azz in review

It's nice to have the month of June,, and all it's associated BS ,, out of the way..
You get no favours or miracles from the market in June, on your holding script.
It can provide a few buying oppertunities of course, but we should start to see some sanity returning , from now on..!!

It's a good time to review the AZZ position as it stands.
The following is a summary of all aspects relating to AZZ's progress, and i've ensured it's accuracy, up to , and including the very latest announcement..!!

DRILLED AND CONFIRMED PRODUCERS:-

Harrison-1:--
Producing at 5-6 MMcf/d. and 100-300 bbls of condensate per day from two Zones..
Take off negotiations almost completed, and first sales anticipated by early July..!!

DRILLED AND UNDER FLOW TESTING:-

Scott-2 :-
1st Zone tested and flowing at 2 MMcf/d with at least 3 additional Zones to be tested, which are considered to be better than the 1st Zone..
Final total Well flow rates " NOT yet established "..

Garcitas Ranch C-1 :-
1st Zone tested and flowing at a variable rate of 1-3 MMcf/d..
The major gas sands are NOT in the first Zone..
1st Zone has now been temporally isolated so the Upper Wilcox Zones can be flow tested..
Final total Well flow rates" NOT yet established ".

Garcitas Ranch C-2 :-
1st Zone tested in " middle Wilcox ", and flowing at 2.2 - 2.5 MMcf/d..and 100-120 bls of condensate per day.
The Zone is water free..!!
The testing of this Zone is being " time extended " to determine the flow characteristics, and evaluate iffrac simulation can enhance the flow rates..
A second Zone in the Upper Wilcox is yet to be tested.
Final total Well flow rates " NOT yet established "

Note;- Company quote relating to both C-1 and C-2....
"" The operator is proceeding carefully with the testing program to achieve a complete evaluation of the many potential gas Zones in the well. The detailed analysis of all intersected gas Zones is critical to a well-designed and efficient field development program.."""

Shaeffer Ranch,; Zwernemann -1 :-
Described as a low risk , small but attractive oil and gas play,, targeting 200,000 barrels of oil and 1.8 BCF gas..
Oil and gas has been recovered with a formation testing tool.,
Currently testing, and results " NOT yet established"

New Taiton :- llse-1:-
1st Zone tested at 16,780 ft, and found to be "not commercial".
Hydrocarbon shows during drilling and well logs have identified a potential pay interval at 14,600ft., which has yet to be flow tested..

NEW DRILLING ;- WELLS PLANNED :--

1. A further 2 development wells for Scott and Harrison fields are being evaluated..

2. Wharton County Texas :-Project " Gemini "
AZZ have a 50% interest in drilling of an initial 8000ft well named " Castor ", to test Yegua objective on a 435 acre lease, with 2 gas prospects identified by 3D seismic... being " Castor and Pollux "..
Expected to spud in the next few months, and targets 5-15 BCF.
The company describes it as a " Low to moderate risk ".
There are secondary targets in this well at 4000ft to 5000ft, and the perosity in this area is 30%.

3. West Wharton Texas :-
AZZ have a 30% interest in drilling of an initial 12,000 ft well to test a " Cook Mountain " objective on a 1500 acre lease with targets identified by 3D seismic to be 40-80 BCF gas and 1.2 to 2.4 million barrels of oil.
IF successful,,,, this project could support a further 6-10 follow up wells.
The company describes this as a " low to moderate risk ""..

4. Shaeffer Ranch :- " Rowena " project..
Presently trying to farm down a 50% interest in a Wilcox play , targeting 200 + BCF.
The company describes this as " Medium risk "..

BACK BURNER PROJECTS:-

AZZ have a 50% interest in 10,872 acres of 3D seismic surveyed area, with a number of prospects identified in the range of 30 - 75 BCF.. gas..!

EXPLORATION :-

AZZ have a 50% interest in a 3D seismic survey covering a lease of 19,000 acres of a project called " Yellow Rose "..
Evaluation and targeting is yet to be completed..!!

In conclusion,:-
It's just unfortunate, that the month of June has coinsided with a time slot where the company had so much under flow testing, and no conclusive results to report.
I am sitll confident that we will be told flow results on all wells after definative results have been achieved..!!

The company can't tell us what they don't know.So it's pointless in getting ourselves bent out of shape over the lack of news.!!
There's also no point in getting too negative about an incompleted job like New Taiton.
In my opinion, there's still every chance for a positive result from this well..!!

If you sell this stock, then thats fine, but make sure that's it's for the right reasons ,, and not just because your frustrated with the current situation..

Situations change ,, and so deos SP levels..

Everybody have a nice day..!!......Cheers.!