GREY:MESNF - Post by User
Post by
justwinon Feb 15, 2013 2:40pm
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Post# 20997234
From Bob's letter today
From Bob's letter today Here’s where it got even more interesting. When I heard it I called my broker and bought some shares on the open market. TAG is drilling four holes. Two north of Marauder’s ground and two south of Marauder’s ground in the 300-600 meter thick Whangai shale. (In comparison to the 10-50 meter thickness of the Bakken formation.) They are going to spud in late March/early April. I guess they would be reporting results in less than four weeks after that. By investing in MES between now and maybe two months from now, you get a free ride, TAG drills and MES can intarprelate the results.
I don’t know what the odds are of finding another Bakken. I know the formation in the East Basin of New Zealand is a lot thicker. I know the oil is a higher grade (50 API) than the Bakken (42 API) I know the porosity, in portions of the sand lenses within the Whangai, is 16-31% compared to 8-12% in the Bakken. I know that if you use TAG Oil’s numbers, it infers a value of $1.6 billion dollars to MES. I can accept odds of maybe between 2 to 1 or 5 to 1 for hitting something that big but the payoff maybe 100-1. I like the payout.
TAG Oil is drilling soon and we will know the results. They have already drilled some Strat Test holes. These are shallower holes drilled where the shales are near the surface. The well logs from these shallow holes help determine the stratigraphy and correlate to the seismic data. They know they have oil; it seeps to the surface. They know they have thick shale and a high gravity oil. What’s not to like?