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Correction
Sorry Punty spudded on wednesday 06.06.12.. TT and colo news next week
Finished UP 18% Today on AIM..
We still have TT, Colo news and 2nd Punty Spud possible next week..
Have a good weekend Guys..
Be Lucky Tony
Nice Volume on AIM today..
Good start up over 10%
Good Luck All
TEXAS RNS..
Range Resources LTD
Texas Reserves Upgrade
8 June 2012
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By e-lodgement
TEXAS RESERVES UPGRADE
Highlights
- Range's net attributable interest * in Proved Reserves increase
by 54-57%
- Range's net attributable interest * in Probable Reserves
increased by 16-20%
* net of government and overriding royalties
Range Resources Limited ("Range" or "the Company") is pleased to announce a
significant increase in Proved (P1) and Probable (P2), reserves for the North
Chapman Ranch Project, in which Range holds a 20-25% interest.
The Company engaged leading Independent Petroleum Consultants
Forrest A. Garb and Associates ("Forrest Garb") to complete a review of the
North Chapman Ranch reserves following the successful completion of the Smith
#2 and Albrecht wells that has seen a significant reclassification of the
previous Possible (P3) reserves into the Proved (P1) and Probable (P2)
categories.
Set out below is a comparison of the gross reserves (100% basis)
for the Company's North Chapman Ranch asset between the previous reserve
update in December 2011 and the current gross reserves update for June 2012.
Category Oil Natural Gas Natural Gas Liquids
(MMbbls) (Bcf) (MMBbls)
Dec Jun %age Dec Jun %age Dec Jun %age
`11 `12 Mvmt `11 `12 Mvmt `11 `12 Mvmt
Proved (P1) 5.1 8.4 +64% 64.3 106.0 +65% 5.0 8.0 +60%
Probable (P2) 3.7 4.4 +19% 48.6 56.7 +17% 3.8 4.4 +16%
Possible (P3) 9.9 5.0 -50% 129.6 64.8 -50% 10.1 5.1 -50%
Total Reserves 18.7 17.8 242.5 227.5 18.9 17.5
Set out below is the comparison between June 2012 and December 2011
of Range's attributable interest in the net reserves on the Company's North
Chapman Ranch asset which is net of government and overriding royalties and
represents Range's economic interests in its development and production assets
as classified in the report from Forest Garb.
Category Oil Natural Gas Natural Gas Liquids
(MMbbls) (Bcf) (MMBbls)
Dec Jun %age Dec Jun %age Dec Jun %age
`11 `12 Mvmt `11 `12 Mvmt `11 `12 Mvmt
Proved (P1) 0.7 1.1 +57% 7.6 11.7 +54% 0.7 1.1 +57%
Probable (P2) 0.5 0.6 +20% 5.5 6.4 +16% 0.5 0.6 +16%
Possible (P3) 1.3 0.7 -46% 14.6 7.3 -50% 1.3 0.7 -46%
Total Reserves 2.5 2.4 27.7 25.4 2.5 2.4
Based on the reserve numbers cited above, Forrest Garb's estimated
net undiscounted cash flow value to Range for Proved (P1), Probable (P2) and
Possible (P3), along with discounted cash flow (at a 10% discount rate)
valuation based on the Nymex forward strip prices reported on 7 March 2012
following reductions for royalties, opex, capex, production taxes etc is as
follows:
Nymex Forward Strip Nymex Forward Strip
Price at Price at
1 October 2011 7 March 2012
Category Undiscounted PV10 Undiscounted PV10
US$'m US$'m US$'m US$'m
Proved (P1) 116 67 165 93
Probable (P2) 86 43 89 39
Possible (P3) 246 95 102 37
Total 448 205 356 169
The Company notes that the valuation of the Company's interest in the Proved
and Probable Reserves has not increased to the same extent of the actual
percentage increase in physical volumes, which is primarily related to the
significant reduction in the futures gas price since the previous report.
With the drilling of the Smith #2 and Albrecht #1 wells, gross current average
production from the field increased to approximately 4.5 MMcfd and 394 Bopd.
With the field having now been largely appraised and value demonstrated, the
Company has commenced with the sale of its North Chapman Ranch interests
targeting completion in Q3 2012 so that it can focus its capital on higher
value adding opportunities in its portfolio. Any such divestiture decision
will be based on market conditions and the ability to achieve a sales price
that appropriately reflects the value of the project interest.
East Texas Cotton Valley
Work also continues in the Company's East Texas Cotton Valley project area,
where additional sections of the Ross 3H horizontal well were recently
fracture stimulated and are currently unloading frac fluids. With
approximately 5000 barrels of load left to recover, the well has already
yielded early indications of oil saturation, consistent with strong oil shows
recorded during drilling.
If successful, the Ross 3H well is expected to form the basis of a new
horizontal development of the shallow oil reservoir within the Cotton Valley
formation. The project is considered to be analogous to the neighbouring
Clarksville Field, which is expected to ultimately produce more than 7 million
barrels of oil.
Added Peter Landau, Range's Executive Director, "We are extremely pleased with
the recent results from our Texas drilling programs, which has confirmed what
the Company had strived to do in increasing shareholder value through the
increase in the Company's share of Proved and Probable reserves from the North
Chapman Ranch Project. This now paves the way for the Company to commence
divestment of the Company's interest in the project during Q3 2012. The sales
prices of similar production assets in the region have been encouraging, and
any such divestment will provide significant funding that could be applied to
Range's current activities and other possible corporate initiatives such as an
on market share buy back."
The Company looks forward to providing operational updates for Trinidad and
Colombia next week.
Yours faithfully
Peter Landau
Executive Director
TEXAS RNS..
Range Resources LTD
Texas Reserves Upgrade
8 June 2012
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By e-lodgement
TEXAS RESERVES UPGRADE
Highlights
- Range's net attributable interest * in Proved Reserves increase
by 54-57%
- Range's net attributable interest * in Probable Reserves
increased by 16-20%
* net of government and overriding royalties
Range Resources Limited ("Range" or "the Company") is pleased to announce a
significant increase in Proved (P1) and Probable (P2), reserves for the North
Chapman Ranch Project, in which Range holds a 20-25% interest.
The Company engaged leading Independent Petroleum Consultants
Forrest A. Garb and Associates ("Forrest Garb") to complete a review of the
North Chapman Ranch reserves following the successful completion of the Smith
#2 and Albrecht wells that has seen a significant reclassification of the
previous Possible (P3) reserves into the Proved (P1) and Probable (P2)
categories.
Set out below is a comparison of the gross reserves (100% basis)
for the Company's North Chapman Ranch asset between the previous reserve
update in December 2011 and the current gross reserves update for June 2012.
Category Oil Natural Gas Natural Gas Liquids
(MMbbls) (Bcf) (MMBbls)
Dec Jun %age Dec Jun %age Dec Jun %age
`11 `12 Mvmt `11 `12 Mvmt `11 `12 Mvmt
Proved (P1) 5.1 8.4 +64% 64.3 106.0 +65% 5.0 8.0 +60%
Probable (P2) 3.7 4.4 +19% 48.6 56.7 +17% 3.8 4.4 +16%
Possible (P3) 9.9 5.0 -50% 129.6 64.8 -50% 10.1 5.1 -50%
Total Reserves 18.7 17.8 242.5 227.5 18.9 17.5
Set out below is the comparison between June 2012 and December 2011
of Range's attributable interest in the net reserves on the Company's North
Chapman Ranch asset which is net of government and overriding royalties and
represents Range's economic interests in its development and production assets
as classified in the report from Forest Garb.
Category Oil Natural Gas Natural Gas Liquids
(MMbbls) (Bcf) (MMBbls)
Dec Jun %age Dec Jun %age Dec Jun %age
`11 `12 Mvmt `11 `12 Mvmt `11 `12 Mvmt
Proved (P1) 0.7 1.1 +57% 7.6 11.7 +54% 0.7 1.1 +57%
Probable (P2) 0.5 0.6 +20% 5.5 6.4 +16% 0.5 0.6 +16%
Possible (P3) 1.3 0.7 -46% 14.6 7.3 -50% 1.3 0.7 -46%
Total Reserves 2.5 2.4 27.7 25.4 2.5 2.4
Based on the reserve numbers cited above, Forrest Garb's estimated
net undiscounted cash flow value to Range for Proved (P1), Probable (P2) and
Possible (P3), along with discounted cash flow (at a 10% discount rate)
valuation based on the Nymex forward strip prices reported on 7 March 2012
following reductions for royalties, opex, capex, production taxes etc is as
follows:
Nymex Forward Strip Nymex Forward Strip
Price at Price at
1 October 2011 7 March 2012
Category Undiscounted PV10 Undiscounted PV10
US$'m US$'m US$'m US$'m
Proved (P1) 116 67 165 93
Probable (P2) 86 43 89 39
Possible (P3) 246 95 102 37
Total 448 205 356 169
The Company notes that the valuation of the Company's interest in the Proved
and Probable Reserves has not increased to the same extent of the actual
percentage increase in physical volumes, which is primarily related to the
significant reduction in the futures gas price since the previous report.
With the drilling of the Smith #2 and Albrecht #1 wells, gross current average
production from the field increased to approximately 4.5 MMcfd and 394 Bopd.
With the field having now been largely appraised and value demonstrated, the
Company has commenced with the sale of its North Chapman Ranch interests
targeting completion in Q3 2012 so that it can focus its capital on higher
value adding opportunities in its portfolio. Any such divestiture decision
will be based on market conditions and the ability to achieve a sales price
that appropriately reflects the value of the project interest.
East Texas Cotton Valley
Work also continues in the Company's East Texas Cotton Valley project area,
where additional sections of the Ross 3H horizontal well were recently
fracture stimulated and are currently unloading frac fluids. With
approximately 5000 barrels of load left to recover, the well has already
yielded early indications of oil saturation, consistent with strong oil shows
recorded during drilling.
If successful, the Ross 3H well is expected to form the basis of a new
horizontal development of the shallow oil reservoir within the Cotton Valley
formation. The project is considered to be analogous to the neighbouring
Clarksville Field, which is expected to ultimately produce more than 7 million
barrels of oil.
Added Peter Landau, Range's Executive Director, "We are extremely pleased with
the recent results from our Texas drilling programs, which has confirmed what
the Company had strived to do in increasing shareholder value through the
increase in the Company's share of Proved and Probable reserves from the North
Chapman Ranch Project. This now paves the way for the Company to commence
divestment of the Company's interest in the project during Q3 2012. The sales
prices of similar production assets in the region have been encouraging, and
any such divestment will provide significant funding that could be applied to
Range's current activities and other possible corporate initiatives such as an
on market share buy back."
The Company looks forward to providing operational updates for Trinidad and
Colombia next week.
Yours faithfully
Peter Landau
Executive Director
b4 Try this site
http://www.lse.co.uk/SharePrice.asp?shareprice=RRL&share=RANGE_RES.
Its a popular site over here
All the aim shares are here, just type in the ticker...
News on the way??
Nice Rise on average volume on AIM today..
Red emperor didnt move so im assuming news on TT, Colo, Texas??
Atb Tony
We need to add some Caribbean news into the mix to spice up the SP a bit..hopefully soon
b4
spot on.. now lets see if we get some news from TT tomorrow
PUNTLAND SPUD
HORN PETROLEUM SPUDS SHABEEL NORTH WELL
IN PUNTLAND, SOMALIA
Vancouver, British Columbia, June 5, 2012 - Horn Petroleum Corporation ("Horn Petroleum" or the "Corporation") is pleased to announce the commencement of drilling operations on the Shabeel North well in Puntland, Somalia, the second well in the current drilling campaign.
The Shabeel North well is targeting Upper Cretaceous Jesomma sands which had good oil and gas shows in the Shabeel well 3.5 kilometers to the south. Petrophysical analysis of downhole electrical logs in the Shabeel well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed. The planned TD of the Shabeel North well is 2400 meters and drilling is expected to take 45 to 60 days to complete.
Horn Petroleum President and CEO David Grellman stated, "The Shabeel North well will test the same reservoirs that appear to be oil bearing in the nearby Shabeel well. We would expect similar or better reservoir thickness and quality as we move deeper into the basin. The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin."
The well is being operated by Horn Petroleum which holds a 60% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements ("PSA's") along with working interest partners Range Resources (20%) and Red Emperor (20%). Africa Oil Corp. holds an equity interest in Horn Petroleum of approximately 51%.
Horn Petroleum Corporation is a Canadian oil and gas company with assets in Puntland, Somalia. The Corporation holds a 60% interest and operatorship in the Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen. The Corporation's shares are listed on the TSX Venture Exchange under the symbol "HRN".
ON BEHALF OF THE BOARD
"David Grellman"
President and CE
PUNTLAND SPUD...
HORN PETROLEUM SPUDS SHABEEL NORTH WELL
IN PUNTLAND, SOMALIA
Vancouver, British Columbia, June 5, 2012 - Horn Petroleum Corporation ("Horn Petroleum" or the "Corporation") is pleased to announce the commencement of drilling operations on the Shabeel North well in Puntland, Somalia, the second well in the current drilling campaign.
The Shabeel North well is targeting Upper Cretaceous Jesomma sands which had good oil and gas shows in the Shabeel well 3.5 kilometers to the south. Petrophysical analysis of downhole electrical logs in the Shabeel well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed. The planned TD of the Shabeel North well is 2400 meters and drilling is expected to take 45 to 60 days to complete.
Horn Petroleum President and CEO David Grellman stated, "The Shabeel North well will test the same reservoirs that appear to be oil bearing in the nearby Shabeel well. We would expect similar or better reservoir thickness and quality as we move deeper into the basin. The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin."
The well is being operated by Horn Petroleum which holds a 60% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements ("PSA's") along with working interest partners Range Resources (20%) and Red Emperor (20%). Africa Oil Corp. holds an equity interest in Horn Petroleum of approximately 51%.
Horn Petroleum Corporation is a Canadian oil and gas company with assets in Puntland, Somalia. The Corporation holds a 60% interest and operatorship in the Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen. The Corporation's shares are listed on the TSX Venture Exchange under the symbol "HRN".
ON BEHALF OF THE BOARD
"David Grellman"
President and CE
b4
Strong rumours
of T and T spud today and P Landau in USA..
We need T and T to start picking up and 2nd punty spud very soon..
Lots of doom and gloom around the world at the moment..
B4
Unknown at the moment we need a RNS to clarify the position not an interview in a newspaper..
Mixed reviews over here at the moment.
Be Lucky
A puzzled scratching his head TTT
SPIN OFF??
Range to spin off Somalia assets
BY:PAUL GARVEY From:The Australian May 31, 2012 12:00AM
Increase Text Size
Decrease Text Size
Print
Range Resources chief executive Peter Landau says the spin-off will shift attention to the company's other assets. Picture: Marie Nirme Source: The Australian
THE Australian market's affair with the controversial Somalia exploration assets of Range Resources looks set to come to an end as the company prepares a spin-off of the projects on to London's AIM board.
Speaking to The Australian at the ASX Small to Mid Caps conference in Hong Kong, Range executive director Peter Landau said the spin-off would help focus attention on the company's other assets in Trinidad and Colombia.
Range became one of the first Western companies to move into Somalia, in 2005.
The company's efforts to operate in the war-torn nation have regularly attracted controversy, with the local authorities at one point accused of being linked to piracy in the region. Range's perseverance resulted in the company and its joint venture partners this year drilling the first exploration well in the country for more than 20 years.
But with production from Range's Trinidad oil fields continuing to grow, Mr Landau said a spin-off of the Somalia interests would allow the market to provide more uncluttered valuations of the assets.
"What we've seen is Trinidad doesn't get valued because all the punters trade Range on Puntland. So let's take Puntland out, give (Range investors) the free stock, and have a separate AIM-listed stock," he said.
Range's joint-venture partners in Somalia, Horn Petroleum and Red Emperor Resources, are covering the company's share of costs in the first two exploration wells.
The first well this year intersected oil-bearing sands, but it remains to be seen whether the reservoir is capable of flowing oil at commercial rates.
Drilling of the second well is to begin soon.
Away from Somalia, Range is focusing on lifting production in Trinidad from about 800 barrels of oil a day to about 2500 by the end of the year, a lift that would see the company generating about $30 million in free cashflow.
"Trinidad is always going to be the focus. It's got 15 million barrels of (proven reserves), so we can't spend the money quick enough," Mr Landau said.
"Every time we put another well in we're getting between 50 and 100 barrels a day.
"These wells are paying back in two to three months, and they'll keep going for 20 years."
Range is also set to shortly begin a sale of its oil and gas assets in Texas, which Mr Landau said should fetch about $50m to $70m in the current market.
The proceeds from that sale would be invested into Range's recently acquired acreage in Colombia. Range has the right to earn a 65 per cent interest from two licences in the Putumayo basin
SPIN OFF??
Range to spin off Somalia assets
BY:PAUL GARVEY From:The Australian May 31, 2012 12:00AM
Increase Text Size
Decrease Text Size
Print
Range Resources chief executive Peter Landau says the spin-off will shift attention to the company's other assets. Picture: Marie Nirme Source: The Australian
THE Australian market's affair with the controversial Somalia exploration assets of Range Resources looks set to come to an end as the company prepares a spin-off of the projects on to London's AIM board.
Speaking to The Australian at the ASX Small to Mid Caps conference in Hong Kong, Range executive director Peter Landau said the spin-off would help focus attention on the company's other assets in Trinidad and Colombia.
Range became one of the first Western companies to move into Somalia, in 2005.
The company's efforts to operate in the war-torn nation have regularly attracted controversy, with the local authorities at one point accused of being linked to piracy in the region. Range's perseverance resulted in the company and its joint venture partners this year drilling the first exploration well in the country for more than 20 years.
But with production from Range's Trinidad oil fields continuing to grow, Mr Landau said a spin-off of the Somalia interests would allow the market to provide more uncluttered valuations of the assets.
"What we've seen is Trinidad doesn't get valued because all the punters trade Range on Puntland. So let's take Puntland out, give (Range investors) the free stock, and have a separate AIM-listed stock," he said.
Range's joint-venture partners in Somalia, Horn Petroleum and Red Emperor Resources, are covering the company's share of costs in the first two exploration wells.
The first well this year intersected oil-bearing sands, but it remains to be seen whether the reservoir is capable of flowing oil at commercial rates.
Drilling of the second well is to begin soon.
Away from Somalia, Range is focusing on lifting production in Trinidad from about 800 barrels of oil a day to about 2500 by the end of the year, a lift that would see the company generating about $30 million in free cashflow.
"Trinidad is always going to be the focus. It's got 15 million barrels of (proven reserves), so we can't spend the money quick enough," Mr Landau said.
"Every time we put another well in we're getting between 50 and 100 barrels a day.
"These wells are paying back in two to three months, and they'll keep going for 20 years."
Range is also set to shortly begin a sale of its oil and gas assets in Texas, which Mr Landau said should fetch about $50m to $70m in the current market.
The proceeds from that sale would be invested into Range's recently acquired acreage in Colombia. Range has the right to earn a 65 per cent interest from two licences in the Putumayo basin.
Some similarities between Yemen and Somalia..
A post by sahara traveller on world stocks..
It has been a while and as said before I will post when there is new info. Last time AOI / HRN put up a presentation we had an RNS after by HRN and expect the same next week as they have revealed new info. At least they updated the current depth and that needs to be notified to investors in an RNS and not a presentation.
I had a meeting earlier this week with one of the operator in Yemen in Masila which is supposed to mirror the current drill. A drilling engineer and an ex geologist who is now in management were present. following our business discussion, I asked questions about their geology and Somalia a bit and here were their comments:
- Yemen has possibly one of the richest geology data in the world since 1856 but until this date there is a problem in having a unified lithio / strat. Every company that worked in Yemen have their own interpretation. This is due to the different rifts,faults, directions, which has lead as well to even having the Jurassic replaced in some areas by an extension of the cretaceous.
- The rift is tilted as you go south with the deposits / sandstones in the cretaceous getting thicker and thicker as you move from north to south. They can range from a 400M to over 1700 meters.
- Most wells currently produce from the lower cretaceous formation despite having up to 7 reservoirs in many of the wells. Their new program for the upcoming years is to start to produce from the shallower reservoirs in the upper cretaceous
- They are sure the extension is there in Somalia and possibly int Ethiopia.
- They said that I should not be surprised that the formations in Somalia are not 100% equivalent in depths as in Yemen and that they can possibly vary of up to 700M as they have the same between their northern field and the south and that because of the tilt.
- They also said that you can expect that the Jurassic might not be there or thin due to the faulting which has eroded that as they have in places in Yemen.
- Drill rates are about 28min / meter in sandstones and 22min/meter in shale
Now lets look at the new Strat in the AOI presentation and compare to the last one in HRN presentation. Facts:
- Multiple shows in the upper or late cretaceous but good resistivity
- Cretaceous formation has extended and not much to go before they go int Triassic possibly confirming that Jurassic has been replaced or Jurassic still to come. Hence they have a question mark over the Qishn?
- Gamma rays are showing good density. SP is showing low where the density is.The Mud gas green line is showing low at the same formations where the resistivity is below 50% spikes. I take this as having a good Porosity and Permability. Hence the world very good discoveries.
- Unfortunately no logs yet for the new find below 3000
- Drill rates we have had are the same as yemen too.
I believe we are very close to a good announcement and better one once testing is done. This is a massive change in the presentation.
Good luck to all and we deserve some more details in RNS next week hopefully
FINGERS CROSSED GUYS..!!!
Morning all
After the africa oil presentation the BBs over here have been going a little bit crazy..Too many good posts to cut n paste..
You can take a little look without joining..
Check out kev y, goonerboy, solentview, sahara traveller to name a few..
After 40 days of rain the sun is shining in the UK.. Im popping out for a pint...
Be Lucky Tony
http://www.worldstocks.co.uk/forum/
Douginil/All
Sorry about the links it was a cut n paste f£$k up..
Repost of original with thanks to Urban Trader
I had a long chat with a friend who is also invested in RRL, RMP, HRN and more importantly Shabeel.
We talked about whether or not we thought Shabeel was duster and I thought I would share some of our comments.
--
HRN is on a tight timescale with the first two drills because they have to satisfy the terms of the PSA.
Now, more than ever this is important because I imagine the Puntland Government has companies lining up to take over in the event that the PSA is breached - and money talks, not loyalty
HRN encountered a potential pay zone of 12-20m section of oil and gas shows indicated by a petrophysical analysis of downhole electrical logs - This was not expected
HRN tried a wireline formation tester but this was unsuccessful (look at my link to wireline formation testers at the bottom of this page) - but this was unsuccessful.
This to me suggests that the oil is there. So what if a wireline formation tester was unsuccessful. There are a plethora of tests that will succeed of fail depending on how the oil is trapped.
BUT - and here is the important bit. HRN cannot afford to hang around performing lots of open hole tests because time is running out and they have got 2 drills to complete to fulfil the terms of the PSA. Don' forget, as per the RNS of Feb 23rd, 2012 - "Puntland Government has granted an extension of the first exploration period expiry date to October 17, 2012" That gives us 5 months to complete this well and the next well.
So, they decide to drill on and test later after they have got to TD and cased the well.
Also, the primary target is of much more interest because this confirms an extension of the Yemen basin.
WHY - because they can be drilling the second well whilst testing the first.
--
Now let's look at the wording of the RNS of April 11, 2012
"We are encouraged by the results to date and pleased that we have confirmed the presence of an active petroleum system in the Dharoor Valley. We look forward to drilling ahead into the primary objectives of the well and hope to confirm the shallow prospective zones by testing in the near future."
Compare that with the wording of the RNS of March 7, 2012
"While we are encouraged by the hydrocarbon shows in the well, there is still a great deal of information which must be collected before we are able to properly evaluate the results to date. We look forward to reaching the main objectives and appreciate the continued support of the Puntland Government and the local residents."
this wording suggests to me that HRN was more bullish in April than it was in March but they are a lot more restrained in their wording as opposed to PLs fireworks and dancing because he's found a few drips under his car.
I suspect we're going to here great news from HRN whether or not the oil is commercial.
Also, if HRN had found anything to suggest it was not worth continuing with Shabeel-1 - surely HRN would plug and abandon and move on to the next well sooner rather than later, or done additional seismics or whatever they deemed was needed because that 5 month window is closing rapidly. So the fact that they are still drilling is a very positive sign.
Worst case scenario
None commercial oil, but an active petroleum system and more analysis can give us a better indication of where to drill and how deep
Best case scenario
20-25m payzone in addition to what we were targetting
And a load of shale down there that may be worth fraccing
THESE ARE ONLY MY OWN THOUGHTS AND OPINIONS.
regards
UT
---
---
Links below:
Fundamentals of Formation Testing
http://www.slb.com/~/media/Files/evaluation/books/fundamentals_formation_testing_overview.ashx
Introduction to Well Logging
Hi Doug/all.
I will try and repost them later today, just off to the gym..
This email conversation should hold your attention til i get back..
Read from bottom up...Be Lucky TTT
Posted on III (read from bottom to top)
Note he refers to the stockmailer delay as a "godsend" What does he want to say with that !?
PL - Very interesting observations - I'm really going to focus on trinidad in the q and a to be released in 2-3 weeks - also taking 3 analysts out there next week to get some new insto reports out - with the rigs now doing 3-4 wells a month - perception of trin can change very quickly - put hererra volumetrics out and may swing but at the end of the day punters want big gushers and they see puntland as the opportunity and you could well be right but my q and a will try and change the way people view the range value proposition - ill put revenue and free cash numbers in and who knows - the stockmailer delay may prove to be a godsend with it going out next week
From
Sent: Thursday, May 10, 2012 08:59 PM
To: Peter Landau
Subject: RE: puntland duster
ME - all fantastic opportunities with lots of potential (but apart from texas, not realized yet) To get confidence back in the share price we need something significant to happen in puntland i feel. We need puntland to come in, so we don't just have great assets which currently just have a lot of potential. we need top assets where the potential is proven. Then the market will react accordingly
having these assets to back up the shareprice is nice, but the market won't care. puntland failure and this will get hammered as bad as RMP and HRN
this is why i'm concerned
share price has actually gone down since puntland spud. i mean what the hell
.............................................................................................................................................
From: peter@okapventures.com
To:
Date: Thu, 10 May 2012 19:29:41 +0800
Subject: Re: puntland duster
PL- Ask me about texas , trin and colombia and you shouldn't be concerned with puntland or georgia whatever the outcome
From:
Sent: Thursday, May 10, 2012 07:11 PM
To: Peter Landau
Subject: RE: puntland duster
ME - with HRN having 60% of this well perhaps 12-20 will be okay, but i worry for rmp and rrl with only 20%. I've been invested in all these companys for 3 years now so i fully intend to stay till TD whatever i read, see or hear. If this well does not live up to expectations though what implications will this have on the rest of the Dahoor area. surely failure in this well ( or less pleasing result ) will have implications on the second well. Georgia would be a good example of this
.................................................................................................................................................
From: peter@okapventures.com
To:
Date: Thu, 10 May 2012 18:58:30 +0800
Subject: Re: puntland duster
PL - Disagree with you technically, commercially and economically - you may well be right from a market perspective because of the nature of the short term investors - no one can have a view on this well until horn puts out their next update
From:
Sent: Thursday, May 10, 2012 06:52 PM
To: Peter Landau
Subject: RE: puntland duster
ME - thanks for the reply but i must admit it does not fill me with confidence. I'm no oil expert but 1 zone of 12-20m and you needing to drill deeper as you obviously haven't another yet, even though your surely at target depth does not seem good.
with only 20% of this well going to range surely more than 12-20m is needed to please the market
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From: peter@okapventures.com
To:
Date: Thu, 10 May 2012 18:32:57 +0800
Subject: Re: puntland duster
PL - What if we haven't drilled for a fair few days because we had to fish out a bit ( twice) - your assessment below is wrong and we already have one zone that will be commercially flow tested and may have a second as we drill for at least another 8 days
From:
Sent: Thursday, May 10, 2012 06:25 PM
To: Peter Landau
Subject: puntland duster
hello
ME - can you tell me how long till you announce this. Been in many oil companys and the ones with long delays, lots of silence and aren't willing to tell the results till TD, are the ones which always announce dusters. Clearly if you had actually found anything you would have announced it by now so why keep people in limbo. people put a lot of money into exploration companys, so to just leave them in limbo i find somewhat distasteful.
Thanks
Good Morning America..
Posted by Urban Trader well worth a read:
I had a long chat with a friend who is also invested in RRL, RMP, HRN and more importantly Shabeel.
We talked about whether or not we thought Shabeel was duster and I thought I would share some of our comments.
--
HRN is on a tight timescale with the first two drills because they have to satisfy the terms of the PSA.
Now, more than ever this is important because I imagine the Puntland Government has companies lining up to take over in the event that the PSA is breached - and money talks, not loyalty
HRN encountered a potential pay zone of 12-20m section of oil and gas shows indicated by a petrophysical analysis of downhole electrical logs - This was not expected
HRN tried a wireline formation tester but this was unsuccessful (look at my link to wireline formation testers at the bottom of this page) - but this was unsuccessful.
This to me suggests that the oil is there. So what if a wireline formation tester was unsuccessful. There are a plethora of tests that will succeed of fail depending on how the oil is trapped.
BUT - and here is the important bit. HRN cannot afford to hang around performing lots of open hole tests because time is running out and they have got 2 drills to complete to fulfil the terms of the PSA. Don' forget, as per the RNS of Feb 23rd, 2012 - "Puntland Government has granted an extension of the first exploration period expiry date to October 17, 2012" That gives us 5 months to complete this well and the next well.
So, they decide to drill on and test later after they have got to TD and cased the well.
Also, the primary target is of much more interest because this confirms an extension of the Yemen basin.
WHY - because they can be drilling the second well whilst testing the first.
--
Now let's look at the wording of the RNS of April 11, 2012
"We are encouraged by the results to date and pleased that we have confirmed the presence of an active petroleum system in the Dharoor Valley. We look forward to drilling ahead into the primary objectives of the well and hope to confirm the shallow prospective zones by testing in the near future."
Compare that with the wording of the RNS of March 7, 2012
"While we are encouraged by the hydrocarbon shows in the well, there is still a great deal of information which must be collected before we are able to properly evaluate the results to date. We look forward to reaching the main objectives and appreciate the continued support of the Puntland Government and the local residents."
this wording suggests to me that HRN was more bullish in April than it was in March but they are a lot more restrained in their wording as opposed to PLs fireworks and dancing because he's found a few drips under his car.
I suspect we're going to here great news from HRN whether or not the oil is commercial.
Also, if HRN had found anything to suggest it was not worth continuing with Shabeel-1 - surely HRN would plug and abandon and move on to the next well sooner rather than later, or done additional seismics or whatever they deemed was needed because that 5 month window is closing rapidly. So the fact that they are still drilling is a very positive sign.
Worst case scenario
None commercial oil, but an active petroleum system and more analysis can give us a better indication of where to drill and how deep
Best case scenario
20-25m payzone in addition to what we were targetting
And a load of shale down there that may be worth fraccing
THESE ARE ONLY MY OWN THOUGHTS AND OPINIONS.
regards
UT
---
---
Links below:
Fundamentals of Formation Testing
http://www.slb.com/~/media/Files/evalua ... s_format...
Introduction to Well Logging
Thanks b4...
Rumours of HRN RNS today.... still waiting...
sorry link broke try this...
http://www.worldstocks.co.uk/forum/index.php
sorry link broke try this...
http://www.worldstocks.co.uk/forum/index.php
RUM NOW CLOSED....
Thttp://www.worldstocks.co.uk/forum/index.phpRY INSTEAD...
Basically Range orientated but mini forums set up for other stocks worth a look... TTT
RUM NOW CLOSED....
Thttp://www.worldstocks.co.uk/forum/index.phpRY INSTEAD...
Basically Range orientated but mini forums set up for other stocks worth a look... TTT (told ya rum was going mental lol)
Hi All..
Markets C£$P yesterday..
Rumour mill going mental today.Post by Trading Faces today on RUM and worldstocks...(15th april new parliament opening in Puntland)
Re: THE MADRID CONNECTION
Wed Apr 11, 2012 4:18 pm
ok,
only 10 minutes left of open Market so here goes.
Eastman is now in Madrid. Landau is in Dubai on way to Madrid ...
probably answering all these daft emails.
Why are they both going to madrid.
Answer here
http://screencast.com/t/zzgls4IitH
http://www.bbc.co.uk/news/world-africa-17269620
Lets hope it all adds up guys...Be Lucky TTT
More from sahara traveller....We are all learning...
Now, you all have to go to the AOI latest UBS presentation on the Puntland Dharoor Block slide where it has Seismic graphs. We will be analyzing the 2D labeled Line AOC-08-052. http://www.africaoilcorp.com/i/pdf/UBS-March-2012.pdf
1) Colored Lines Explanation: (Please look at the Shabeel fault where it looks like an inverted cone between two black vertical diverted lines). I mean the the one on the left, not the small ones.
There are four colored anticlines: Dark Blue, Light Blue, Dark green, and Light Green. These are considered as possible Traps as they are shales. You can also notice that they have a disconnected continuation to the other similar colored lines beyond the black verticals. This is because they have been faulted and anticlines or dome like have been created because of the pressure being squeezed from the bottom of that cone and from the sides. You can clearly see that there are no domes on the sides of the black lines, more like normal lines. Of courses between other black lines you can see a similar dome lines for same reason.
Hope you all understood this piece.
2) Turonian / Dark Blue Dome or anticline:
The Turonian formation is at 1500 meters deep (where the first horizontal line is). The really dark black and red lines just below the blue line. These are possible source rock (limestone, and other types of stones) but really condensed that make it hard for anything possible to penetrate through them. They have confirmed that they did not find any shows there whatsoever. Now, please don’t assume that all red and black lines are oil barring stones. It just shows the type of stones there.
3) Light Blue Line:
This cap/dome/anticline is just below the 1500 meter mark!!! I know you are saying it looks like 1600mark. Now look at the space between this line and the dark green line below or the L Cret Carb mark (2000). That is 400M. The nature of the colors between these two lines shows scattered red and black but connected lines (not thick though). This tells that the stones are not condensed and hence if there is HC they can flow because the stones or the source rock is porous and permeable.
4) L Cret Carb Mark:
That is about 2000M where the Qishn formation is. The section between this mark and the light green light has two interpretations: If you look at the left half of that section, you can see a condensed section which if oil barring this can be a reservoir. The second half is similar to the section we described above, more porous rock. If the dark green line above that was fractured flow can go upwards and spill to link with the 400M section.
5) MJ Uncf section:
This is below the light green line. The source rock is everywhere with no continuity but can still hold oil and gas. It looks very mixed and might not be easy to extract . But the good thing with this inverted cone is good pressure on the sides and closes at the bottom basement. I don’t think they anticipate much from this section unless there is enough pressure that will allow the distributed HC to migrate to the above sections (of course if the rocks are HC barring). They have said they are just going there for the heck of it.
6) Shabeel North:
Why are they drilling just beside that black vertical line? It is the continuation of the dome created in Shabeel. You can see that the lines in that wide section trends upwards all the way to the vertical line at shabeel creating all that pressure. The wide section going right horizontally about 40Kms, if HC proved in Shabeel, can be massive as most of it is not condensed stones and from the looks of it horizontal drilling can be enough from Shabeel North and the oil will flow. Hence they are going to drill it at the extreme left of that section.
Conclusion:
I think these guys know what they are doing and I hope they have got some logs from Yemen to compare the geology as they drill because that will confirm that Yemen blocks extend past the Gulf. They have drilled into Shabeel fist instead of the large section because it shows that there is more pressure and hence the potential of oil (if there) commercial flow would be higher.
I am happy to answer questions as time allows. Hope you enjoy the read and gives you insight for your future investments as well. I am sure you will be looking at other stocks.
Visit this image also as it gives good idea http://www.africaoilcorp.com/i/maps/Pun ... graphy.jpg. Be careful that is thickness in feet and not depth. So you have to add them up and convert to meters
B4..
IMO The most important part of the post.COMMERCIAL OIL..The rest is for the more intelligent guys/gals...lol..
Lets go back again to march 7 announcement. They explicitly said WORKING (emphasis here) hc system. They could have just said hc shows which can mean motor oil on sand. Why would they say working? This technically would mean that enough fracturing and pressure has allowed hc to accumulate. They r lucky that the seal at 1600m was intact. Hence no migration to surfacewhich mean commercial oil. Otherwise how can it move..
It should be an interesting week with all eyes on the US markets..
atb TTT..
And his follow up post...
Thanks for all your comments. I am not here to ramp or de-ramp. I am not sitting on a rig or in Africa. I cannot disclose what I do but I have reviewed lots of wells and development programs in the profession I work in. Some have hit, some u can saying they don't know what they are doing.
Lets go back again to march 7 announcement. They explicitly said WORKING (emphasis here) hc system. They could have just said hc shows which can mean motor oil on sand. Why would they say working? This technically would mean that enough fracturing and pressure has allowed hc to accumulate. They r lucky that the seal at 1600m was intact. Hence no migration to surfacewhich mean commercial oil. Otherwise how can it move.
There r two scenarios here:
1) the 400 m has extended into the qishn formation (which was reported being at that depth on the 19th) and hence nothing new to report as they mentioned. Further drilling can confirm a longer column. This has happened before like with gkp so it is not out of the ordinary.
2) nothing to report can mean the qishn formation is empty and hence all the oil is in that 400m. I speculate that there is nothing more down there unless there is another non fractured formation at the 3400 level. As I said most wells in Yemen are between 5000 and 7500 feet. The same is the new well discovered in Kenya.
Hence mike if Kenya and shabeel have the same pay geology, I don't think a 10km would be significant. I would be more worried about jka where they have surface seeps as they might have a harder time finding the intact reservoir.
I was invested in a company called vast exploration. Shallow seeps, komentan shows, etc... 900 m column. But guess what not commercial in the bottom where the 900 was. No cap above that. It seems that the fractured cap is deeper and now they need to drill another well with NIKO. Drill site was wrong.
I think and just speculating, 400m is a full pay. A first test should pump over 25000 barrel if good pressure. Those saying billions they probably run the scenario I explained earlier.
40% probably of success is there now for a reason. Working hc system not just hc shows.
U re free to copy and paste
Posted on RUM and world stocks by sahara traveller...
Although I have been reading these boards for months but this is the
first time I post here.
I have spent the last weekend in our part of the world here looking at
some information that I have at hand (well analysis and plans) in
additional to some technical knowledge of having to look at wells on a
daily basis for so many companies, their drilling plans, casings,
etc….
On Feb 23rd, they reached 1,230 meters and cased which means they have
gone through the first formation Jesomma (Shale / Sandstone /
Siltstone).
On March 7th they report that they have reached 2002 meters which
means they were just at the top of the Qishn primary target. The
interesting in that release is that they have said nothing encountered
above 1600M which is just above the Gumburu formation containing
(Shale / Siltstone/ Sandstone/Limestone). Then they say they have
encountered HC for 400M up to 2002 which is inline of where most
producing wells in Yemen Are. 80% of wells in Yemen range between
5,000 to 7,500 feet. Before they case and go into the Qishn, they must
do a wire-log to make sure they adjust based on shows (such as gas)
and any potential influx. At the same time rumors started flying that
it is commercial and I believe they have commercial oil in that part
and I will explain why.
On March 19th, they have reported a depth of 2,384 which mean they are
in the primary well. The plan is to do wire-line logging after TD of
3,800 m. However, nothing can prevent them from doing an intermediate
wire-log if they have encountered HC in the Qishn formation before
they proceed. I know I might get smacked by most of you on this. They
said they have nothing to report which means they are telling us the
primary reservoir has nothing!!! No (they already did before), Where
did it go? Guess what it has already migrated to the top 400M before
this formation as the closure is at 1600M instead of their anticipated
2100m. This means that the Qishn is a fill to spill up to the first
limestone at 1600. Remember that their data is based on 1950s and
1980s 2d seismic.
If we take the drilling rates between the above it is about 27M per
day which puts us today at 2900m give or take. The second target is at
3400m. I believe that on March 19th they have surpassed the Qishn
formation before its anticipated end at 2500 because they have put a
wire-line now and they know. If we get a report this week saying they
have encountered HC again during Amla’ah/Marib/Hammnlei formation this
means this wells if loaded up to 4,000m and would confirm offshore as
well.
Limestone starts again at 2500 which can be fractured to spill. At
3600 is the start of the basement which can be fractured.
When someone said they have found billions. This would have been
interpreted by people and engineers that since the Qishn formation has
already spilled up to the closure at 1600M, what can prevent this
happening from the basement up to the closure!!! Fill to Spill.
Hope the above helped
Somali pirates..
Private security blast pirates attempting
To board rig..
http://www.liveleak.com/view?i=5e2_1333668975
O/T Perspective...
Posted by Brett K last night on RUM
I have spent the last few months wishing away the time for range to make me money. This morning my girlfriend of 5 years was killed in a car crash.
I wish I'd spent the last few months telling her how much I loved her.
Thanks b4 hope you dont mind i posted that info on RUM.
TTT
I spoke to the queen today and she would like to share this link with you..
http://uk.advfn.com/news/PRNUS/2012/article/51900009?xref=newsalert
I think she is getting excited about the stockmailer finally going out in the next couple of days..
She just shouted out AMERICA F$%K YEAH..
Be Lucky Tony
The latest RNS is just to back up the recent placement..
The Company is also pleased to announce a strategic institutional placement of 150m shares at
£0.125 each to raise £18.75m. Importantly 100m of the shares have been placed to a major US and
European fund management group, with considerable expertise in the oil and gas sector. Admission
of the shares on AIM is expected to be Tuesday, 27 March 2012 with Range’s shares on issue then
being 2,271,766,648...