re: Ann: Wailawi Oil and Gas Project Legal Bi...
Hal2000
As I am sure you are aware, when undertaking business dealings it is often those that miss out, feel they have been agrieved by someone/somehow. Then when dealing in third world countries the ethics books are thrown out the window.
It is quite obvious (based on announcements and goggle searches) that this the current production field is not new, from memory it first went in to production in the 1970's, and as such the field will not produce oil/gas at rates it did when new. (Ignoring for a moment the ability for additional upside from exploration) As with many fields around the world as the reserves get run down they drill wells to pump water in the field to increase the flow rate or use other modern methods to increase the recoverable barrels. This reminds me of an article that recently appeared in the weekend AFR (the only one I ever buy whilst taking the mrs shopping) about another ASX listed company that has purchased fields currenly producing at 100-200 barrels per day, using modern techniques they are looking at doubling the output/production. If someone can recall the company they mentioned feel free to let me know.
Basically what you have been told about the oil based on the current wells/production MAY be correct. However this project is not being purchased for current production. As with all exploration plays everything comes with risk.
I do however recall in one of the companies announcements about an independant report stating this field and the two other fields within the permits held excellent potential of many tens of millions of barrels of oil and cubic feet of gas.
D: Hold plenty
Cheers
Clever1
EOR Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
