Pacific Rubiales (PRE) up another 1.0% overnight in a flat Canadian market, after gaining 3.6% last Friday. To match PRE's market cap increase for its 35% of KAR's Brazilian leases, KAR would have to rise $2.90...so far it's up only around 75c, so we have a long way to go to match PRE.
Hopefully today or in a couple of days we will get more information about Kangaroo 1 - confirming that it reached total depth last week, that its main target was unsuccessful but that potentially we have a huge reservoir in the Eocene if it's not full of water, some more details on Miocene and that media comments on the Santonian are misplaced as this well was never going to be drilled lower than the Campanian sands....a lot of clarification is required.
Maybe the experts here can comment on the likelihood of the third well in this series (Bilby) being deferred (cost and equity sharing is not yet committed by PRE) and instead will be drilled to hit the middle of the Eocene potential next to Kangaroo? But even this decision may be influenced by the outcome of the Emu well to spud in a month.
Much to look forward to.
KAR Price at posting:
$6.15 Sentiment: LT Buy Disclosure: Held
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