Higher Highs -Higher Lows What a great time to be invested in a stock such as this, where after many frustrating years we as investors are finally being rewarded. Anyone who has not read the corporate presentation would be well advised to look it over as the future looks bright. I can see where institutional investors will be flocking to this stock eliminating the gyrations in stock value and leaving those who wish to play the stock buying back in at higher prices. A few points of interest in the presentation to me were:
1) Kurdamir 2 has 1900 m of gross hydrocarbon interval. 118 meters has been tested so far yielding high quality light oil in significant quantities. Testing of remaining intervals have been ongoing for approximately a month and news of test results should be very soon.
2) Kurdamir 3, Hasira and Sarquala 2 are all planned to commence soon. These wells will be less risky as ground formations and pressures have now been largely determined by existing wells. These wells will be more about producing the resource which are known to exist and less about exploration.
3)They did encounter smaller quantities of oil at Mil Qasim at shallow depths. They are therefore going to capitalize on this by drilling 3 shallow wells in this vicinity from 500 to 750 meters in depth. These wells will not have the high pressure concerns and will be quick and economical to drill. If these prove to be successfull I would expect an increase of these affordable wells which will quickly increase our daily output of oil.
4) The size of the prize is 5 Billion BOE's of resources. No wonder the majors are flocking to the area. This will be interesting to watch as the drama continues to unfold on this promising stock.