CIG - Caspian Oil and Gas

[Peakey]

Hi Mick,

Thought I'd reply so you don't feel like you're the only riding CIG

I only just jumped on board in the past couple of days based on the charts.

I got a buy signal on the 26/9. Stock has since retraced on decreasing volume, to sit on the .14 support level.

We'll wait and see how it all unfolds.

Cheers
Peakey

 

[mick2006]

hey peakey wouldn't worry too much about the slight profit taking on thursday/friday there was a large case of price capping friday you just have to look at the 5 million worth of sell orders that appeared friday morning and that were pulled as soon as the market closed.

CIG will be well worth watching heading into next weekend as the run up to the exploration keeps unfolding.

 

[mick2006]

just fired one of my famous question & answer emails off to the company, will be interesting to see what they come back with, will post the results when I hear back.

interesting to see the efforts of the price capper in CIG at the moment with 1 million share sell orders at 15,15.5,16,16.5,17,17.5c. Once the parties have had their fill we should see the shares continue their upward trend.

Also given the current interest in oil exploration companies CIG should see some serious action later in the week due to the upcoming results from the Kyrgyz Republic.

The area they are currently drilling in covers the oil rich Fergana Basin joining Uzbekistan and the Kyrgyz Republic with oil reserves dicovered of over 1 billion barrels to date.

 

[michael_selway]

just fired one of my famous question & answer emails off to the company, will be interesting to see what they come back with, will post the results when I hear back.

interesting to see the efforts of the price capper in CIG at the moment with 1 million share sell orders at 15,15.5,16,16.5,17,17.5c. Once the parties have had their fill we should see the shares continue their upward trend.

Also given the current interest in oil exploration companies CIG should see some serious action later in the week due to the upcoming results from the Kyrgyz Republic.

The area they are currently drilling in covers the oil rich Fergana Basin joining Uzbekistan and the Kyrgyz Republic with oil reserves dicovered of over 1 billion barrels to date.

Hi do you know when they plan to produce or sell?

thx

MS

Caspian Oil & Gas (CIG, formerly Afminex Limited) holds equity in a substantial package of oil interests in the Kyrgyz Republic and its subsidiaries are exploring for gold, diamonds and other minerals in Ghana, Cte dIvoire, Guinea and the Kyrgyz Republic.

 

[mick2006]

have a quick look through their website it is very up to date and carries alot of information about the company.

as for production, due to the close proximity of the current well targets to existing under used infrastructure the time from discovery to production will be quite quick, obviously allowing for commerical discoveries.

the best thing about this first 11 well program is that it is considered low risk and highly likely to discover oil due to location. This program is not one that will find 100's of millions of barrels (that follows the current round of drilling with the JV with Santos) this program is shallow wells that will produce steady oil production and healthy cashflow for the upcoming larger targets.

the current 11 well program could be compared to what CVN is currently doing and that is creating cashflow for the company and then chasing the huge find.

one thing the company does highlight is the low cost production in the Kyrgyz Rupublic of around $9-11 usd per barrel including transport, this means even the smallest find has significant profit potential.

this company is around six months behind CVN with substantial exploration underway a massive JV partner in Santos, large listed investments around $37 million, so don't be surprised if it starts to appear on some brokers watchlists especially tip sheets such as fat prophets.

with the first well results due early next week CIG will be one to watch heading into the weekend, don't be surprised if we see a few very large volume days on thursday and friday as punters take positions.

 

[camaybay]

Mick,
I read through the drilling programme and this series of holes is looking for the northern(?) boundary of the oil field. What are they looking for? I hope they have to keep looking.
Keep up the good research

Cheers

DYOR

 

[mick2006]

your right they are currently testing the northern part of the existing oil field, they are hoping to hit an extention of the exisiting field and with any success sink around 8-10 production wells.

I remember the current field has proved reserves of around 6 million barrels.

Would be extremely happy if they could double the existing reserves with this current 11 well program as their cost base of 9-11 dollars per barrel would lead to substantial profits.

 

[mick2006]

massive spike in buying over the last 10 minutes with about 7 million changing hands and the buying is starting to pick up momentum

this could be the begining of the run up the the Kyrgyz oil exploration results which a due early next week

 

[mick2006]

CIG is really hammering along now clearing resistance between 15-16.5c and now having a go at 17c

with over 15 million shares changing hands in the last hour, there is obvious speculation about a possible oil find in the Kyrgyz Republic.

either way very enjoyable day as I grabbed 3 million CIG at 13c last week.

 

[dogwithflees1983]

Hi all

I'm new to this site, anywayz I own some CIG and think the stock has a lot of potential.

Any views on why the price has taken such a hammering today?

I also own some MHL shares and they have also dropped back today

I was thinking that it was due to the lack of drilling results that have been eagly anticapted by many investors?!

Cheers

 

[wipz]

Hi dogwithflees and welcome to the forums, i think many punters are dumping her because she's not putting out... Lets hope patience pays off. I am also a holder.

 

[necrotic]

I like the CIG style - no hype, no undue expectations - just post results after they happen. This keeps out the HC types, the blue sky traders, and leaves the field for us genuine long term holders. We need more oil explorers in this class, but I guess most have such trouble raising cash, PR and publicity is their route to funds.

 

[timelord]

I like the CIG style - no hype, no undue expectations - just post results after they happen. This keeps out the HC types, the blue sky traders, and leaves the field for us genuine long term holders. We need more oil explorers in this class, but I guess most have such trouble raising cash, PR and publicity is their route to funds.

I too hold both MHL and CIG and have for a while. As one posted a while ago, put them in a draw. Do people know of any other similar oil explorers that could be worth doing more research on?

 

[dogwithflees1983]

I too hold both MHL and CIG and have for a while. As one posted a while ago, put them in a draw. Do people know of any other similar oil explorers that could be worth doing more research on?

Hi Timelord, I also own some Otto Energy (OEL) and think they too have a lot of potential. Attached below is the business description.

Ottoman Energy Limited (OEL) is focused on gas exploration and production in Turkey, The Phillippines and Argentina.

Cheers

 

[sfx]

Dogwithflees1983 - another oiler to look out for is KEY Petroleum (ASX: KEY).

They have a solid management team and have permits in Tanzania, Italy, Suriname.

Still at a bargain, but delayed activities for drilling has meant that its dragged on for a while now.

Otherwise, TAP would be another one to look at. Permits for Brunei area I believe. Some large targets there.

As for CIG - anyone know what the key dates are - I'm lazy to go through their announcements etc....

When are we expecting announcements over their first shallow well / drilling?!

 

[Trade wind]

sfx - I like the sound of TAP, or at least their ASX code - great one for an oil company.

CIG appears to be have settled into a weekly Friday report routine. Interesting to see what tomorrow brings after early teething problems with drilling. Looks like a lot of the quick money has already left this one, now we'll see what it's really made of.

One to keep an eye on is FAR (First Australian Resources), a busy oil junior with JVs in North America and China (Beibu Gulf), now drilling in Canning Basin (ARC the major operator). Seeing some interest on the strength of WA operation, but this one promises much bigger fish with their offshore Senegal holding (30% with US operator Hunt Oil the main partner). I'm holding to see their 3D seismic results due this quarter, after company has flagged "promising" early results. Could be very interesting, though only drilling will really tell - might also be one for down the track.

 

[dogwithflees1983]

Thanks for the heads up sfx i will look into KEY. Big fan of all oil/iron ore stocks given the current market conditions.

I already own TAP got in a few months back at $1.85, thought it was a stinker at first but its progressed very nicely after strong backing from the Wiley Group over here in the West. Not looking at selling TAP anytime soon, fundamentals look good.

 

[brodion]

cig

Hey Guys,
New boy in the block.Does anyone have info on cig that would help this ignorant being?

Church man

 

[Trade wind]

brodion - I'm a new boy too, but I know CIG, or at least I think I do. Here's my thoughts:

Bought this one in early 2006 on the hype surrounding their farm-in deal with Santos, which agreed to spend US$24m on exploration by 2009 to acquire up to 80% of the licences. All looked rosy, CIG was certainly talking big, but then Santos declined to take up its options on the shallow oil layers, saying they "were not of sufficient potential" for Santos.

The share dived and was in the doldrums for over a year until May this year with a capital raising and announcement of exploration with a rig bought in China.

With lots of hype in WA, and the usual frustrating delays, the share price finally started taking off again as the rig made its long journey across Central Asia to Kyrgyzstan. CIG had a great run from around 6 cents in May to 17c last week, when a lot of sellers took profit. Nothing sinister here - there are two ways to play exploration stocks, get out on the rise just as drilling starts in case they find nothing, or hang on and see what they've got in the hope of striking it rich.

I got out and finally took my profits. I don't have a lot of faith in their shallow drilling program, afterall Santos don't, but who knows? I'm keeping a close eye on it and might jump back in. CIG gets 100% of the oil down to 1000m so they will soar if they find anything.

CIG could do anything. Their first well looks like a dud but they've got another 10 to go. I'm keeping an eye on the price, and their Friday drilling reports, but the real payoff might be much further down the track.

Santos have committed another $6m for the deep drilling program, which is the most likely to yield results. But when will that happen - maybe mid-2008, depending on seismics? Who knows. Santos were supposed to start seismics in August 2007 but I've heard nothing. Now if deep drilling gets the green light ...

We'll see.

 

[sfx]

Santos have committed another $6m for the deep drilling program, which is the most likely to yield results. But when will that happen - maybe mid-2008, depending on seismics? Who knows. Santos were supposed to start seismics in August 2007 but I've heard nothing. Now if deep drilling gets the green light ...

We'll see.

Agreed with your comments over STO. Follow the big boys. With the nearby Oil fields yielding millions of barrels of oil, lets hope that they strike it big.

Probably a play to keep an eye out for mid next year though .... time will tell ....