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.
CALGARY, Alberta, Oct 17 (Reuters) - Abu Dhabi National Energy Co will invest C$46.6 million ($46 million) in WesternZagros Resources , giving the Canadian-based oil explorer much-needed financial breathing room as drilling draws near for its next big well in Kurdistan in northern Iraq.
Shares in WesternZagros jumped more than 17 percent on the small-cap TSX Venture Exchange on Monday after the Abu Dhabi company, known as TAQA, agreed to take a 19.9 percent stake.
The Goombarh feels slightly vindicated, as his investing in Westernzagros (TSX: WZR) has just received a vote of confidence from a connected Middle Eastern Oil company, yet his investment in Vast Exploration (TSX: VST) has tanked, from their uneconomic well in Qara Dagh.
My moves forward from this is that I am holding onto both of these oil explorations; one because of the above news and the other, is because I would be a buyer at these prices (.04~.05 cents).For those of you who were influenced by me, and have loss money, I am sorry, for those of you who have not, well here are two prime suspects for price appreciation.
Now, as to the general markets, it looks like the worm has turned, so to speak.The bottom may have been a week and a half ago.Note, that the Goombarh, as usual was overly optimistic and called the bottom a month or more ago.Whatever the case, now is the time to be getting back in, if you are not already back in.The gains you make are dependent upon your entry prices to your investments; the entry prices presently are very good.
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.
Underpriced, based upon misunderstanding news release.
Just da way I see dat!
HardRock
============================
In case yas dinna understand ma previous post.
Niko is carrying Vast in this drilling.
Vast still owns 34.78% of this prospect.
The previous NR caused share price to tank.
This funny worded NR is hard to understand, but is supposed to clear the situation and allow the price to move back up.
Niko has already started drilling.
If you think, price is going down, stay away. But da Rock thinks price is going to 50 cents soon.
Just da way I see dat!
HardRock
===================================CALGARY, ALBERTA--(Marketwire - August 29, 2011) - Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST -News) announces that it has entered into an Encumbrance for Financing Agreement ("Financing Agreement") with Nikoresources (Kurdistan) Ltd. ("Niko") in regard to the Qara Dagh Block in Kurdistan. Under the terms of the Financing Agreement Niko will provide financing of US$9,000,000 to be used by Vast to pay outstanding amounts to Niko under a joint operating agreement as well as to fund future expenses related to the deepening of the Qara Dagh well to 4,150 meters. Niko will, additionally, provide financing to Vast in regard to 34.78% of Vast's share of the cost of all operations going forward. "Niko has loaned Vast $9 million to use in funding the deepening of Qara Dagh."
In return, Vast will have the obligation, in the event that a commercial discovery is made and produced, to pay Niko an amount equal to the net proceeds of sale associated with an undivided 12% interest in the Qara Dagh Block. "Vast will pay Niko a dollar amount equal to 12% of block value."
Such financing arrangements have been put in place pending Kurdistan Regional Government approval of the sale by Vast to Niko of an undivided 12% interest in the Qara Dagh Block.
The Financing Agreement with Niko remains subject to receipt of approval, if necessary, of the TSX Venture Exchange.Da Rock concludes that Vast still owns 37.5% share and just owes some money to Niko. What is not said, is the date of valuation of monies owing. However, the key is still owning 37.5% share of Qara Dagh Well! Just da way I see dat! HardRock
Disclosure:I am holding Vast Explorations already.
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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