AT A GLANCE: BP Shares Climb After Oil Stops Spilling Into Gulf

16th Jul 2010 09:45

THE LATEST: BP PLC's (BP) shares climbed as much as much as 6% Friday morning after the company late Thursday stopped oil from flowing into the Gulf of Mexico for the first time in nearly three months. BP placed a new containment cap on the blown-out well around 1925 GMT, and is now testing integrity of the well, a process that is expected to take six-to-48 hours, the company said Friday morning in a statement. BP cautioned that, even if no oil is released during the test, "this will not be an indication that oil and gas flow from the wellbore has been permanently stopped." Still, observers reacted positively to the development. "This news today is further evidence that the worst is behind BP," Panmure Gordon analysts said in a note to clients. At 0833 GMT, BP shares were up 13 pence, or 3.1%, at 414 pence, outperforming an almost flat FTSE100 index. WHAT NEXT: BP on Friday said that it would review information gathered during the test to determine the next steps to contain and then permanently seal the well. Meanwhile, BP temporarily suspended drilling on two relief wells while the tests are ongoing. "The relief wells remain the sole means to permanently seal and isolate the well," BP said. COUNTING THE COST: BP reports second-quarter results on July 27. Credit Suisse on Friday forecast $2.8 billion of oil spill-related costs during the period, and a 2% year-on-year decline in production related to the disaster. Not including costs related to the Gulf the spill, the bank forecasts BP's second-quarter earnings per share at 1131 pence, a 12% year-on-year increase. -By Jeffrey Sparshott, Dow Jones Newswires; +44 207-842-9347, [email protected] (END) Dow Jones Newswires July 16, 2010 04:45 ET (08:45 GMT)