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just a reminder of potential
Tesorillo: multiple development/appraisal gas plays with company-making potential
· Comprised of two petroleum exploration licences, the Tesorillo and Ruedalabola Permits, covering 38,000ha in a proven hydrocarbon region in the Cadiz Province of southern Spain
· Tesorillo contains the Almarchal-1 discovery well ('Almarchal' or 'the Well'), which was drilled in 1956 by Spanish operator Valdebro
o The Well intersected a thick section of possible gas pay including some zones which flowed gas to surface on testing
o Located on a gravity and seismically delineated thrust ramp anticline, with closure area exceeding 70 km2 and multi-Tcf potential
o Drillstem tests and log analysis confirm 48m of gas pay from two Miocene Aljibe Formation sandstone intervals, with a further 492m of potential gas pay interpreted from logs but unconfirmed by testing
· Ruedalabola contains 1957 Puerto de Ojen-1 well, 15km to the east of Almarchal which displayed similar gas shows to Almarchal but could not be tested for mechanical reasons
· Large Resource: unrisked prospective resource of 830 Bcf (Best Estimate), with upside in excess of 2 Tcf independently certified by NSAI in May 2015 (see table below for further details)
· Excellent access to infrastructure: Project located 3.9 km from the North African Maghreb gas pipe line European landing point providing access to high priced European gas markets
gla
Petrel/Warrego will be kicking themselves for giving us a 50% chance stake in Spain and will cost them to get us out of the picture lol
The Spanish update has been delayed and it has all gone very quiet indeed - This is most odd in my opinion and either the results are bad or very good.
If bad I am sure these will have been put out to the market as the SP is on its knees anyway
If good - perhaps there are talks going on about a Warrego take over in due course - makes sense for them if they can afford it - with hitting it big time in Western Australia there will be substantial funds available ..?
Did wonder about some kind of link-up with UOG myself. But I think UOG’s strategy is quite different and seems higher risk – mostly oil in the exploration / development stage, onshore / offshore UK and offshore Jamaica (via Tullow, hmm!). The only thing in common is Selva. Looks to me like UOG have been fairly desperate to get hold of a producing asset and hence the deal with RKH Egypt. This at the expense of selling on their ‘Crown’ asset, ~$8m in finance from BP and the placement the other day which I think includes a ~$5m take up of shares by RKH giving them a substantial stake.
In comparison PXOG have a focused strategy (onshore European gas) and have fairly reliable (if sub run rate) income from Romania. So rather than be acquired by UOG, I’m now wondering if UOG’s stake in Selva might be up for grabs, particularly if they chose to fund expansion in Egypt and development of their other oil resources?
Please DYOR and GLA