african dance - whn in the mix

Just read this on...

http://www.proactiveinvestors.com.au/companies/news/25965/african-dance-draws-major-oil-players-asx-companies-may-benefit-25965.html

Had to run off before so didn't get a chance to post this article here for all you ADX holders but you may see increased interest in your company giving the shift occurring in the African Oil Space

http://www.proactiveinvestors.com.au/companies/news/25965/african-dance-draws-major-oil-players-asx-companies-may-benefit-25965.html



African dance draws major oil players, ASX companies may benefit
Saturday, March 03, 2012 by Bevis Yeo Cove Energy bidders are drawing attention to oil plays in East Africa and other frontier areas on the continent.
Australian junior oil and gas companies could find themselves beneficiaries of the bidding war that has erupted over Africa-focused Cove Energy (LON: COV).
The latest salvo in this closely watched drama comes from an Indian consortium of ONGC Videsh, the overseas investment arm of Indian state oil company ONGC, and Gail that will reportedly make a £2.45 per share, or £1.25 billion (A$1.84 billion) offer for Cove.
If true, the offer will put the Indians well ahead of the £2.20 per share (£1.12 billion) offer from Thailand state upstream company PTTEP and Royal Dutch Shell’s (LON:RDSA) £1.95 per share (£992.4 million) bid.
At the heart of this scuffle is Cove's 8.5% stake in the Anadarko Petroleum-operated Rovuma Offshore Area 1 in Mozambique with up to 30 trillion cubic feet in recoverable gas resources that will feed a proposed 2 train 10 million tonne per annum liquefied natural gas development.
Almost incidental to this key asset is Cove's 10% stake in the Mozambique Rovuma Onshore Partnership, interests in 7 Kenyan offshore blocks and stakes in a Tanzanian gas play.
The Australian connection
This bidding war has brought the world's attention to the oil and gas potential of East Africa, placing companies with assets here under close scrutiny.
Indeed, a number of juniors have already been fingered by as offering a low cost entry point into Africa and it is not too far a stretch to conclude that at least some Australian companies would fall into this category.
Pancontinental Oil & Gas (ASX: PCL) holds 4 offshore Kenya licences and has recently participated in new 2D and 3D seismic over 2 of them – L10A and L10B, which incidentally  Cove has stakes in.
The seismic data over the top 10 leads is expected to be fully processed by mid 2012 with interpretation and mapping to identify drillable prospects to be completed later this year.
Pancontinental has also completed the farm out of a 10% stake in L8 to Tullow Oil (LON: TLW) and remains on track to drill the Mbawa prospect targeting multi-billion barrels of oil equivalent in L6 mid this year or in the third quarter.
Pancontinental has 15% stake in L8, L10A and L10B as well as 40% in L6.
The 60% operating partner in L6, FAR (ASX: FAR) is itself also entrenched in Africa. 
Besides L6, FAR is looking for a partner to share the costs of a planned 3D seismic program over L9 (30%) off Kenya and holds a number of blocks in Senegal, AGC and Guinea-Bissau.
Closer to Mozambique, WHL Energy (ASX: WHN) has been kept busy entertaining unsolicited offers on top of visitors to its data room in Perth, all of whom are interested in picking up a piece of its Seychelles exploration acreage, which covers a massive 21,426 square kilometres.
Philippines-focused oil producer Otto Energy (ASX: OEL) has also joined the Africa pack, having acquired 50% stakes in two onshore Tanzanian production sharing agreements on 21 February.
Initial exploration consists of acquiring airborne gravity and magnetic information along with associated field work to confirm the presence of a significant sedimentary basin.
Moving up to the mid end of the scale, Beach Energy (ASX: BPT) holds the Lake Tanganyika South Concession onshore Tanzania that is considered highly prospective for oil as it is on trend with discoveries made to the north in Uganda.
Shooting of the planned 1800 kilometres of 2D seismic is expected to start towards the end of this quarter to generate initial prospects and leads.
North and West
Not all the attention is in the east though as other parts of Africa have also  popped up on the radar screens of some big players.
Morocco has proved to be a major draw with its high prospectivity and attractive fiscal regime and it is little wonder that Pura Vida Energy (ASX:PVD) has already attracted a glowing recommendation from UK broker N+1 Brewin despite just listing on the ASX last month.
The company was tagged with a target price of A$0.80 per share, which at four times its listing price indicated that it offered a cheap entry point for investors looking for exposure to  the country.
Tangiers Petroleum (ASX: TPT) may also be considered in a similar light.
The company had recently shot 677 square kilometres of 3D seismic over its top three prospects, which have combined unrisked best estimate prospective resources of 758 million barrels of oil.
Further up to the north and east, Cooper Energy (ASX: COE) is preparing to drill the Hammamet West-3 that will determine if a lateral section could increase the potential for the reservoir to flow at commercial rates.
Last, but certainly not least, ADX Energy (ASX: ADX) and its partners, which include fellow Austalian's XState Resources (ASX: XST) and Verus Investments (ASX: VIL), are all but set to test the Sidi Dhaher-1 oil discovery in the Chorbane permit onshore Tunisia.
A success can be quickly developed and will give the partners further impetus to follow up on the other prospects and leads in the 2428 square kilometre permit.
It is still early days in the new African frontiers, but with cash-rich Chinese and Indian companies on the hunt to secure new resources, the race to pick up assets before others do will only heat up further.