Re: BKP - Baraka Petroleum
BKPs re-rating will happen shortly imo as there are 2 imminent catalysts
1. The company is completing a resource estimation for its 2 Gergian Basin permits near CTP's grounds
"Isis will initially assist Baraka with a full technical review of the petroleum systems
within EP 127 and EP 128 as well as prepare a prospective resource assessment for each
of the plays, leads and prospects identified within the permits."
Given the huge prospective resources CTP have outlined all around BKP (see the image attached) ie next door CTP have outline a possible 650M bls of Oil and 50 TCF of CSG it is not unreasonable to expect BKP to come out with prospective resources of 100M-200M bls of Oil as well as 5-15TCF of CSG
Now even though these resources will be prospective targets in nature it will be enough to ignite the markets interest and I would suspect a re-rating to possibly 1.5c will occur
2. The company is also on the acquisition path and I would suspect that a new project may be acquired in the not to distant future that is assuming a suitable one can be found
DYOR as these are my thoughts only but as I said from the start this reminds me alot of LKO around the 0.005c level prior to the experts report which the company said time and time again was coming and subsequently saw the share price rise to 1.8c
Hi Young Trader,
Excellent post mate. Your research keeps on getting even better.
Today for the benefit of interested parties, I rang Colin Vost, a Director of BKP on (08) 9363 1700 and spoke to him about BKP for 6 minutes. I found him to be very informative and happy to answer questions that he could indeed reply to.
Firstly, I asked him how long it will take for the company to receive the ISIS consultancy report. He told me that they should surely receive it within a month at the latest. This report will be highlighting potential targets and sizes. I asked him whether its possible as to whether BKP's permits might contain similar targets to CTPs ATP912 which is closeby. In this CTP permit theres potential for 650 million barrels of oil and 50 TCF of Gas. Colin says that the company is optimistic about the prospectivity of the region and that the company is hoping for targets of a similar size. However, it will up to ISIS to come up with the report.
Secondly, I asked him about the company's cash position and he informed me that BKP had more than sufficient cash to survive and do considerable work on BKP's 2 permits. The company has low overheads and is debt free.
Down the track, a larger company might approach the company about a potential farm-in and therefore free carry BKP. I speculated that this possibility down the track might end up with BKP having a 20% free carried interest, to which he said it might be a possibility down the track. It was noted that there was considerable interest in the NT region as it stands.
Thirdly, BKP has already stated that it was looking for new acquisitions. Colin said it might weeks in a couple of instances or months in others before a deal is sealed. The opportunites on the table include outside the oil and gas sector. Previously he told me there were 8 acquisitions on the table that the board was looking at including coal (CSM?). He didn't want to go any further than he has already due to ASX rules.
DYOR