re: Ann: Light Crude Oil Seeps Identified In ...
WOLF SHOWS EARLY PROMISE Keeping with this week’s oil and gas theme, Wolf Petroleum made investors stand up and take notice on Thursday when it reported it had encountered light crude oil seeps in seismic shot holes on its Sukhbaatar block in Mongolia.
Crude oil seeps such as these, often indicate the presence of a “charged” or active petroleum reservoir.
In production, these reservoirs typically exhibit excellent flow rates.
Wolf shares shot up as much as 100 per cent to 9¢ after the announcement. At the close of trading on Thursday the stock had settled back to 6.7¢, still a handsome one-day rise of 49 per cent.
Wolf is one of several companies to emerge from the stable of Perth-based corporate advisory firm Garrison Capital. It is not the first to be focused on Mongolia.
Garrison had a big success with coal explorer Hunnu Coal, which owned several projects in Mongolia and was sold to Thai coal producer Banpu for $477 million in 2011.
Garrison founder and chief executive Matthew Wood said Wolf was established when several Mongolians with access to oil blocks and who had been Hunnu shareholders approached him.
They wanted an oil and gas version of Hunnu and vended in the blocks that make up Wolf’s huge acreage position within the?Toson Tolgoi and Tal Bulag basins. The company listed in December last year after completing a reverse takeover of mineral explorer Strzelecki Metals.
Wood expects to Wolf to announce some farm-out deals in the near future and hopes the company will be preparing for a maiden drilling program in six to nine months.
WOF Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
