EGY – Looking For A Future Golden Coast
- Gabon, Angola now, looking for a third area of opportunity
- 99% oil
- $97 mm cash on the balance sheet
- No debt
- Around $50 mm cash last year and this year
- Reserves – 12.94 mm barrels
- TEV / Reserves on a $/ BOE = $18.60 / BOE, probably about right for them if they weren't so cash heavy and on the hunt for another play.
- 2Q Production of 20,200 BOEpd just to give an idea of scale hear.
- Gabon
- Offshore is the beig piece with a 1.4 mm acres
- Production comes from 3 offshore field via floating production storage offloading vessel
- Drilling a horizontal well now as replacement well to an older well in a separate fault block, takes them up by about 3,200 bopd.
- One new well coming on at 3,000 bopd in the 4Q
- FPSO has 30,000 bopd capacity, currently seeing 21,000 bopd plus water, so at about capacity.
- Two prospects to spud off Gabon in a deeper, and lower quality sand (Dentale) in 2H10 (20 mm BOE target) and 2011 (relatively big target at 85 mm boe).
- Production comes from 3 offshore field via floating production storage offloading vessel
- Onshore
- Joint Venture announced in August with TOT – to pay 75% for 50% in the 270,000 acre concession
- They have 4 to 5 prospects worked up and TOT thinks they can find 100 mm boe on the acreage
- TOT has a pipe that runs right by the acreage on the coast.
- reprocessing seismic and will spud their first JV well next year.
- Joint Venture announced in August with TOT – to pay 75% for 50% in the 270,000 acre concession
- Offshore is the beig piece with a 1.4 mm acres
- Angola
- Opened a data room last week to form another JV on the offshore Block 5
- 1.4 mm acres in shallowish water
- They have 3D over it and a handful of prospects.
- Opened a data room last week to form another JV on the offshore Block 5
- Future: They want to earn a return on their cash. Sounds like they want to do a deal pretty soon, like in the next six months. Mentioned adding a third country in the offshore Africa trend or even going to the States, and there he mentioned the Bakken. That would be pricey.
Nutshell: Looking at multiple opportunities to "maximize shareholder value" while sitting on a pile of cash, no debt, and stable cash flow is just about never a bad thing. These guys strike me as hungry. Excited. Ready to run. I've come close to entering the shares a number of times. Look for a better write up than the book report above in the near future.