Pasquia Hills, Permits, Coal, Marc’s CommentsWhile we wait for trading again I thought I would share some comments from Mr. Dame on oil prices and the Pasquia Hills permits and surrounding coal exploration. Others have had similar conversations with him but for those that haven’t I thought I would share some of his opinions.
First and foremost development and production of the oil shale resource is paramount to Goldnev, and as hinted at in previous posts the new NI 51-101 derived from the latest lab results are going to significantly increase the already National Instrument compliant 2 bil/bbls of oil distillate. Keep in mind only a portion of those permits have been explored (approximately 68,910 acres of 155,433 acres).
During a recent conversation with him he still believes that at current market prices that the oil shale can still be processed for about $30 or less /bbl., however he does believe that we need oil to return to at least the $45 dollar level to be profitable. His opinion on oil prices during our conversation was that “they would return to the $60-$70 level by year end”.
I fully concur as I put in a post Feb. 16th 2009
“Analysts for the most part have prognosticated $50 oil throughout 2009, although some have stated $20 to $30/bbl. I’m going to go against the grain and in my best guess would be that oil will reach at least the $60 level by the end of the year. With the shortage of currently unprofitable exploration looking for new reserves, prices should start to rapidly rise to higher levels in 2010.” https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=GNZ&t=LIST&m=26044099&l=0&pd=0&r=0
I may have to upward revise that but need to see more data. As a note John Hoffmeister of Shell when being grilled during the U.S Senate Hearings regarding high oil prices (around $120/bbl at the time) stated that because of those high energy costs oil shale production costs have probably risen from the $30/bbl level to the $50/bbl. Keep in mind he was talking about the deep oil shale (in-situ) in the U.S.
Mr. Dame is intently watching coal drilling activities around the Pasquia Hills area. We talked about this and he stated to me that he has no intention of relinquishing those permits that do not yield oil shale (those that Goldnev do not convert to lease). He said the “costs for holding those permits is minimal”. He still plans on doing some limited drilling for coal, shale gas or anything else on those permits that do not hold oil shale. Like I said drilling has happened on only a portion (approximately 68,910 acres of approximately 155,433 acres) of those permits.
Last June 24th 2008 I posted Mr. Dame’s comments on coal permits.
Mr. Dame confirmed his beliefs with the Saskatchewan government. You can either hold a permit for coal or the oil shale but not both, however no one else can apply for a coal permit on their lands
He states: "The permitting regulations with regards to coal or oil shale is that it
is an either / or situation, so you need to either permit for shale or
coal but you can't do both. Since we have the existing permits for oil
shale no one else can receive a permit for coal including Goldnev until
that permit is relinquished. Once or if the oil shale permit is
relinquished then the first application that makes the request gets the
permit."
Which means that if they find no shale on other sections they can quickly apply for a coal permit.
He adds however: "we can drill pass the oil shale by making an application to
do so and drill to test for coal, shale gas etc... and this is something
we may decide to do on a limited basis"
The possibility of coal on the property. "It is likely that we have coal on our property as it extends through out much of the Provinceand it would be an interesting area to pursue on
some parts of our existing permits especially areas that we find do not
contain oil shale." https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=GNZ&t=LIST&m=23494924&l=0&pd=0&r=0
Oil shale is the main focus, but we could end up with a double resource here.
rich47.