Significant Comments: The CEO of HRT Energy said in a Bloomberg interview that Namibia is a dream come through and HRT has the potential to become as big as Petrobras - stunning, as big as Petrobras? Not my words, see the interview below:
https://ir.hrt.com.br/hrt/web/conteudo_en.asp?idioma=1&conta=44&tipo=32112
go to 5:40 mark of video "04/07/2011 - Marcio Rocha Mello - Bloomberg Brazil Economic Summit"
Now look who surrounds their Walvis basin blocks - it's EOG and we found out this week that EOG has more prospective resources than HRT so far.
By the way, somebody that knows the Brazil pre-salt discovery very well, it's HRT CEO (Former Petrobras Head of Center of Excellence in Petroleum Geochemistry). This guy has been studying the salt bed of brazil for past 20 plus years and knows the geologic structure more than most. See his Resume below:
Former Petrobras Head of Center of Excellence in Petroleum Geochemistry;
Petroleum Geologist with PhD in molecular geochemistry, with 24 years of experience at Petrobras;
Former President of Brazilian Association of Petroleum Geologists.
So for him to say that Namibia is a dream come through and that HRT has the potential to become like Petrobras size speaks volume. Given that HRT bought out UNX Energy based on their seismic and not any drilling activities you have to think he will find out about EOG NI 51-101 report from this week and might be getting the same vibe like he did for UNX orange blocks. The orange blocks seems to be more gassy so if he can add to HRT two Walvis blocks by acquiring 4 more from EOG (2 of which has prospective recoverable resources of 7.8 billion barrels of oil), EOG could be taken out really early (forget about even getting to drilling stage for EOG, seismic work will be good enough for the possible buyers).
The biggest event for EOG in 2012 will be HRT drilling of their Walvis basin in 2012. Any discovery by HRT makes EOG a billion dollar company without EOG doing any of their own drilling. Also other companies drilling plus expecting drill results in 2012 for offshore Namibia so risk factor can go down significantly for EOG.
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Strategic Partner Azimuth Ltd.
A well-funded, rapidly-growing company equipped with the technical capabilities of a mid cap E&P firm. Backed by majority-owner Seacrest Capital Ltd, a Bermuda based energy investment group, and Petroleum Geo-Services ASA (PGS). Azimuth has access to the world’s largest multiclient seismic library, to leading edge geophysical expertise and to 85 subsurface specialists distributed in around the world.
•Azimuth – 20% Working interest. Will fund 40% of 3D offshore
Azimuth funding 40% of 3D offshore work means that EOG is looking at small amount of shares outstanding by the time they get the 3D work complete. If guys like HRT CEO and others then get access to this work, EOG can easily be acquired like UNX Energy was after their seismic work. Given how high HRT CEO is on Namibia offshore, EOG most likely bought out in next 0 to 2 year time with little shares outstanding.
As I dig deeper into research, it's becoming more clear how big the potential is for EOG. Highly suggest everyone do some of their own research.