This morning the only partner not fully paid up for the Sidi Dhaher well (verus) raised funds to put there money on the table. Yesterday Norge Bank announced they were building a stake in Gulfsands a 40% partner in the well who have rights to become the operator. Last week ADX announced that they had actually seen the liquid gold in the well and to confirm the amount at if it was a commercial find, would require further evaluation.
The surrounding area has producing wells.
They have found more than dust.
The question is one of volume, accessability and quality.
Concern on volume is that it appears at a higher level than anticipated which could mean the find is not the same oil pond as the nearby producing wells. The wider the area x 30 meters the greater the chance of a 5 bagger on the current share price. Accessability was partly adressed in adx`s announcement. The pourous nature is a good sign. With good pressure the oil can be obtained cheaper. The quality was announced as being light oil. Another good sign and no mention of water,another tick.
Theres alot needed fo a well to be commercial.
Logging and testing can take time if multiple areas are evaluated. ADX appear to take their time going on their slow response to the duster analyist call.
Will probably need to raise funds. So far they have been almost totally free carried on Sidi Dhaher will VIL now paying up its 10%, and xstate having paid 10% and gulfsands paying 80% of costs to buy in. Management have done a great job will almost no funds to get the well to this point, dispite delays. Can`t see them asking the market for money before they place a value on what they have got. By then the share price should be north of 20c so who cares!
Hope theres a weekly update on friday
Add to My Watchlist
What is My Watchlist?
