Seems no-one wants to step up to plate lest they be accused of ramping :)
I will give my opinion as a (biased) current shareholder.....anyone please correct me if get the facts wrong.
Baraka is a small cap explorer targeting some ambitious territory in North West Africa. They have the largest exploration acearage in Africa straddling Mauritania and Mali. Their business approach is to use their experience to secure the rights - start exploration and then farm out the ongoing exploration and drilling to to be free carrried. Thus far they have done this - with block 20 in Mauritania being drilled CNOC (baraka free carried 35%), Mali has been signed to ENI and Sonagol? for 25% free carried.
It seems the area covered is quite prospective, but what makes Baraka interesting whilst largely unexplored and essentially unknown, it seems that the field potential is enormous. Particulary Mali which appears to be a continuation of the Libyan story.
Currently Mauritania Block is being drilled - called Heron 1. Two targets -an upper that has been reached and being logged and the lower (and main primary target) yet to be reached. Drilling has stopped for casing and logging. No-one knows the result of the upper section- but flouresence was shown over 65mtr section, 2mtrs and 1 mtrs. Anyones guess if the logging shows this target to be potentially commercial but estimated recoverable for the two targets is around 400mbo. The results of the uppersection should be out before Christmas. If it comes good you can expect a rocket under Baraka. If it does not I think you will see it sag. But the main target is still ahead in the next couple of weeks.
The usual risk / reward paradigm still plays and if you have been on HDR I will not be needing to explain the rolllercoaster of Oilers during exploration.
However what I like about BKP is that just on Heron 1 there was a pre drill estimate of a 20% success. I think that might be adjusted upwards now..but nothing officially has been said. Given there is 400mbo potential I think that Dana's bid for HDR gives some idea of what this would be valued at ( $10 pb ???) thereotically you have a few dollars per share going to BKP. Big return. but of course...big risk. Also Max De Vietri is the guy running this show - you may know him from association with HDR. Solid player methinks. They have some $20m++ in the bank so should be good for a while cash wise.
Then there is still all of the Mali stuff which if you stick around till 2008- will I think generiously return on 25c stock.
Bad side of BKP. Once Heron 1 is done seems there is going to be a period of inactivity till ENI gets going and BKP/CNOC decide if they do a second exploration well in block 20. So if Heron 1 a duster will have time to lick your wounds. If it comes good you will have time to decide what to do with your new found $$$$$.
Me- Im confident Heron 1 lower target will be good. Not sure about the upper one being logged right now. I only say this , as if the upper was good I would amagine the share price would be far more bullish. Information though on this has been very scarce - no HDR tea ladies Im afraid ! So maybe some hope yet to filter through on the upper target- but irrespective, holding and hoping for the main game at 3600mtrs
good luck, DYOR, and hope to see you aboard !
BKP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
