VIL - Verus Investments

[sjx]

Should be an interesting week ahead for VIL.. We've seen some serious institutional selling of late, which has seriously hit the SP...

With drilling announced in what was such a positive announcment, I would have expected VIL to be in much higher place right now (maybe the drilling was factored into the price already? - I doubt this though)..

Any opinions/thoughts on what we can expect over the next few weeks? I'd love to top up.. but my employer has a two week securities holding period.. which means I'd have to wait two more weeks before I would be able to sell - No thanks!!!


Regards

 

[maxmac]

Hi SJX,

If you're still in it's time to sit and wait. If it's good it should be very good.

Cheers
Maxmac

 

[Donga]

Hi SJX,

If you're still in it's time to sit and wait. If it's good it should be very good.

Cheers
Maxmac

Agree, the market has not been at all responsive to announcements lately, e.g. ROG, BCN, JPR, OVR, RNG to name a few. I've bought modest holdings in VILO and GGPO and willing to lose, particularly most of VILO value if they have a duster. If it's good, I'll be expecting a grand treat early in the New Year.

 

[Putty7]

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to advise the T.G.R. Land Company, Inc #1 well at Fausse Point is presently at a depth 6,840 ft and drilling ahead. The well spudded on Saturday 5 December 2009. The well is expected to take another 5 to 7 days to reach its targeted depth of 9,500 ft.

Starting to get interesting for VIL, should be in the target zone soon, fingers crossed it will be a good result, SP currently at .022c, value if they hit is around .10cps to VIL.

The prospect is located on the flank of a producing salt dome where two high quality targets have been identified. The primary target is shallow oil (7,000 - 8,000 ft) and deeper secondary target is gas (7,500 - 9,000 ft). Total dry hole cost to drill the initial well is approximately US$1 million.

 

[Putty7]

Starting to get interesting for VIL, should be in the target zone soon, fingers crossed it will be a good result, SP currently at .022c, value if they hit is around .10cps to VIL.

Value of target to VIL should read .25cps at 50 percent of JV, value to GGP is .10cps at 20 percent of JV

 

[Putty7]

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to advise the T.G.R. Land Company, Inc #1 well at Fausse Point is presently at a depth of 7,150 ft and drilling ahead.

The well has recorded a gas show at around 7,000 ft. The well circulated gas cut mud and the mud weight was increased after a 6,800 unit gas show was recorded in a secondary target interval. The two primary targets have yet to be reached.

The well spudded on Saturday 5 December 2009. The well is expected to take another 6 to 7 days to reach its targeted depth of 9,500 ft.

Comments

While the gas show is encouraging, the significance cannot be determined until a full electric logging operation is completed once the well reaches targeted depth, and if warranted, a production testing operation is conducted

Encouraging sign with a gas show so early in the drilling before the two designated targets have been reached, just going on the data supplied by EGO on the gas units they encountered in their latest drill it looks to be a reasonable show at 6800 gas units, I am not a Geo so do your own research

 

[condog]

Value of target to VIL should read .25cps at 50 percent of JV, value to GGP is .10cps at 20 percent of JV

Has anyone cross checked these numbers to verify them, is this in the GGP report

Where and how did you calculate this???

 

[Putty7]

The figures come from the VIL asx announcement dated 18 December in reference to Fausse Point and relate directly to VIL

 

[condog]

The figures come from the VIL asx announcement dated 18 December in reference to Fausse Point and relate directly to VIL

Ta - yeh found it

Its an all or nothing play isnt it.... very little if it fails and good upside with success 25-40c per share on a 0.025c share

I banged a small amount on it in case.......... encouraging early signs...I usually dont touch them in this situation, but given the early finds this one looked worth the risk..

 

[Putty7]

Ta - yeh found it

Its an all or nothing play isnt it.... very little if it fails and good upside with success 25-40c per share on a 0.025c share

I banged a small amount on it in case.......... encouraging early signs...I usually dont touch them in this situation, but given the early finds this one looked worth the risk..

Yeah I have been following them since BESBS player was poking around them, figured at around .02c there was a lot of upside, the fact that some gas is there early gives it a bit more cred, if they do manage to hit something substantial it should have a good run.

 

[Putty7]

CONFIRMATION OF OIL & GAS AT FAUSSE POINT

Verus Investments Ltd (“Verus”) is pleased to advise that the TGR Land Co. Inc #1 Well at the Fausse Point oil and gas project in Louisiana, has intersected good hydrocarbon shows over several intervals whilst drilling to the current drilled depth of 7,695ft.

Due to another gas kick at approximately 7,580 ft and continued high levels of gas entering the well, it was decided to cease drilling to conduct electric logging operations and install an intermediate casing string before recommencing drilling. This casing protects the integrity of the potential discovery and allows the rig to safely drill to the next main targets.

The intersected formations appear to be slightly higher than anticipated and paleontology work is being performed to determine how the formation actually sits in relation what was forecast.

Electric logs and sidewall coring has been performed and the data is currently being analysed in order to better understand the significance and potential of the formation sands that have been drilled through. The electric logs have provided some indications of hydrocarbons in the “Cris 47” unit at approximately 7,000 ft, consistent with what has been seen in the “mudlogs”. 44-45 deg API gravity oil indications are present in several of the sidewall cores taken over this interval.

Further analysis is required before providing estimates of the thicknesses of the reservoir quality sandstone in these units along with interpretations of possible reserve potential.

Intermediate production casing is currently being run to 7,695ft and once cemented and pressure tested, drilling of the well to the other targets will continue. This is anticipated to take a few days.

Whilst the commercial nature of this hydrocarbon show has not yet been determined, this possible discovery, as well as the potential of the yet to be drilled main target, could be of significant value to Verus.

This is a significant advancement for Verus and the Board acknowledges Kindee Oil & Gas’s experience, focus and dedication in drilling this well.

It is anticipated that drilling of the well to its target depth could take another 6-10 days. Further market updates will be provided as drill results become available.

Announcement concerning Fausse point out this morning, it is all looking pretty good so far and SP looks set to go up on open (at time of writing).

 

[condog]

IMHO this announcment seems very good, given that they are casing the bore..... they are still waiting for data analysis results in 3-4 days, but given they are caseing the hole to 7500ft I made the assumption thats a hell of an expense to go to if you have no certainty of the outcome....

I also made an assumption and its only an opinion with no fact to substantiate...... but VIL in their investor briefing in Oct estimated a significant fause point find was worth 20cps to 50cps int their report.... Im not sure what time frame that is over...... so i made the assumption that if they are casing the bore then its a find worth casing for production......obviously more testing and 1500ft of drilling still to go, but at 700ft they are confident enough that they cased so it my (stupid or otherwise ) assumption is it may look like it could be worth up to the bottom range of the estimates for them to go ahead and case....

In that case it looked to me like serious upside potential so I bought a huge parcel this morning and then was very pleased to see it had gone up substantially following my purchase....wont be selling on short gain...waiting for a hopefully substantiall announcment in 3-4 days or 10 days time......

To me it was a decision of small loss verses possible huge upside.... a risk I can afford to and am willing to take....

This is not an attempt to ramp the share price...I personally dont care whether you buy or ignore.....do your own research, its all opinion and thoughts .......but thats my 2c worth....

 

[condog]

Hey Putty7 and other holders of VIL you must be extatic with the gains yesterday of 52% for the day......

I know its tempting to sell and capitilize the gain, but I am hanging in for what I believe is possible and probable big announcment.....

If it runs again over the next few days I may buy some options just to hedge some of the gains......

Whats your plans / comments thoughts on your strategies for VIL

 

[condog]

The traders are into it big time yesterday and today.... a bit choppy with some small profit takers by the looks of it....

130Million shares worth average 3.8c traded yesterday = approx $5M worth of trading in a company which up until yesterday had a market cap of approx 13Million..... then another 60Million plus traded this morning in the first 2 hours

Still very good buy volumes relative to sells so upward pressure till Thursday or Fridays data anlysis results....

Im up somewhere between 8K - 12K for the week just on this stock , so cannot wait till the next two announcments which is the data release on thu or fri and then around 6-7 days later they should be reaching terminal depth of 9500ft. There should be an initial announcment about pressures or mud / snadstone logs but the electronic data may take another 3-4 days to confirm the exact pressures and depths.

All in all some very interesting and volatile times for VIL and its share holders / traders in the next two weeks.... enjoy the ride omegos and hoe to hear good news on the other side ay...

 

[Putty7]

The traders are into it big time yesterday and today.... a bit choppy with some small profit takers by the looks of it....

130Million shares worth average 3.8c traded yesterday = approx $5M worth of trading in a company which up until yesterday had a market cap of approx 13Million..... then another 60Million plus traded this morning in the first 2 hours

Still very good buy volumes relative to sells so upward pressure till Thursday or Fridays data anlysis results....

Im up somewhere between 8K - 12K for the week just on this stock , so cannot wait till the next two announcments which is the data release on thu or fri and then around 6-7 days later they should be reaching terminal depth of 9500ft. There should be an initial announcment about pressures or mud / snadstone logs but the electronic data may take another 3-4 days to confirm the exact pressures and depths.

All in all some very interesting and volatile times for VIL and its share holders / traders in the next two weeks.... enjoy the ride omegos and hoe to hear good news on the other side ay...

There's been a few scalpers in this one for a while, yesterday on open especially but it settled down after a while, Im assuming a bit of scalping still going on after the quick jump up and maybe some profit taking but the SP seems to be holding its own with buyers happy to go in at .035c, the biggest plus it has going for it is the timing, even if they take another 9 days to complete the drill most of the big instos should still be out of the market and it should get a relatively unmanipulated run assuming things go well. If they hit gas in the primary zone and we get some good results on the secondaries which they should be doing at the moment, it bodes well for the SP but I think it will be 2010 before the first results come out. If it can stay steady for today and tomorrow it should have a good spring board if the next announcement is good. Just my opinions DYOR

 

[Putty7]

The Board of Golden Gate Petroleum Ltd (ASX:GGP) is pleased to advise the T.G.R. Land Company, Inc #1 well at Fausse Point is presently at a depth of 7,695 ft. Casing has been successfully run and cemented in place to depth drilled. After a satisfactory pressure test of the casing and shoe, we expect to be drilling ahead to our next target on Thursday, 31 December, North American time.

The well spudded on Saturday 5 December 2009. The well is expected to take a further 8 days to reach its targeted depth of 9,000 ft.

Sounds like they will be back into it tonight, hopefully Monday or Tuesday will have an announcement with some volumes on the secondary target and if they encounter gas in the next 3 or 4 days as they drill into the primary maybe something to be announced there to, purely speculation on my behalf but to run production casing I assume they have or suspect they have commercial volumes in the secondary target, would be nice to see some actual figures next week to confirm this.

 

[condog]

Disclaimer - all opinion - do your own research and seek expert advice. I own this stock and have a vested interest in its price movment.

Sounds like they will be back into it tonight, hopefully Monday or Tuesday will have an announcement with some volumes on the secondary target and if they encounter gas in the next 3 or 4 days as they drill into the primary maybe something to be announced there

Yeh so far they are very fast so Id be expecting it Monday Late Morning. Im not sure whether its production intended casing or drilling required casing....I have an obvious opinion, but theres no eveidence either way yet...

due to continuing elevated gas levels in the wellbore the joint venture has undertaken an electric logging operation and prepared the well for setting intermediate casing prior to drilling ahead to the primary objective

This hopefully is because the secondary target is big enough for production in itslef......it may however be due to the high pressures to stop a blow out.

identified some hydrocarbons in the Cris 47

Very non-commital...probably indicative, but trying to avoid an ASX speeding fine...

While logging operations and core data have indications of hydrocarbons, the significance cannot be determined until a full analysis is completed

Again probaly indicative but trying to avoid a speeding fine...as required by asx....they cant go saying the found comercially viable quantities unless they have hard data evidence to back it up....

But the huge question remains why would they case a non viable hole to 7000ft........ Some wells CWD but these guys dont to the best of my knowledge.... I can only assume the results to them where signiificantly indicative they thought it was worth casing....

In any case if pressure was the problem thats generally a hugely positive sign....

If mud was the problem thats awful, but they havent stated mud as the problem, they stated pressure as the problem...they have spoken about oil soked mud deposits though...

So agian - all fingers and toes crossed for Mon or Tue data resultd for the secondary target, and everything crossed for the primary target a few days later.
Disclaimer - all opinion - do your own research and seek expert advice. I own this stock and have a vested interest in its price movment.

 

[condog]

2nd Gas Show at 8010 ft

Second gas show

The well has recorded its second significant gas show at around 8,010 ft. The well circulated high levels of gas cut mud and the mud weight has been increased on several occasions after 4,000 to 6,000 unit gas shows were recorded in what appears to be the initial sections of the primary target interval.

Very promissing indeed... if this is infact the beginning of the primary target and it extends to antiicipated depths , this could be a hugely siginificant find for such a small company...

expect proper data in 3-4 days

 

[condog]

Still waiting on electronic data from secondary target....

Yesterdays announcment was in relation to the 2nd strike at 8010fit which is possible the inital are of the primary target....

They did however hint accidently or otherwise that this one was of 4000-6000 units and it was the second significant strike..... possibly indicating the first strike was significant in volume.... assuming the first strike was 4000 units thats on my rough calcs worth arround $3-5M...

They also indicated the drilling has slowed significantly due to having to wieght the drill heavily with mud slurry to contain pressure....this in its self could/should possibly be massively positive news......

I suspect they are now waiting to hit the primary target in around 48 hours from now....it could be slower if prssure is too great........they do however owe us an oversddue promissed disclosure on the electronic data logs from the secondary target....

I have contacted both VIL and GGP via email to ask that they urgently release data on the secondary target if they have it.....bear in mind Perth is 3 hours behind us so they possibly wont even recieve that email till around 12 miidday....and thats if they have the data or choose to act / read it....

 

[Donga]

I suspect they are now waiting to hit the primary target in around 48 hours from now....it could be slower if prssure is too great........they do however owe us an oversddue promissed disclosure on the electronic data logs from the secondary target....

I have contacted both VIL and GGP via email to ask that they urgently release data on the secondary target if they have it.....bear in mind Perth is 3 hours behind us so they possibly wont even recieve that email till around 12 miidday....and thats if they have the data or choose to act / read it....

Many thanks for sharing this condog and it does look promising. Hope they either answer your email tomorrow or go into trading halt