Tell me about Oracle Energy?
Oracle Energy (TSX: V.OEC, Stock Forum) is focused on implementing a successful Nigerian acquisition and development strategy and has entered into a Memorandum of Understanding with a strong well positioned Nigerian company Bolad Energy, which is comprised of former International oil company executives.
Why have you chosen Nigeria? What’s the opportunity?
Nigeria is well known for its oil resources and current reserves are estimated at 37 billion barrels of oil and 187 TCF of gas. The Government is targeting to increase production from 2.5 to 4.0 million of barrels of oil per day and to further indigenize the industry. This provides an opportunity for companies like Oracle to participate in undeveloped fields through Joint Venture with indigenous companies. Our indigenous partner Bolad Energy is staffed with international oil company experienced executives with a solid track record of finding oil and gas and developing oil fields.
What are the pros and cons of being in Nigeria?
There is significant opportunity to acquire reserves without exploration risk. Nigeria has over 1,000 discovered oil and gas fields of which only 35% are developed. Oracle is pursuing the opportunity, with its local partner, to acquire and develop these undeveloped discoveries. Nigeria has been producing oil and gas for over 40 years and has built up a significant infrastructure of pipelines and export facilities together with a significant workforce experienced in the production of oil and gas.
Nigeria is the world's 8th largest country with a population estimated at 160 million and an economy growing at 7%. This represents a huge opportunity for inward investment into Nigeria in all sectors of the economy to enable Nigeria to reach its full potential. While there have been periods of unrest in the Niger Delta the amnesty announced in 2009 together with investment in communities has significantly decreased unrest and production interruptions.
How does it compare to targeting oil in North America?
Oracle would like to initiate our growth plan by developing existing discoveries. We believe this opportunity exists more so in Nigeria than most other places.
Do you have any other properties?
Oracle also has an 855 sq km exploration concession in Portugal. In the last five years there has been renewed interest in oil and gas in Portugal both on and offshore. Seismic and drilling has confirmed the existence of two petroleum systems and three significant exploration plays: the Triassic Pre-salt, a Liassic (Lower Jurassic) unconventional resource play and Upper Jurassic reefs. From the evaluation of existing data over the area, Oracle expects all three of these plays to be present in their new concession. In addition, Portugal is relatively unexplored, has excellent fiscal terms and has ready access to premium European markets.
What are the catalysts for Oracle to move forward?
Oracle and its indigenous partner Bolad have identified a number of opportunities to develop Nigeria's oil and gas resources and are currently in discussions regarding potential farm-ins into undeveloped fields. As these discussions develop into Agreements we will be notifying the market.
Tell me about your management team and their ability to execute in Nigeria?
Oracle has a uniquely qualified team of oil industry professionals with expertise ranging from sub surface technology to above ground producing operations and financing. Three of our executive team have worked for many years in Africa and have proven track records of delivering oil and gas production on time and within budget. Our rigorous focus on health, safety and the environment and corporate governance are all pre-requisites to success. Combined with our indigenous partner Bolad we are confident that we have a first class team to execute our first major project in Nigeria.
What’s unique about Oracle and why should an investor be interested in your company?
Oracle's strong management team and track record of finding oil and gas and financing major capital projects provides us with all the major attributes of building a successful exploration and production company. Our knowledge of how to work effectively in Africa and build solid relationships with key government decision makers and the host communities in which we plan to operate should provide confidence to our shareholders that we can deliver on our promises.
Disclosure: Oracle is a Stockhouse client.