Post by
EOIM on Dec 05, 2010 1:01pm
Comparison to Gulf Keystone GKP
GKP currently has a maket cap of $1.5 billion primarily from one discovery well drilled in their lease that flowed 18 to 22 API oil at roughly 15000 bopd cumulative rate from 5 different zones.
On the other hand, Chia has 4875 bop oil of 41 to 43 API higher quality oil tested from only 18 m zone in a presumed 250 to 500 m oil column!!!! if we could repeat similar flow rate achieved in 1936 and expand the testing of other zones in this 250 to 500 m payzone, LFD could hit more than 20,000 bopd in comingled or cumulative production. As such, one could say that LFD might have a market cap of atleast 1 billion or say at least $5 per share.
What I found interesting with this play is that management already has plans to build production facilities in 2011. See the schedule in the latest presentation. This is a clear indication that management believes that LFD would hit and start selling as soon as possible!!
Comment by
EOIM on Dec 05, 2010 1:12pm
It takes most juniors many years to bring a discovery to the market.
Here, we see from slide 20 below that LFD has plans to bring the well Chia 10 to production sometimes starting in Q3 2011. This is simply amazing!!!
https://www.longfordenergyinc.com/files/file/Longford%20October%202010.pdf
Comment by
maysteeler23 on Dec 06, 2010 6:27am
The first well is anticipated to be drilled on the Chia Surkh Field, to atotal depth of 2,400 meters, confirming the shallow Jeribe discoverydrilled in 1936 and reported to have tested at 4,800 barrels of oil perday. The upcoming well has been designed as a future oil producer, andupon successful testing, the Company intends to promptly build earlyproduction facilities and bring the well online.