I have been pondering all weekend as to why the stock has moved as it has of late? It caused me to revisit the news releases of the company and here are the things that caught my eye.Not sure if this is the reasoning but as I have been told "mystery is better than history".
As most people following the thread know Osprey has properties in Louisiana.They have proven reserves there but the problem is money needed to get them out of the ground as Bearcat has eluded to on this thread.
Thinking about this I re-read the last news releases on OEL and this last line in the August 14 News release caught my attention;
" In Louisiana, Osprey is in the final stages of negotiations with a major service company for implementing a program for producing its major reserves in its BVR project in the central part of the state."
I then looked back up to the top of this same release and thought exploration play.(I prefer exploration to production plays)"Osprey has exercised its option to increase its interest from 15 per cent to 25 per cent in a 220,000-acre on-land Nova Scotia exploration play. Drilling of the first of two wells planned in the project will commence early in the fall.
The company, along with its principal partners, Consolidated Beacon Resources, Cubacan Exploration and Kinetex Inc., is in the process of identifying precise drilling targets among several areas where hydrocarbon potential has been identified through an extensive seismic program that was conducted last summer. This seismic work followed earlier seismic and geophysical surveys that indicated significant potential reserves of oil and natural gas."
And further on in the release there is the 10% interest they have in 5 wells to be drilled in PEI coming up." The other project, in which Osprey has a 10-per-cent interest in 642,000 acres of Prince Edward Island, has scheduled the drilling of five natural gas wells before the end of the year.
Both the PEI and Nova Scotia exploration plays are in the Maritime basin, a large sedimentary formation of 57,000 square miles that includes parts of the three Maritime provinces and the Gulf of St. Lawrence. The basin is strikingly similar in age and geology to the present-day southern basin of the North Sea, which is rich in natural gas. The two basins were adjacent when formed more than 200 million years ago during the Carboniferous period prior to the separation created by continental drift."
I then looked at other Maritime Exploration plays like ONG.V in Souris and what their stock did leading up to drilling as well as CDH.V in Sussex NB.As I said I like exploration plays and I believe coming into October with the potential of 7 wells to be drilled(5 with RAL.V and 10% interest and 2 with CCX.v in NS and a 25% interest) and I think we may see higher prices going forward untill the results are released after drilling if the plays follow the trend of CDH and ONG.
The most interesting line though is this ("In Louisiana, Osprey is in the final stages of negotiations with a major service company for implementing a program for producing its major reserves in its BVR project in the central part of the state.") Could this also drive the stock values higher if the company is successful???
The Osprey |
