----- Price of oil - out of control again overnight ------
Company has up to 4 exploration blocks - each would offer high leverage to share price upward movement....(especially because of GGX current low capitalisation).
"News" on two prospects.....Phillippines and the Kate drill (both within a month)- have potential for a very significant "gap up" the share price.
A third situation (if you like)- the formal grant of the France Aquitaine Basin is a little hard to value. GGX has previously suggested, this is a much sought after area. In fact the original application area has been cut back to 57% of the initial request - but not so bad, as shows extent of demand.
We are not talking about $8 million companies chasing permits here - See story here from a neighbour to GGX's application: (open web address for a map - its close to GGX)
Europa Oil & Gas (Holdings) plc has been informed by the French Government that the exclusive award of the Tarbes - Val d'Adour Permit to Europa will be completed in January 2008. The licence lies in the eastern part of the Aquitaine Basin, the main hydrocarbon producing basin in France.
The permit is situated within the oil producing part of the basin, adjacent to the producing Castera-Lou and Lagrave Fields, with a combined total production to date of 22 million barrels of oil. The licence contains the Jacque and Osmets oil fields, which produced light oil until 1986, when the oil price fell to around $10 per barrel and the fields were shut-in. The initial flow rate from wells on these fields was up to 700 barrels of oil per day and the conclusion of a preliminary review indicates that the fields contain undeveloped reserves. Europa will conduct a full review of these two fields for possible redevelopment and assess the remaining exploration potential of the licence area.
Paul Barrett, Managing Director, said 'This permit, containing potential oilfield redevelopment candidates, is a perfect complement to our existing exploration licence in the Aquitaine Basin. Given the current oil price, we feel the Aquitaine Basin has significant potential for a commercial renaissance and Europa has now secured a very attractive acreage position in the basin.'
Their total expenditure for the 6 month period ending Dec 2007, for this public company was just $206,336 - of that total wages were $59,281.
Despite 4 strong prospect for GGX - only a total of 31 announcements were made in the last 12 months.
The management had a golden opportunity to issue some director options pre the Kate drill - but choose not to.
So why is this information worth typing out....investors can work out for themselves, the point I am trying to get at here with GGX management......management is SO different to other oil/gas small caps.
One comment from management (in Annual Report-page 5) about the Kate drill....and not mentioned here previously -is the fact that, and quote :
".....burial history and other modelling studies confirm that the source roack, maturation and CHARGE RISK for the prospect are relatively low"
Remember also as the Kate drill approaches.....effectively you may have 2 markets..... ie Aussie investors and in the case of the Kate drill - New Zealand traders (who otherwise find it hard to secure beta)
GGX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
