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

To: Brian Sullivan who wrote (165765)	3/19/2012 2:34:38 PM
From: architect*	1 Recommendation Read Replies (3) \| Respond to of 206105

Repsol YPF is selling off their Argentina O&G assets to invest in Brazil and Colombia. Brazil's fiscal terms are infinitely better than Argentina's. Wellhead sales prices in Argentina of $50 / bbl provide way too much financial risk. Brazil has 20% royalties and 33% corporate tax on wellhead sales prices close to Brent $125. Brazil and Argentina have many oil fields that have produced over 1 billion barrels of oil - some oil barons may find that enticing. Brazil has an oil and gas Concession Ronde 11 or Ronde 12. Brazil seems to be focusing on national investment in the large Santos and Campos basin 1 trillion barrel + plays. The interesting oil play in Brazil is one the smaller on- shore resource plays, where Brazil has no interest in establishing a net working interest. Gran Tierra as an example has resource play in the Reconado Basin of Brazil between two shale oil prospects in the 600 mmbo range. For on-shore prospects Brazil has excellent fiscal terms. I'd guess that Ronde 2011 , now Ronde 2012 will have several oil blocks offered with light oil prospects in the 100 mmbo range. outside of the middle east where in the world can mid-cap oil producers search for 100 mmbo + exploration prospects with such favorable fiscal terms. Brazil may not be ready to open their smaller oil production and exploration to international investment, as Ronde 11 has been delayed by 14 months, or so. This Ronde 11 / 12 is developing too slowly for my taste. Gran Tierra's shale oil drilling in the Reconado basin is progressing at a reasonable pace, assuming some technology and equipment lag and slow Brazilian government. . If Brazil offers some high quality light oil exploration blocks in Ronde 2012, I'd expect highly competitive bidding from international oil and gas companies. Colombian oil producing stocks, on the plus side today. GTE PMG PXT CZE