Overall opinion JC
I'm encouraged, the area is huge and highly prospective, as you can see from the map, [and from the studies of regional geology], in the fairway along side and adjacent to some giant fields, but we need more data to do any modeling of the long term impact of the acquisition.
I found it interesting that ABG emphasized the geology of the new field and location in the announcement yesterday, and elaborated on Zharkamys, almost as if it read the comments here and by Aton about insufficinet detail.
It was also interesting that ABG emphasized the Alimbai field yesterday.
Per it's announcement on Alimbai it is located in the prolific Pre-Caspian sedimentary basin, approximately 150 km northeast of the city of Atyrau, in western Kazakhstan, and 60 km northeast of Arawak's Besbolek and Karataikyz producing fields. The contract area is approximately 133 sq km. Oil was first discovered in the Alimbai field in 1944. Numerous oil shows were encountered in the suprasalt Middle Jurassic, Aptian-Neocomian and Permian-Triassic horizons during the drilling of shallow structural wells typical of the Soviet period. A well test rate of approximately 100 barrels of oil per day was also recorded.
Alimbai is similar to Arawak's Besbolek field, where oil was discovered in 1959 during drilling of shallow structural wells but the field was never adequately appraised. The contract area is prospective for both suprasalt and SUBSALT horizons, and it is noteworthy that Alimbai is located 20 km south of the Kenbai field, operated by the national oil company, which at about 220 mm barrels of recoverable oil in place, is the LARGEST SUPRASALT field in the Pre-Caspian basin. The program will commence with re-interpretation of existing seismic data, followed by a shoot of new 2D seismic next year. Existing wells will also be evaluated with a view to identify re-entry candidates.
Remember that Arawak plans to be producing over 35,000 BOPD in a few years.
With this kind of portfolio, it's excess cash flow, and proven management, Arawak is putting in place the pieces needed to achieve that goal.
It would be helpful if ABG posted reserve increases commensurate with these successes.
I look forward to owning and following the stock for many more years.