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Black Gold
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Regular guy who enjoys researching and investing mainly in energy stocks. I have finally joined Twitter. Follow me at @BlackGoldSA
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  • Results Due In A Month From Dualex And African Hydrocarbons In Tunisia

    I had written an article back in June on Dualex (OTC:DALXF) and Africa Hydrocarbons (OTC:KNPRF) which was denied posting by SA because the market cap did not meet the minimum standards to write about. A lot has happened with Dualex and Africa Hydrocarbons since then.

    In summary: Their Tunisia exploration well has been successfully drilled and cased. Logs have been run. Current operations are cleaning up location and then testing to follow. Test results should show up somewhere mid November if everything stays on schedule.

    In my opinion, the data this well is showing gives it a rather high chance of success:

    • Apparent four way closure on 3D
    • Seal confirmed during drilling
    • C1-C4 shows while drilling
    • Fracture evidence from cuttings
    • Losses during drilling indicating some sort of perm
    • Elevated hydrocarbon concentrations in the fractured intervals with no OWC seen
    • Very analogous to the nearby SeK field which has produced 50MM bbls
    • 25km from infrastructure

    Each company has roughly 50% of the well. If the field acts like the nearby SeK field, NPV10 on the whole project should be around $500MM. $250MM for each company. Current market caps are still under $20MM. You do the math. Also, the companies have two additional, larger prospects identified on seismic.

    Both stocks are up toda on the recent HC saturation news. I am long both stocks. Hoping for oil mid November.

    Tags: DALXF, KNPRF
    Oct 10 11:06 AM | Link | 18 Comments
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