PetroAmerica Oil In Colombia Breaks Out

Petroamerica (TSX:  PTA,  OTC:  PTAXF) - Breaks Out

Source:  http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8374484
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Outlook
With Balay-1 and Balay-2 continuing to produce on long-term test the Company is anticipating that it will continue to realize production revenues. Additionally, the Company and partners envisage finalizing the development plan for the Balay discovery, with approval for the first phase expected in the fourth quarter of 2011. Sanctioning of the second development phase will depend on the results of Balay-3 which should enable the joint venture to properly assess the size of the Balay oil discovery.

The Company plans to evaluate and appraise the Las Maracas discovery in 2012. This will include placing the discovery well on long-term test and the drilling of several appraisal wells. Subject to the outcome of the appraisal results, the Company and current partner are committed to fast tracking the development of this discovery. The Las Maracas discovery is viewed to be an extremely positive event for the Company.

The Company will continue its strategy of rationalising the portfolio to leverage some of its high working interest positions into more strategic and cost effective holdings. This strategy, which began with the relinquishment of the COR-12 and COR-14 Blocks early in 2011 and has continued with the sale of the VMM-3 block and equity changes in the El Eden block, is expected to enhance the Company's competitive position by allowing it to free up working capital, recover past costs and to enhance the risk/reward balance of its portfolio. The Company is also considering reducing its working interest positions in the LLA10, CPO1 and SSJN5 blocks.

Furthermore, the Company will participate in an extensive exploration program in 2012 with the drilling of seven exploratory wells targeting net mean unrisked prospective resources of 45 million barrels of oil equivalent ("BOE"). All of the prospects to be drilled in 2012 will be covered by 3D seismic, thereby significantly reducing the exploration risk.

Overall, the 2012 outlook for the Company is expected to be one of rising production and revenues, as the Balay development and Las Maracas appraisal programs get underway, and significant exploration upside exposure by way of a seven well drilling program.

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The Goombarh is holding warrants on this one.

The big home run is what they get at Kudamir - Westernzagros in Kurdistan

http://www.vancouversun.com/business/Political+stability+returning+Kurdistan+industry/5746376/story.html

Exxon’s entrance was six weeks after ex-BP PLC chief executive Tony Hayward’s Vallares PLC put up $2.1 billion US to acquire Kurdistan’s largest oil producer, Turkish-based Genel Energy PLC.

The political situation started improving late last year when the Kurds backed an Iraqi national government appointment in December. An oil and gas-sharing pact first drafted in 2007 between Kurdistan and Iraq now anticipated by the end of the year is expected to let oil flow from Kurdistan to other countries, lifting the price per barrel from just over $50 to the global benchmark Brent price — more than $100. The long-standing dispute over how to divide oil revenue meant majors active in Iraq couldn’t drill in the northern region of Kurdistan without penalty, limitations expected to end with the deal closing.

The Exxon development, which raised the ire of the Iraqi government, added a twist. Reuters reported that Baghdad has said any oil deals signed with the Kurdish Regional Government are illegal and has suggested the firm’s contract to develop an oilfield in south Iraq is in jeopardy.

Stevenson predicted mergers and acquisition activity will ramp up as firms look to gain a foothold in Kurdistan, which according to Bloomberg, Kurdistan’s Hawrami said could contain 40 per cent of Iraq’s 115 billion barrels of oil reserves — more than the Gulf of Mexico.

WesternZagros is about a year away from potentially becoming a takeover target, according to Calgary-based analyst Josef Schachter. The company’s highly anticipated Kurdamir-2 (K2) well, being drilled by its operator-partner on one of two Kurdistan blocks for WesternZagros, Calgary’s Talisman Energy Inc., is targeting the Oligocene carbonate reservoir, among the most prolific in Iraq.

“The big home run is what they get at Kurdamir,” Schachter said.

Schachter has a one-year target on the company’s share price of $2.10, far above the closing share price Monday of 72 cents.

WesternZagros, about 20 per cent owned by Abu Dhabi National Energy Co. (TAQA) since a share purchase late last month, reported third quarter financial results Monday, including a net loss of $2 million.

The firm is producing and selling oil in Kurdistan from its Sarqala-1 well, which it expects will produce 5,000 barrels per day before the end of 2011. WesternZagros has more than 3.6 billion barrels of oil equivalent per day of audited prospective reserves, more than half of that crude oil.

Read more: http://www.calgaryherald.com/technology/Political+stability+returning+Kurdistan+industry/5746376/story.html#ixzz1f6rKxqvM

Exxon, Iraq and Kurdistan - Future

Analysis: Exxon Kurdistan foray tests Iraq's centralist resolve

 

 

By Patrick Markey

BAGHDAD | Thu Nov 24, 2011 12:10pm EST

(Reuters) - Exxon Mobil's venture into Iraqi Kurdistan challenges Prime Minister Nuri al-Maliki's resolve against growing regional separatism and tests the investment strategy of the oil majors in Iraq.

source:  http://www.reuters.com/article/2011/11/24/us-exxon-iraq-idUSTRE7AN1GC20111124?type=GCA-GreenBusiness&feedType=RSS&feedName=GCA-GreenBusiness&rpc=43

In the Goombarh's opinion, it would be worthwhile to put a few Kurd oil explorers in your pocket, and await the resolving of a few political issues, which seem on the way to resolving.

Ethiopian Potash - FED.v, ETPHF

Goombarh 72 - November 23, 2011

Good Day,

Have not sent anything for a couple of months.  Just sitting tight and waiting.

Meanwhile, the Kurdistan oils have come awaken.  I hold Westernzagros (WZR.v, WZGRF) and Vast Explorations (VST.v, VSTFF).  There are some notes referring to recent press news on the Goombarh's blog site.

Yesterday, Allana Resources posted this news release:  http://www.stockhouse.com/financialtools/sn_newsreleases.aspx?qm_symbol=T.AAA&newsid=8373373

After-tax Net Present Value of US $1.85 billion; - After-tax Internal Rate of Return of 36.8%; - Total development capital expenditures including mining, processing facilities, port and logistics infrastructure ("CAPEX") of US $796 million; - Total operating expenditures ("OPEX") on a per tonne basis (including production, transportation/handling, port, loading costs) FOB on the Vessel of US $90.54 - PEA is based on Annual Production of one million tonnes of MOP per year using solution mining; - Potential to expand production to two million tonnes per year of MOP; - SOP production potential to be examined during the ongoing feasibility study.

Allana is next door to a Goombarh holding, Ethiopian Potash (FED.v, ETPHF).  FED's drilling presently for their own PEA due maybe Q2 2012.  However, the Allana enthusiasm was enough to wake up FED.  Here is FED's chart:

Ethiopian Potash seems to have bottomed and now broken out upwards.  I hold many warrants.

Good Luck to you all!

Until next time,

Marco G.

http://goombarhsedge.blogspot.com/

http://seekingalpha.com/author/marco-g/articles

Future of Oil in Kurdistan - Bright

The future of oil in Kurdistan

By Javier Blas in Erbil, northern Iraq

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/13d2ef50-11c7-11e1-9d4d-00144feabdc0.html#ixzz1eS71Ltny

I have spent the past few days touring the oil-rich semi-autonomous region of Kurdistan in northern Iraq, visiting oilfields and interviewing its officials and foreign executives. It is boom time for Kurdistan, which optimists hope could soon produce more oil than some members of Opec. As I am leaving, Kurdistan is celebrating thearrival of ExxonMobil, the first of the so-called supermajors to enter the territory to explore for oil.

But the future will not be a simple trajectory.

Exploration success. The oil and gas map of Kurdistan five years ago was largely blank. Today, dozens of oilfields dot it as companies discover hydrocarbons in commercial quantities in eight of every ten wells they drill. But drilling is not as easy as it appeared to be a few years ago, due to the complex geology of the region, and budgets are overrunning by more than a third in some cases.

continues here:

http://www.ft.com/intl/cms/s/0/13d2ef50-11c7-11e1-9d4d-00144feabdc0.html#axzz1e4Ofchr1

 

Kurdistan and Iraq Oil Agreement

...it seems things are looking good for Kurdish oil plays:

http://finance.yahoo.com/news/Iraq-Agreement-Made-With-bloomberg-1981391052.html?x=0&l=1

The accord will be approved by the Iraqi parliament’s Oil and Energy Committee as soon as it’s received, committee member Bahaa al-Din Ahmad was cited as saying in the Radio Free Europe/Radio Liberty article.

The agreement “neither undermined the powers of the central government nor undercut the rights of” the Kurdish authority, Ahmad said, according to the article.

Kurdistan includes three regions in the country’s north: Erbil, Dohuk and Suleimaniah, governed by an elected parliament and 19 government ministries overseeing everything from agriculture to education to tourism, according to the regional authority’s website.

The central government counts the Kurdistan Regional Authority as one of its 19 administrative divisions, according to the U.S. Central Intelligence Agency’s website.

The accord has ended the risk that foreign oil producers such as Exxon, Marathon Oil Corp. and Gulf Keystone Petroleum Ltd. (GKP) would be stripped of some oilfield projects as punishment for signing contracts in the Kurdish-controlled region, two people familiar with the talks told Bloomberg News yesterday.

Exxon, the world’s biggest company by market value, is the latest Western entrant into Kurdistan. Others include Vallares Plc, the explorer founded by former BP Plc Chief Executive Officer Tony Hayward, Afren Plc (AFR), Hess Corp., Murphy Oil Corp., Marathon Oil Corp. and Repsol YPF SA.

Kurdistan and Iraq Oil Agreements

....It seems the future looks bright for Kurdish oil plays:

http://finance.yahoo.com/news/Iraq-Agreement-Made-With-bloomberg-1981391052.html?x=0&l=1

The accord will be approved by the Iraqi parliament’s Oil and Energy Committee as soon as it’s received, committee member Bahaa al-Din Ahmad was cited as saying in the Radio Free Europe/Radio Liberty article.

The agreement “neither undermined the powers of the central government nor undercut the rights of” the Kurdish authority, Ahmad said, according to the article.

Kurdistan includes three regions in the country’s north: Erbil, Dohuk and Suleimaniah, governed by an elected parliament and 19 government ministries overseeing everything from agriculture to education to tourism, according to the regional authority’s website.

The central government counts the Kurdistan Regional Authority as one of its 19 administrative divisions, according to the U.S. Central Intelligence Agency’s website.

The accord has ended the risk that foreign oil producers such as Exxon, Marathon Oil Corp. and Gulf Keystone Petroleum Ltd. (GKP) would be stripped of some oilfield projects as punishment for signing contracts in the Kurdish-controlled region, two people familiar with the talks told Bloomberg News yesterday.

Exxon, the world’s biggest company by market value, is the latest Western entrant into Kurdistan. Others include Vallares Plc, the explorer founded by former BP Plc Chief Executive Officer Tony Hayward, Afren Plc (AFR), Hess Corp., Murphy Oil Corp., Marathon Oil Corp. and Repsol YPF SA.

Big Oil Moving In On Kurdistan

With the declining oil resources around the world, Kurdistan is one of the final frontiers, where there are huge possibilities.

This is demonstrated by the recent moves of Exxon Mobil and Chevron as indicated in the reports below:

http://www.reuters.com/article/2011/11/13/exxon-kurdistan-idUSL5E7MD04G20111113

http://www.independent.co.uk/news/business/news/chevron-to-join-slick-of-oil-supermajors-in-kurdistan-6261405.html

The above news has added about 80% to the stock price of Vast Exploration (VST:TSX) and 10% to Westernzagros (WZR:TSX), the smaller explorers that the Goombarh owns.

Other larger companies such as Gulf Keystone have soared up to 25% on this news.