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Studied: Power Engineering, Exploration Technology, Worked Upstream, Midstream, Downstream in Oil and Gas, Pipelines, Drilling, Refineries. I'm Interested in very big picture, game changers that come from sizeable economic deposits of Oil, Gas, Gold, Silver, Uranium, Specialty Metals used in... More
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  • Have 1-2 Years? Liberia, New Zealand May Reward You Nicely If You Can Wait.

    An African Oil rush complemented by a pure [Exploration Play] in NZ. CANADIAN OVERSEAS PETROLEUM

    Overview:

    "In 2011, Canadian Overseas Petroleum Limited made the decision to enter West Africa, specifically in the country of Liberia via Block LB-13. We have a broad team of individuals who have years of experience working in the region, and possess a strong track record of making discoveries.

    Our goal is to continue to grow our company by exploring for oil in emerging regions where large discoveries are occurring yet remain lightly explored, and by focusing on single well unappraised discoveries in mature basins and bringing them into production quickly and efficiently.

    The geological traits of West Africa are similar to those of the North Sea, and our team is excited about exploring for oil and gas in these offshore continental margins. We continue to investigate opportunities elsewhere in the world also.

    In 2012, we were awarded a 50% working interest in a block located in the eastern portion of the north island in New Zealand. The target in PEP 53806 is oil located in the Whangai and Waipawa shales. These formations exhibit characteristics similar to the productive Bakken Formation in Saskatchewan and North Dakota."

    -----------------------------------------------------------------------------------------------------------------------------------------------

    COPL (Canadian Overseas Petroleum Limited) has achieved Top 50 status for its TMXV listing in 2014.

    COPL is pursuing some high impact exploration in Liberia, and has options in Nigeria, as well as half of an exploration permit 53806 in the prospective East Coast Basin of New Zealand.

    At under $0.25 a share, this is a ground floor opportunity to get in on a play that has alot of runway if things work in our favor later in the year. The Nigerian component more down the road as they must perform a seismic work commitment with optionality agreements upon anything of substance showing up later on seismic interpretations.

    The Liberia Block LB-13 has a newer type of seismic interpretation technology applied to the data (AVO) and its got the technical team excited because two heavy hitters (Anadarko and Chevron) are nearby chasing the same petroleum system. Furthermore the AVO seismic technique is suggesting multiple stacks of zones that appear to have the right attributes for containing fluids which COPL is hoping are oil and gas in commerical quantities. Exxon has agreed to buy in to LB-13 for 83% leaving COPL with a 17% stake in a very interesting play.

    Meanwhile Seadrill is drilling a well nearby for Chevron and it spudded in Q2 2014. The area is peppered with exploration successes and the odd failure, but the region is rather underexplored with plenty of good possibilities for all companies involved.

    It's a region to watch, and although COPL is perhaps a rather small fish in this big pond, its a cheap way to enter into the liberia plays if you have the time to let them achieve their objectives. Any neighbors who strike oil in the basin will help validate the whole exploration model going forward. As is goes without saying they are an Exploration company and you should only invest what you can afford to take a loss on should things come up dry. The upside if you enter under $0.25 could be quite impressive if you can hang on for 1.5- 2 years or long enough to define the Liberia reserves and perhaps sink a well or two in New Zealand next year with their NZ partner Marauder (see very bottom for more info).

    http://www.canoverseas.com/upload/media_element/66/02/copl-may-21-2014-corporate-presentation.pdf

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    ----------LIBERIA NEWS----------

    ( EXXON Liberia )

    (A Nearby Success by African Petroleum)

    COPL AND MARAUDER IN NEW ZEALAND...

    (They must drill 1 well on east coast by Nov 2015 or and upto 2 more by 2017 or their permit may not be renewed by NZ Gov't)

    You should know that at this time May(2014) there are ZERO producing wells in the EC basin, so the risk is substantial here.

    In the event of a discovery, there is not the same infrastructure on the East side of the island to get new oil to market as easily as exists on the West side of the island, so you really need to do your homework on how to play this kind of trade. Its not like a North America play, and delays and frustrations are part and parcel of the territory in NZ.

    It would likely behave similar to a jr. mining stock and go through a wild speculation phase, then decline sharply for profit taking, then go through another run up months later upon further developments. Its Impossible to time the tops and bottoms, so set a game plan for risk / reward and stick to it.

    The East Coast is a great story, but until someone flows a well at commercial rates, its still just a story as far as the market goes so think very long term when dreaming of stellar returns.

    Once the first commercial well is established, the rush will be on to grab lands and drill exploration wells to further define the plays. It will likely be early to mid 2015 before the first production tests are completed. So you have lots of time to assess your strategy should you choose to enter the space as an investor.

    Marauder Resources East Coast Inc. ("Marauder" or "the company") holds Petroleum Exploration Permit ("PEP") 53806, at a working interest of 50 percent. The PEP is onshore acreage, on the east coast of New Zealand's North Island, and is 238,363 acres in extent.

    A permit requires $$ spent on work by certain dates or the permits are now renewable, this insures that only serious companies are granted work.

    It lies within New Zealand's East Coast Basin, approximately 200 kilometers to the northeast of Wellington, with the closest lease boundary less than five kilometers northwest of Napier.

    A map of the PEP is included in this report (East Coast Basin,

    New Zealand map). The PEP was issued November 1, 2012 and provides exclusive exploration rights for its five year duration.

    Within the East Coast Basin of New Zealand, three wells have been drilled and logged through the prospective formations;

    the Waipawa Formation (Waipawa Black Shale) and the Whangai Formation (Whangai Shale) considered major source rocks for this and surrounding basins. More than 300 oil and gas seeps have been identified, several on and directly offsetting company land.

    Lab analyses of three major Whangai and Waipawa oil seeps, collected over 100 kilometers from company land, in addition to core data from outcrop samples from within the basin are available.

    Marauder has committed to a work program consisting of seismic acquisition/reprocessing and technical studies within the first two years of the permit.

    Furthermore, the work program includes the drilling of one exploration well in the third year of the PEP and two additional wells in of the subsequent years of the PEP.

    The full work commitments are laid out in the Permit Summary, publically available from the government of New Zealand website, and are included in this report.

    The royalty regime in New Zealand requires payment of either an ad valorem royalty (five percent of net revenues from sale of petroleum products) or an accounting profits royalty (20 percent of the accounting profit of petroleum production); whichever is greater in a given year. The accounting profit is calculated after deduction of various prescribed costs, which can include operating, capital, abandonment, and overhead.

    The royalty regime has been in place for a number of years; occasional incentives lower the rates for limited periods of time, although no incentives are currently in place.

    Marketing of any petroleum products will be facilitated by the infrastructure in the vicinity of the PEP which includes a gas pipeline, major roads, and a major port.

    The gas pipeline runs along the east boundary of the PEP. Major roads pass through the lands and connect to Napier where there is a major ocean port, located less than five kilometers from the boundary

    Geological risk factors

    A total of six criteria are considered in determining the overall geological risk;

    Source rock - is there thermally mature hydrocarbon source rock present in adequate thickness,

    extent and organic richness,

    Charge - is the source rock capable of generating hydrocarbon,

    Migration - are there sufficient migration pathways such as faults, fractures and carrier beds to the reservoir,

    Reservoir rock - does the reservoir have favourable parameters such as thickness, pore space and the ability to allow fluid flow,

    Trap / Closure - does closure of the reservoir exist in terms of adequate areal extent and vertical relief,

    Seal / Containment - are there effective sealing rocks present to ensure that containment has occurred.

    Other players in EC are below:

    Symbol: XOP

    XOP has a nice foothold in Liberia, of which any success will only assist financing wells in NZ, should they choose to do so. They share a permit in NZ with Marauder

    Symbol: TAO

    Tag was first to go it alone on a exploratory well in NZ in 2012. They

    have now decided to wait to complete it until early 2015 and even to drill 2 more wells on the East Coast and then complete all 3 with the same rigs to save capital and increase impact.

    Symbol: NZ

    Arguably the best East Coast land holdings, but a series of mis-steps and time constraints and bad luck have destroyed 90% of its share value since inception. Shareholders have had deeply rooted concerns about this company as a going concern, its management style and whether they will survive. Its either deeply undervalued play or its going to get bought out by a bigger player and only time will tell what fate, luck and hard work will produce in the coming months.

    Symbol: MES

    This is a 100% bet on Oil being in the ground on their permit. Its

    a long shot with big upside if it hits, but no drilling program exists as of yet, do your homework on this one. Its a good story...but at this point that is all they have is pure exploration plans, a right to drill on some prospective land and hopes for hitting a new reservoir before the land rush occurs in NZ.

    We will periodically update any plays in New Zealand on Twitter

    Jul 02 3:47 PM | Link | 1 Comment
  • Bankers Petroleum Albania Fines May Have Created PetroManas Buying Opportunity

    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.

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    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.

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    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:

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    (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)

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    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

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    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

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    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)

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    ** 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**

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    May 09 4:40 PM | Link | 7 Comments
  • Putting Value On New Zealand Plays Is A Black Swan Science

    The black swan theory or theory of black swan events is a metaphor that describes an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight.

    The theory was developed by Nassim Nicholas Taleb to explain:

    1. The disproportionate role of high-profile, hard-to-predict, and rare events that are beyond the realm of normal expectations in history, science, finance, and technology
    2. The non-computability of the probability of the consequential rare events using scientific methods (owing to the very nature of small probabilities)
    3. The psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs

    Unlike the earlier philosophical "black swan problem," the "black swan theory" refers only to unexpected events of large magnitude and consequence and their dominant role in history.

    I may not understand Black Swans anywhere near the degree Nassim Nicholas Taleb does, but I think its a popular enough idea to suggest that it is very difficult to predict rare events beyond the normal expectations.

    I believe the markets have many companies within them that hold low probability but high impact opportunities held within them. Much of exploration is to zero in on those high impact opportunities and the risk to reward is still compelling enough for entrepreneurs and investors to take such chances.

    In New Zealand there are such possibilities that the Amplitude of a Seismic wavelet found by carefully processing 3D seismic signatures will at some point in time reveal a layer of subsurface rock that holds vast quantities of energy as a fluid whether gas, oil or both.

    Somewhere in the vast digital library of seismic data lies the next economic discovery of energy. Who holds the key is debateable, but your chances are much higher if you have a seismic database in the first place.

    One of the largest exploration databases on the West Side of New Zealand is held by New Zealand Energy in the Taranaki Basin. Its easier to talk about the basin that has produced oil, because its a known fact and we know what we know about it to date.

    It is more challenging to introduce an unknown, without the in-depth knowledge and data, of a basin in which we know very little. The Unknown Unknowns in the subsurface of the East Coast Basin geology holds many mysteries until we get some holes drilled and study the data.

    In the event of a probability anomalie, a seismic anomalie, a piece of data that is an outlier, a misfit, that doesn't conform but you have to acknowledge its presence...then it becomes possible that something you weren't ready to believe becomes a reality in which you now have to deal with. This to me, is my interpretation of a black swan.

    However I don't view it as a negative event. I view it as misunderstood. Nassim Nicholas Taleb says that we never had conceived of a black swan, until the world presented us with one and we were confronted with the painful reality that just because we had no name for it, or that it was so rarely known, its a real thing.

    So just because something is uncertain, rare, or low probability doesn't mean it cannot happen. I choose to spend much of my time searching for such uncertain possibilities, its never boring and its always interesting.

    Lets say you have a large amount of seismic data.

    You also have process to gather, filter and model the data.

    During the process you apply proven techniques to find the image with the most accurate method to create your final image.

    So after all the data is cleaned up you get a great picture with amplitudes that are lining up to tell a story to geoscientists.

    The scientist build a 3D model and say, based on our science, if you drill at x-y-z co-ordinates you have a ___ % probability of encountering a event horizon at a depth of X meters that may contain X barrels of Oil and Gas.

    We the truth is, no matter how great the data looks on paper, until a drill bit encounters the potential reservoir, we can't know for certain.

    So the only confirmation is to spend and risk $$ to find out.

    The reward if the drill bit confirms the prize is actually just as the seismic suggested can be enormous.

    If an Exploration well based on a Seismic event discovers a new oilfield the event can be a black swan type impact to certain parties.

    Based on the Nassim Nicholas Taleb's criteria:

    1. The event is a surprise (to the observer).
    2. The event has a major effect.
    3. After the first recorded instance of the event, it is rationalized by hindsight, as if it could have been expected; that is, the relevant data were available but unaccounted for in risk mitigation programs. The same is true for the personal perception by individuals.

    So lets examine the East Coast Basin as a potential Black Swan.

    1. A major oilfield discovery might be a surprise to the world
    2. Such an event could have a major effect for New Zealand.
    3. After discovery analysts may rationalize in hindsight, as if it could have been expected based on certain factors we now know that we didn't know before hand.

    I wouldn't waste my time writing this if I didn't think there was something down there on the east side of the North Island.

    A number of companies have bought permits to explore and although the mathmaticians of the world can play devils advocate of how low the chances are, I tend to look at things independently.

    Oil companies are getting desperate for adding reserves. The easy to find oil is held by unfriendly folks or its located in undesirable locations. Bottom line, new discoveries found where the rules are clear and stable make for long term investment opportunity.

    I can't predict where that discovery is going to come from, but I know 100% of the people who don't buy a lottery ticket never win. I know that 100% of the people who won the lottery had bought at least 1 ticket.

    Simple enough analogy, the point is I know 100% for sure the next big Oil discovery will come from an EXPLORATION company who DRILLS into an unknown geology structure for the first time and confirms a theory from a Geophysicist who interpreted a play type.

    So I may not bet the farm, but I want to be in on the next big thing and my best bet is to spread risk around the world to those companies with a decent shot at finding something.

    Which brings us to New Zealand. The East side of the North Island shows alot of potential, seriously thick reservoirs that may or may not flow at commercial rates. Its also similar to North Dakota, and we all know how lucrative that has worked out.

    At this point there are many UKNOWNS, and the Market is averse to risk, which means whatever is in the ground is not valued by the marketplace at all...until its proven to be there, and proven to be extracted at a rate that is economic.

    The Opportunity here is that if the OIL is there, the VALUE of the companies that may already hold permits to extract it, is perhaps very UNDERVALUED. This theme is the nature of the present situation for many companies staking a position in New Zealand.

    Here are a few to watch.

    (NZ hold a large position of acres on the east coast)

    The big payoff play for NZ is holdings in the East Coast Basin.

    They do have production from the Taranaki basin, but the market has punished the company for the timing of getting the barrels flowing from the lands it acquired in 2013. Shares are much lower than when this company started, and yet they own more assets and have more potential now than 2010 yet the market is not valuing potential these days, only flowing barrels get attention.

    It now looks like they may delay their plans of east coast drilling in 2014 to be pushed into 2015 for cash conservation purposes.

    They need about 342 Barrels of production just to pay for operating costs for running their company and its many offices and locations. Although they have cut costs by 25%, it was clear that with around only 220 Barrels of oil flowing from Taranaki operations that they have some improvements to cash flow that need to occur soon.

    In the recent conference call the CEO, said;

    Several shareholders voiced concerns about some of the numbers from the recent year end report from 2013 during the conference call. You can read it on sedar.com however the main points were:

    Description of business and going concern (Note 1)
    Commitments (Note 20)
    Subsequent events (Note 23)

    You can listen to what was said here.

    NZEC hosted the conference call on May 1, 2014

    Its Playback is available until May 15, 2014
    North American toll-free: 1-800-319-6413
    International callers: 604-638-9010
    Playback code: 3589#

    Essentially, the financial auditor, brought attention to the notes above and the CEO did respond to each point as best he could considering that due to a competitive exploration environment and the information sensitive areas, he had to be vague or discuss offline of competitors who may have been listening in to the call.

    (NOTE 20 from the auditor is below)

    I think the management has achieve alot over the past year, and to they now have a tough market environment with impatient shareholders who sold off some shares the day the year end report came out.

    You might find the same sentiment discussed on this clip.

    http://www.kereport.com/wp-content/uploads/New-Zealand.mp3

    The next 6 months will be crucial to turn things in the direction of Joint Ventures, further cost cutting and looking at all options on the table. They have a good suite of assets, have demonstrated ability to capture the Waihapa acqusition, de-risked certain plays, and have a midstream business that as of next week will rent some pipeline capacity to its 3rd parties for cash.

    The Waihapa lands and the other permits are littered with traps. Short term, a farm-in on the Taranaki side might happen sooner than the East coast side.

    Insiders still hold 25-28% of the company, the CEO is around a 20% shareholder and as I have stated before, its too early to write off this story for a couple disappointing quarters. Those who argue with me, miss my main point, fortune favors the bold, and this play is as bold as it gets if the east coast pans out. Meanwhile, we have to be patient to let the Taranaki keep us afloat and trust management to de-risk the cash flow using all options on the table.

    This play was never just about Taranaki, the big story, the big potential was the unknown prospective reserves on the East side of the North Island. A large bet was made on the East Cape.

    The East Cape acreage could hold serious future reserves, and much of the east coast acreage holds farm-out potential and Joint Venture opportunities. Extensions to the east coast permits has been applied for and the change in conditions to the permits is a negotiation in progress. The prospective reserves in the unexplored acreage is the real reason to hang on and be patient. If this isn't your game, if you just see risks and not the upside reward, maybe its time you move on.

    I have every confidence that the future of New Zealand holds great promise. I think given all the geopolitical events in the world and the currency situations being discussed by economists, that Oil in the ground is still the most valueable thing to pursue at this time.

    I think the 3D Database holds alot of room for partners and joint ventures to pursue and de-risk the company going forward.

    Next week the midstream assets starts earning 3rd party cash flow.

    I also view Ian Browns retirement and re-hire at KEA as a positive.

    OTHER HIGHLIGHTS

    •TWN Reactivated Wells (NZEC 50% interest)

    • Six wells reactivated and producing oil from Tikorangi Formation using installed gas lift

    • Total production (100% basis) during December 2013 : 9,332 bbl oil, 16.2 million cubic feet ("mmcf") natural gas(1)

    • Total production net to NZEC during December 2013 : 4,666 bbl oil

    • Average daily production (100% basis) during December 2013 : 302 bbl oil, 0.52 mmcf natural gas,1 average water cut 74%

    • Average daily production net to NZEC during December 2013 : 151 bbl oil

    TWN Recompleted Well (NZEC 50% interest)

    • Existing Tikorangi Waihapa-2 well recompleted uphole to access bypassed production in Mt. Messenger Formation

    • Perforated two zones, well flowed from natural reservoir pressure for three short flow tests

    • A further flow test planned for early January, followed by shut-in for pressure build-up

    • Commercial production expected in early February

    • Recompletion activities on a second well expected to commence by mid-January

    •Eltham Permit Wells (NZEC 100% interest)

    • Average daily production during December 2013 : 85 bbl/d from Copper Moki-1 and Copper Moki-2 wells

    • Copper Moki-3 shut-in during December, workover activities underway to resume production in January

    • Waitapu-2 well expected to resume production in January

    --------------------------------------------------------------------------------------------------------------------------

    Today May 2nd it was re-stated by a farming website in New Zealand that they are actively seeking farm-ins, partners or joint venture partners to help advance the company.

    Is there a Black Swan probability in the 3D Seismic Data, or

    future Exploration drill holes within NZEC's portfolio?

    I think there is a greater chance with the size of the land

    package they hold, that if a Black Swan type anomalie

    exists...they have oneof the better chances of unlocking it

    from their existing 3D data than others do.

    The massive 1,048,406 acres on the east cape permit

    could prove to offer many JV deals, and it only takes one hit to

    turn this story on its head.

    Waihapa 2 production was achieved April 17, 2014 this should report on the Week of May 5th

    Toko 2B is on Electric Submersible Pump on Monday May 5th and will be running on dedicated electricity instead of running of a generator set, so it can perform to its maximum potential.

    The numbers for both wells should be out by May 30th.

    (Current situation)

    There are many pieces to NZEC and some of the pieces could be sold or re-structured going forward as well. Its still early in this story.

    In closing, this photo sums up how i feel about Exploration.

    Its a damn hard business, and in the jungle you must be

    willing to be who you are. Everyone works hard, success isn`t

    always favoring those who work the hardest. The ones that

    stand out are willing to be who they are regardless of fur,

    spots or stripes. I respect all three.

    ---- History of others exploring NZ----

    XOP

    In November 2012, COPL announced that its partner in New Zealand had been awarded Petroleum Exploration Permit 53806 in the East Coast Basin Offshore New Zealand. The agreement between COPL and its partner provides for each company to hold a 50% working interest in the PEP 53806. The permit covers 965 square kilometres and has an initial term of 5 years.

    XOP is more focused in Liberia at the moment and has no active plans for drill program in NZ at the moment, but holds land.

    EW

    has participation interests are 50% in 54876 and 54879 and 30% in 54877 with Tag Oil.

    TAG OIL

    (click to enlarge)

    In the East Coast Basin, TAG is pursuing the independently assessed multi-billion barrel unconventional resource potential that has been demonstrated in the Waipawaand Whangai source-rock formations. These oil-rich, naturally fractured formations that are widespread across the East Coast Basin compare favorably to tight oil formations such as the Bakken Shale in the Williston Basin.

    (click to enlarge)

    May 02 6:42 PM | Link | 6 Comments
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