Large numbers of posting on HC on any company always stirs my interest. RRS have had more than their fair share.
Re: Perfectstage "...there are four ready to drill prospects each with potential 500 mmbbls @ Aus$100 per barrell = $200 BILLION. ...I'm prepared to to risk it and sit it out as there is not another stock on the ASX with this blue sky."
HDR 97.5% of an offshore area in Guyane - The Matamata Prospect has P10, P50 and P90 estimated recoverable reserves of the order of 500 million, 1.7 billion and 5.6 billion barrels. There are several other features on the acreage with potential oil-in-place reserves in the billion barrel range". Plus 50% of a number of 100MMBbls prospects in Uganda to be drilled this year with 2 discoveries so far.
Re: Mrainke I believe the soverign and political risk of Somalia to be very minimal. The reasons I say this, my good wife had the fortune of touring Africa about 10 years ago, whilst she did not get to Somalia, she did get to namibia and wanted to go to Angola. .. She had the pleasure of meeting some of the miners (who mine for diamonds in Angola) ... those companies operate quite successfully and have done so for many yrs now despite continual political and civil unrest in the country.
"...mining of diamonds and iron ore, commodities that once ranked as major exports, has almost ceased because of disruptions from the war. Either through direct attacks on diamond mines or through the disruption of iron ore transport, in the 1980s it had become nearly impossible to continue operating these mineral industries. Diamond production started to revive in 1987, but only in areas patrolled by government troops."
Re: Findlay Broker Report ".. assume a probability of success of 25%" Targets in a geologically very well known regions With a excellent track record Adjoining known oil fields Using 2006 exploration technology ie. Bass Strait may rate as high as 25% probability of success. But 1990's exploration work with no proven oil fields in the region - forget it. The probability of success may be 1 in 20 or more likely, much worse.
Comparing PDN in Namibia to RRS is not realistic. Namibia is a rock of stability compared to Somalia.
Given the world-wide shortage of drilling rigs and the risk associated with security, they just may not be able to get a rig. If they do I would expect it have a significant risk-premium attached to the cost.
They have $5million in the bank (data from Findlay) and are paying a $3.3m exploration "fee" to the govt per year. Counting exploration costs (and I would not work in the area for under $1000/d) they will be out of money soon.
If they find any deposit they will need large amounts of $. Who is going to provide this? Banks will not. Where are the work force coming from? How much will it cost for security?
No matter what the "govt" of Putland says if the locals are unhappy you may have a situation similar to Nigeria where locals blow up pipelines.
Any sign of wealth or foreigners will attract the warloards from Somalia. Foreign hostage taking by Somali pirates is now big business and they now operate over 150kms offshore. "There are currently seven vessels and more than 100 merchant sailors, from countries including Burma, Indonesia, the Phillipines and the Ukraine, held captive in Somalia." (2005 data)
Warloads in Somalia are fighting over control of land that produces bananas. Imagine what an oil field or gold mine will attract.
G
RRS Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
