masrket no grasped oil bonanza, page-29

Hi blackadder

Management are playing their cards close to their chest at the moment. They didn't mention what the porosity % is or what the API of the oil is.
But I can almost assure you that it wont free flow. It needs to be a lot deeper than 563m to get a free flow. But it should still flow very well being sand stone structures which were describe has vuggy in the mercury report but it will be under pump.

The fact that the Barra de Itiuba Formation was never factor in to the P3 estimates and that the Penedo Formation was a secondary target i highly doubt that it also was factor into the P3 estimates so finger crossed that we get a good increase in reserves. But at the end of the day the market wonts flow rates and production schedules not reserve size upgrade as we seen in October so although and excellent announcement we still need a lot more info to really get this show on the road.

I still remain very bullish for this company and believe we still have a long way to go and although a little disappointed with the SP, being a long term investor who has spent countless hours research it, I will be a lot happier to see it rise on its fundamentals as they are released to the market and not pumped by day traders trying to make a quick buck.

So to sum it a great announcement for the long term investor not so good for the day trader


Cheers