Maria Oil Discovery, Norwegian Sea

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22nd Jul '10 by doverbeach

9 comments 4998 reads

RNS: http://www.investegate.co.uk/Article.aspx?id=20100722070000H3315

Highlights
   ·     Gross oil column of 210ft (64m), in better than expected reservoir;
   ·     Preliminary analysis indicates:
         o Gross volumes in place (STOIIP) of between 250 and 520 mmboe; and
         o Gross recoverable volumes currently estimated at between 75 and 155 mmboe of oil and associated gas;
   ·     Situated on the Halten Terrace, close to existing development infrastructure.

Faroe has 30% of Maria. Market cap last night 225m. 175m shares.

I have just bought a few...

db

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About the Author

Doverbeach

Premium Member

9 comments

ohisay

22nd Jul '10

I can't think the market is pricing this in correctly.This seems much bigger than anticipated .
35mboe median recoverable net to FPM at say 5£ per boe (lets be conservative in allowing for some gas content) gives £175m.
Add on the £60m cash they raised recently and we're up to £ 235m for starters out of a market cap of £260m (175m shares at 150p)

Plus other assets and Anne Marie to come .
I topped up too.

ohisay

22nd Jul '10

Gets better - about 80% oil / 20% gas median estimate according to one of the partners .

http://cws.huginonline.com/S/138921/PR/201007/1432858_5_1.html

Initial analysis indicates that the Maria oil has properties similar to the oil in the nearby Trestakk discovery, around 40 degrees API. The recoverable reserves are estimated to between 10 and 20 million standard cubic meters (63 - 126 mmboe) of recoverable oil and between 2 and 5 billion standard cubic meters of associated gas (13 - 31 mmboe).

repobear

22nd Jul '10

I've bought hese pretty heavily today.

This find has got to be worth a pound or two a share and I expect the price to settle at well? over 2 quid once the market absorbs the news more fully.

Not a bulletin board favourite, though not without some serious followers.

Watch out for the FT Markets live effect shortly.

repobear

Fangorn

22nd Jul '10

Waded in myself this morning on the back of the news this morning - no doubt in smaller size than your good self :)

repobear

22nd Jul '10

This comment has been moderated

Fangorn

22nd Jul '10

Eh wasn't Repo's message linking to the company's annual accounts? Didn't have chance to establish what was deemed misinformation.

Murakami

22nd Jul '10

Hi, it was actually a request by repobear himself to moderate the message - I will let him clarify but I don't think he was happy with the post.

repobear

22nd Jul '10

The area looks highly prospective and the derisking of other prospects thought to be bigger must be very encouraging.If today's discovery is only worth just over $3 a barrel equivalent then the Norwegian tax system must be highly punitive.

http://www.fp.fo/get.file?ID=5061

See pages 10 and 13.

I always liked T-Rex;-) due to make a reappearance early next year.

http://www.fp.fo/Default.aspx?pageid=993

More detail on the other recent discovery

http://www.fp.fo/Default.aspx?pageid=992 and the subsequent RNS

http://www.investegate.co.uk/Article.aspx?id=20100423070200H7222

'The gross size of the discovery has been estimated to be in a range between 105
and 530 billion cubic feet (between 19 and 95 million barrels of oil equivalent)
of recoverable gas and condensate of which Faroe Petroleum has a 15% net share.
The volumetric uncertainty remains relatively large at this stage due to the
position of the Fogelberg well which is located relatively high on the
structure. An appraisal well is likely to be needed to prove the down-dip
extent and the actual size of the discovery.'

With a full funded material drilling programme and a lot of upside in it, the risk reward profile of FPM looks pretty encouraging. I did read that FPM can recover 50m quid in tax losses, with 65m quid in cash and 175m shares in issue this one could go a lot further on more drilling success

Why is the post box here so miserably tiny?

repobear

doverbeach

22nd Jul '10

Why is the post box here so miserably tiny

if you click on the 'show editor' you can then drag the bottom right corner to be larger :)

HTH db

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Maria Oil Discovery, Norwegian Sea

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Doverbeach

9 comments

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