re: yacheng what time the announcement
Nothing has changed in the probability of success of Heron-1 well. Structure estimated at 558mmbls or 1.7tcf, confirmed to be closed to the north and prob of success upgraded to 25%plus. When it reaches total depth is irelevant. Other gas/oil discoveries in the region draw International attention to this developing oil and gas nation, so would therefore draw attention to other companies exploring this area. ie BKP. Onshore Tauodeni basin has had hydrocarbon shows in 4 out of 4 wells with Abolag-1 flowing 480 mill cubic feet per day- This is impressive considering the very limited seismic used then. Reprocessing of old data has revealed extensive leads and huge structures in the Mauritanian and Mali blocks and are expected to be upgraded by the latest airbourne survey. Direct parallels drawn between Taoudeni and Algerian and Libyan Hydrocarbon basins. Supermajors farmed into Mali now as well as Mauritanian side of basin, Algerian National oil company and ENI(experienced in Algeria as partner of Sonatrach) with extensive knowledge and experience of same geology in Algeria side of Basin. Initial information from airbourne survey indicates "substantial basement and intra sediment information visible in the data throughout the area"-which indicates at extensive distribution of the paleozoic and infra cambrian structures and plays they were looking to further define by the survey. This will be announced very soon and will lead to a very positive upgrading and accelerated programme of development in my opinion. The revised estimates of reserve potential could be enormous. I believe it is not if, but when this company makes a significant oil/gas discovery. I dont believe there is the same do or die urgency for BKP to suddenly find something very soon at all as it is a major BKP strategy to aquire undervalued production assets which would immediately put them in producer status. As funds for year 1-2 have been reimbursed and 10 mill capital raising they must be cashed up to enable the aquisition of such an asset. These two points will hopefully be well addressed at AGM tomorrow
"Fifteen percent of U.S. oil imports will come from Africa; by 2010 this could reach 20 percent. In this decade, US$50 billion will be invested in the Gulf of Guinea's energy sector, according to a recent report by the Council on Foreign Relations. While U.S. companies will account for 40 percent of this investment, other major players -- particularly state-owned energy companies -- will play a critical role in determining the shape of Africa's energy industry. From 1995 to 2005, national oil companies more than doubled the number of licenses they hold in Africa, from 95 to 216. China's energy firms are the largest state-owned investors, but India has also made significant investments and is looking to expand its presence in the region." Short term factors creating some nervousness. I am looking at solid longterm fundamentals. Just my opinion DYOR
BKP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
