Why not take a look at Rift Oil Plc?
Rift Oil Plc [RIFT] is a small oil & gas explorer which is listed on AIM. The company operates in Papua New Guinea where it holds 100% of two licences in the Foreland District, PPL235 and PPL261. RIFT also owns its own oil rig, the Coral Sea, which is helicopter transportable and ideal for the terrain there. RIFT is capitalised at £24M. The share price is currently 6p having risen from a low of around 3p since the beginning of this year.
RIFT has made two significant gas discoveries, which though stranded at present, will almost certainly be monetised within the next two to three years, with a potentially significant increase to RIFT’s value in the marketplace. The two discoveries so far are Douglas-1, which was drilled in 2006 and nearby Puk Puk-1, which was drilled in 2008. Both of these wells are on RIFT’s PPL235 licence. A further five wells are planned and the first of these, Platypus-1, will be drilled shortly according to the company’s announcement in December 2008 – see www.riftoil.com. Currently RIFT estimates total reserves to be in the order of two trillion cu ft of gas. But expectations are high that further drilling may well increase this figure substantially!
Following the first discovery RIFT signed a Memorandum of Understanding [MOU]] with Alcan [a subsidiary of Rio Tinto] to look at the potential supply of some 800 billion cu ft of gas to its Aluminium Refinery at Gove in Northern Australia at a rate of 40 billion cu ft per year for 20 years. While this MOU is still extant, following the second and larger discovery at Puk Puk, RIFT entered into a second MOU with Flex LNG of Norway. The partnership seeks to supply gas to an off-shore LNG processing ship which will provide LNG to vessels for supply world wide. Flex LNG are currently have a number of such LNG processing ships built in South Korea and the second of these is earmarked for RIFT's gas.
RIFT is currently engaged with its broker RBC Capital Markets and RFC of Sydney in a process to find a suitable partner/investor with whom to move ahead and the results of this process are eagerly awaited. See the Interim Report on the company website date 30th December 2008 for details.
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