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Studied: Power Engineering, Exploration Technology, Worked Upstream, Midstream, Downstream in Oil and Gas, Pipelines, Drilling, Refineries. Regardless of our desire for clean energy, oil makes things and is the building block of any economy. From production to transport to refining its the... More
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  • Bankers Petroleum Albania Fines May Have Created PetroManas Buying Opportunity  9 comments
    May 9, 2014 4:40 PM | about stocks: PENYF, BNKJF, RDS.A

    Intro Video Clip

    (May 22 Video Release - by PMI)

    Target: Cretaceous-Eocene Carbonate Reservoir

    Prospect: Molisht-1 Sub-thrust Prospect

    Youtube video on Molisht-1

    The CEO states in the video that Molisht-1 is a larger hole size than the previous well to allow for casing options in the event of problem at depth that we encountered on the Shpirag-2 well.

    (click to enlarge)(click to enlarge)

    A complex mud system is now helping de-risk cave in of flakey material that was a problem on earlier wells.

    (New Video May 22, 2014)

    Objective: Make a commercial exploration discovery.

    (click to enlarge)

    The future of Albania's potential 18km long carbonate reservoir could be exploited by future deviated wells and or horizontal wells that could intersect highly fractured rocks. Western technology could enlarge the recovery rates, and increase the size of proven and probable reserves going forward.

    My point of view: Shell Oil saw something substantial enough to risk $100 Million to grab 75% of Blocks 2-3 in Petromanas Energy.

    The purpose of sharing this is we are getting closer to answering an unanswered question in Albania, that can only be answered by drilling into the top of the structure at the Molisht-1 well.

    The 5-6 attributes of a great exploration well are all present at Molisht-1, (but even that does not guarantee success). The number of excited folks chatting up the "What if it hits" scenario are increasing daily, and for good reason.

    Although even if it hits, it still must be tested and flowed at rates that are economically viable, which could take until fall to occur. Yet some folks think it might have upto 40X the flow rates of a typical well drilled elsewhere in the world, so if 200 barrels is common, then 40X 200 = 8000 bbl/day is a substantially rare concept to oil and gas followers.

    Were this kind of rarity to occur, it would generate a multiple X its perceived value of bbls/day and nobody really knows what that number is until the facts roll in.

    At this point I stress that it is still speculative, but it has some serious potential that is based on geological facts and this is a FIRST of its kind into this reservoir so its pure EXPLORATION.

    When an answer to a question is provided by the drill bit, it can unlock substantial opportunity for investors "IF" the oil can be produced at an economic rate which is itself part art and part science.

    The Key is that if the geologic structure is 18km long and if the payzone is potentially as thick as believed by 3D Seismic (800m in some areas), we then have some serious production potential going forward from a new reservoir that is potentially the largest onshore discovery in europe a very long time.

    It is that initial Seismic that convinced Shell to risk $ for a % in the play.

    The implications are that PMI has 852,000 acres in Blocks 2-3 and they have 154Km of fresh 2D seismic to interpret what might be down below.

    Europes existing largest onshore oilfield is next door at a field called PatosMarinza. Less than 100KM across the Adriatic are oilfields that tap into a similar Carbonate Thrust Play which yield serious oil production of 85,000 barrels per day from about 25 wells.

    The thrusts are a key exploration element as broken rocks with natural fractures can flow oil better, and trap it in its place better than if the rock wasn't stressed and busted up from geological processes.

    (click to enlarge)

    Here we are in ALBANIA, tapping into the rock for the first time that will possibly confirm the unanswered question, if the Geology is exactly similar to ITALY and if it can yield production in similar numbers, the story will travel fast.

    If that answer prooves to be 'yes', then we have a very exciting story developing that could be partially answered in a number of days before their annual meeting in Canada.

    I need to stress that this play carries a high degree of risk and you really should do your homework before just taking my perspective and study how the shares zig zag in any exploration project and be able to stomach that kind of market ride before ever investing.

    Here is a bit of history:

    (click to enlarge)

    (2005)

    (Back in 2008)

    Link http://www.worldfinance.com/markets/fx-and-brokerage/big-oil-and-gas-potential-in-albania

    The First well was very good news for Shell and Petromanas

    (how the 75% farm-in came about)

    Now we are days away from the second well being drilled.

    (ffWD TO 2014)

    (click to enlarge)

    The Molisht-1 well has the potential to answer some big exploration questions. 1) Are Shpirag and Molisht-1 the same structure 2) Is the payzone as thick as believed 3) What pressure is it at considering the depth 4) If its connected from 1-2 how big is the reservoir now

    A well test in Q3 would answer some of these questions.

    (source: where the 800m thickness quote came from)

    www.bunkerportsnews.com/News.aspx

    (click to enlarge)

    (click to enlarge)

    There was a pick up in trading on 05/08 and a 0.03 sell off in reaction to Oil taxation that affected a different company. After the dust settled PMI dropped -11.54% yesterday, then popped back today after the market digested that the $5.00 per barrel excise tax wasn't that big of a deal to a company that has no production yet...being PMI.

    (OIL TAX may have triggered todays 11% sell off in PMI)

    This clip sounded off about an expect fine that Bankers Petroleum was to pay for oil taxes owed and shortly after, PMI dropped like a rock? A likely over-reaction, and if that is all it was.. the selloff is a great buying opportunity. 7 min mark

    (click to enlarge)

    When looking at any exploration stock it is worth remembering the difference between risk and uncertainty, on may 7th david larrabee posted an interesting entry about uncertainties and risks.

    The essence of sharing this idea is below. Shell's geotechnical experts are well versed in Risk, they can manage much of these risk with application of modern technology. They have models for best practices, but even with the best technology they cannot predict events that cannot be known that are out in the future.

    Petromanas would fit into the category of entrepreneurs that know that putting up with uncertainty could return huge profits for their labor and risk taking. As a potential investor if you are seeking definite information then you will need to wait until the production testing is completed and futher wells completed and reserve reports published, if you can tolerate the uncertainty of indefinite information in order to capture any speculative opportunity in advance of the world knowing what the above definite answer is, you take on the full risk that may or may not yield you the maximum reward. If you are more in the definite info camp, you might play this better by owning a mutual fund that holds these companies, if you are in the indefinite camp, the warrants or shares in combination may offer you the best way maximize return should the uncertainties be resolved in your favor.

    It might also be of interest that starting May 19th MNP Petroleum which still owns 1.2% of PMI is planning to start buying back 5% of its own shares.

    (MNP Perf Shares?)

    It is likely that more news on the Molisht-1 well will be available by the 2 events coming up in the next few weeks.

    UPCOMING EVENTS

    Annual General Meeting
    Thursday, May 22, 2014 at 2:00 PM MST
    Metropolitan Conference and Event Centre
    333 - 4 Avenue SW
    Calgary, AB T2P 0H9
    Royal Room

    EPAC Oil and Gas Investor Showcase
    Wednesday, June 11, 2014
    Metropolitan Conference and Event Centre
    333 - 4 Avenue SW
    Calgary, AB T2P 0H9

    The past tells a story of how we got here to where the play is at now.

    Globe and Mail has a nice inventory of articles and new releases that follow the progress upto now.

    (Blogs from Canada)

    This Blog above has been following the story since inception and you can search many historical blog posts on ceo.ca

    (OGIB)

    Link

    The above story sent the stock from $0.14 to over $0.20 which may not sound like much until you look at the share count, it was a significant run. I recommend you read it.

    The below Analyst recommended PMI just when they spudded (started drilling) Molisht-1 last summer. He hasn't spoke of it since, but his company is in its busiest season and there is much to cover that is further along than PMI.

    Doug Casey and his energy analyst Marin Katusa actually flew over to Albania a week or so ago and published an article that was widely promoted about how close to answering the unknowns at Molisht-1 really were. The video above has an interview between Marin and Glen McNamara on the molisht-1 well which is drilling now.

    Columbia Wanger Asset Management - Owns 11% of PMI shares

    (click to link to reports)

    One last note: MNP Petroleum owns a 1.2% stake in PMI and a performance share of the reserves as the project unfolds

    (May 20 screenshot)

    (click to enlarge)

    (click to enlarge)

    ** If the # of Performance shares are not adding up with other articles please check with an IR company as these conditions can change over time**

    (click to enlarge)

    (click to enlarge)

    Stocks: PENYF, BNKJF, RDS.A
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  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Frequently Asked Questions from PMI Website

     

    Where are Petromanas’ assets?
    Petromanas is headquartered in Calgary, Alberta, Canada. Its primary assets are located in Albania and France. The Company also has exploration acreage in Australia.
    What is Petromanas’ primary business?

     

    Petromanas is engaged in the exploration for hydrocarbons (both oil and gas), primarily in Europe.
    When did Petromanas go public and at what price?

     

    Petromanas went public through a reverse takeover transaction and its shares began trading on the TSX Venture Exchange on February 25th, 2010.

     

    A concomitant private placement financing issued 100,000,000 million shares of the Company at $0.25 per share for gross proceeds of $25,000,000.

     

    How can I invest in Petromanas? Can I purchase shares directly from the Company?

     

    You can purchase common shares of our company through a registered investment advisor or stock purchase service provider of your choice. You cannot buy stock directly from the Company.

     

    On what exchange does Petromanas trade and what is its ticker symbol?

     

    Petromanas is listed on the TSX Venture Exchange under the ticker symbol “PMI”.

     

    shares are also quoted on the OTC Pink under the ticker symbol “PENYF”.

     

    Petromanas’ warrants trade on the TSX Venture Exchange under the ticker symbol “PMI.WT”.

     

    What are the terms of Petromanas’ warrants?

     

    Each warrant entitles the holder to purchase one common share at a price of $0.45 per share on or before February 23, 2015. The warrants trade on the TSX Venture Exchange under the ticker symbol “PMI.WT”.

     

    Does Petromanas pay a dividend?
    To this point, the Company has not paid a dividend. At present, the Company does not generate any revenue or cash flow and is directing available resources toward its exploration initiatives.

     

    What is a transfer agent, who is yours and how do I contact them?

     

    A transfer agent is a regulated organization that keeps track of shareholder records and information.

     

    Our transfer agent is TMX Equity Transfer Services..

     

    To find out more, please contact:
    General shareholder inquiries:
    TMX Equity Transfer Services

     

    Tel: 1 866 393 4891 ext 205
    (toll free Canada and the United States)
    Tel: +1 416 361 0930 ext 205 (international direct dial)
    When should I contact your transfer agent?

     

    Typically an investor would contact a transfer agent if they needed to change how their shares were registered (i.e. a change of ownership or address) or if they did not receive materials relating to a Meeting of Shareholders.

     

    What is Petromanas’ fiscal year end?
    Our fiscal year ends on December 31st. Our quarters end on March 31st, June 30th, September 30th, and December 31st.
    When does Petromanas file its financial results?

     

    TSX Venture listed companies have 60 days to file their results following the end of a quarter and 120 days following the end of a fiscal year.

     

    How can I access the Company’s financial results and regulatory filings?

     

    Financial filings are accessible on the Company’s website here. A complete list of the Company’s financial and regulatory filings since inception are available under the Company’s profile on the SEDAR website at http://www.sedar.com.

     

    When and where is Petromanas’ Annual Meeting of Shareholders?

     

    The Company has historically held its Annual Meeting of Shareholders in Calgary, Alberta in May. Additional information with respect to the timing and location for the meeting can be found in our proxy statement for the relevant year.

     

    This information will also be posted on our events page.
    Who are Petromanas’ independent auditors?

     

    KPMG LLP based in Calgary, Alberta.
    Who is Petromanas’ legal counsel?
    Norton Rose Canada.

     

    How do I contact investor relations?
    Investors are invited to contact:
    Nick Hurst
    TMX Equicom
    Tel: +1 403 218-2835
    Email: nhurst@tmxequicom.com

     

    Glenn McNamara, CEO
    Bill Cummins, CFO
    Tel: +1 403 457-4400
    Email: info@petromanas.com
    10 May 2014, 10:09 AM Reply Like
  • PICOLOMINI
    , contributor
    Comments (1277) | Send Message
     
    I am invested since 1 year in Bankers Petroleum. PMI would make a sensible addition. Very interesting technical details, makes it clear that there is a huge gap between striking oil and actually recovering it.
    11 May 2014, 10:11 AM Reply Like
  • haoleboy1967
    , contributor
    Comments (251) | Send Message
     
    Thanks for the article. I am adding to Petromanas on any dips.
    16 May 2014, 08:37 AM Reply Like
  • PICOLOMINI
    , contributor
    Comments (1277) | Send Message
     
    According to this chart Petromanas vs Bankers performed better but much more erratic http://goo.gl/prtIKD
    17 May 2014, 09:03 AM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Bankers has a good strangle on the heavy oil plays, their results have been very impressive last decade...PetroManas is more of a light oil play, and one can only hope they can model the success of Bankers over the next decade. I expect we will see many new smaller players take a stab at the region with exploration licenses once the existing prospects are de-risked as viable for more appraisal/exploration wells. exciting weeks and months ahead for all companies situated in Albania.
    18 May 2014, 05:55 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Petromanas provides further update on Molisht-1 drilling
    1 hour ago - ACQUIREMEDIA
    CALGARY, June 20, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided a further update on the drilling of the Molisht-1 well onshore Albania. The well is located on Blocks 2-3, in which the Company holds a 25% working interest and is the operator with Shell holding the remaining 75% interest.
    As previously announced the Company encountered a carbonate structure at a depth of approximately 4,174 metres and elected to case and cement the well, putting approximately 900 metres of unstable flysch shale behind pipe prior to drilling ahead. The Molisht-1 well penetrated around 250 metres of Eocene carbonate section, before encountering a lower flysch shale zone. Based on encouraging logging while drilling ("LWD") results in the upper Eocene carbonate, the Company elected to run intermediate wireline logs. The bore-hole image analysis revealed sections within the Eocene containing natural fractures. The prospective carbonate reservoirs in Albania are the Eocene, Paleocene and Cretaceous with the Cretaceous being the primary target.
    "The initial LWD interpretation is encouraging at this early stage," said Mr. Glenn McNamara, CEO of Petromanas. "Our focus now returns to deepening the well to identify further fracture networks in the underlying carbonates."
    After considering a number of scenarios for the Molisht-1 well, the Company is electing to drill ahead using the current bore hole. The Molisht-1 well is currently drilling ahead at a depth of approximately 4,650 metres. Petromanas plans to continue drilling through this section and now expects to drill the well to an estimated total depth of up to 6,000 metres. Based on progress made with further drilling, additional data acquisition and testing is planned to follow reaching total depth.
    20 Jun 2014, 08:44 AM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Petromanas provides further update on Molisht-1 drilling

     

    CALGARY, June 20, 2014 /CNW/ - Petromanas Energy Inc. ("Petromanas" or the "Company") (TSXV: PMI) today provided a further update on the drilling of the Molisht-1 well onshore Albania.

     

    ((Tullii Comments on M1 in Double Brackets))

     

    The well is located on Blocks 2-3, in which the Company holds a 25% working interest and is the operator with Shell holding the remaining 75% interest.

     

    ((Glenn McNammara commented on BNN that Shell is carrying the cost of drilling / seismic up until the $100MM mark, PMI is responsible for its 25% share of costs...which he said they have the cash to get through 2014, but hinted that a financing through selling equity would likely need to occur by early 2015))

     

    As previously announced the Company encountered a carbonate structure at a depth of approximately 4,174 metres and elected to case and cement the well, putting approximately 900 metres of unstable flysch shale behind pipe prior to drilling ahead.

     

    ((The shale acts as a seal that seals the petroleum in place...it is highly important in the viability of the reservoir going forward, drilling through flakey shale is risky and now that this section is cased off the drilling is going to be smoother and less risky for drilling to TD of this well))

     

    The Molisht-1 well penetrated around 250 metres of Eocene carbonate section, before encountering a lower flysch shale zone. Based on encouraging logging while drilling ("LWD") results in the upper Eocene carbonate, the Company elected to run intermediate wireline logs.

     

    ((Running Logging well drilling tools is expensive, it is necessary for studying the data for engineers and earth science vendors who support the exploration decisions, running logs is routine, however the information gained will not be released publicly for some time yet. This kind of data was not obtained in the first well Shpirag-2 due to a variety of complications encountered...so technical people will be excited to learn what this data suggests upon professional interpretation.))

     

    The bore-hole image analysis revealed sections within the Eocene containing natural fractures. The prospective carbonate reservoirs in Albania are the Eocene, Paleocene and Cretaceous with the Cretaceous being the primary target.

     

    ((Fractures were expected..however they are critical for delivering oil at commercial rates. By telling us the rock layer they are imaging, we know that they are yet to encounter the Cretaceous which is the focus and goal of this M1 well))

     

    "The initial LWD interpretation is encouraging at this early stage," said Mr. Glenn McNamara, CEO of Petromanas. "Our focus now returns to deepening the well to identify further fracture networks in the underlying carbonates."

     

    ((The depth has been adjusted to go to 6000m instead of 5500m which is what is meant by the term "deepening"))

     

    After considering a number of scenarios for the Molisht-1 well, the Company is electing to drill ahead using the current bore hole.

     

    The Molisht-1 well is currently drilling ahead at a depth of approximately 4,650 metres. Petromanas plans to continue drilling through this section and now expects to drill the well to an estimated total depth of up to 6,000 metres.

     

    ((You can do the math from once they got the shale behind casing to see that the well is drilling faster per day in terms of meters drilled, but the announcement that they are drilling to 6000m adds considerable drilling costs to this well, the market seemed to react and shares sold off a little for whatever reasons the market reacts ))

     

    Based on progress made with further drilling, additional data acquisition and testing is planned to follow reaching total depth.

     

    ((DATA is the key objective during an exploratory well or appraisal well, as it is that data that is relied upon for making future decisions in future wells...knowing that data is the objective that benefits company shareholders it should be apparent and acceptable that however long it takes to get the best data possible is to everyone benefit...so patience is going to be necessary going forward...it may be late December before we really get the data and numbers we all are anticipating))
    21 Jun 2014, 08:17 PM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Gold Investment Letter New Blog Report: Petromanas Energy: Shaking the Trees
    8:45a ET July 30, 2014 (Market Wire) Print
    The Gold Investment Letter helps sophisticated investors maximize profits in mining stocks with unbiased, specific, and actionable recommendations. In today's blog update we have focused on Petromanas Energy (TSX VENTURE: PMI) (PINKSHEETS: PENYF).

     

    The post can be read on our blog page: http://bit.ly/1AyFU25

     

    About Gold Investment Letter Gold Investment Letter is an investment newsletter that focuses on gold stocks, junior mining stocks, silver stocks, and investing in physical precious metals. We isolate the best resource stocks to position ourselves and our subscribers. In today's blog update we have focused on Petromanas Energy (TSX VENTURE: PMI) (PINKSHEETS: PENYF).

     

    The editor of Gold Investment Letter, Eric Muschinski, who has been recommending gold and silver accumulation since 2003, is President and CEO of Phenom Ventures, President of Investor Media Inc, and a Director with Equities.com.

     

    Contact:

     

    Eric Muschinski
    Email: Email Contact

     

    SOURCE: Gold Investment Letter

     

    30 Jul 2014, 10:48 AM Reply Like
  • tullii
    , contributor
    Comments (168) | Send Message
     
    Author’s reply » Gold Investment Letter New Blog Report:
    Petromanas Energy: Shaking the Trees
    Wednesday, July 30, 2014 in Blog

     

    I’ve been keeping an eye on trading in Petromanas Energy (PMI.V/PENYF) these past few months since the company has delivered positive news and shares have performed well in 2014. This Canadian oil/gas play that is focused on projects in Europe and Australia, has big backers, big partners, and capable rainmakers surrounding it. Notably, Directors Frank Giustra and General Wesley Clark:

     

    http://bloom.bg/1n3U3u2

     

    Giustra stepped up and got the markets attention when he scooped up 10 million shares at 20 cents in early March from a former partner/largest shareholder:

     

    http://bit.ly/1n3U3dx

     

    He can’t say much publicly about the company as a Director. However, we know he’s quite bullish by his actions and I have heard him say “Personally, I believe we’re onto something very large”. From the evidence thus far, that certainly seems to be the case.

     

    Petromanas is elephant hunting in Albania with Shell Oil as their partner and they are obviously quite well capitalized (Also, PMI has close to $25 million in cash). The wells they are drilling cost close to $70 Million each but Shell has decided to carry PMI.V and now owns 75% interest in what appears to be a Billion barrels of oil recoverable field. Here are some nice details from a Seeking Alpha write up earlier in 2014:

     

    http://seekingalpha.co...

     

    The chart is now getting very oversold with RSI down to 27 and the stock put in a bullish harami cross pattern today. That simply means selling may be exhausted here, or getting close to it. The stock has very strong support at its 200 day moving average (21 cents) and the insider buys at 20 cents should combine for a strong floor in the low .20’s. However, shares just 60 days ago hit 40 cents so we have a 40% retracement and what looks to me like a solid entry point.

     

    Petromanas also has warrants that trade and you can see the charts are identical. However, there is some leverage for more speculatively inclined traders like myself in the warrants. If the share price goes up from 26 to 39 cents that is a 50% gain (all that matters in investing is percentage gains/losses!!). The warrants hit 14 cents when the stock was at 39-40 cents and I was able to buy some today at 5 cents. So, if Petromanas recovers quickly, I will likely almost triple my money versus the 50% gain being had if the stock appreciate from 26-39 ish cents. Even buying at 7 cents commands a double, which is twice the gain. Now, you can’t buy huge size in the warrants, although they are somewhat liquid. And, it’s important to keep in mind that the exercise price is at a big premium (45 cents) and the expiration date in in late February 2015.

     

    If you think there’s a shot PMI can go to new highs by early next year, the warrants should be considered for casino money because they could really fly. The downside is they can expire worthless and time is not on your side. But, I think PMI is going to minimally bounce back into the .30’s pretty quickly so the warrants could easily trade back to 10-14 cents. Theoretically, the warrants are a better bet for people that are investing small dollars because you get some decent leverage. If you want to invest six figures or even $25k or more, stick with the stock so you don’t have to sweat the clock ticking.

     

    In summary, I believe this “shaking of the trees” on Petromanas Energy is a buying opportunity for traders and investors in the 24-27 cent range. For free updates on Petromanas and other special situations in the junior resource sectors, just enter your name/email into the box in the upper right hand corner of this page.

     

    Eric owns shares in Petromanas Energy Warrants and may buy/sell at anytime. I am offering ideas for your consideration and education. I am not offering financial advice. I am not a financial or investment advisor and am acting in the sole capacity of a newsletter writer. I am a fellow investor and trader sharing his thoughts for educational and informational purposes only. This publication is a 100% subscriber supported.
    30 Jul 2014, 03:59 PM Reply Like
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