and Other Fees were both above target. The Transportation Fund revenue results for July were: Gasoline, $5.26 million or -13.68% below target; Diesel Tax, $0.54 million or -13.20% below target; Motor Vehicle Purchase & Use Tax, $2.97 million or -0.79% below target; Motor Vehicle Fees, $5.77 million or +5.48% above target; and Other Fees, $1.45 million or +15.23% above the monthly target.Education FundSecretary Lunderville released revenue results for the “the non-Property Tax” Education Fund revenues (which constitute approximately 11% of the total Education Fund receipts). “The Education Fund receipts totaled $11.88 million for the month of July, or -$0.43 million (-0.36%) below the $11.92 million consensus revenue target for the month. The Education Fund revenue results for July were: Sales & Use Tax, $9.39 or -0.33%; Motor Vehicle Purchase & Use Tax, $1.49 million or -0.76%; and Lottery Transfer, $1.0 million – which was exactly on target. There was no Education Fund Interest targeted or recorded for July.ConclusionSecretary Lunderville concluded that “July is normally a relatively low revenue month and is historically a poor predictor of the year to come as a whole. However, it is important to note that the July 2009 revenue receipts for each of the three major funds fell well below the corresponding receipts for July 2008 as follows: General Fund, -13.58%; Transportation Fund, -2.27%; and Education Fund, -9.46%. We cannot be certain when we will reach the bottom of this recession and begin a genuine recovery. We continue to be vigilant for future revenue declines,” said Lunderville. Source: Secretary Lunderville’s office. August 14, 2009.
Shell has completed a broadband 3D seismic survey extending to approximately 420 km2 over the Pensacola prospect on Licence P2252 in the Southern North Sea, offshore the UK.Cluff Natural Resources, Shell’s partner in the block, said that the seismic contractor Shearwater had completed the survey on August 21. The survey started on August 4, using the Polar Empress vessel.As Offshore Energy Today previously reported, Cluff Natural Resources in February entered into a farm-out deal and a three-month exclusive option with Shell in relation to the company’s Southern North Sea Licenses P2252 and P2437, respectively.On May 30, UK’s OGA approved the farm-out of License P2252 to Shell. Shell was assigned a 70 percent working interest in License P2252 and appointed as License Operator and Cluff retained a 30 percent non-operated interest in the license.Under the terms of the farm-in agreement, Shell is paying 100% of the costs of the Pensacola seismic acquisition, processing and interpretation work program until the end of 2020 or until a well investment decision is made.“The partnership is still on course to meet the timelines agreed with the Oil and Gas Authority (“OGA”) and a decision on the contingent well commitment is expected to be taken in the second half of 2020,” Cluff said on Thursday.According to Cluff statement on Thursday, the collected data will be processed, along with the existing legacy dataset, to pre-stack depth migration (‘PSDM’) with the final results expected to be received by early Q3 2020.The Pensacola prospect is estimated to contain gross P50 Prospective Resources of 309 BCF in an untested Zechstein Reef.Commenting, Cluff’s Chief Executive Graham Swindells said: “We would like to thank Shell and Shearwater for completing a safe and efficient acquisition program in what were challenging weather conditions for this time of year. The PSDM datasets represent a key step towards the drilling of an exploration well on the Pensacola prospect and we look forward to receiving the final products in due course.”“While awaiting delivery of the newly acquired seismic data, we continue to work with Shell on license P2437 as we progress the Selene prospect towards a drilling decision,” Swindells said.