Brazil Hits Super Giant Deep Water Offshore Oil BoJust read the Globes article about Brazil's
Super Giant deep water oil jackpot. Even at the most conservative estimates...it's absolutely massive!!!! But what the heck does this have to do with Western Zargos? Well read the excerpt from the Globe article below.
has cemented its status as the world’s most promising source of new oil with an estimate that its barely explored Libra field could produce as much as 15 billion barrels of crude.
The crude comes from the “pre-salt” zone, buried five to seven kilometres below the sea surface, beneath a layer of pasty salt nearly 2,000 metres thick. Both the depth and the salt, which makes drilling hard, pose technical issues that make extraction difficult. In fact, the first well into the Libra was abandoned when its casing collapsed in the salt, raising the stakes for companies drilling in a deep-water environment whose risks were brought to the global fore by BP plc’s accident in the Gulf of
The point is we know all the big easy cheap oil has been pretty well discovered. What's left ....and there is a lot of it still.... but it's the expensive technically, politically and/or environmenatlly challenging fields...like offshore deep water plays in the Gulf of Mexico (BP), Brazil, Artic.....and oh yeah...our little neck of the woods in the Western Zagros mountains. Can employ a dozen cliches here that i believe apply...including: 'No pain no gain', 'Nothing worthwhile comes easy', 'Patience is a virture', 'Where theres smoke (natural gas), there's fire (oil)'. (And bashers...give it a rest and save your breath...we all already all know the opposing cliches).
Reality is, WZR and the region is a challenging play...and while it would be nice to hit the big one on the first shot...like Ned Clappet in Beverly Hillbiliies :) ....it rarely happens this way ...as above article points out.
WZR represents a relatively small portion of my portfolio...sort of my mad money :) ...and give or take i'm about 30-35 cents underwater....but we all know thhis could change to the upside in a heartbeat once they hit the big one. In light of current share price....and WZR and my risk/reward profile....i'm thinking the timing is just about ripe to double or triple down on this play....and really make it exciting :) ...especially if i see any SP pullback or tax loss selling.
Happy trading and GLTA longs!
PS. Here's the link for the entirte Brazil article for those interest.
’s Libra oil field one of biggest finds"
https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/brazils-libra-oil-field-one-of-biggest-finds/article1778800/
See belowwWhat does Brazil hitting the