Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: fp_scientist who wrote (77011)	1/1/2007 5:17:13 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206328

fp_scientist, BPZ Energy (BPZI) -- I believe Morgan Keegan didn't bother mentioning Noble Energy's Amistad project because it is a small project and will have little or no effect on BPZ's plans. BPZ even shows the Amistad field on its maps, see, e.g., slide #14 in the latest BPZ presentation. Maybe, at most, it might affect the route of the pipeline to Guayaquil, which is part of Phase III of BPZ's project, and would probably not even start to be considered for several years. As shown on slide #14, BPZ is considering 2 different routes for their pipeline to Guayaquil. As stated in Noble's web site, their project is producing only 22 mmcf/d (i.e. 8 BCF/yr.) at this point, with the ability to expand production up to just 36 mmcf/d (i.e. 13 BCF/yr.). BPZ's project is expected to kick off with 40 mmcfd production, and if they really find a lot of gas, for a lousy $36 M more they can double the # of GE turbines, from 2 to 4, and use 80 mmcf/d of gas for generating electricity for the Peru market. That is not even starting to get into the demand for gas for power in Equador There apparently is plenty of demand for power in Ecuador, enough to support both Noble's project and BPZ's. Otherwise, why would BPZ continue to be showing the Phase III plans the way they are, even though they fully acknowledge the supply coming from Amistad? Regarding the oil prospects of BPZ, I agree that those have huge potential. But I disagree completely with the implication of your point, that BPZ's gas-to-power projects do not have huge potential. Witness NBL, an $8 B company, finding it worth their time and effort to work on a gas-to-power project that is just a fraction the size of BPZ's.