RE: Dilution? What dilution?Apologies to the board -- jumping to conclusions too quickly in my last post. SLB probably isn't even in the picture. Looks more plausible scenario is that Geofinance will inject it's upstream assets into CAX. After Geofinance sells its 38.5% stake in Geoservices to SLB, all Geofinance will left are the upstream assets listed in last week's release. So the big question becomes one of terms -- how much will CAX pay for these and will it be cash and/or shares?
Geofinance Upstream Assets
France
Geopetrol commencedoperations in France in 1993 on oil fields. It owns 100% of theproducing assets, and thereby, is the operator. Geopetrol produces oilfrom four different areas within France: Paris Basin, Alsace, Champagneand the Aquitaine Basin. Despite aging fields, Geopetrol is activelyengaged in a cost-efficient management of each mature field, usingappropriate and modern technology. Its strategy focuses mainly on theexisting producing assets investing well-balanced capex, commensuratewith the age of fields. Thus, Geopetrol sustains a low declining profileof its production with economic success. It is expected thatredevelopment wells will be drilled on two fields having undevelopedpotential. In addition to its production, Geopetrol holds explorationacreage in France (approximately 1,400 km(2)) under various stages ofadvancement, including a geothermal exploration block. The explorationportfolio is diversified and scaled to the Geopetrol size. Netproduction for Geopetrol from the France assets is currently 900 bopd.
Vietnam
Geopetrolis one of the partners in Block 15-1 located in the Cuu Long basin,offshore Southeast Vietnam, operated by Cuu Long Joint OperatingCompany. Four hydrocarbon fields (three oil and one gas and condensate)were discovered in the block, and accumulations are contained inreservoirs including Fractured Basement, Lower Miocene and OligoceneSands.
The first oil discovery, Su Tu Den, was made in August2000 and first oil was achieved in October 2003. The north east part ofthe field is currently being developed with first oil expected inmid-2010.
The second oil discovery, Su Tu Vang, was made inOctober 2001 and first oil was achieved in October 2008.
Thethird discovery, Su Tu Trang, a gas and condensate accumulation, wasmade in November 2003. The field is being appraised and a longproduction test is programmed and is expected to produce its first gasin 2012.
The next oil discovery, Su Tu Nau, was made in September2005 and is currently being appraised with first oil tentativelyscheduled for 2014.
As of January, 2010, approximately 180 MMstbof oil has been recovered from Block 15-1. Average oil production in2009 was over 100,000 bopd and is expected to be substantially similarin 2010.
India
Geopetrol commenced operations in India in1995 through its ownership and 50% participation in a joint venture withGeoEnpro Petroleum Limited. GeoEnpro operates the Kharsang held in theAssam in the Northeast of India. The field currently produces 2200 bopdas a result of a successful 14-well development program conducted in2008 and 2009 that included drilling and workovers. This field containssignificant exploration potential and current plans are to drill anexploration well in 2010.
Yemen
Geopetrol is currentlyparticipating in four onshore exploration blocks. All four blocks arelocated within known and productive basins, three in the Masila Basin,and one in the Marib AI Jawf Basin.
The Masila Basin Blocks(Blocks 33, 45 and 47) cover a total of 22,453 km(2), and the Marib AlJawf Basin Block (Block 41) covers a total area of 5600 km(2). Inaddition, within each block there are multiple productive horizons andtargets and active exploration programs are underway in each block.There was a commercial discovery in 2008 on Block 47 and ongoingappraisal work has included the acquisition of 3D seismic data whichcommenced in 2009 and an appraisal well is expected to be drilled in2010. Significant additional structures and plays have been identifiedon this block. Block 41 also has a discovery well, but additional workis required. In addition, Blocks 33 and 45 have exciting explorationpotential.