This blog is a journal for my research, findings and Insights. The term “goombah”, comes from Latin “cumbà”, is an older or senior advisor, or quite literally godfather. The term also has gangster connotations, but that is not my intent. I have misspelled it deliberately, adding an “r” to make the sound more my own.
I have not sent any notes recently, because I have nothing to say. I notice that it has been over one month since my last note and it is now officially fall. In fact, I may not have made any trades at all for the last 3/4 weeks. The markets are roiled, but it is just that, eventually everything will get straightened up and it will be business as usual, the world is not coming to an end. What will happen is continued slow growth in developed markets and faster growth in developing markets.
Following is quite a rational piece by Jeff Miller, about the likelihood of an upcoming recession:
You know me, I am an optimist, and I am positioned for a rise this fall. I am sitting tight and just waiting, with my junior oils and such.
For those of you, that are fortunate enough to have some cash available, there are just so many bargains in the markets presently. This is your second chance, since March 2009, to make a killing on superior stocks.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has received encouraging results from a recently-completed study of the drill cuttings from its Kurdamir-1 well utilizing advanced technology. The study, by Weatherford Laboratories in Houston, confirmed the potential of a gross oil and gas interval over 1,900 metres thick in the Kurdamir-1 well. These results significantly increase the Company's confidence of encountering oil in the Eocene and Cretaceous reservoirs in the upcoming Kurdamir-2 well, which would add to the oil already encountered in the Oligocene reservoir.
WesternZagros expects Kurdamir-2 to be spudded in the fourth quarter of 2011 on the Company's Kurdamir Block which is operated by Talisman. Kurdamir-2 is located approximately two kilometres away from Kurdamir-1 and will target the Oligocene, Eocene and Cretaceous reservoirs on the flank of the structure where the combined potential oil interval is likely at maximum thickness. The combined audited mean estimate for all three reservoirs is 585 million barrels of prospective oil resources as at January 14, 2011.
The advanced geochemical study was comprised of both Total Scanning Fluorescence (TSF) and Thermal Extraction Gas Chromatography (TEGC) analyses of approximately 100 drill cutting samples and six oil and condensate samples from the Kurdamir-1 well. TSF is a technique applied to organic solvents from drill cuttings by exciting a sample using UV light and measuring its fluorescence intensity. TEGC provides a rapid automated determination of hydrocarbon compounds. In combination, these techniques can differentiate between oil and gas in potential reservoirs.
"This is a further positive step in our evaluation of the potentially large oil intervals of the Kurdamir discovery," said Simon Hatfield, WesternZagros's Chief Executive Officer. "We are excited by the upcoming opportunity for the Kurdamir-2 well to test the potential for over 580 million barrels of recoverable oil in the Oligocene, Eocene and Cretaceous reservoirs."
Vast Explorations - VST, VSTFF
partnered with Niko Resources with Niko drilling
found oil in Qara Dagh, albeit low flow with damaged skin
Niko drilling deeper to test the Kometan formation
Calgary, Alberta, - Vast Exploration Inc. (“Vast” or the “Company”) (TSX-V: VST)is pleased to provide the following update on the Niko Resources Ltd. (“Niko Resources”) operated Qara Dagh Block in the Kurdistan Region of Iraq.
Drilling of the Qara Dagh well has reached a total depth of 3,908 meters, has been log evaluated and, as previously reported, the well has been cased to 3,558 meters with a 7 inch casing string. The following intervals have been evaluated where the results to date are summarized below.
Open Hole Interval - Shiranish Formation
This interval from 3,558 meters to 3,908 meters was acidized and flowed light oil confirming an active hydrocarbon column. The interval achieved maximum production rate of 550 barrels of oil per day and 800 mscf/d of gas, although these rates were not sustained for the entire duration of the test. The oil produced is 48 degrees API with no H2S.
From the data interpretation, and the significant spike in observed well bore pressures before the drilling was stopped, it is believed that the well has potentially entered into the first 10 meters of the next reservoir, the Cretacous aged Kometan formation, which is one of the primary target zones previously identified. It is important to note that the Kometan formation is regionally known to be a naturally fractured reservoir which has produced significant quantities of oil.
Mr. Ahmed Said, President & CEO, commented “We are pleased with the recovery of light oil from this section. Although the reservoir quality appears to be naturally tight, the establishment of an oil column is significant. The possibility of drilling deeper to further evaluate production potential of the Kometan formation is currently under consideration.”
Shiranish / Tanjero Interval
Certain sections in this cased interval was perforated and then acidized. The well had intermittent flow of light oil. The maximum rates achieved were 400 barrels per day of 42 to 47 API oil and 520 mscf/d of gas confirming a second active hydrocarbon system with no H2S.
Current Status and Forward Plan
The operator, Niko Resources, is currently in the process of testing the Aalijii Formation which consists of thick sequence of turbidities sand and argillaceous shales. While drilling this section in July 2010, it was reported that an increase in fluorescence, gas readings and free light oil in the mud system was detected.
Further, there are ongoing discussions between the consortium group to possibly deepen the well up to an additional 250 meters, subsequent to the completion of the current testing program. The primary purpose would be to drill deeper to further evaluate the production potential of the proliferous Kometan formation, the zone immediately below the Shiranish formation. Confirmation of the possibility and technical capability of re-entering the well and drilling deeper is expected over the next few weeks.
The Goombarh owns both, with a tilt towards Vast, as it is the lower priced one and with Niko drilling deeper to test the Kometan formation, which has already shown oil in the mud.
Received another update from George Roach: Present drilling is both testing of historic holes and expansion of the resource followed by conversion of a significant component of the current drilling program into indicated and measured categories.
George also reported that FED also wish to quickly start drilling Colluli in the central/eastern area of FEDs land holdings. Colluli is the area near South Boulder where there known mineralization both historically and through recent drilling by South Boulder.
That does not refer to drilling by South Boulder on their own land. Rather, South Boulder apparently did some poor mapping and hit mineralization on FEDs land. Apparently, South Boulder was using an old map to determine where the Eritrea/Ethiopia border and that map proved to be inaccurate. Thus, they moved the drills too far south and hit mineralization on FED land.
Hagai, you are correct. However, the land isn't under dispute any longer. As I wrote, the issue was South Boulder used an inaccurate border map that had since been changed. Doesn't matter what the GPS readings are under that scenario.
That's what I was told. South Boulder crossed the border and inadvertently drilled a couple of holes on FED land. As I said, there was reportedly good mineralization. STB had admitted it made a mistake.
Unusual but does happen. I have heard heard about this type of situation happening before.
TORONTO, ONTARIO, Aug 22, 2011 (MARKETWIRE via COMTEX News Network) --
Ethiopian Potash Corp. (the "Company " or "EPC") (TSX VENTURE: FED)(TSX VENTURE: FED.WT) is pleased to announce that it has completed five (5) holes and drilling of Hole 6 is ongoing with total drilling through 1,000 metres to date, of the planned 15,000 metre diamond drill program on its 481km2 Danakil Project, Ethiopia.
All of the holes intersected the regional Danakil Potash Formation and all holes intersected potash mineralization.
The holes were drilled along the western edge of the Danakil and targeted the on strike continuation of the Musley potash deposit. The drill core has been logged and selected intersections have been reviewed by Ercosplan who confirmed the intersection as being part of the Regional Danakil Potash bearing sequence and that potash mineralization was observed in the drill core. The drill core has been sampled and the samples are being processed for analysis. Drilling is continuing is the southwest corner of the Property in an area of historic drilling.
Mr. Wahl President and CEO of EPC stated "I am extremely pleased with the drilling results and looks forward to receiving the assay results which will be released on receipt. Ethiopian Potash looks forward to having a steady stream of news to disseminate in the Autumn."
About Ethiopian Potash Corp.
Ethiopian Potash Corp. (TSX VENTURE: FED)(TSX VENTURE: FED.WT) is a Canadian company based in Toronto, Ontario, and Addis Ababa, Ethiopia. Ethiopian Potash controls 481 sq km of shallow mineralization potash development concessions in the fairway of the Danakil Depression, Ethiopia. The Company has an existing 128 mil tonne resource at 21% potash and is intent on aggressively fast-tracking its properties to production.
The Goombarh is a veteran of the small cap wars, who has survived both the glory and collapse of the internet boom and the 2008 bust. Now he is focused on mining,oil and commodity stocks, as the world has turned with the rising tide of demand from the emerging markets. In this blog, he shares his findings and insights and sometimes his portfolio's contents. If this information and investing sector is of interest to you, drop him a line with your email address, and you will be added to his distribution.
The Goombarh has Neanderthal heritage and as such has an extra section in his brain that gives him his prescient ability. ...just kid'n.
Important Disclaimer:----The information and opinions contained here reflect the personal views of the author and should be viewed as food for thought only. The author may have a position in any of the securities mentioned. There are no guarantees of the accuracy, reliability or completeness. Independent due diligence and discussions with one’s own investment and business advisor is recommended. We do not request or receive compensation. This document may be quoted, in context, provided proper credit is given.
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