In a break from babbling about more solid companies with boring things such as reserves and production, I thought Id mention something a little bit different.
Now here's what Id say looks a very very interesting but HIGH risk play that could/should see an outcome in the near term with the first well spudding later this month and the drill is scheduled to take 6/8 weeks.
The shares have fallen sharply this year with the swing in sentiment to the oil sector and are currently c C$1.40 down from a peak of C$3.45 seen in early Jan. Market cap is now $145m. Liquidity in the shares is good at c300k shares per day. It’s a Canadian Venture quote.
Rodinia has to be seen as a Speculative play for its high risk, high reward and essentially a binary play.
The company is focused on the unexplored Officer Basin in South and Western Australia with interests in 9 blocks covering 19.5m net acres.
As Ive said in the title, the estimated unrisked prospective resources is 126bn bbls (101 bn net). That’s on 7 of the 9 licenses.
The first 10 drill ready prospects are targeting only 26bn bbls or 21 bn bbls net.
The first well, Mulyawara-1 is estimated at 2.7bn bbls gross prospective resources.
Okay, so some of the basic details:
Website: http://rodiniaoil.com/
Overview of operations: http://rodiniaoil.com/operations/overview.php
Company Presentation: http://rodiniaoil.com/documents/Presentations/Rodinia-PPT-2011-01.pdf
Resource Report from Ryder Scott (excerpt) http://rodiniaoil.com/operations/ryder_scott_report.php
Full Ryder Scott Report (all 161 pages of it) http://rodiniaoil.com/documents/Misc/RodiniaDec10Resource(NC).pdf
The website lists four analysts covering the stock (and they aren’t Mickey Mouse outfits) – MacQuarie, RBC and First Energy are the biggest then there is Jennings and Haywood (which isn’t listed on the Website)
You can download the October Note from MacQuarie and Jennings’ short note from the ROZ website (link above). Unfortunately they don’t have links to the RBC and First Energy notes but both of these have done more recent notes (initiations in Late Jan 2011 for FE and Dec 2010 for RBC).
Plans
ROZ intends to drill four wells this year starting later this month. It is funded for the program. There is also an option on the rig for a further four wells.
This is real frontier exploration since the Officer Basin is essentially unexplored. What work has been done to date…
