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lol i threw a ratsack and then some at it when it decided to cr@p itself.
Hopefully that should be the bot for today.
Hopefully that should be the bot for today.
VIL - Verus Investments
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This crazyness should dicipate...as the morons trade out....
Too much volume this week filled us with all sorts of strange creatures and hence what we are seeing right now....shere craziness with price down on a hugely positive announcment.....but day traders have no patience, they cant wait 2-4 weeks for iron clad confirmation...they need the money for tommorrow......
Too much volume this week filled us with all sorts of strange creatures and hence what we are seeing right now....shere craziness with price down on a hugely positive announcment.....but day traders have no patience, they cant wait 2-4 weeks for iron clad confirmation...they need the money for tommorrow......
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All going well the excitement and liquidity will go out of it soon and give it a chance to consolidate and move upwards over the next 3 or 4 weeks
I don't hold this stock (or GGP) but from a quick look at their charts I would say this is going to fall back into the mid to upper 3s at best. It looks like a lot of "smart" money positioned themselves leading up to Christmas/New year in anticipation of the current announcements and is taking their profit now. Personally I would hold back any buying decisions until late this week early next week to see where it was going to settle - you may find you pick it up 10-20% cheaper than now.
malachii
PS - I dont own this stock (or GGP) so take what I say with a giant bit of scepitism!!!
malachii
PS - I dont own this stock (or GGP) so take what I say with a giant bit of scepitism!!!
Yeh its all very wierd.....
To me extremely positive but very wierd....
Management placed a 2 day halt.....usually this means a significant announcment.....and while Im reading a lot of hugely positive news into things managment eluded to but did not say.....many are clearly running for the hills....
IMO this is a signiificant positive indicator, but i understand why many are worrying..... a 2 day halt for no totally necesary reason.....
Wake up guys stop hinting and say what youve found.....
Obviously GGP or VIL or both have a rediculously conservative team of lawyers who are to scared to quantify anything.....so for now just keep reading between the lines.....
Question for you to ponder:
From todays announcment :
Managment says " this is the best outcome Verus shareholders could possible have wished for" and they have completed negotiations for "exclusive access to the adjoining 80 acres"
Well if thats the case in thier Investors presentation they indicated the best case scenario was 40cents per share increase.......
On that basis 4.2 or 4.3 cents looks good to me....
Hmmm someones not telling the whole truth here..........are they sitting on a bigger announcment then they are telling us and why.....or is it smaller.....time will tell....
But in my book this is a very very high class area with a high percentage of proven finds....they have discovered hydrocarbons, positive formations and multiple levels of significant gas.....they have acquired 80 adjoining acres...... hmm it seems to be no the whole truth to the upside rather then the down.....but why??? What are they up to ???? or Why are they too scared to say???
To me extremely positive but very wierd....
Management placed a 2 day halt.....usually this means a significant announcment.....and while Im reading a lot of hugely positive news into things managment eluded to but did not say.....many are clearly running for the hills....
IMO this is a signiificant positive indicator, but i understand why many are worrying..... a 2 day halt for no totally necesary reason.....
Wake up guys stop hinting and say what youve found.....
Obviously GGP or VIL or both have a rediculously conservative team of lawyers who are to scared to quantify anything.....so for now just keep reading between the lines.....
Question for you to ponder:
From todays announcment :
Managment says " this is the best outcome Verus shareholders could possible have wished for" and they have completed negotiations for "exclusive access to the adjoining 80 acres"
Well if thats the case in thier Investors presentation they indicated the best case scenario was 40cents per share increase.......
On that basis 4.2 or 4.3 cents looks good to me....
Hmmm someones not telling the whole truth here..........are they sitting on a bigger announcment then they are telling us and why.....or is it smaller.....time will tell....
But in my book this is a very very high class area with a high percentage of proven finds....they have discovered hydrocarbons, positive formations and multiple levels of significant gas.....they have acquired 80 adjoining acres...... hmm it seems to be no the whole truth to the upside rather then the down.....but why??? What are they up to ???? or Why are they too scared to say???
That depends on the number of shares on issue entirely.... ... but in this case its 367M shares
But i here what your saying.....yes its not priced in and never has been....it will be when / if mgmt ever make an announcement.......this mgmt may even be so conservative with announcment that they choose to drop three more holes on 3 sides to verify quantities....... now that will drag things on a bit more for whatever the possible hidden agenda is.....
Ive been re-reading this announcment to try and interperet whats actually likely and its the most rediculously ill worded extremely positive announcment i have ever read.... It wasnt till about my 4th time through i noticed the significcance of it.. I will attempt to highlight below the way i now read it and see what you think.
I think two things happened today.. the traders jumped out because they mis interpreted it which isnt surprising givien its wording, secondly the company dissapointed because it held back on quantified data, in which case it should possible never have had the halt in the first place..
Highlights - highlighted in red.
ASX Announcement
12 January 2010
The Manager
Company Announcements Office
ASX Ltd
4th Floor, 20 Bridge Street
SYDNEY, NSW 2000
Dear Sir,
• Fausse Point Well intersects over 300 feet of formation and reaches Target Depth.
• Joint Venture secures an additional 80 acres of adjacent land.
Highlights:
• The #1 Well has now been drilled to its final depth of 8,475 ft.
• Drilling has encountered over 300 feet of quality hydrocarbon bearing formation.
• Mudlogging shows good quality sandstone with hydrocarbon fluorescence and up to 2% oil in drill cuttings and mud.
• Electric line logging has identified hydrocarbon occurrences throughout high permeability and porosity sands.
• An additional 80 acres of adjacent land has been secured.
• Casing of the entire well completed in preparation for an extensive testing campaign.
• 3 exciting zones of interest in #1 Well to be tested.
The Board of Verus Investments Ltd (“Verus”) is delighted to announce that recent drilling of the TGR Land Co. Inc #1 Well at the Fausse Point oil and gas project in Louisiana has intersected the primary targeted deep gas play with very strong oil and gas indications.Drilling over the last few days penetrated the main target gas sands (identified by seismic) at just over 8,145 ft and continued to the final well depth, encountering over 300 ft of good quality high porosity and permeability formation.
Logging and sidewall coring of the target gas sands has been completed and casing has now been run and cemented to this target depth. The results of the logging and side wall cores will be provided to the market as soon as they are fully interpreted.The drilling rig will shortly be demobilized and a “workover” rig will be mobilised to undertake production testing. It is anticipated that this rig change over will take 2 weeks and testing a further 2 weeks. The development of a comprehensive and extensive production testing and formation evaluation program is underway to provide the information required to fully evaluat the discovery. Once testing is complete, the results and all other data will be analysed to fully understand the commercial viability of the discovery. This data will also enable the partners to plan for the field to be completely and efficiently developed to maximise its potential.Comprehensive analysis to understand these zones of interest is currently underway with any definitive conclusions requiring further review as drilling has occurred adjacent to a salt dome with the presence of salt which can provide mixed results. While the gas shows and oil indicators over the three zones of interest are very encouraging, the commercial significance cannot be determined until a production testing operation is completed.
Land access agreements required for production pipeline laying, and agreements for connection to existing nearby production facilities and distribution network, thereby enabling gas sales, are almost complete. The tie in point to this major trunk line is approximately 1.6 miles away.
Additionally, the Joint Venture partners have completed negotiations to enable exclusive access to approximately 80 acres of additional license area adjacent to the discovery. This compliments the existing 272 acres already within the Joint Operating Agreement.
“This is a fantastic result for Verus” the Chairman Mr Andrew McIlwain commented. “Whilst we always acknowledged that this investment was not a certainty, the confidence we had in the data and the capabilities of the operator Golden Gate Petroleum and its subsidiary company - Kindee Oil & Gas – as well as the drilling contractor, has been returned many fold. We are still to fully understand the commercial viability of the well, however at this stage; this appears to be the best outcome Verus shareholders could have wished for”.
“The approach taken by the operator on this job has been first class. The shallower gas bearing intervals encountered provided some challenges, as previously reported to the market, slowing drilling at the time. At the operator’s recommendation, we brought forward casing of the well which enabled continued safe drilling to the primary target. Our “dry well” cost estimate was reasonable and the casing costs and additional logging were always going to be part of bringing the well into commercial production” Mr McIlwain stated.
My comments -
1. Why secure 80 additrional acres if commercialisation is not likely to be assured.
2. Over 300 feet with very high pressures encounterd that stopped and dramatically slowed drilling for so long is stated as significant many times...
3. OVer 300 feet of hydrocarbon bearing formations.....very significant...
4. casing of entire well - Its not financially intelligent or viable to case the entirety unless its viable or at least your confident its should to be....
5. Mudlogging shows good quality sandstone with hydrocarbon fluorescence and up to 2% oil - if its here an adjacent well in such a huge tenement with so many other known targets , will find a primary oil target...
6. 3 exciting zones of interest in #1 Well to be tested - indeed , no kidding what happened to wireline data ......
7. "The Verus board is delighted to announce " - what are they delighted about....IMHO they are delighted about wht the indicative dat they are still sitting on waiting for confimred analysis
8. One of the most critical few words "has intersected the primary targeted deep gas play with very strong oil and gas indications." Very strong indicator this is what they where after....
9. "Logging and sidewall coring of the target gas sands has been completed " so they know but we dont.... hence me trying to read things into it...
10. "The results of the logging and side wall cores will be provided to the market as soon as they are fully interpreted" so expect an imminent announcment....
11. "The development of a comprehensive and extensive production testing and formation evaluation program is underway to provide the information required to fully evaluat the discovery." They think its worth evaluating - great sign....not as good a s a definite, but maybe conservative mgmt scared of making independent decisions...
12. "all other data will be analysed to fully understand the commercial viability " is this a hint / mistake or did it just ambiguosly indicate commericla viability... im not sure...could be either way...
13. "This data will also enable the partners to plan for the field to be completely and efficiently developed to maximise its potential." another leading sentence that seems to hint very strongly at commercial viability....
14."While the gas shows and oil indicators over the three zones of interest are very encouraging " they are not prepared to make a decision or announcment without the testing....probably very wise but many small explorers have enough know how to make that decieion without 4 weeks of testing.....
15."Land access agreements required for production pipeline laying, and agreements for connection to existing nearby production facilities and distribution network, thereby enabling gas sales, are almost complete. " What on earth would you do this for if you were noit fully intending to commercialise this venture....
16.Additionally, the Joint Venture partners have completed negotiations to enable exclusive access to approximately 80 acres of additional license area adjacent to the discovery. - very indicative they think they have something very significant....always a hugely positive sign....
17. “Whilst we always acknowledged that this investment was not a certainty, the confidence we had in the data and the capabilities of the operator Golden Gate Petroleum and its subsidiary company - Kindee Oil & Gas – as well as the drilling contractor, has been returned many fold. has been....does any one else see that as a staement that indicates possible known certainty of a result....
18. Then the icing on the cake
"We are still to fully understand the commercial viability of the well, however at this stage; this appears to be the best outcome Verus shareholders could have wished for”. I dont know about you but 40c per share as indicated in the investor presentation was the best result i had in mind..? is this pointing at it as the outcome..or have i totally mis correlated the two statements.
19. Again seems to be speaking as if its a done deal, just not announced yet.
"Our “dry well” cost estimate was reasonable and the casing costs and additional logging were always going to be prt of bringing the well into commercial production”
I think two things happened today.. the traders jumped out because they mis interpreted it which isnt surprising givien its wording, secondly the company dissapointed because it held back on quantified data, in which case it should possible never have had the halt in the first place..
Highlights - highlighted in red.
ASX Announcement
12 January 2010
The Manager
Company Announcements Office
ASX Ltd
4th Floor, 20 Bridge Street
SYDNEY, NSW 2000
Dear Sir,
• Fausse Point Well intersects over 300 feet of formation and reaches Target Depth.
• Joint Venture secures an additional 80 acres of adjacent land.
Highlights:
• The #1 Well has now been drilled to its final depth of 8,475 ft.
• Drilling has encountered over 300 feet of quality hydrocarbon bearing formation.
• Mudlogging shows good quality sandstone with hydrocarbon fluorescence and up to 2% oil in drill cuttings and mud.
• Electric line logging has identified hydrocarbon occurrences throughout high permeability and porosity sands.
• An additional 80 acres of adjacent land has been secured.
• Casing of the entire well completed in preparation for an extensive testing campaign.
• 3 exciting zones of interest in #1 Well to be tested.
The Board of Verus Investments Ltd (“Verus”) is delighted to announce that recent drilling of the TGR Land Co. Inc #1 Well at the Fausse Point oil and gas project in Louisiana has intersected the primary targeted deep gas play with very strong oil and gas indications.Drilling over the last few days penetrated the main target gas sands (identified by seismic) at just over 8,145 ft and continued to the final well depth, encountering over 300 ft of good quality high porosity and permeability formation.
Logging and sidewall coring of the target gas sands has been completed and casing has now been run and cemented to this target depth. The results of the logging and side wall cores will be provided to the market as soon as they are fully interpreted.The drilling rig will shortly be demobilized and a “workover” rig will be mobilised to undertake production testing. It is anticipated that this rig change over will take 2 weeks and testing a further 2 weeks. The development of a comprehensive and extensive production testing and formation evaluation program is underway to provide the information required to fully evaluat the discovery. Once testing is complete, the results and all other data will be analysed to fully understand the commercial viability of the discovery. This data will also enable the partners to plan for the field to be completely and efficiently developed to maximise its potential.Comprehensive analysis to understand these zones of interest is currently underway with any definitive conclusions requiring further review as drilling has occurred adjacent to a salt dome with the presence of salt which can provide mixed results. While the gas shows and oil indicators over the three zones of interest are very encouraging, the commercial significance cannot be determined until a production testing operation is completed.
Land access agreements required for production pipeline laying, and agreements for connection to existing nearby production facilities and distribution network, thereby enabling gas sales, are almost complete. The tie in point to this major trunk line is approximately 1.6 miles away.
Additionally, the Joint Venture partners have completed negotiations to enable exclusive access to approximately 80 acres of additional license area adjacent to the discovery. This compliments the existing 272 acres already within the Joint Operating Agreement.
“This is a fantastic result for Verus” the Chairman Mr Andrew McIlwain commented. “Whilst we always acknowledged that this investment was not a certainty, the confidence we had in the data and the capabilities of the operator Golden Gate Petroleum and its subsidiary company - Kindee Oil & Gas – as well as the drilling contractor, has been returned many fold. We are still to fully understand the commercial viability of the well, however at this stage; this appears to be the best outcome Verus shareholders could have wished for”.
“The approach taken by the operator on this job has been first class. The shallower gas bearing intervals encountered provided some challenges, as previously reported to the market, slowing drilling at the time. At the operator’s recommendation, we brought forward casing of the well which enabled continued safe drilling to the primary target. Our “dry well” cost estimate was reasonable and the casing costs and additional logging were always going to be part of bringing the well into commercial production” Mr McIlwain stated.
My comments -
1. Why secure 80 additrional acres if commercialisation is not likely to be assured.
2. Over 300 feet with very high pressures encounterd that stopped and dramatically slowed drilling for so long is stated as significant many times...
3. OVer 300 feet of hydrocarbon bearing formations.....very significant...
4. casing of entire well - Its not financially intelligent or viable to case the entirety unless its viable or at least your confident its should to be....
5. Mudlogging shows good quality sandstone with hydrocarbon fluorescence and up to 2% oil - if its here an adjacent well in such a huge tenement with so many other known targets , will find a primary oil target...
6. 3 exciting zones of interest in #1 Well to be tested - indeed , no kidding what happened to wireline data ......
7. "The Verus board is delighted to announce " - what are they delighted about....IMHO they are delighted about wht the indicative dat they are still sitting on waiting for confimred analysis
8. One of the most critical few words "has intersected the primary targeted deep gas play with very strong oil and gas indications." Very strong indicator this is what they where after....
9. "Logging and sidewall coring of the target gas sands has been completed " so they know but we dont.... hence me trying to read things into it...
10. "The results of the logging and side wall cores will be provided to the market as soon as they are fully interpreted" so expect an imminent announcment....
11. "The development of a comprehensive and extensive production testing and formation evaluation program is underway to provide the information required to fully evaluat the discovery." They think its worth evaluating - great sign....not as good a s a definite, but maybe conservative mgmt scared of making independent decisions...
12. "all other data will be analysed to fully understand the commercial viability " is this a hint / mistake or did it just ambiguosly indicate commericla viability... im not sure...could be either way...
13. "This data will also enable the partners to plan for the field to be completely and efficiently developed to maximise its potential." another leading sentence that seems to hint very strongly at commercial viability....
14."While the gas shows and oil indicators over the three zones of interest are very encouraging " they are not prepared to make a decision or announcment without the testing....probably very wise but many small explorers have enough know how to make that decieion without 4 weeks of testing.....
15."Land access agreements required for production pipeline laying, and agreements for connection to existing nearby production facilities and distribution network, thereby enabling gas sales, are almost complete. " What on earth would you do this for if you were noit fully intending to commercialise this venture....
16.Additionally, the Joint Venture partners have completed negotiations to enable exclusive access to approximately 80 acres of additional license area adjacent to the discovery. - very indicative they think they have something very significant....always a hugely positive sign....
17. “Whilst we always acknowledged that this investment was not a certainty, the confidence we had in the data and the capabilities of the operator Golden Gate Petroleum and its subsidiary company - Kindee Oil & Gas – as well as the drilling contractor, has been returned many fold. has been....does any one else see that as a staement that indicates possible known certainty of a result....
18. Then the icing on the cake
"We are still to fully understand the commercial viability of the well, however at this stage; this appears to be the best outcome Verus shareholders could have wished for”. I dont know about you but 40c per share as indicated in the investor presentation was the best result i had in mind..? is this pointing at it as the outcome..or have i totally mis correlated the two statements.
19. Again seems to be speaking as if its a done deal, just not announced yet.
"Our “dry well” cost estimate was reasonable and the casing costs and additional logging were always going to be prt of bringing the well into commercial production”
Now compare that announcment above by Verus to the GGP one released on the same day about the same well and information....7 minutes apart...
GGP came out first and I as most other investors had only been watching GGP one initally as VIL had simply been republishing the GGP announcments...
here is the GGP one:
Market Release (via electronic lodgement)
FAUSSE POINT WELL TO BE COMPLETED FOR PRODUCTION TESTING
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 has reached its targeted depth of 8,475 ft and has completed logging and running sidewall cores over the third gas show objective.
After the initial review of the accumulated data acquired to date, the partners have decided to complete the well and 5 ½ inch casing is presently being run. A production testing program is being developed from the data acquired over the three intervals.
The well has recorded three separate gas and oil intervals starting at 7,000 ft. There have been numerous zones of interest across all three intervals. The lowest interval just logged includes several zones of interest with some showing good permeability, porosity and oil/condensate in the sample cores. Fully understandingthese zones of interest is currently underway with any definitive conclusions requiring further review as drilling has occurred adjacent to a salt dome with the presence of salt which can provide mixed results.
The well spudded on Saturday 5 December 2009. The well is expected to be completed over the next day or so and a production testing program started within 2 weeks.
Additional surrounding acreage has been acquired to secure the estimated structure size.
Comments
While the gas shows and oil indicators over the three zones of interest are very encouraging, the commercial
significance cannot be determined until a production testing operation is conducted.
GGP came out first and I as most other investors had only been watching GGP one initally as VIL had simply been republishing the GGP announcments...
here is the GGP one:
Market Release (via electronic lodgement)
FAUSSE POINT WELL TO BE COMPLETED FOR PRODUCTION TESTING
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 has reached its targeted depth of 8,475 ft and has completed logging and running sidewall cores over the third gas show objective.
After the initial review of the accumulated data acquired to date, the partners have decided to complete the well and 5 ½ inch casing is presently being run. A production testing program is being developed from the data acquired over the three intervals.
The well has recorded three separate gas and oil intervals starting at 7,000 ft. There have been numerous zones of interest across all three intervals. The lowest interval just logged includes several zones of interest with some showing good permeability, porosity and oil/condensate in the sample cores. Fully understandingthese zones of interest is currently underway with any definitive conclusions requiring further review as drilling has occurred adjacent to a salt dome with the presence of salt which can provide mixed results.
The well spudded on Saturday 5 December 2009. The well is expected to be completed over the next day or so and a production testing program started within 2 weeks.
Additional surrounding acreage has been acquired to secure the estimated structure size.
Comments
While the gas shows and oil indicators over the three zones of interest are very encouraging, the commercial
significance cannot be determined until a production testing operation is conducted.
Tommo_Aus
Did I say BUY? Sorry... SELL!!
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IMO its a pretty fair call the well is commercially viable, but to me it seems management are trying to cover their arses just in case it isn't. This operation has the potential to make or break the company so being 100% sure seems reasonable to me. If they were to announce a commercially viable well at this stage and it turned out not to be, the SP would tank far further than being right the first time.
Interesting day, I thought I would completely miss out on VIL. Seeing the buyers lining up before the halt was lifted I'm surprised to see the SP down today. Personally I'm not complaining as it gave me an entry. Good times ahead, time to wait for the real announcement
Now holding @ 4.5c
Interesting day, I thought I would completely miss out on VIL. Seeing the buyers lining up before the halt was lifted I'm surprised to see the SP down today. Personally I'm not complaining as it gave me an entry. Good times ahead, time to wait for the real announcement
Now holding @ 4.5c
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Condog - your excitement about VIL is palpable. What is the source of that graph and analysis in the previous post?
From the investor presentation released to asx by VIL on 16th October 2009...its in relation to this current drilling prospect...
Welcome to the registry....
Im not sure ive got you right....but if this one turns out not to be commericially viable....it would seem that they intend to proceed one way or another...GGP are the working interest (I also hold them) and they have plenty of cash and intention to keep drilling this tenement....
SO it may temporarily tank a bit but not for too long...and then a whole new upside in a new well will present....
My monies on a big announcment...
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Interesting take on the fact they may be holding a bit back... I have a tendency to agree that could be a strong possibility.
anything could happen.
Over the next four weeks I would expect we will get an announcement here and there (maybe 1 per week..?) and the share price will rise to 5.5-5.8cents until we get the "commercially viable" go ahead...
All the people getting in now on these results have a brilliant opportunity...
It is rare that this sort of opp rises where the parties involved are clearly pretty motivated... god just read between the lines in the Verus announcement. If you can't be bothered, condog did it for you a few posts above.. this thing is going to be a goer...
good luck. all my opinion only etc,
thanks
Sam,
anything could happen.
Over the next four weeks I would expect we will get an announcement here and there (maybe 1 per week..?) and the share price will rise to 5.5-5.8cents until we get the "commercially viable" go ahead...
All the people getting in now on these results have a brilliant opportunity...
It is rare that this sort of opp rises where the parties involved are clearly pretty motivated... god just read between the lines in the Verus announcement. If you can't be bothered, condog did it for you a few posts above.. this thing is going to be a goer...
good luck. all my opinion only etc,
thanks
Sam,
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Now that I reread the announcements for the 5th time today..I really do think the guy who wrote this ramble wrote it with a smile on his face... such a good announcement.. look at the language they use..!
McCoy Pauley
Get out of here Budweiser!
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Most traded stock by volume again today. 183.45 million shares traded today, worth $8.38 million. Very interested in this stock, but yet to jump in - need to work out with an imminent property purchase whether I have the funds available.
Hi, I'm comparing this to another of my oil shares coe has a market cap of 156m about 90m cash and 1.9m barrels of p50 oil reserves and producing 500k barrels of oil a year at present + quite a few exploration targets
VIL has very little cash from what I saw, just the 2m from the recent placement and no other exploration targets and the p50 oil reserve estimate for the field is 7.4m barrels. GGP quotes the same figure for the potential size of the field so would not their share be 3.7m barrels at a market cap of approx 140m for their base case scenario that seems quite high.
Given this is an onshore target close to existing pipeline facilities, capex I am assuming shouldn't be high (I'm not sure how much it costs do put in a production well, would they need extra cash? or need to farm out?) so if they can produce the 1500 barrels a day it should be quite profitable.
I can see the upside from the current sp if the target proves to be commercially viable and the announcement seem to hint that management is fairly confident it will but I am trying to find out how much upside there is.
VIL has very little cash from what I saw, just the 2m from the recent placement and no other exploration targets and the p50 oil reserve estimate for the field is 7.4m barrels. GGP quotes the same figure for the potential size of the field so would not their share be 3.7m barrels at a market cap of approx 140m for their base case scenario that seems quite high.
Given this is an onshore target close to existing pipeline facilities, capex I am assuming shouldn't be high (I'm not sure how much it costs do put in a production well, would they need extra cash? or need to farm out?) so if they can produce the 1500 barrels a day it should be quite profitable.
I can see the upside from the current sp if the target proves to be commercially viable and the announcement seem to hint that management is fairly confident it will but I am trying to find out how much upside there is.
I have been a long time holder / trader and have only recently got out of COE.
COE's fortunes have only just recently begun to turn more favourable...and it has been choppy for a long time, often getting far ahead of itself , eg its 71c price spike ....
COE sp of 50c ish, market cap of 156M
VIL sp of 3c last week market cap of <20M ...Capex for this project is very low because VIL own 50% and GGP are the working party....GGP at last check had a similar market cap and m,ultiple projects with $6M cash, plus cash flows....
So continued work on Fausse Point is able to continue for some time before either needs to go requesting cash...
COE is certainly beginning to look very attractive again....and is in a different class, because unless it finds a major reserve its share price is unlikely to go up 10+ times, where as Fausse point on all probability if this side of the salt dome is remotely like the other side is more then likely to produce a very significnat result for the very small VIL
Look at the finds along the othr side of the dome, then compare those too the tenement size of VIL / GGP...only one of those tenements came up dry, and to my knowledge its been under explored....plus theres 80 new acres announced yesterday....so VIL tenement is approx same size as 6 of those other producing tenements......
Now do the maths on why people are excited....and even if this well is not perfect..... theres massively positive and significnat indicators ....plus huge expanses of other areas to drill.... Even if this one is commercial, it is likely they will drop a lot more wells...and possible / probable the reserves will continue to pop up....
Thats an average tenement oil strike of 2.1MMOB plus the gas for the salt dome....
And yet most those producing tenements are a fraction of the size of the GGP/VIL tenement
CEO has 156M market cap with 1.9M P50 (P2) which = 50% * 1.9M BO = 0.8MMBO
VIL only has market cap around $20- $25 M, and if any major find that reflects the average for the area may have an estimated 2.1MMBO of P1 plus gas = 90% * 2.1M BO, possibly up to 7.5MMBO and possible worst case of 0.5MMBO which looks very unlikely... so on face value it looks possible VIL may soon either now or with more exploration have more oil and cas than COE ????
This is of course all hypothetical estimated projections so DYOR and seek expert advice...opinion only....yes i own and to intend to profit from both VIL and GGP
Then theres the gas which they may or may not have already found...but it seems ver likely they did....it only requires 1.6 mile of piping...Piping ranges from $30,000 to $100,000 per inch mile....but given cheap labour and recession in the US im inclined to think say $50,000 or so.... They can put in a pretty significant 1.6 mile pipe for a few $100K....and they are in business....
Now im not a mathamatician, although i do love maths, but when one does the probability of a find and its size for VIL, it gets a little exciting....
Hence the excitement with VIL
I have just sent Verus a very very heated email demanding they come back to the market with a less ambiguous announcment, stating exactly what they think they have and in what estimated quantities...
I have also take advantage to buy signiificantly more VIL
I suggest other investors do the same , not buy, just email
there email is info@verus.com.au or better still call them...on 02 9233 2520 or fax them on 02 9233 2530.... there switch board is currently jammed so i suggest a fax....
Demanding they re-release in extremely clear language exactly what they know and exactly what they think the likely outcome is....
As investors we have the right to know exactly what they know and they do not have the right to hold it back...
I have also take advantage to buy signiificantly more VIL
I suggest other investors do the same , not buy, just email
there email is info@verus.com.au or better still call them...on 02 9233 2520 or fax them on 02 9233 2530.... there switch board is currently jammed so i suggest a fax....
Demanding they re-release in extremely clear language exactly what they know and exactly what they think the likely outcome is....
As investors we have the right to know exactly what they know and they do not have the right to hold it back...
