Thankyou for the opinion_s. I always like to hear others! I don't mean to overstep my 'newcomer' bounds, but some may be interested in this article which recently came out on stockwatch regarding Afrasia Minerals Fields Inc. (VSE: AFS):
Natural Resource Investor -
BUY: Afrasia Minerals Fields Inc. (VSE: AFS)
web cite: afrasia.com
Tuesday Jul 7 1998
Natural Resource Investor - Email/Fax Alert Service
BUY: AFRASIA MINERAL FIELDS INC. (VSE: AFS)
NEIGHBORING HUGE NEW OIL DISCOVERY +
SIMILAR GEOLOGY + MINORITY PARTNER FOR BIG LEVERAGE
= STRONG BUY UP TO C$1.40 NOW
One month ago we spotlighted Can West Exploration Inc. Can West has
a 75% interest in the Lagunillas leasehold, directly adjacent to Seven
Seas Petroleum's (SVS.U) billion-barrel oil discovery in Colombia, and with identical geology.
What about the other 25% interest in the concession? Could it offer the
same play with even better leverage and the prospect of greater capital
gains?
Afrasia Mineral Fields Inc. (VSE: AFS) controls the other 25% of the
Lagunillas Block. With 7.5 million shares outstanding (8.9 million
shares fully diluted) and trading at C$0.80, Afrasia has a fully-diluted
market capitalization of C$7.1 million - less than 1/3 that of Can West.
(Can West, with 18.7 million shares fully diluted and trading at C$1.30
has a market cap of C$24.3 million.) With the joint venture between the
two companies approaching drilling at Lagunillas, the upside potential
for Afrasia could be explosive if oil is found.
While we continue to recommend Can West, which has moved from
C$1.10 to C$1.30 since our Fax Alert "buy" of May 19, we want to also
draw your attention to Afrasia, a different play with the same powerful
fundamentals.
1)
Afrasia's exploration site is in the Middle Magdalena Basin, 60 miles
west of Bogota. The Middle Magdalena Basin is one of the hottest
oil plays in the Western Hemisphere with 3 big discoveries in the
past 4 years. Before Seven Seas, Amoco hit it big at Opon and has
reserves of 3 trillion cubic feet of gas and 20 million barrels of
condensate. Then Lasmo PLC, a British oil giant, struck at Revancha
with a discovery of 250 million barrels of oil. Now Seven Seas has
announced proven reserves of 250 million barrels and probable
reserves of 1.2 billion barrels, before adding in its most recent
discovery well 9 km SW of the original discovery well. This is 9 km
specifically in the direction of Afrasia's most prospective targets.
2)
All 3 of these home runs are thrust-fault-oriented plays directly in
the Middle Magdalena Basin - exactly like Afrasia's best targets - and
with the discovery on the over-thrust side, like Afrasia's first big
targets.
3)
For some sense of valuations in this hot area, consider Harken
Energy's position directly adjacent to Afrasia/Can West on the east.
Harken recently sold 5% interest in its leasehold to Encap for $25
million. The market is valuing Harken's project at $500 million.
4)
Geologists actually anticipate not just one but up to four zones of oil
at Afrasia's Cambao prospect - the hottest target among many in their
highly prospective Lagunillas lease. Recent big discoveries are from
Cretaceous reservoirs, but Tertiary zones have been producing there
for 40 years and hold enormous potential as well.
5)
The Afrasia/Can West jv is first launching drilling programs with
shallower targets in the Tertiary zone to complete requirements
under its license. This gives it a variety of targets and on-going
activities. The jv expects to drill its biggest targets - after evaluating
its 550 km of seismic and after shooting more seismic - in the first
quarter, 1999.
Afrasia is a beautiful risk-reward speculation. With C$1.1 million in
cash and another C$1.1 million anticipated this year from the exercise
of warrants and options, the company has the cash to pay its part through
drilling the hottest locations. Trading at C$0.80, the upside potential for
Afrasia far exceeds the company's reasonably-limited downside. With
any success, the upside could be enormous. Aggressive buy up to
C$1.40, pending start of drilling. - NRI/WGSR
For immediate information call 604-684-2181.
US broker is Ben Johnson at 800-547-4898.
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