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  • Parex Resources - Plenty Of Catalysts Coupled With Higher Crude Prices Offer 60%+ More Upside [View article]
    Couldn't agree more Canacol is very promising as is GTE. Colombia is fast shaping up as the next big non-conventional play in South America and with the government taking a very pro-foreign investment position it is quite attractive for O&G juniors.
    Apr 8, 2014. 10:51 AM | Likes Like |Link to Comment
  • Parex Resources - Plenty Of Catalysts Coupled With Higher Crude Prices Offer 60%+ More Upside [View article]
    Jure thanks for the feedback. I am working on GTE at the moment. Since there big oil discovery in Peru coupled with no debt the company looks quite promising.
    Apr 8, 2014. 10:50 AM | Likes Like |Link to Comment
  • Parex Resources - Plenty Of Catalysts Coupled With Higher Crude Prices Offer 60%+ More Upside [View article]
    MDG great to hear from a long time holder. Fellow contributor Value Digger put me onto this company and since then it has truly shown its worth to investors. Despite the big rally over the last year I believe there is much more to come for investors,
    Apr 5, 2014. 07:34 PM | Likes Like |Link to Comment
  • Parex Resources - Plenty Of Catalysts Coupled With Higher Crude Prices Offer 60%+ More Upside [View article]
    Hi Col

    Thankyou for the feedback. I forgot to add to the article that in March management commenced a share buy back because they believe the company is undervalued .
    Apr 5, 2014. 03:40 PM | Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    While Santos has certainly taken a softer view with handling the FARC than Uribe he has not given them any further room to move than they had prior to the peace process. The military and police are still conducting operations against the FARC, ELN and bacrim and no unilateral peace was established for the peace negotiations as was established under Pastrana.

    I would agree there is a perception that security risk is increasing, though this is being driven primarily by greater conflict between criminal gangs, organized crime and bacrims/paramilitaries fighting over lucrative narco-trafficking and arms trafficking routes as well as control of artesanal gold mining in a number of departments.

    The low level of proved reserves in Colombia can be attributed to decades of civil conflict and many parts of the country being off limits to O&G exploration due to security reasons. But exploration has ramped up significantly since 2002 and will continue to do so as more investment is made in the O&G industry in Colombia and the security situation continues to stabilize.

    FDI into Colombia has consistently risen on an annual basis from 2010 to 2012 rising by 1.8% as a percentage of GDP over that period. In the first half of 2013 FDI into Colombia grew by 5.5% and continued to grow through the remainder of the year, primarily driven by a more stable security environment and the ongoing success of the peace negotiations.

    As for Canacol, with a market-cap of over $500 million it is classified as a small-cap stock and with production of over 10,000 BOPED it is classified as an intermediate producer.

    I hope that clarifies the points you have raised.
    Mar 14, 2014. 03:36 PM | Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Great points and the rapid advance in drilling and extraction technology will continue to boost the volumes of recoverable oil. Interestingly I remember reading some time ago that only around 30% of Colombia has been explored for hydrocarbons. Predominantly because of the security issues coupled with the increased pace of the insurgency from 2010 to 2012, when the FARC were desperately trying to force the government to the negotiating table.

    It is also believed the Putumayo-Caguàn basin, extends across the southern part of Colombia basically from the eastern part of the department of Narino in the west to the department of Caqueta in the east. Significant hydrocarbon presence has also been identified in the department of Caucua, which along with Narino, Putumayo and Caqueta were among the worst affected by the civil war/insurgency.

    This bodes well for continued heavy oil discoveries, but what interests me the most is the prevalence of shale oil and gas. The MMV is not the only location with the type of geology that makes up the La Luna and Rosablanca shale formations. I would expect other significant shale formations to be identified as the exploration boom takes off.

    But I doubt there will be significant regulation of the petroleum industry in Colombia analogous to what exists in the U.S. The government wants foreign investment and see the petroleum industry as a key means of obtaining it. Further discoveries and FI in the industry simply means more royalties and more revenues, plus to be somewhat cynical, more government officials being appointed to consulting and board roles.


    It was only a few years back that as a foreigner you could not invest in gold miniing here because it was considered a strategic asset. But those regulations are being changed so as to promote FI in the gold mining industry in Colombia.
    Mar 12, 2014. 03:06 PM | Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Malcolm great article and certainly agree the oil industry here is at an inflection point, with Colombian conventional 2P reserves only sufficient to sustain another 6 to 7 years of oil production at the current rates. As such highlighting the importance of shale oil and gas exploration here.

    I am currently working on an article exploring the potential for shale oil and gas production in Colombia and both the La Luna and Rosablanca formations in the MMV are shaping up as game changers. This certainly bodes well for Canacol given it has the largest presence in this formations after Ecopetrol.

    But what is also reassuring is Canacol has a solid presence in the Putumayo-Caguàn basin, which is believed to hold significant heavy oil resources that are far greater than those already recognized. This assumption is based on its proximity to the Oriente basin in Ecuador with which it shares an analogous geology and that basin has seen significant oil production since the late 50s, whereas the Putumayo basin is only now becoming truly accessible.
    Mar 12, 2014. 12:20 PM | 1 Like Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Malcolm I would have to agree with bobba's comment, the perception of Colombia in comparison to the reality is quite different and it will take some time for that perception to change. The perception of outsides of Colombia also certainly differs from the reality of living here.
    Mar 10, 2014. 03:34 PM | Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Hi Malcolm

    Great response having lived in Colombia now for around 4 years I couldn't agree more. The level of political risk is low with a pro-business and foreign investment environment. While the security situation is still quite fluid it has improved drastically and the Army is regularly deployed at well heads, oil fields and pipelines to provide security against terrorist attacks.

    The outcome of the peace talks is increasingly more positive, but the biggest concern is if a lasting peace is made with the FARC and the leadership accepts the peace and disarms the individual fronts will fracture into smaller armed groups focused on kidnapping, extortion and narco-trafficking, much like the AUC did when it accepted Uribe's peace deal in 2006 and disarmed.

    But great article and looking forward to more.

    Thanks,

    Matt
    Mar 8, 2014. 11:40 PM | 3 Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Malcolm thanks and please any feedback good or bad let me know.
    Mar 7, 2014. 06:27 PM | 2 Likes Like |Link to Comment
  • Canacol Energy: Significantly Undervalued, With Solid Production And Reserve Growth Set To Continue Coupled With A Range Of Compelling Catalysts [View article]
    Another article on Canacol's shale exploration results by SA contributor Malcolm Shaw http://seekingalpha.co..., will help to clarify the view on shale O&G in Colombia and the potential it holds for Canacol.
    Mar 7, 2014. 06:20 PM | Likes Like |Link to Comment
  • Canacol Energy: Successful Shale Oil Test Underscores Compelling Value Proposition [View article]
    Malcolm great article hope you don't mind but will add a link to the comments section on my article.
    Mar 7, 2014. 06:18 PM | 1 Like Like |Link to Comment
  • Canacol Energy: Significantly Undervalued, With Solid Production And Reserve Growth Set To Continue Coupled With A Range Of Compelling Catalysts [View article]
    Haoleboy thank you I didn't realize that Malcolm had written an article. I follow both him and VD and find their insight exceptional.

    I really like Parex but it has run up strongly since I last wrote on it. As for Petroamerica I can't put my finger on it but something feels not quite right. It is just way to cheap on the basis of its metrics, but once 4Q13 results are released will be writing an update. Might even have to take a trip to Llanos and check out their ops.

    Thank you for the feedback and if you need any more info please feel free to ask.

    Kind regards,

    Matt
    Mar 7, 2014. 06:15 PM | Likes Like |Link to Comment
  • Canacol Energy: Significantly Undervalued, With Solid Production And Reserve Growth Set To Continue Coupled With A Range Of Compelling Catalysts [View article]
    For those readers who wish to see the other side of the story, see Value Diggers article on Canacol calling it at fair value: http://seekingalpha.co...
    Mar 7, 2014. 06:53 AM | Likes Like |Link to Comment
  • BPZ Resources: Positive Operational Update - Time To Buy? [View article]
    Shumi

    It is a given that PRE won't be able to renew the lease on the Rubiales field in June 2016, I have explained this in my last article on PRE http://bit.ly/1hu4k3w

    But the company is not in a position to make any further acquisitions at this time, buying PMG was a big acquisition and will take time for it to be digested.

    Also PRE already as a firm path mapped out to replace the Rubiales field production using the assets it acquired from PM. Furthermore, the company has essentially informed the market that it intends to focus on organic growth and will not be making any further acquisitions for some time.

    Kind regards,

    Matt
    Mar 1, 2014. 11:53 AM | Likes Like |Link to Comment
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