No doubt that seismic results so far were beyond our expectations. In fact the plurals used, sheer size of structural traps and early indicators are better than early announcements of African oil. I was googling the significance of Neogene deposits and DHI and the latest ANN gets very exciting, the more I google. Excited tone of Management is evident in this news release compared to previous releases and for the people who have done it before with field experience, it seems they believe K-K license has more OIL than they thought. But I do not expect Market to jump much on this news even though I am sure we are sitting on a future multi-bagger which could change our life in many ways (only +ve).
Between, any thoughts on why only 20km seismic is covered ? From the ANN it looks like they are not going to cover remaining 60 km. I went through past updates and Kidatu seismic also were very brief. When can we expect detailed seismic results for K-K ? Or is it going to be a merged detailed seismic for K-K and Pangani ?
Also, I do not see wild cat drill happening anytime soon and my guess is Otto and Swala will opt for 3-D seismic for 2014 programme and will drill the best potential target by 2015. I sincerely hope Otto and Swala opt to fund their drilling program when it is time and not farm-out part of their K-K license which will dilute the value.
SWE Price at posting:
19.5¢ Sentiment: LT Buy Disclosure: Held
