₪ David Pescod's Late Edition March 13, 2008
THE OIL AND GAS PLAYS THAT COULD CHANGE YOUR LIFESTYLE…
FROM AROUND THE WORLD
Just remember, these are all high risk/high reward plays and usually the rule of thumb is that only one in ten will actually
hit, despite all the fancy high tech equipment used to find oil and gas plays. For those that find themselves mathematically
challenged, that means despite the hype that may surround some of these plays, don’t be surprised if they miss...the
odds say, they have a 90% chance of doing exactly that. While we have to admit we are battling terrible markets, people
will still care for the big play.
For those looking for something that could have enormous impact, this is our list:
MARCH RESOURCES (V-MCF) $1.13 +0.27
Number of shares (Fully Diluted) outstanding: 95.2 Million
Estimated Size of Target: 1.5 TCF
Percentage Interest: 100%
March is about six months late in the drilling in Chile due to
problems getting a Canadian rig out of Canada down to the
Pica field in Chile, but now they have been at it for awhile
and some time in the next 10 days, they will know just what
they may have at the Pica field, a body estimated by seismic
to be as long as 12 km and possibly 4 km wide. There
are several shale zones that the company hopes will be a
bail out and make the project commercial, should the deep
stuff, which is the real target, not be there. Huge volumes
on the stock despite the weak markets and they should be
doing updates over the coming while as they hit the different
zones. The next 10 days are key. See the news out
today.
CORRIDOR RESOURCES (T-CDH) $7.26 +0.16
Number of shares (Fully Diluted) outstanding: 84 Million
Estimated Size of Target: Dawson Settlement: 1-5 TCF
Percentage Interest: 100%
Corridor has already found the McCully field, that some people
maintain could be as big as 1 trillion cubic feet so at $6.00
a share, this may be cheap. Meanwhile, they are starting
work on the different shale zones that they have encountered
that could add significantly to that one key target, if they are
productive. But your main reason for being in this play for
excitement is the Dawson Settlement—the deep target that
some suggests seismic tantalizes with the target of somewhere
between two and five trillion cubic feet. Drilling should
be at target by month end and then we will know whether that
was just a dream or a reality. Of all the high risk plays that we
list here, we would hope Corridor has the least risk as with
continued drilling on their main zone, we would be disappointed
if production this year doesn’t continue to increase
from 40 mcf a year to 60 and better, justifying a much higher
target just for that. When Drilling: Has been drilling for the
deep play for the last two and a half months, results in the
next three weeks.
ENERGULF RESOURCES (V-ENG) $3.37 -0.16
Number of shares (Fully Diluted) outstanding: 62 Million
Estimated Size of Target: 1/2 Billion Barrels
Percentage Interest: 10%
Two years after the deal was done for their Block 1711
Kunene #1 well offshore Namibia, Energulf should be drilling,
starting roughly mid-March, taking an estimated 40
days to find out whether they’ve got it or not. Their net
interest in the play (if there) could work out to be as much
as 50 to 100 million barrels and finding oil offshore Namibia,
would be a first. When Drilling: Expected to start
drilling in 30 days with 50 days to drill and test.
BRIDGE RESOURCES (V-BUK) $1.44 +0.16
Number of shares (Fully Diluted) outstanding: 157 Million
Estimated Size of Target: 400-500 Barrels
Percentage Interest: 100%
Bridge is currently working on its Durango resource in the
North Sea which they assume to be a development project.
We use the word assume, because nothing is a given in oil
and gas it seems and this project is supposed to deliver the
cash flow to work on a long list of projects they have assembled
in the North Sea for the coming years. The excitement
happens probably as the late as the last quarter of this year
when they drill their Piper prospect, arguably the largest target
left to be drilled in the North Sea at an estimated 400—
500 million barrels. They own 100% of it. We wouldn’t be
shocked to see them decide to lay off some interests in this
play in return for someone else paying more than their fair
share of the drilling costs. It would make sense, but even
after that, Bridge might have the biggest play of this entire
list. When Drilling: Currently drilling the Durango, results
should be in the next four weeks. And drilling their big one,
the Piper during the last quarter of this year. Dave Antony is
the executive with Bridge and lucky him—he’s also involved
with March Resources. Meanwhile, we point out that Bridge
did a financing of 52 million units at $0.85 that becomes tradable
sometime in the next six weeks and that might provide a
buying opportunity for those craving excitement.
AFRICA OIL (V-AOI) $6.78 -0.02
Number of shares (Fully Diluted) outstanding: 19 Million
(currently issued) Expect a financing shortly that could
take it to roughly 35 Million.
Estimated Size of Target: 1 Billion Barrels
Percentage Interest: 100%
For those who were are the recent Wellington West conference
of high risk/high reward oil and gas plays, many
who had never seen the data on this area of Somalia got
quite excited. They suggested the data echoed what was
known about Yemen just across the Red Sea and it’s quite
exciting. The Lundin company is involved in a play that
potentially could have a billion barrel target. When Drilling:
July-August 2008.
PETROLIFERA PETROLEUM (T-PDP) $10.92 +0.54
Number of shares (Fully Diluted) outstanding: 54 Million
Estimated Size of Target: Colombia, 0.5 TCF to 1 TCF
Peru, 1-5 TCF
Percentage Interest: Colombia 100%, Block 107, Peru 100%
Gary Wine worked for many years in the petroleum industry
of the national government in Peru, so when the government
there decided to open up exploration to different public
companies, Wine and Petrolifera was one of the first in
line, having access to some of the best data on what might
be there in the country and there are two plays that they
have huge hopes for. The Colombian operation should be
drilled in the fourth quarter and the target is for a potential
5 TCF.
When Drilling: Drilling the Block 107 the last quarter of this
year.
CGX ENERGY (V-OYL) $3.14 -0.01
Number of shares (Fully Diluted) outstanding: 132 Million
Estimated Size of Target: Has three targets between 500
million barrels and 1 billion barrels offshore Guyana with
varying interests. Don’t be surprised to see more deals
announced on those three prime plays.
Percentage Interest: Varying
CGX Energy’s stock was one of the big winners of 2007
being a ten-bagger for those who timed their entrance
well. This year should be a whole bunch of wheeling and
dealing, raising the needed money, finding the needed
rigs as they may need a rig capable of going quite deep
and putting it all together for what could be a very active
drilling program next year. We will have not one, but
several of the world’s biggest targets on its book, but
just remember the odds of high risk drilling.
When drilling: 2009. |
