I decided to do a little bit of snooping around in the public domain. It looks like Ken Russell really needs to get Key Petroleum out there a little bit more because what he doesn't tell Key Petroleum shareholder's is criminal!
The permit in question is the 'Louza' permit. It is owned by Medoil - recently taken over by FTSE 100 member Cairn Energy. It is directly adjacent to Key Petroleum's 2 Lampedusa permits. Medoil's permit lies in Tunisian waters, whereas Key's lies in the southern most Italian waters. Cairn's Louza and Key's Lampedusa permits are in effect seperated by the line that defines Italian waters and Tunisian waters. If you get on Medoil's website and take a look at where the permits are, and then look in Key's Annual Report then you can easily see how the permtis fit together - kind of like a jigsaw.
The following is taken from an article writen on 22 August 2007, talking about the 'Louza' permit. The source is given bellow and I encourage you to take a look and further your own research.
"Shares in AIM-quoted MedOil enjoyed a healthy jump this week as the company’s interim results statement revealed that the prospective reserves in its key project in Tunisia had been upgraded on the back of new 3D seismic work. The project in question is the Louza permit, which covers 4,100 sq km off the coast of central Tunisia, 10 km from Lundin Petroleum’s Isis oilfield and 60 km from BG International’s Miskar gas production facility.
The acreage has previously been worked over by the likes of Agip, Shell and Union Texas. Over 10,000 km of 2D data were acquired between 1968 and 2000 and four wells sunk, of which one, M’Sela-1, drilled in 1995 by Union Texas, flowed 1,200 barrels per day of 34-degree API oil per day from one reservoir and 118 bpd of heavy 16-degree API oil from a deeper horizon that produces good quality oil in the Isis oilfield. The M’Sela discovery is reckoned to hold 532 million barrels of oil-in-place, of which 109 million barrels are thought to be recoverable on a P50 (SS: that is, P2) basis.
The company admits, however, that this is an unusual reservoir and it isn’t known how it will respond to production. This is because the main reservoir is an Abiod volcanic structure, with production coming from fractures within the reservoir. As analysts at Growth Equities & Company Research pointed out in a briefing note of November 2006, these fractured reservoirs with little porosity are known to produce oil at great initial rates with a rapid drop off as the fractures empty. MedOil plans to use its newly acquired high-resolution 3D data to get a better idea of regional fracture patterns in the area and fine-tune plans for an appraisal well.
M’Sela would be a promising if perplexing project on its own but it is enhanced by the existence of four other un-drilled prospects within a 15 km radius. MedOil’s 2006 3D seismic campaign, which covered 600 sq km over the southern portion of the Louza Block, has only served to confirm this potential. Based on fast-track interpretation of the data, the aggregate oil-in-place estimate for M’Sela and the four prospects has increased from 1.29 billion barrels to 1.48 billion barrels as two of the undrilled prospects, M’Aila East and M’Sela West-1, were given higher reserves numbers by technical consultant Merlin Energy."
(20min delay)