We know nothing about the gasfield. All we know is that the KN JV intersected a gas column of approximately sixty metres. Due to certain factors that have been discussed before the thread (of which certain are not aware) we can conclude that the flow rates of gas from the deposite will be excellent. If this proves correct then the project will will be commercialised very quickly given it is only 3KM from the SS gas pipeline - with a bit of luck, the JV might be producing from the end of the year.
In reference to 'all the delays' with 'this company' - it is nigh established fact - trust me - that with oil & gas companies there are always delays and something that can possibly go wrong usually does. This is common. But remember, the drilling was to begin late 07 / early 08 - if a program began in december 08 this would represent a very grave and embarassing error on behalf of the management - quite frankly impossible given the professionalism of the management team. Each day that passes we are closer to news in relation to Borsano.
DYOR - 10 million cash in bank. Each well in the Po Valley costs 2.5 million USD each - although they will probably only drill on hole. I am of the sincere opinion that the heads will be higher than 35 cents come March - I agree with Roznov (good to hear from you mate, it's been a while! We were invaded by unsavoury characters for a while there. How have ya been!). If you disagree then best of luck to you but I have full strength in my convictions. So given this happens then no - no capital raising because the exercise of options will bring 10 million cash to the coffers. And KR and TE have to shell out almost $1,000,000 each to exercise March 09 which is a massive endoresement for the KEY.
Yeah Namibia won't be happening for a while - no one has once contended that anything will happen here in the short to medium term. I think we will only see developments here in years rather than months. And I would rather see KEY farm out Lampedusa and get stuck into that given Cairn Energy are next door in the Louza permit with their 200 million barrel M'Sela-1 discovery with potential for more than I billion barrels oil. Plus the permit derives its name from Lempedusa island and the prospectus mentions it is easily possible to use this island to drill - much like they have done in Tanzania - drilling offshore using SS island as a base. So we could potentially have upside typical of wildcat wells and only limited downside given less expense of drilling.
I must admit I only have the heads. I sought to limit my expose so I didn't subscribe in the plan - I'm regretting it hugely now. Half a cent each. What the hell was I thinking! Good luck to all shareholders!
Sorry if spelling errors don't have time to check.
SS.
KEY Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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