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.