Flow Test is Value Driver

They are soon to deepen and test their Nuevo Malolos.  It is not a matter of discovering oil....rather will the oil and gas flow this time - and how much.

At our tiny market cap, there is opportunity for a SP increase of multiples. (given the size of the basin and technical success in getting it to flow).

Recent story here:


http://www.oilandgasaustralia.com.au/philippine-president-starts-new-cebu-onshore-oil-gas-field/

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FROM GGX WEBSITE
Onshore, Cebu is rapidly becoming the focus of an emerging petroleum production region with the operator of SC 49 in the southern part of the island being recently awarded a 25 year production licence. The SC 49 operator has discovered and is developing the Alegria oil field which produces oil and gas from the same sandstone reservoirs that are oil productive in SC 44. The Libertad gas field in SC 40, northern Cebu has already been awarded a 25 year production licence.

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GGX boss Dennis Morton previously was CEO of Eastern Star Gas, which was taken over by Santos for $950m around 2011.

This time, with ever conceivable technical resource being throw by the company at the well deepening, it is possible that investors will hit the jackpot here, at least coming off our tiny market cap.

Specialized screening will line the well bore to try to avoid small sand grain clogging. Also the drill deepening this time will be meticulous, in an attempt to avoid formation damage.

The slight delay to start of drilling, (next quarter).....is possible they need to put arrangements in place to sell, or move the oil during the flow test. Logistics and arrangements need to be in place, if the well happens to be producing 800 barrels of oil per day. This is a real possibility here.

An exciting opportunity and new investors may find research here most interesting. Dennis Morton at the helm is a major plus for this micro cap.