this keeps bugging me...

I recently topped up with more 47/48.I keep going back to the story below.Paragraph 5 bugs me "lots of oil".

Iwas speaking to the analyst at Hartleys and he seems (educated guess)that this 149m oil interval could be smack bang in the middle of the 2 big oil fields of Brazil.Un-officially he seems to think a value of $1-$1.10 near term.
They are expecting the boys from ERH to visit shortly.

Oz junior scores Brazil goal

By Upstream staff


Australian-listed Eromanga Hydrocarbons has hit oil while drilling the first well of a two-well programme in Brazil’s Sergipe Alagoas basin.

The Gavea joint venture, in which Eromanga holds a 40% stake, started drilling the re-entry PTA-3 well in Block 330 in the Sergipe Alagoas basin last week and experienced a gas kick at a depth of 171 metres and an inflow of oil at 295 metres, the company said in a statement.

“This is a very positive result in that petroleum has flowed into the PTA-3 well bore, which appears capable of re-completion and testing to determine if commercial production can be achieved,” said Eromanga’s boss Phil Galloway.

The well has re-entered Petrobas’s PTA-3 discovery where the Brazil state player struck oil in the 1960s.

"We had expected to do a side track, but we drilled out the plug and immediately got a gas kick and a lot of oil. This is the best case scenario," Galloway told Upstreamonline today.

At present there is insufficient information to define the productive interval, however based on the original PTA-3 data, it is likely to lie within the 104-metre section between 546 and 650 metres.

Private Brazilian outfit UBX holds the remaining interest in the Gavea joint venture and will operate the projects.

Following the drilling on Block 330, UBX will spud an exploration well on an interpreted turbidite sand structure in Block 430 that is believed to be similar to the neighbouring Angelim oilfield, which is owned by Petrobras.

The Australian junior won six blocks released in Brazil’s seventh round in 2005 and two blocks in the ninth release last year. The blocks were all mature basin plays that Petrobas had decided not to develop.

Following this drilling programme, Eromanga expects to drill up to three wells in the Reconcavo basin as part of its 50/50 joint venture with Silver Marlin.