Polo Resources (LON:POL) : Following on from Polo’s results statement issued on Friday, an update has been issued by Signet Petroleum, where Polo has a 21.7% stake.
Signet says that through interpretation of 2D seismic it has identified a “structure” in its Namibian acreage about 90KM From the Kudu gas field operated by Tullow. It has an area of approximately 30km by 25km. Further interpretation work is being undertaken with a view to commissioning an independent resources report in Q1 2013 hopefully leading on to exploration drilling for which Signet will either raise equity finance or seek a farm in partner.
Signet was also a winning bidder of a block in Sierra Leone where it will have a 10% participating interest. In Tanzania Signet is initiating a formal sales process Mnazi Bay North Block. Following 3D seismic, Signet is of the opinion that “there is a substantial up dip extension of the BG/Ophir Chaza 1 gas discovery drilled near the boundary line between the BG/Ophir and Signet blocks”.
Signet expects to commence 2D seismic in Burundi and Democratic Republic of Congo side of Lake Tanganyika in April 2013 and has is discussing partnership and marketing models with major international seismic companies.
Neil Herbert, Executive Co-Chairman of Polo said:
"Signet has successfully worked to broaden and strengthen the prospective quality of its asset base. The completed exploration work has yielded some exciting results, while the planned, thorough work program should grow the value and potential of the company. Working effectively in highly prospective areas, Signet Petroleum is a valuable part of Polo Resources' portfolio. We look forward to further updates on its progress."
After a quiet period for Polo it’s nice to get two announcements in two days! Whilst there is little concrete in the Signet update, it’s encouraging to see it making progress in identifying prospective structures which will hopefully lead on to more meaningful announcements during 2013. The Polo share price bounced a little on Friday following the results announcement but the shares still stand at a 33.2% discount to net asset value per share of 3.8p. I would expect that discount to close further in the coming months.
