DR. DAVID JOHNSON
PRESIDENT AND CEO WITH SAGRES ENERGY
(As of August 23, 2010)
We are with Dr. David Johnson and he, along with his partner
are formerly with some fairly significant companies such as
Husky and Pan Orient.
David Pescod: So Dr. Johnson, just what are you doing with
a small company like this?
David Johnson: We had a unique opportunity that came forward
and the opportunity to explore and start a new company
was an opportunity I just couldn’t pass up.
DP: What the company is centered on right now, is an exploration
play in Guyana that some people think is quite sizeable.
Is this right?
DJ: It is quite sizeable. It has a significant prospective resource
with a Gaffney Cline assessment of about 128 million
recoverable stock tank barrels. Their geologic chance of success
on finding oil is 90%.
DP: Now this area had been drilled something like 30 years
ago, correct?
DJ: That’s right. Home Oil drilled the prospect in 1982 and
found oil. They tested about 400 barrels of oil per day and it
was 42 grade API oil. Back in 1982 other things were being
discovered as well and being in the backwoods of Guyana as
perhaps compared to say the North Sea, can cause a company
to think about moving elsewhere.
DP: Would new technology developed in the last 30 years –
would it help you along? Or is the location close to the Brazilian
border still an obstacle?
DJ: The location next to the Brazilian border is not an obstacle;
in fact, far from it. The development of new roads and
bridges into Guyana from Brazil has actually made it easier
to mobilize a rig into the area. The rig is on its way to the
Guyana location right now, and has passed through Brazil.
With respect to technology, our understanding of fractured reservoir has increased dramatically in the last 10 years. In
particular, our ability to image fractures in the well-bore, analyze the stress fields associated with those fractures and
therefore predict where porosity increases. So we believe there is a real opportunity to delineate the fractured resource
and hopefully capture it.
DP: Warren Verbonac is one analyst (looks like he’s the first) to discover this story. He says you’ve got a better than a
50% chance of this well having commercial flow rates and he says if you get what he thinks you’ve got, the stock could
be worth $5.00 - $7.00 a share. Is this outrageous?
DJ: It is tough to speculate on what works and what doesn’t work in an investors mind as to what will drive a price to
higher levels. There is certainly a significant resource here, 128 million barrels P mean and we have a 25% interest in
that resource. We should add that we also have a significant asset with tremendous potential in Jamaica.
DP: We always like to end these interviews with the question: If you could only buy one stock today, other than you
own, what would it be?
DJ: You caught me off guard on that one! Well, I have got to be on Canacol Energy on this well coming in. It’s just a
really strong bet.
DP: Thank you very much David! |
