dolmen stockbrockers speculative buy on pcl, page-8

Dolmen Stockbrokers of Ireland have an update on exploration in East Africa in last nights issue of their Weekly Trader.

PCL gets a mention regarding the drill rig to be used on the Mbawa drill.

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14 May 2012

East Africa - The region continues to heat up

East Africa continues to hold the attention of the oil industry as Tullow Oil announced this week that its Ngamia well located onshore Kenya encountered over 100m of net oil pay before it has even reached its primary target.

This development is material for both Tullow Oil and Africa Oil, who each hold 50% stakes in the 10BB licence, as it reduces one of the most significant geological risks associated with these rift plays and therefore opens up material follow on potential. In short, this basin is already being compared to Tullow’s existing Lake Albert play and its development has the potential to unlock further value for the aforementioned explorers.

In the offshore, all eyes are on the BG Group and Ophir partnership that is currently in the process of drilling the Mzia exploration well offshore Tanzania. A success here would bring the partnership above the 8-10 TCF commercial thresholds which would warrant a LNG development and arguably more importantly it would derisk the deeper geology in the basin.

Finally the rig (Metro 1) which is currently being used to drill Mzia and that will be used by Apache/Pancontinental to drill the Mbawa prospect in Kenya later this year potentially could be released earlier than expected with a July spud date possibly in play.

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http://www.rte.ie/news/business/morningrep/download/2012/0514dolmen.pdf