OGY - Orca Energy - oil & gas Cooper Basin & Texas
Current Production @220 BOPD from 2 wells in the Cooper Basin (was part of PEL 115 but now 2 much smaller sections) covering the Burruna and Fury oil fields on the southern margin of the basin.
The rest of OGY's interest in PEL115 was sold back to Senex for $7M in total, via the return of its 20% holding in the company and some free carries on drilling commitments going forward. So there are just 460M shares in issue now
OGY also has 20% interest in PEL 110 where 3D seismic has recently been completed and results awaited.
Drilling is also due to start this month on its 20% WI property in Texas.
Company has $3M in cash and still has a free carry on 1 well in PEL110 and a free carry for a horizontal well in either the Burruna or Fury fields. Yet has a market cap of just $10M.
Senex are due to give an update on the Burruna-3 well, most likely this week. Well hit 3 pay zones. It confirmed the southern extension of the Namur sandstone that flowed 3,500 bopd on test @ Burruna-2 and which was actually producing 1000 bopd (200 net to OGY), it also had pay in the Mutra formation just like Burruna-2, but also found 3M of net pay in the Birkhead formation.
Sadly as yet we have not seen a diagram showing exactly how each of these 3 different formations lie within the field.
It should note that there are 5 fields close together, 3 of which OGY has no interest in whatsoever, yet Senex are now calling it the "Burruna area" (the Mirage field next door in PEL 213 has 4 producing wells currently). So this to me makes Burruna the bigger more important field of the 5.
I'm not sure whether Senex can comingle production from the Birkhead and Numar zones at the same time, if they can then the Burruna-3 should have very high flow rates and provide great cash-flow to OGY.
There are no real numbers as yet, as to the true size of oil reserves at Burruna, however I think 5M barrels recoverable is a reasonable estimate meaning 1M barrels to OGY.
Add in the free carries and likelihood of some future success in PEL110 where there were 7 prospects prior to the 3D survey and you can easily see the upside here.
I can easily see this rising to over 3 cents in the short term, with no real downside risk.
