I did try and do a short write up on these on Friday when mobile. Seems as if, for some reason, using a Blackberry to create a thread doesnt work (although everything appeared to work).
Anyway, PetroKamchatka came to the market on Friday. I should say that we have a position here form Pre IPO funding rounds. Nevertheless, I thought it might be interesting to do a little write up.
Okay, its Russia and I usually dont go near Russian plays but this one looked sufficently interesting. One reason was Graeme Phipps, who was CEO of PetroKazakhstan prior to its sale (on which we made a little killing). The other is it is the old lure of Sakhalin.
Since listing, the website has gone operational so worth a little looksee. There you will find information on the D&M report covering their seven licences, geology etc. The numbers in the S&M report are shall we say, somewhat tempting. The company is also JVd with the Koreans through a KNOC led company with other Korean companies (details on the website). Political risk is reduced IMO by having the Kamtchatka govt in as a 10% shareholder and the local govt has asked the Russians Gov to consider that onshore Kamchatka be added to the list of regions given a "holiday" from the Mineral EXtraction Tax
The company is already drilling its first well on the Tigil block and should TD there before the end of the year (subject to SW10's law).
Since Sept 2007, the company has raised $60m plus in private funding rounds, bolstered by a raise pre IPO of roughly $9m. The company will use the cash in hand to fund the first two wells, one of which is, as already mentioned, is drilling ahead and one due in Q1 2010, also on the Tigil licence.
Assets
There have been wells drilled in the area before now with Oil tested, oil seeps and bleeding cores seen. The first well is targeting mean recoverables of 165 mmbbls and the second 36mm.
The Tigil licence (45% Rev Interest to PKP) has 10 prospects and leads identified to date. Commitment is for 1 well by end of 2009 (currently drilling) and one by end of 2010
Icha licence (45%$ RI to PKP) has six prospects and leads identified to date. Commitment 1 one well prior to end of Oct 2011.
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