Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
AEZ - BEXP well is 8 miles from AEZ property. The new AEZ well is drilling and result will be published in 45-90 days. I am holding my breath as it could be a gusher and put AEZ on the map.
Here are some cut and paste comments from a recent report:
Highlights
We are reiterating our BUY rating on AEZ shares and raising our price target to $6.00 per share from $5.00. Our target is based on our revised risked NAV valuation for AEZ.
•
Last night, Brigham (BEXP-$14.43-NR) announced a very impressive 3,807 boe/d 24-hour rate on its State 36-1 #1H well in the Bakken Shale play. The well is in Williams County, ND and is the closest recent well completed near AEZ’s Goliath project.
•
No more than 8 miles away. We have spoken with AEZ management today and they estimate that the well is only about 8 miles away from the southwest edge of Goliath.
•
The size of the BEXP well and its proximity to AEZ’s acreage combine to further increase our comfort with the prospectivity at Goliath. As a result, we are nudging up our credit (chances for success) for Goliath acreage in our RNAV to 30% from 25%. We are also increasing our per-well EUR (expected ultimate recovery) assumption to 500,000 boe from our prior 415,000. In particular, the fact that BEXP has been able to achieve increasing well results the closer it gets to Goliath increases the chances, in our view, that AEZ’s acreage will work.
•
Completion techniques vs. geology. The State 36-1 #1H was completed using 30 frac stages. The well also exceeds the 2,240 boe/d average of BEXP’s recent long-lateral, high-frac wells, although most of them have somewhat fewer stages. At the current time, it is difficult to ascertain how much of BEXP’s improving performance stems from its use of steadily increasing frac stages, and how much can be attributed to the geological trend at the well location. However, since the geology is clearly sufficient to generate wells far above the assumptions we have used in our past RNAV, we consider the new well to be a sign that our valuation to date has been conservative.
•
The Company’s own well, the Tong Trust 1-20H, is on schedule. Management indicates that drilling has gone smoothly to date. Given the 30-45 days expected drilling time, plus the 2-4 weeks of expected completion time, results could be available sometime from early February to early March 2010, assuming no external issues like severe weather intervene.
Reiterating BUY Rating and Raising Price Target
We are reiterating our BUY rating on AEZ shares and raising our price target to $6.00 per share from $5.00. Our target is based on our revised risked NAV valuation for AEZ of $6.10 per share.
Two Levers to Our Valuation Shift – Potential Well Size and Chances for Success
In our RNAV calculation, we are nudging up our assumption for the chances of success in AEZ’s Goliath acreage to 30% from 25%. We are also increasing our per-well EUR (expected ultimate recovery) assumption to 500,000 boe from the 415,000 figure that we have used for AEZ over the last three years. (We note that our RNAV does not yet incorporate AEZ’s most recent 16,100 net acre acquisition of Bakken acreage to the north of its original Goliath position.)
Big Brigham Well Near AEZ’s Acreage
Last night, Brigham Exploration (BEXP-$14.43-NR) announced a very impressive 3,807 boe/d 24-hour rate on its State 36-1 #1H well in the Bakken Shale play. The well is in Williams County, ND and is the closest recent well completed near AEZ’s Goliath project.
Our Conclusion – No Guarantees, but an Encouraging Sign
While we cannot say for certain that AEZ’s wells at Goliath will be successful until a new well is actually completed there, the BEXP State well gives us more breathing room to contemplate upside. The key takeaway is that the State well makes it easier for us to envision EUR upside to what we believe is our conservative valuation of AEZ’s Bakken potential.
Possible Implications of the New Well
Closest Well Drilled to Goliath So Far that Uses Current Completion Techniques
•
No more than 8 miles away. We have spoken with AEZ management today and the Company estimates that the well is only about 8 miles away from the southwest edge of Goliath. It is also about 15 miles away from AEZ’s next planned drilling location in the play, which is the Ron Viall 1-25H well. Last night’s BEXP well is somewhat further west than the current test well AEZ is drilling, which is the Tong Trust 1-20H.
•
We are not geologists, but our perception is that the State 36-1 #1H well takes off the table a decent-sized piece of the uncertainty of Goliath’s potential. Historically, the Nesson Anticline, a geological feature running north/south to the east of Goliath, has been the focus of production in the legacy Bakken oil play, which was drilled vertically. Not surprisingly, the industry’s recent attempts to prove up the Bakken’s horizontal potential have stuck fairly close to the Anticline, which occupies only a relatively small area within the enormous Williston Basin, which covers more than half of the state of North Dakota and a good slice of Montana as well.
By our reasoning, with hundreds of wells of legacy production along the Anticline (to the east of Goliath), and now a very large IP rate at the State 36-1 #1H (to the southwest), the likelihood of at least some part of Goliath, in which AEZ holds a 102,000 gross acre position, being able to produce wells that exceed or at least meet our model assumptions (previously 415,000 boe/well) seems to be increasing.
•
Completion techniques vs. geology. The State 36-1 #1H was completed using 30 stages. The well also exceeds the 2,240 boe/d average of BEXP’s recent long-lateral, high-frac wells, although most of them have used somewhat fewer stages (roughly 6-10 less). At the current time, it is difficult to ascertain how much of BEXP’s improving performance stems from its use of steadily increasing frac stages, and how much can be attributed to the geological trend at the well location.
AEZ’s Tong Trust Well Is Currently Drilling – the Ron Viall Well Is Next Expected Location
The Company’s own well, the Tong Trust 1-20H, is on schedule. Management indicates that drilling has gone smoothly to date. Given the 30-45 days of expected drilling time, plus the 2-4 weeks of expected completion time, results could be available sometime from early February to early March 2010, assuming no external issues like severe weather intervene.
Ladenburg
The Big Picture
In the event that AEZ’s Goliath acreage turns out to be largely successful, it cannot be overemphasized how important it is that the Company has been able to not only retain so much of its Bakken acreage, but increase it during 2009. AEZ bought out two smaller partners’ share in the play last year, netting AEZ about 28,000 incremental net acres. In addition, it also last year acquired about 16,100 new net acres to the north of Goliath in what the Company is calling the Titan area. At present, AEZ’s gross acreage position stands at 102,000 and should be about 68,500 net after Halliburton (HAL-$31.65-NR) earns 7,500 net acres in return for drilling and completing the Tong Trust well. Importantly for its future control over developing the play, we believe that AEZ has also retained operatorship over a solid majority of its acreage, as well.
Other Bakken Drilling
As a reminder, drilling in Williams County by other operators includes activity to the west, where Newfield (NFX-$50.65-NR) has planned to drill the Heidi 1-4H,
at the western edge of Goliath. AEZ has a small working interest in the well and plans to participate when it goes forward. To the north, St. Mary (SM-$36.77-NR) and several private companies are also drilling.
Fetter Update on the Way
As a reminder, Halliburton has a 5-well recompletion deal with AEZ in Fetter field. To date, 2 of the 5 wells have been announced, and had 80 boe/d and 563 boe/d IP-s (mostly oil) from the Niobrara. We anticipate that the Company will have additional updates on its Fetter results fairly soon.
Primary Risks
We Are Quick To Remind Investors that AEZ Is Still a Very Early-Stage Company
There is no assurance that the next well drilled in any of its plays will give results so conclusive that they will significantly clarify the aggregate play’s value.
The primary risks of an investment in AEZ shares include (but are not limited to) the following:
Like any E&P, weakening commodity pricing is a significant risk factor; other risk factors include poor drilling results; difficulty in controlling service costs or in securing service and/or infrastructure availability; difficulty in marketing crude oil and natural gas produced; the possibility of dilution from future offerings of equity; difficulty accessing the credit markets in the future; difficulty in closing intended divestment transactions; and, further difficulty in converting short-term investments such as auction-rate securities into cash. See Appendix A for additional risk factors.
Fortuna - Bobwins, I sold all of my shares on the news this morning. I have to thank you yet again for another winner. I think the stock will bump alond while they are in the construction phase and I am going to chase more VMC PSL plays when the list rolls out over this weekend.
Thanks!
Kipp
Fortuna Silver Mines Inc. (TSX.V: FVI / Lima Exchange: FVI) is pleased to announce that the Company has signed a commitment letter to enter into a US $20 million senior secured revolving credit facility with The Bank of Nova Scotia. The facility will have a 2.5 year maturity. The proceeds of the facility may be used for general corporate purposes, including the development of the San Jose Project in Mexico.
The facility is intended to complement Fortuna's strong cash position and provide additional financing flexibility during the construction stage at San Jose. On December 14, 2009 the Company announced it had obtained all the required construction and environmental permits for the operation of a 1500 tonne per day underground mine. The San Jose pre-feasibility study is scheduled to be completed in the first quarter of 2010, with construction activities to commence shortly thereafter.
Fortuna Silver Mines Inc.
Fortuna is a growth oriented, silver and base metal producer focused on mining opportunities in Latin America. Our primary assets are the Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.fortunasilver.com.
Bobwins - Remember Nautilus????
Nautilus Minerals Inc. (TSX:NUS - News; AIM:NUS) (the "Company" or "Nautilus") announces that the final Environmental Permit for the development of the Solwara 1 Project was received on December 29th 2009 from the Department of Environment and Conservation (DEC) of Papua New Guinea for a term of 25 years, expiring in 2035. The Environmental Permit in Principle was issued in September 2009, as announced previously.
CEO Steve Rogers commented, "The Environmental Permit is the culmination of many years of work by Nautilus and the DEC and paves the way for processing of the Company's Mining Lease Application. The project team is working with the Government of PNG to complete the final stages of this process."
Regional Joint Venture
Nautilus continues advanced discussions with several parties in connection with a Regional Joint Venture covering some of Nautilus' tenements in the territorial waters of Papua New Guinea.
About Nautilus Minerals Inc.
Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulphide deposits and is currently developing its first project. The Company's main focus is the Solwara 1 Project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean. Nautilus is listed on the TSX and on AIM, and has among its largest shareholders two of the world's leading international resource companies, Anglo American (11.1%) and Teck Resources (6.8%). Metalloinvest, one of the largest and fastest growing mining and metallurgical holding companies
AEZ Gunning for Old Highs!
http://stockcharts.com/charts/gallery.html?s=aez
They did a secondary at $3.50 a few trading days ago. The stock dove from $4.30 down to $3.45 and is rocketing through the recent high to $4.44. They now have cash to drill and I really think they will hit some good wells. They have 100's of 1000's of prime acres to drill and the new frac technology to get at the oil and gas.
AEZ - Wunderlich starts American Oil & Gas (AEZ) at buy, believing
it's a stealth way to play on potential drilling in Bakken/Three Forks acreage.
AEZ will likely begin drilling in the next few weeks. "The company has been
able to build a strong prospective acreage position in Williston Basin and
should soon begin to drill on the play to potentially unlock its value," writes
firm. Adds it expects AEZ to pick up a partner by year-end to lower initial
drilling costs. Adds AEZ's Bigfoot shallow gas play could be substantial, with
multiple wells drilled in 2010. AEZ up 8.8% premarket at $3.70. (AMC)
AEZ - American Oil & Gas
I have owned this stock for a long time. I loaded up on it in the melt down and it is paying off. They are using new frac methods to get a oil in Wyoming and North Dakota. The wells produce ngas and oil. I think it will get back to old highs as they prove out the new methods. Kipp
American Oil & Gas Announces Second Successful Fetter Field Niobrara Re-Completion
Wallis 6-23 Well Flows 564 BOE per Day
Press Release
Source: American Oil & Gas, Inc.
On 8:45 am EST, Monday November 30, 2009
DENVER, CO--(Marketwire - 11/30/09) - American Oil & Gas, Inc. (AMEX:AEZ - News) announced that its Wallis 6-23 well has been successfully re-completed in the Niobrara formation and produced 455 barrels of oil and 656 mcf of natural gas, or 564 barrels of oil equivalent (boe) per day during a recent 24 hour flow back period. The Wallis 6-23 well is the second well in a re-completion program expected to include a total of five wells under the terms of a previously announced participation agreement at American's 53,000 gross (33,000 net) acre Fetter field project, located in the Powder River Basin of Wyoming.
Pat O'Brien, Chairman and CEO of American, stated, "The results of the Niobrara re-completion in the Wallis 6-23 well exceeded our expectations. We were successful in increasing the volume of proppant in the frac to over three times that of the Hageman 11-22 well and are obviously pleased and excited about the results, especially when taking into consideration that this is not a horizontal well. These results, in conjunction with the results of the Hageman 11-22 well, which is currently producing at a rate of approximately 90 boe per day, strongly support our belief that a number of formations in the field, including the Niobrara, have commercial potential. Preparations are underway to fracture stimulate the Niobrara formation in the Hageman 16-34H well, which is the third well in the program."
American Oil & Gas, Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region. Additional information about American Oil & Gas, Inc. can be found at the Company's website: www.americanog.com.
cartonet, I will send an email to IR. I just started digging hard today due to my additional purchase of shares on Friday. I like everything I have seen so far. The management team is the real deal. I just want an explanation of the sylvinite vs, kainite issue because it is unique to the Ethiopian potash formation. The hot springs and volcanic activity they talk about, coupled with no water impervious layer are super risky for conventional mining. The other issue we should be braced for is big dilution in order to jump another 10-15 million bucks.
If you beat me to the answer to the ore composition question please share it. I am traveling in KS and NE this week and will check in early and late.
I really am excited about this investment!
Good Luck!
Kipp
Texas Ripper - AAA.V
I am not avoiding anything. You have to get a brine solution out of the ground, put it in a series of evaporation ponds, and what is left is not MOP (muriate of potash). It will need a lot more processing to get the impurities out if you are going to get $500/ton for it. If they plan to sell SOP or a Kmag type of product the price per ton is considerably less.
This is a legit question. The Ercosplan 43-101 addresses the problem on pages 78-88 found right on the Allana website.
It is also a fact that alluvial flooding is a major issue for a conventional mine.
There is no doubt a huge potential here, and I am heavily invested, but the facts are the facts.
Kipp
Just 10-11-12 - AAA.V
I am holding a nice amount of AAA. I need to understand 2 things.
1. How will they fund the next $10-15 million and how much dilution will we face?
2. What are the issues surrounding the mine plan and how do they deal with 1/3rd sylvite ore, and 2/3rds kainite ore?
I think the stock will appreciate more in the near term. I may take advantage of that and sell some shares to lower my risk.
Kipp
Magnesium problem in potash solution mining?
http://www.agapito.com/An%20Overview%20of%20the%20Geology%20of%20Solution%20Mining%20of%20Potash%20in%20Saskatchewan.pdf
In this paper, the term “sylvinite” is used to describe the mixture of sylvite (KCl) and halite (NaCl) that is
the source of the “potash” sylvinite may also contain clay and anhydrite and dolomite crystals that are
collectively identified in the assay reports as “water insolubles.” Other impurities include carnallite
(KCl.MgCl3.6H2O) and kieserite (MgSO4.H2O). The presence of magnesium is unfavourable and
concentrations over 0.25% magnesium can impact plant performance and require special non-standard
processing. In the historical record, assays for magnesium (Mg) and/or carnallite are listed; however, the
“carnallite” assay value is a calculated value based on the equivalent magnesium chloride (MgCl2)
content. The equivalent MgCl2 content is 3.91 times the Mg content. The equivalent mineral carnallite
content is 11.42 times the magnesium content or 2.92 times the MgCl2 content. Throughout this paper
carnallite content is reported as equivalent magnesium chloride (MgCl2).
Solution Minng For Potash
http://www.westernpotash.com/about-potash/solution-mining
All attempts to use conventional mining in Ethiopia ended with flooding. If solution mining is used, it is clear it is effective with sylvite, BUT WHAT ABOUT KAINITE???? Everything I am reading says magnesium is a big problem in solution mining.
Kipp
AAA.V 43-101
From the 43-101 posted on the AAA website.
Pages 77-87 talk about the sylvite vs. Kainite problem and the fact there is not currently a solution mining method for the kainite. Yes, I agree there is a resource here, but I want to know the plan to extract it, process it, and sell it. If the last guys that tried to mine it failed due to flooding of the shaft/mine, conventional and open pit may not be viable. If solution mining will only work for the sylvite, 2/3rds of the reserves are worthless.
http://www.allanaresources.com/docs/Allana43101reportMarch09.pdf
You can never read too much!
Kipp
AAA.V 43-101
Pages 77-87 talk about the sylvite vs. Kainite problem and the fact there is not currently a solution mining method for the kainite.
http://www.allanaresources.com/docs/Allana43101reportMarch09.pdf
KCL Ore Impurities
This is a really good report. My radar is locked on the AAA.V ore compesition. Kainite may be a major problem???? I am still researching.
"These impurities further complicate the deposits and require specialized, and often costly, processing techniques to efficiently mine the ore. Specifically, these impurities may consist of salts such as kainite, langbeinite and kieserite."
http://www.canasiaind.com/i/pdf/Global_Potash_Supply_-_A_Focus_On_SK_Exploration.pdf
page 10 and 11:
Continuity of ore: The continuity of the ore refers to the extent to which the
ore body is an unbroken layer underneath the ground. Continuity is also an
indicator of ore-grade mineralization, as it determines the extent of KCl deposits
within the potash bed. Initial drilling tests are typically used to assess continuity
by sampling closely spaced drill holes to determine indicated resources.
Type of ore: The primary potash-bearing ore is sylvinite, which is made up of
sylvite and halite. It is the most desirable ore due to its high KCl content and the
relative ease with which it can be extracted under standard conventional or
solution mining. Carnallitite is another potash-bearing ore, primarily composed
of carnallite and halite. The carnallite in the ore has a relatively large
magnesium content, which adds additional complexities when processing due to
its dissolution properties. Carnallite is composed of approximately 17% K2O and,
therefore, typically has a much lower grading then sylvite.
Extent of impurities: There are a number of other potash salts that may also
exist within deposits. These other salts are typically not seen in the deposits in
Western Canada, but are more common in international deposits. These
impurities further complicate the deposits and require specialized, and often
costly, processing techniques to efficiently mine the ore. Specifically, these
impurities may consist of salts such as kainite, langbeinite and kieserite. In
mining sylvite for potash, the occurrence of carnallite is also considered an
impurity, as its presence significantly lowers recovery levels. In general, an ore
deposit that contains less than 1% magnesium (a large component of carnallite)
is acceptable and reasonably mined using cost-effective underground or solution
mining techniques. All of the six junior Canadian potash explorers pursuing
sylvite mining have found relatively minimal carnallite presence in their deposits.
AAA.V Podcast worth a listen!
http://www.investingsuccess.ca/index.php?id=3896
AAA.V Podcast worth a listen!
http://www.investingsuccess.ca/index.php?id=3896
AAA.V - Investing Success
This is a link to a website that reported on AAA back in July and updated it November 2nd. They seem to have information early and it might be worth monitoring for early news. Kipp
http://www.investingsuccess.ca/index.php?id=3897
Potash Minerals/Ores %K2O
Sylvite KCl 63%
Sylvinite KCl 35%
Carnallite KCl 17%
Kainite KCl 19%
Langbeinite 23%
Polyhalite 16%
Alunite 11%
Ethiopia orders 12 A350 aircraft from Airbus
AAA.V employees can fly in style! Ethiopia may turn out to be one of the more successful African nations.
Ethiopian Airlines orders 12 Airbus A350 XWB aircraft in first deal at Dubai Airshow
By Adam Schreck, AP Business Writer
On 8:49 am EST, Sunday November 15, 2009
DUBAI, United Arab Emirates (AP) -- Ethiopian Airlines confirmed an order Sunday for 12 Airbus A350 XWB aircraft in the first plane sale to emerge from the Dubai Airshow.
The deal officially pushes Airbus' order book for the wide-body plane past the 500 mark. But it also signals a muted start for the Middle East's premier aviation fair, as the order has been expected for months and fell far short of the eye-popping deals inked by Gulf carriers at the start of the last show two years ago.
Airbus President and Chief Executive Tom Enders said it was nonetheless a welcome sign in an otherwise difficult commercial aviation market.
"We all believe 2010 and 2011 will be still quite challenging," he said after signing the deal. "But I think particularly this airshow is encouraging ... for seeing that there is growth, particularly in the Middle East, in Africa."
Toulouse, France-based Airbus valued the deal at $3 billion at list prices. Buyers typically negotiate discounts for bulk orders, however, especially in tough economic times. Delivery of the planes is scheduled to begin in 2017.
Sunday's signing by the CEOs of both companies solidified a deal anticipated by a memorandum of understanding announced in July.
It marks the first Airbus purchase by Addis Ababa-based Ethiopian, which primarily operates a Boeing Co. fleet.
Airbus said it now has 505 orders for the A350, a new extra wide-bodied airliner designed to compete with Boeing's long-delayed 787 Dreamliner.
Earlier in the day, Rolls-Royce said it reached nearly $2 billion worth of deals to sell aircraft engines to power Airbus jetliners for Air China and Ethiopian.
The African carrier's order for the Trent XWB engines that will be used on its new A350s is worth $480 million, Rolls-Royce said.
The British engine maker said the Air China order covers Trent 700 engines to power 20 A330 aircraft being delivered starting in 2011. Rolls-Royce said that particular deal is worth $1.5 billion at list prices.
Ethiopian's order was the first major aircraft purchase at this year's Dubai Airshow, which began Sunday.
Plane makers and airlines entered this year's event with low expectations in light of the economic meltdown, which has eroded demand for air travel and left many carriers strapped for cash.
Allana Risk - Sylvite vs. Kainite Ore ????
I went into the Dundee report and copied and pasted the parts dealing with ore quality. One big question in my mind is how much of the resource will be identified as Sylvite and how much is Kainite? This one sentence gave me serious heartburn:
"While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining." 2/3rds of the reserve are listed as Kainite and they are basing everything on a solution mine? They have no idea if Kainite can be recovered????
And then there is this part, but no mention of what form the ore is: "Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash horizon at 680m below the surface (see Exhibit 7)."
??????????????????????????
Allana’s Current Resource The Danakhil evaporite basin is one of the largest evaporite basins in the world, roughly twice the size of Russia’s Ural basin with similar geology. Allana’s NI 43-101* performed by Ercosplan (a reputable German engineering firm who specializes in potash engineering) showed an Inferred Mineral Resource of 105.2 million tonnes of potash mineralization with a composite KCL grade of 20.8% or 22 million tonnes of KCL equivalent. The Inferred Resource is broken into two sections:
• Sylvite: 31.3 million tonnes with a KCL grade of 25.4%
• Kainite: 73.9 million tonnes with a kainite grade of 61.7% (18.8% KCL grade)
In general, the assumptions used by Ercosplan are fairly conservative and only infer a resource for a radius of 750 meters from each drill hole whereas those for the potash
juniors in Saskatchewan range all the way up to 5,000 meters. The NI 43-101 only covered 10% of Allana’s property as it only used the historic drill holes from the northwest of Allana’s property (see Exhibit 5). Allana will be drilling to upgrade its inferred tonnes to measured and indicated and does expect to expand the section’s resources, the NI 43-101 suggests there could be as much as 10 times more. This would be enough to support a solutionmining operation (seeAppendix E), and is the
company’s primary focus. Allana is also targeting a much larger strike in the center of its property, discussed in the “Allana’s Potential Resource Section” on page 9.
Description of Current Inferred Resource
Potash is a general term used to describe various potassium-bearing ores. For a detailed explanation please refer toAppendix C.Allana’s current inferred resource is primarily a combination of sylvite and kainite. Ores are typically described in terms of their K2O content (a measure of the purity of the potassium contained within the ore).
Sylvite* is the most common form of potash ore and has a K2O grade of ~63%. Because of its high K2O concentration it is the most desirable potassium-bearing ore. Kainite is another form of ore with a much lower K2O concentration (~19%). It can
be found in parts of Europe and Russia. In fact, in earlier days, the German potash industry used tomine kainite due to its relatively low processing requirements.While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining. Kainite will likely be used to produce potassium sulphate or SOP, used for the cultivation of chlorine-sensitive cash crops
(tobacco, fruits & vegetables) which can be burnt by conventional potash or MOP (muriate of potash).
Allana’s Potential Additional Resource Two previous drill holes (drilled by Parsons’ in the 60s) in the center of Allana’s
concessions are extremely promising. Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash
horizon at 680m below the surface (see Exhibit 7). Given that potash deposits are typically found along long layers as they are the vestiges of land locked bodies of water long since evaporated, it is reasonable to assume that the deposit is a continuous layer. Allana is planning on performing seismic 2D surveys* of the potential site in 2010 and drilling thereafter to see if the deposit is a favorable alternative to their
current location.
APPENDIX E: SOLUTION MINING / SOLAR
EVAPORATION PROCESS
There are currently three solution potash mines in production (Belle Plaine [Mosaic],
Patience Lake [Potash Corp], Intrepid Moab [Intrepid Potash]) and four companies
which use solar evaporation (Israel Chemicals, Arab Potash Company, Sociedad
Quimica y Minera de Chile and Intrepid). In solution mining, water is saturated with
salt and the resulting brine is pumped through injection wells into the underground
mine workings. The injected brine dissolves potash below the surface. As the brine
dissolves the potassium, the double saturated potassium and salt brine becomes
heavier than the salt saturated brine causing it to sink to low points in mining caverns.
Extraction wells are installed at the lowpoints to pump the potash rich brine to the
surface.
This is when the solar evaporation takes places. The potash rich brine is then placed
into evaporation ponds. Blue dye, similar to food coloring, is added to the evaporation
pond brines, to aid in absorption of sunlight. The water then evaporates leaving only
potash and salt behind. The evaporation process, requiring only solar energy, is
highly environmentally friendly. Evaporation ponds are generally lined with a synthetic
rubber to prevent the valuable brine from escaping the ponds. The end result of the
evaporation process is a bed of potash and salt crystals that is harvested using
scrapers adapted from the earth-moving industry. The crystals from the ponds are
then sent to a mill where the potash is separated from the salt by a flotation process.
The potash and salt are then dried, sorted, and processed into various agricultural,
feed, and industrial products.
Allana Risk - Sylvite vs. Kainite Ore ????
I went into the Dundee report and copied and pasted the parts dealing with ore quality. One big question in my mind is how much of the resource will be identified as Sylvite and how much is Kainite? This one sentence gave me serious heartburn:
"While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining." 2/3rds of the reserve are listed as Kainite and they are basing everything on a solution mine? They have no idea if Kainite can be recovered????
And then there is this part, but no mention of what form the ore is: "Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash horizon at 680m below the surface (see Exhibit 7)."
??????????????????????????
Allana’s Current Resource The Danakhil evaporite basin is one of the largest evaporite basins in the world, roughly twice the size of Russia’s Ural basin with similar geology. Allana’s NI 43-101* performed by Ercosplan (a reputable German engineering firm who specializes in potash engineering) showed an Inferred Mineral Resource of 105.2 million tonnes of potash mineralization with a composite KCL grade of 20.8% or 22 million tonnes of KCL equivalent. The Inferred Resource is broken into two sections:
• Sylvite: 31.3 million tonnes with a KCL grade of 25.4%
• Kainite: 73.9 million tonnes with a kainite grade of 61.7% (18.8% KCL grade)
In general, the assumptions used by Ercosplan are fairly conservative and only infer a resource for a radius of 750 meters from each drill hole whereas those for the potash
juniors in Saskatchewan range all the way up to 5,000 meters. The NI 43-101 only covered 10% of Allana’s property as it only used the historic drill holes from the northwest of Allana’s property (see Exhibit 5). Allana will be drilling to upgrade its inferred tonnes to measured and indicated and does expect to expand the section’s resources, the NI 43-101 suggests there could be as much as 10 times more. This would be enough to support a solutionmining operation (seeAppendix E), and is the
company’s primary focus. Allana is also targeting a much larger strike in the center of its property, discussed in the “Allana’s Potential Resource Section” on page 9.
Description of Current Inferred Resource
Potash is a general term used to describe various potassium-bearing ores. For a detailed explanation please refer toAppendix C.Allana’s current inferred resource is primarily a combination of sylvite and kainite. Ores are typically described in terms of their K2O content (a measure of the purity of the potassium contained within the ore).
Sylvite* is the most common form of potash ore and has a K2O grade of ~63%. Because of its high K2O concentration it is the most desirable potassium-bearing ore. Kainite is another form of ore with a much lower K2O concentration (~19%). It can
be found in parts of Europe and Russia. In fact, in earlier days, the German potash industry used tomine kainite due to its relatively low processing requirements.While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining. Kainite will likely be used to produce potassium sulphate or SOP, used for the cultivation of chlorine-sensitive cash crops
(tobacco, fruits & vegetables) which can be burnt by conventional potash or MOP (muriate of potash).
Allana’s Potential Additional Resource Two previous drill holes (drilled by Parsons’ in the 60s) in the center of Allana’s
concessions are extremely promising. Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash
horizon at 680m below the surface (see Exhibit 7). Given that potash deposits are typically found along long layers as they are the vestiges of land locked bodies of water long since evaporated, it is reasonable to assume that the deposit is a continuous layer. Allana is planning on performing seismic 2D surveys* of the potential site in 2010 and drilling thereafter to see if the deposit is a favorable alternative to their
current location.
APPENDIX E: SOLUTION MINING / SOLAR
EVAPORATION PROCESS
There are currently three solution potash mines in production (Belle Plaine [Mosaic],
Patience Lake [Potash Corp], Intrepid Moab [Intrepid Potash]) and four companies
which use solar evaporation (Israel Chemicals, Arab Potash Company, Sociedad
Quimica y Minera de Chile and Intrepid). In solution mining, water is saturated with
salt and the resulting brine is pumped through injection wells into the underground
mine workings. The injected brine dissolves potash below the surface. As the brine
dissolves the potassium, the double saturated potassium and salt brine becomes
heavier than the salt saturated brine causing it to sink to low points in mining caverns.
Extraction wells are installed at the lowpoints to pump the potash rich brine to the
surface.
This is when the solar evaporation takes places. The potash rich brine is then placed
into evaporation ponds. Blue dye, similar to food coloring, is added to the evaporation
pond brines, to aid in absorption of sunlight. The water then evaporates leaving only
potash and salt behind. The evaporation process, requiring only solar energy, is
highly environmentally friendly. Evaporation ponds are generally lined with a synthetic
rubber to prevent the valuable brine from escaping the ponds. The end result of the
evaporation process is a bed of potash and salt crystals that is harvested using
scrapers adapted from the earth-moving industry. The crystals from the ponds are
then sent to a mill where the potash is separated from the salt by a flotation process.
The potash and salt are then dried, sorted, and processed into various agricultural,
feed, and industrial products.
Allana Risk - Sylvite vs. Kainite Ore ????
I went into the Dundee report and copied and pasted the parts dealing with ore quality. One big question in my mind is how much of the resource will be identified as Sylvite and how much is Kainite? This one sentence gave me serious heartburn:
"While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining." 2/3rds of the reserve are listed as Kainite and they are basing everything on a solution mine? They have no idea if Kainite can be recovered????
And then there is this part, but no mention of what form the ore is: "Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash horizon at 680m below the surface (see Exhibit 7)."
??????????????????????????
Allana’s Current Resource The Danakhil evaporite basin is one of the largest evaporite basins in the world, roughly twice the size of Russia’s Ural basin with similar geology. Allana’s NI 43-101* performed by Ercosplan (a reputable German engineering firm who specializes in potash engineering) showed an Inferred Mineral Resource of 105.2 million tonnes of potash mineralization with a composite KCL grade of 20.8% or 22 million tonnes of KCL equivalent. The Inferred Resource is broken into two sections:
• Sylvite: 31.3 million tonnes with a KCL grade of 25.4%
• Kainite: 73.9 million tonnes with a kainite grade of 61.7% (18.8% KCL grade)
In general, the assumptions used by Ercosplan are fairly conservative and only infer a resource for a radius of 750 meters from each drill hole whereas those for the potash
juniors in Saskatchewan range all the way up to 5,000 meters. The NI 43-101 only covered 10% of Allana’s property as it only used the historic drill holes from the northwest of Allana’s property (see Exhibit 5). Allana will be drilling to upgrade its inferred tonnes to measured and indicated and does expect to expand the section’s resources, the NI 43-101 suggests there could be as much as 10 times more. This would be enough to support a solutionmining operation (seeAppendix E), and is the
company’s primary focus. Allana is also targeting a much larger strike in the center of its property, discussed in the “Allana’s Potential Resource Section” on page 9.
Description of Current Inferred Resource
Potash is a general term used to describe various potassium-bearing ores. For a detailed explanation please refer toAppendix C.Allana’s current inferred resource is primarily a combination of sylvite and kainite. Ores are typically described in terms of their K2O content (a measure of the purity of the potassium contained within the ore).
Sylvite* is the most common form of potash ore and has a K2O grade of ~63%. Because of its high K2O concentration it is the most desirable potassium-bearing ore. Kainite is another form of ore with a much lower K2O concentration (~19%). It can
be found in parts of Europe and Russia. In fact, in earlier days, the German potash industry used tomine kainite due to its relatively low processing requirements.While conventional mining and processing of kainite is a proven process, Allana will need to test for its suitability for solution mining. Kainite will likely be used to produce potassium sulphate or SOP, used for the cultivation of chlorine-sensitive cash crops
(tobacco, fruits & vegetables) which can be burnt by conventional potash or MOP (muriate of potash).
Allana’s Potential Additional Resource Two previous drill holes (drilled by Parsons’ in the 60s) in the center of Allana’s
concessions are extremely promising. Though very little remains of these holes, Parsons record’s show that the company intersected a roughly 45m thick potash
horizon at 680m below the surface (see Exhibit 7). Given that potash deposits are typically found along long layers as they are the vestiges of land locked bodies of water long since evaporated, it is reasonable to assume that the deposit is a continuous layer. Allana is planning on performing seismic 2D surveys* of the potential site in 2010 and drilling thereafter to see if the deposit is a favorable alternative to their
current location.
APPENDIX E: SOLUTION MINING / SOLAR
EVAPORATION PROCESS
There are currently three solution potash mines in production (Belle Plaine [Mosaic],
Patience Lake [Potash Corp], Intrepid Moab [Intrepid Potash]) and four companies
which use solar evaporation (Israel Chemicals, Arab Potash Company, Sociedad
Quimica y Minera de Chile and Intrepid). In solution mining, water is saturated with
salt and the resulting brine is pumped through injection wells into the underground
mine workings. The injected brine dissolves potash below the surface. As the brine
dissolves the potassium, the double saturated potassium and salt brine becomes
heavier than the salt saturated brine causing it to sink to low points in mining caverns.
Extraction wells are installed at the lowpoints to pump the potash rich brine to the
surface.
This is when the solar evaporation takes places. The potash rich brine is then placed
into evaporation ponds. Blue dye, similar to food coloring, is added to the evaporation
pond brines, to aid in absorption of sunlight. The water then evaporates leaving only
potash and salt behind. The evaporation process, requiring only solar energy, is
highly environmentally friendly. Evaporation ponds are generally lined with a synthetic
rubber to prevent the valuable brine from escaping the ponds. The end result of the
evaporation process is a bed of potash and salt crystals that is harvested using
scrapers adapted from the earth-moving industry. The crystals from the ponds are
then sent to a mill where the potash is separated from the salt by a flotation process.
The potash and salt are then dried, sorted, and processed into various agricultural,
feed, and industrial products.
Allana-holics Anonymous?
Yes, I have the affliction!
I have been reading the reports and doing my dd. I have a good starting position. The only issue I see at the moment is how they are going to raise the next jag of cash needed to get to the construction stage. My guess is a secondary with some dilution will occur. My hope is the share price will be over $1.00 when they try to raise this cash.
I would appreciate any and all comments from the VMC crew!
Thanks,
Kipp
AAA.V
This is a super cheap option on a huge reserve of potash. If you round the shares outstanding to 100 million, this is 100 million tons of potash optioned at $37 million.
I'm in for a few. This reminds me of Potash One under a buck.
Kipp
I will get in touch with my friend and see what room rates, a conference room, and perhaps a sit down, or small buffet dinner would cost. I will report back here soon.
Kipp
WOW, activity on this board! I am in Denver and would volunteer to help. I set up the Dinner in Vegas last time and that went well. One of my friends is high up at the Sheraton down town and I bet I could get a smoking deal on rooms, meeting room, dinner, etc. December is out for me, mid January after all of the holiday hoopla should be a great time. Denver now has United, Frontier, and Southwest Airlines all trying to kill each other on fares.....cheap, cheap, cheap!(Bobwins likes that word) Denver is central and nobody would have a 5 hour flight.
Having said all of the above, I will go wherever the group decides to go as long as it is not in December.
I have not been as active posting on the boards due to the demands of my day job. I do read the boards nearly every day.
Best regards to all!
Kipp
Jr. M&A Coming Soon
If we are at a point where $1000/oz gold is a new floor, the big mining companies will see their stock prices rise 100-200-300% from the lows in a short period of time. I feel they will take this new high valued "currency" and start buying Jr miners and exploration companies.
We need to start listing companies that we feel would be good targets. Once a couple of buyouts happen, valuations of the group will start to rise as the market speculates on "who's next".
(**This could also happen in natural gas and oil as those companies need to add reserves and production as well.)
I think the Jr. sector is about to come back to life and we will see big gains.
I am a little concerned the general markets are over valued and are due for a big correction soon. If that happens it will pull everything down, including PM miners large and small. Such an event could present us with awesome entry points in undervalued Jr's.
My 2 cents.
Kipp
AGT Trending in the righr direction!
http://finance.yahoo.com/news/Apollo-Gold-Third-Quarter-bw-1733754353.html?x=0&.v=1
The chart in this link is easier to see.
AGT also has a tolling agreement to process low grade ore at another mill. This deal should insure the grade holds up.
Steady as she goes!
Kipp
AUM.to/GDMN Is there a U.S. pink sheet ticker for buying this stock in Ameritrade accounts? I can't seem to find it.
Thanks,
Kipp
Hawthorne - Cl001
How are you feeling about HGC these days?
Kipp
AGT C.C.
I got up early and listened to the call and followed along with this presentation:
http://www.apollogold.com/en/investors1m/presentations/081909marketupdate_agt.pdf
Starting Up A Gold Mine Is A Bitch!
I don't see anything here that would make me sell my shares. I appreciated the honesty and up front admission of the problems. These guys are hard rock miners and they know what they are doing. They have cash flow, they have a plan, they know what needs to be done. What we investors need to see know is excecution of these plans.
There is also the chance for surprises at Grey Fox and in Mexico. There will be a lot of drilling over this next year and there could be a huge amount of gold added to reserves.
Good Luck.
Kipp
AGT - Did anyone listen to the C.C.?
I am tied up this morning and was hoping to see a quick summary if someone listened to the call.
Thanks,
Kipp
HGC.V New August 2009 Presentation
Here is a link to the Hawthorne presentation:
http://www.slideshare.net/Adnet/hgc-corporate-presentation-august2009
Click the "full" icon bottom right for the larger size screen.
I really like the management of this company and see the multi-bag potential that Cl001 sees.
Good Luck,
Kipp
AGT - Another plus is that these guys are rock crushing son of a guns. The Montana Tunnels mine/mill was a lot bigger operation than the Black Fox. They have key folks from M.T. working/managing production at B.F. To me, this is a low risk stock that just needs time to prove everything up.
I also like the chances of hitting another big potential mine just down the road or down in Mexico near MineFinders.
Kipp
POE.V - NEW OIL FIELD DISCOVERY
Pan Orient Energy Corp.: NSE-I1 New Field Oil Discovery
Press Release
Source: PAN ORIENT ENERGY CORP.
On Monday June 29, 2009, 7:30 am EDT
CALGARY, ALBERTA--(Marketwire - June 29, 2009) - Pan Orient Energy Corp. (TSX VENTURE:POE - News) -
THAILAND
NSE-I1 New Field Oil Discovery (60-per-cent working interest and operator)
Pan Orient Energy is pleased to announce that testing of the NSE-I1 well has confirmed the discovery of commercial hydrocarbons in a previously untested volcanic reservoir approximately 20 meters in thickness at 637 meters true vertical depth (TVD). The well is currently pumping 34 degree API oil at a stabilized rate of 75 bopd with approximately 200 barrels per day of water.
At year end 2008, there were no reserves of any category attributed to this shallow volcanic zone.
NSE-I1 was a deviated well designed to target a shallow volcanic zone in the downthrown fault closure west of the NSE North fault compartment and a deeper volcanic objective on the high side of the north-south bounding fault. The first volcanic target zone was encountered at a depth of 637 meters TVD and exhibited moderate drilling fluid losses with oil shows observed at surface. A second, deeper volcanic objective was encountered at 750 meters TVD with the upper 85 meters penetrated before drilling was terminated while still in the zone. Minor oil shows were observed at surface along with minor mud losses while drilling through the zone. Subsequent testing of the lowermost objective recovered water and 2 barrels of 32 degree API oil.
Looking ahead, these modest test results have confirmed oil in a shallow volcanic reservoir in the down thrown fault compartment adjacent to NSE north. Plans are currently underway to target this same zone in a structurally much higher position on the high (east) side of the main bounding fault, that in the success case, sets up three to four additional future locations.
Bo Rang-1 RD Exploration well (60-per-cent working interest and operator)
The Bo Rang-1 RD (BR-1RD) well was drilled vertically to a depth of 757 meters approximately 80 meters west of the original Bo Rang-1 (BR-1) gas discovery which was drilled in 1990 by a previous operator of the concession. Two volcanic objectives were encountered, the first 22 meters thick at a depth of 633 meters (tested 5.5MM cubic feet per day in the original well bore) and the second, 49 meters thick at a depth 25 meters below the base of the first zone. There were no drilling fluid losses (which are an indicator of good permeability) observed while drilling either volcanic zone.
The upper gas bearing volcanic was isolated behind casing prior to penetrating the deeper objective in order to open hole test this deeper zone in isolation. Upon the completion of drilling of the deeper volcanic objective, significant quantities of 34 degree API oil were observed at surface and in the drill string while tripping out of the hole. Subsequent testing resulted in the recovery of minor quantities of oil, gas and load fluid, indicating low permeability.
Though commercial oil rates were not achieved in BR-1RD, excellent reservoir is inferred to exist only 80 meters away on the basis of the massive drilling fluid losses observed in the original BR-1 well while drilling through the objective zone. In addition, there is strong evidence that the primary volcanic objective is oil bearing based on the free oil observed at surface while drilling through this zone. On this basis, Bo Rang-2 is currently drilling ahead at a depth of 400 meters to a subsurface target location approximately 500 meters south west of the BR-1RD location. Drilling is anticipated to be completed in 10 days at which time testing will commence, if warranted.
NSE-J1 & J2 Development wells (60-per-cent working interest and operator)
The NSE-J1 and NSE-J2 development wells have been drilled to total depth within the main volcanic objective from the same surface pad location in the east-central portion of the NSE Central fault compartment. Both wells experienced significant drilling fluid losses (an indicator of good permeability) while drilling within the target zones. At this particular drill pad, testing and drilling were not possible due to the limited size of the drill pad. Testing of both wells is to commence shortly, once the drilling rig has moved off location to L44-W2.
L44-W2 Appraisal well (60-per-cent working interest and operator)
L44-W2, the first appraisal well to the L44-W oil discovery (announced in April 2009) is about to commence drilling to a subsurface target 500 meters ne of the original discovery. This will be the first of what is planned to be three back to back appraisal wells on the structure.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Jeff ChisholmPan Orient Energy Corp.President and CEO(403) 294-1770Bill OstlundPan Orient Energy Corp.Vice President Finance and CFO(403) 294-1770
POE.V - NEW OIL FIELD DISCOVERY
Pan Orient Energy Corp.: NSE-I1 New Field Oil Discovery
Press Release
Source: PAN ORIENT ENERGY CORP.
On Monday June 29, 2009, 7:30 am EDT
CALGARY, ALBERTA--(Marketwire - June 29, 2009) - Pan Orient Energy Corp. (TSX VENTURE:POE - News) -
THAILAND
NSE-I1 New Field Oil Discovery (60-per-cent working interest and operator)
Pan Orient Energy is pleased to announce that testing of the NSE-I1 well has confirmed the discovery of commercial hydrocarbons in a previously untested volcanic reservoir approximately 20 meters in thickness at 637 meters true vertical depth (TVD). The well is currently pumping 34 degree API oil at a stabilized rate of 75 bopd with approximately 200 barrels per day of water.
At year end 2008, there were no reserves of any category attributed to this shallow volcanic zone.
NSE-I1 was a deviated well designed to target a shallow volcanic zone in the downthrown fault closure west of the NSE North fault compartment and a deeper volcanic objective on the high side of the north-south bounding fault. The first volcanic target zone was encountered at a depth of 637 meters TVD and exhibited moderate drilling fluid losses with oil shows observed at surface. A second, deeper volcanic objective was encountered at 750 meters TVD with the upper 85 meters penetrated before drilling was terminated while still in the zone. Minor oil shows were observed at surface along with minor mud losses while drilling through the zone. Subsequent testing of the lowermost objective recovered water and 2 barrels of 32 degree API oil.
Looking ahead, these modest test results have confirmed oil in a shallow volcanic reservoir in the down thrown fault compartment adjacent to NSE north. Plans are currently underway to target this same zone in a structurally much higher position on the high (east) side of the main bounding fault, that in the success case, sets up three to four additional future locations.
Bo Rang-1 RD Exploration well (60-per-cent working interest and operator)
The Bo Rang-1 RD (BR-1RD) well was drilled vertically to a depth of 757 meters approximately 80 meters west of the original Bo Rang-1 (BR-1) gas discovery which was drilled in 1990 by a previous operator of the concession. Two volcanic objectives were encountered, the first 22 meters thick at a depth of 633 meters (tested 5.5MM cubic feet per day in the original well bore) and the second, 49 meters thick at a depth 25 meters below the base of the first zone. There were no drilling fluid losses (which are an indicator of good permeability) observed while drilling either volcanic zone.
The upper gas bearing volcanic was isolated behind casing prior to penetrating the deeper objective in order to open hole test this deeper zone in isolation. Upon the completion of drilling of the deeper volcanic objective, significant quantities of 34 degree API oil were observed at surface and in the drill string while tripping out of the hole. Subsequent testing resulted in the recovery of minor quantities of oil, gas and load fluid, indicating low permeability.
Though commercial oil rates were not achieved in BR-1RD, excellent reservoir is inferred to exist only 80 meters away on the basis of the massive drilling fluid losses observed in the original BR-1 well while drilling through the objective zone. In addition, there is strong evidence that the primary volcanic objective is oil bearing based on the free oil observed at surface while drilling through this zone. On this basis, Bo Rang-2 is currently drilling ahead at a depth of 400 meters to a subsurface target location approximately 500 meters south west of the BR-1RD location. Drilling is anticipated to be completed in 10 days at which time testing will commence, if warranted.
NSE-J1 & J2 Development wells (60-per-cent working interest and operator)
The NSE-J1 and NSE-J2 development wells have been drilled to total depth within the main volcanic objective from the same surface pad location in the east-central portion of the NSE Central fault compartment. Both wells experienced significant drilling fluid losses (an indicator of good permeability) while drilling within the target zones. At this particular drill pad, testing and drilling were not possible due to the limited size of the drill pad. Testing of both wells is to commence shortly, once the drilling rig has moved off location to L44-W2.
L44-W2 Appraisal well (60-per-cent working interest and operator)
L44-W2, the first appraisal well to the L44-W oil discovery (announced in April 2009) is about to commence drilling to a subsurface target 500 meters ne of the original discovery. This will be the first of what is planned to be three back to back appraisal wells on the structure.
Pan Orient is a Calgary, Alberta based oil and gas exploration and production company with operations currently located onshore Thailand, Indonesia and in Western Canada.
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Pan Orient and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Pan Orient. Although Pan Orient believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Jeff ChisholmPan Orient Energy Corp.President and CEO(403) 294-1770Bill OstlundPan Orient Energy Corp.Vice President Finance and CFO(403) 294-1770
AGT - The downside is limited. They are in production, have cash flow, and will not be a total failure if gold prices stay above $600/oz. The risk reward to me says put the shares in a desk drawer and look at them in a year. The fact they raised a chunk of cash at near the market price is a far cry from months ago when they gave their left nut.
Kipp
Oceana - Looking at the chart it is at the 50 day m.a. I am thinking of buying more. Does anyone have any news, thoughts on the stock today. It looks like a normal retracement to me. Hmmmmm?
I got a bunch of CDE the other day and it is up nicely. I still hold all of my AGT. I see no hope for our government to curb spending any time soon. I have a hard time seeing who, besides our own government, is going to buy $100 billion in T-bills every 2 or 3 weeks for the foreseeable future????
I also have a plan to buy a 5,000 ounce Comex silver contract AND TAKE DELIVERY if the silver price gets the rug pull! I plan to fly to the East Coast and rent an S.U.V. and pick up the 5 1000oz bars (312.5 pounds total) and make sales calls all the way back to Denver. I will stop in Illinois to see how my 240 acre farm is looking.
Maybe Bobwins will ride "shotgun" with me. Kinda like Thelma and Louise road trip!
I wonder how much a coin smelter would charge me to make 1 oz. rounds?
Kipp