VPE 0.00% 41.5¢ victoria petroleum nl

Interesting reading for VPE holders

  1. 18 Posts.
    Found this on an Oil site, makes interesting reading

    DATE: June 14, 2002
    Company Analysis
    Hedging Strategy
    Great Panther Sees Similarities Between San Joaquin Basin And Prospects Offshore Thailand.

    Is Great Panther the Toronto listed junior explorer about to pounce on some new assets? The infant group is still assembling acreage but has undertaken some drilling on its first group of licences in California's San Joaquin Basin. In the past the area has been prolific having yielded 13 billion barrels of oil and over 12 trillion cubic feet of gas. The area was rediscovered, so to speak, a couple of years back when Berkeley Petroleum of Toronto had a blowout with its Bellevue No 1 well in the East Lost Hills.

    Last year an eleven-member consortium, with Tri-Valley as the operator, was drilling the Ekho prospect some eight kilometres from the Bellevue blowout. The Ekho -1 was a very deep well up to 19,000 feet and the operator was very optimistic about the prospect saying there could be some 4 billion barrels of high gravity oil and ten trillion cubic feet of natural gas in place. But there were problems with drilling at this depth. Some of the other ten members of the consortium mainly Canadians, had a cash call. A number including CVL decided not to cough up and the well went on hold. There is still testing on the prospect but so far the group has not found "the big one."

    Great Panther's first well is on the Kingfisher prospect some 50 miles to the east of Ekho. Mr Kaare Foy, the CEO and CFO of Great Panther says: "The Kingfisher prospect is simpler and less complicated than Ekho." Great Panther has been able to farm into the prospect through Australian explorer Victoria Petroleum. Over a year ago Victoria bought out the remaining 50 per cent in the San Joaquin project held by Kestrel Energy, which is quoted on Nasdaq. This rationalisation gave Victoria 100 per cent ownership and management of the exploration effort while leaving Kestrel with an interest in Victoria and Victoria with an 18.4 per cent stake in Kestrel.

    Great Panther has a 10 per cent working interest before payout and a 7.5 per cent working interest after payout in both the Kingfisher and the Raven prospects. In all Great Panther has four prospects on the eastern side of the San Joaquin Valley; Kingfisher, Raven, Condor and Cockatoo. There is room for forty wells - ten in each prospect.

    The Kingfisher well found multiple pays zones but was particularly encouraged by the Upper Monterey oil zone. The operator of the project, Victoria Petroleum describes the results of the drilling of Kingfisher-1 as a " success in potentially extending the significant new 100 million barrel plus Monterey Trend on the East Side of the San Joaquin Basin. Accordingly the Upper Monterey Zone in Kingfisher 1 is considered an excellent candidate for horizontal drilling."

    This drilling is now taking or is about to take place. There could be between 22 million and 50 million barrels of oil recoverable and several billion cubic feet of gas in place in the first phase of the development of the Kingfisher prospect.

    While all this has been going on Great Panther has begun to acquire 36 per cent of Anzoil Thailand for 3,300,000 common shares and 1,650,000 common share purchase warrants, amounting on paper to something over C$5.5 million. Anzoil has entered into an agreement to acquire 100 per cent of an exploration permit BlockB7/38 offshore Thailand. In addition to the petroleum concession, Anzoil Thailand is also acquiring approximately US$4 million of exploration work, mainly consisting of geological studies and 3D seismic surveys. Anzoil Thailand will have US$1.9 million in cash available to be used to drill wells on the property.

    John Kopcheff, director of exploration at Great Panther has said: "Great Panther is poised to become a significant and successful energy producer in some oil and gas locations based on its participation in the prolific San Joaquin Basin as there are similarities with the Anzoil prospects which completely surround Shell's off-shore properties in Thailand."

    Great Panther continues to look for further opportunities. Nobody is saying where or when but other assets purchases could be in train. Watch this space.

    Hoping for good news soon. Held VPE for some time

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