CANADIAN OILPATCH / HOT STOCKS
Malaysia wells put spotlight on International Petroleum
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Analyst: Clive Stockdale
Sector: Oil and gas
Dealer: Canaccord Capital
Stock: International Petroleum Corp.
Symbol: TSE: IRP
Price: $5.75
Target price: $8
"International Petroleum, the [Vancouver-based] flagship of the oil interests owned by the Lundin family, continues to evaluate its offshore Malaysia oil and gas discoveries," said Stockdale, in a September report.
"The latest well -- Bunga Kekwa A-2, the third appraisal well of a five well program -- flowed a stabilized rate of 1,546 barrels of oil and 1.02 million cubic feet of gas per day.
"An earlier well flowed 10,212 barrels of oil per day and 179 million cubic feet per day of gas, and on a separate structure, Bunga Raga-2 flowed 11,528 barrels a day of oil and condensate and 100 million cubic feet daily of natural gas.
"Two more wells are to be drilled on the Bunga Kekwa structure.
"Commercial oil production is finally scheduled for mid 1997 and by 1999, the complex of fields is expected to be producing 50,000 barrels per day of oil and 250 million cubic feet daily of sales gas, with International Petroleum's interest being 26.44 per cent.
"With the Malaysian play coming into focus, the speculation will probably concentrate on coming drilling in Libya, where a two-well program in which the company will have a 50-per-cent interest will commence in the fourth quarter." |
