bas report

from patersons- make of it what you will

Stock: Bass Strait Oil Company Limited (BAS - $0.62)
> Date: 10 March 2005
> Current Valuation: $0.69 plus (risked)
> Recommendations: SPECULATIVE BUY
> Event: Initial results from Zanegrey #1
>
> Details:
>
> * BAS (as operator) and Inpex (50/50) reported that
> the Zanegrey # 1 well intersected oil and gas shows from 2858m vertical
> meteres below sea level.
> * Current operations are drilling ahead at 3590m
> (3199m vertical depth).
> * The pre-drill top of the target was estimated at
> 2800m TVD.
>
> Impact:
>
> * Logging will be required to delineate the oil water
> contact level.
> * Clearly a gas/oil accumulation has been intersected.
> * However, we suggest that the column is smaller than
> expected (at this very early stage).
> * While we continue to like the story longer term (due
> to its acreage position), we suggest that the stock will be stronger - and
> we would look to take profits.
> * The stock will be significantly stronger, and we
> retain our SPEC BUY rating on the stock.
>
> -------------------------------------------------------------