The following is an extract of the back page of the business section of Melbourne's The Age Newspaper as published this morning. There is little here we didn't already know, but the word is definitely starting to spread as to 3D Oil's growing potential.
"Timing excellent as 3D Oil gets ready to drill
WEATHER permitting, 3D Oil's West Seahorse 3 appraisal well in Bass Strait permit VIC/P57 is due to start drilling next week. The timing of the well, two kilometres to the west of Esso/BHP's producing Seahorse field and the first by 3D since its May 2007 float, could not be better, given record oil prices.
As Garimpeiro previously pointed out, should West Seahorse come in as expected, the plan is to have a single-well development producing at an initial daily rate of 4200 barrels ready to go by 2010. The reserve base is estimated at 10.3 million barrels.
West Seahorse is to be followed up with the drilling of the Wardie prospect from the same drill location.
Seismic interpretation suggests that Wardie could be of a similar size to the West Seahorse.
A shot at a combined 20 million barrels of oil, with other prospects, might normally work wonders on a share price. That hasn't happened with 3D, which began the year at 80¢ a share but has since drifted back to 67¢ a share for a market capitalisation of $138 million, or $A6.90 for each barrel of potential in the current program.
Confirmation that the drill bit is whirring its way to the target horizons in West Seahorse, and subsequent confirmation that its 10.3-million-barrel potential has become a reality, could quickly change all that."
TDO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
