Recommended BZP reading 10-Sep-08 12:08 pm
FYI: El Viejo is the most knowledgable BZP investor that posts information on stock boards that I have come across. So here is one to read for our current and future BZP outlook.
I would recommend reading the copy below.
Cooter
Cut & Paste below:
I have not posted lately for the simple reason that there is not much to talk about. The macro economics of world oil trading is the only thing that seems to be affecting BPZ and similar energy industry issues share price rigt now, and this has really been true since about February of this year when the late, great runup in price began. By a strange coincidence this paralleled the ridiculous oil price runup. Overlooked by the general market lemmings who are not now assiduously scoping this stock are the following facts:
BPZ announced on Thursday that the 200 million dollar line of credit funding deal was sanctioned by the syndicating French bank and all that remains to be done is dot the i's and cross the t's. These unrestricted funds give BPZ the flexibility to not only delineate and develop their oil reserves, but to expand their exploration efforts in general. It will not be necessary to issue more stock from their shelf registration hoard which could dilute current shareholders, although that is also another arrow in their quiver if they ever need to use it.
If you simply look at BPZ's already discovered reserves it justifies a share price of around 25 just based on 87 dollar oil. Manolo is not kidding when he says the have 50 drillable prospects. Every one of these is a potential new oil and gas field! Very few large independents and majors have that many prospects even on a worldwide exploration basis.
The Shell deal will be signed sooner rather than later so that it can be in place and effective by year end following government approvals. What this really does is give BPZ the chance to delineate and develop its huge gas reserves in order to sanction a future LNG project, FOR FREE!! Not to mention the heavy lifting that will be required to test their deep water turbidite structure leads in the south end of Block Z-1, which by my reckoning and the opinion of the highly competent explorationists at Nuevo Energy, BPZ, and Royal Dutch Shell have the potential to be supergiant oilfields. Don't kid yourself, Shell sees the oil potential of this region every bit as much as the gas, of which Corvina and Albacora combined is only the tip of the iceberg.
They will soon announce oil flow test results on their latest Corvina well and they should be excellent. They are not going to prematurely release this information just to respond to temporary market conditions, but results can be expected in a matter of days or at most weeks.
If you have the patience to wait about six months you will see some announcements on both Albacora (offshore) and Pampa de Gallinas (onshore) test wells. If either or both of these wells are an oil discovery as well as the gas which is already a given, then the share price is bound to triple or quadruple almost overnight.
I am not a trader and only have long term investments. I still hold most of what I have originally held in BZP going back several years, and if I had the flexibility in my program to liquidate other long term investments I would buy more now at these bargain levels.
Sentiment : Strong Buy |
