RE:You want the truth.
Taipan Resources – From Daily Flow Test – Dougie Youngson
discussed its operations in Kenya in its IMS yesterday, some of which are applicable to Taipan.
Drilling is ongoing at the El Kuran-3 well in blocks 7 & 8 in Ethiopia. This well will test the productivity of the Adigrat and Hamanlei zones and is targeting 100mmbbl of gross prospective resources
. This well is important to Taipan as it is a similar prospect to those in block 1. A successful well should help de-risk the block 1 prospects.
In block 1 (TPN: 20%), acquired 1,900km of 2D seismic data which has identified six leads and prospects as well as a number of new play concepts. The prospects have successful analogues on the Ethiopian side of the basin. The operator is committed to drilling a well on the Khorof prospect in late 2014. This prospect is a large four-way dip closure down dip of an oil seep.
The farm in by was an extremely positive step for Taipan and the market’s response has been bewildering. We re-iterate that Premier will be spending US$29.5m on block 2B before Taipan has any financial commitments. The first well will be drilled next year. At these levels Taipan is extremely good value with lots of upside potential.
Taken from Proactive Investor Article Nov 1st 2013:-