re: Ann: Investor Presentation - Euroz Oil & ... Mbar in summary...

re: Ann: Investor Presentation - Euroz Oil & ... Mbar
in summary
it has a 74% holding in a block that has the gazzelle filed that they are trying to develop as well as a number of other discoveries and prospects. The block is in the heart of oil land off the african coast which has seen alot of discoveries and development
RIA has entered in a Gas saels agreement with the Ivory coast govt to supply gas at a fixed price - i believe its 5 mfc. the gas was meant to underpin a bigger development that included 8k oil. Due to the lack of oil encoutered in these two drills deicusion has been made to start off with just the gas development which will be cheaper.
Ria stuffed up and blew and extra 25-30 million on a well that didnt find hydrocarbons and had to redrill back into zone. this meant it couldnt drill the third high impact prospect. It now wants to farm out Gazelle development to help fund the next stage od exploration drilling
they are currently working on a revised resource/reserve statement which should form the basis of a FID.

in summmary, Gazelle in my view will go ahead, however due to lack of oil in this phase i would say its not worth the 56 cents this project alone was been valued at. Given lower capex, and good gas sales price I would suggest project now may be worth 25-30c assuming the reserve statement does not result in a big decrease in reserves. The prospectivity of the block is very good and I am confident with time they will grow theor oil and gas prod. However alot rests on farming out gazelle in a good way, as this will ultimately detromine the degree of future dilution, and i am sure there will be some. I still think the stock is worth alot more than todays price based on a belief they will farm out, however until we have reserve result and farm out it is unlikely to be rerated significantly. I do beleive it should trend back upto 14-16 c though before reserve result as it seems very oversold