{"id":320,"date":"2014-01-03T05:34:25","date_gmt":"2014-01-03T05:34:25","guid":{"rendered":"http:\/\/oilnewskenya.com\/?p=320"},"modified":"2015-11-02T14:23:23","modified_gmt":"2015-11-02T14:23:23","slug":"east-african-oil-wells-among-explorations-to-watch-out-for-in-2014","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/east-african-oil-wells-among-explorations-to-watch-out-for-in-2014\/","title":{"rendered":"East African oil wells among explorations to watch out for in 2014"},"content":{"rendered":"

The fact that a 40% drilling success rate marks out 2013 as one of\u00a0BP<\/a>\u2019s best years for exploration in decades reflects the kind of glass-half-full attitude hardy oil investors must persist with.<\/p>\n

Disappointing results are too many to count, but, there few share price catalysts as pure as an exploration success.<\/p>\n

It is because in most cases exploration wells have a binary outcome – i.e. the targeted hydrocarbons are there or it is not – such events are the bread and butter of a certain types of AIM investors.<\/p>\n

Speculators, day-traders, punters; call them what you will, but what is certain is that the extra liquidity that comes with their bets plays an important role for many an exploration share.<\/p>\n

It is no coincidence that the sector underperformed in the second half of 2013, whilst there was a dearth of drilling activity among AIM\u2019s oil firms.<\/p>\n

Compiling an exhaustive list of wells would be far from practical, here we highlight a clutch of the most high profile opportunities the drill schedule for 2014.<\/p>\n

East Africa \u2013\u00a0Wentworth Resources<\/a><\/strong><\/p>\n

AIM quoted\u00a0Wentworth Resources<\/a>\u00a0(LON:WRL<\/a>) is poised for high impact drilling which could change the face of its asset base.<\/p>\n

Having raised US$46mln earlier this month Wentworth is able to pay its way in an Anadarko led campaign in the onshore portion of the Rovuma basin, in Mozambique.<\/p>\n

Anadarko has already established itself as a pioneer in the basin. It is the lead in the large LNG project upon which theCove Energy<\/a>\u00a0business \u2013 sold for US$1.2bn in 2012 – was based, with its 8.5% stake in the venture.<\/p>\n

And Anadarko is now searching onshore. Thus far, onshore, seven prospects have been identified within the onshore Rovuma concession with the gas potential estimated at 4.3tcf.<\/p>\n

The first well, due to spud in the second quarter, will test the Tembo prospect which could contain about 1tcf of gas or nearly 200mln barrels of oil.<\/p>\n

The programme in Mozambique, expected in the first half of the year, has \u201ccompany making\u201d potential for Wentworth, according to\u00a0Investec<\/a>\u00a0analyst Gallagher, who reckons the first prospect alone would be worth between 15p and 100p per share if the well\u2019s a success.<\/p>\n

Morocco \u2013 Cairn, Genel & Fastnet<\/strong><\/p>\n

After the disappointment of Cairn\u2019s (LON:CNE<\/a>) Foum Draa well in December, investors will be given a second chance at a \u2018play opening\u2019 success as the Cap Juby exploration well gets underway in the first quarter of the new year.<\/p>\n

Cap Juby, a joint venture between Cairn and Genel (LON:GENL<\/a>), will be latest to target the sort of large Atlantic Margin discoveries, like those found in the waters off Ghana and Brazil.<\/p>\n

Experts say the bad result in the first well – which found no evidence of hydrocarbons \u2013 doesn\u2019t condemn the Tarfaya basin to failure, but investor will want more comfort from futures wells.<\/p>\n

Also in the first quarter attentions will turn to AIM quoted\u00a0Fastnet Oil & Gas<\/a>\u00a0(LON:FAST<\/a>) which has a paid-for 12.5% stake in the Kosmos and\u00a0BP<\/a>\u00a0led Eagle exploration well.<\/p>\n

The Eagle-1 exploration well is targeting an estimated 360mln barrel prospect and it is set to be one of next year\u2019s closely followed programmes for investors.<\/p>\n

Without an oil system in this basin as yet, these wells really are \u2018wildcats\u2019 and success is far from guaranteed \u2013 but, of course, in the event of a success; high rewards tend to follow high risks.<\/p>\n

Mauritania \u2013\u00a0Tullow Oil<\/a><\/strong><\/p>\n

The Fregate well is another possible \u2018play opener\u2019 in the Atlantic Margin, in West Africa, as Tullow (LON:TLW<\/a>) again looks to repeat the success of the Jubilee field, which it pioneered alongside Kosmos.<\/p>\n

Tullow, owning 36% in the venture, is targeting over 300mln barrels in the main prospect, but Fregate represent only part of a larger overlapping system which is estimated at around 880mln barrels.<\/p>\n

Experts say the chance of success is typically low for this kind of frontier exploration, at between 10 to 20%.<\/p>\n

Falklands \u2013\u00a0Premier Oil<\/a>, Rockhopper, FOGL and Argos<\/strong><\/p>\n

This one is more than likely to be revisited around the Easter – or perhaps even the August bank holiday – as the actual drill schedule is not yet confirmed, but it is anticipated that exploration drilling could again resume in the waters around the islands in the South Atlantic.<\/p>\n

With attention focussing on the North basin, which hosts the Sea Lion discovery, it is more than likely that partners\u00a0Premier Oil<\/a>\u00a0(LON:PMO<\/a>) and\u00a0Rockhopper Exploration<\/a>\u00a0(LON:RKH<\/a>) would take the lead in the initial part of the programme.<\/p>\n

Investors in\u00a0Argos Resources<\/a>\u00a0(LON:ARG<\/a>) will, however, be hoping to finally see some action coming from the drill bit too, whilst Falkland Oil & Gas (LON:FOGL<\/a>) \u2013 which just merged with Desire \u2013 is also likely to figure in the programme with the new financial backing that the enlarged company now brings.<\/p>\n

If racy, high impact, win or bust drilling isn\u2019t for you \u2026<\/strong><\/p>\n

Several North America focussed firms in 2014 offer small cap investors the opportunity for a more measured approach to drill.<\/p>\n

Companies like Caza (LON:CAZA<\/a>), Magnolia (LON:MAGP<\/a>), Northcote (LON:NCT<\/a>), Empyrean (LON:EME<\/a>),\u00a0Edge Resources<\/a>(LON:EDG<\/a>), Nostra Terra (LON:NTOG<\/a>) and Nighthawk (LON:HAWK<\/a>) are all in a phase of onshore development drilling. In each case these junior companies are investing on a smaller scale, paying less for each well, though each well delivers valuable incremental production growth.<\/p>\n

Each of the aforementioned juniors have busy drill schedules for the coming year, and well updates for investors are likely to be a regular feature throughout 2014.<\/p>\n

Article by\u00a0Proactive Investors.co.uk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The fact that a 40% drilling success rate marks out 2013 as one of\u00a0BP\u2019s best years for exploration in decades reflects the kind of glass-half-full attitude hardy oil investors must … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":142,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[5,6],"tags":[70,91,573,671,809,860,1078,1098,1324,1444,1629,1734,2071,2466,2489,2571,2580],"class_list":["post-320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-new-discoveries","category-news-by-others","tag-africa-oil","tag-agete-1","tag-debub-omo-zone","tag-east-africa","tag-ethiopia","tag-exxonmobil","tag-heritage-oil","tag-hydrocarbon-exploration","tag-kilombero","tag-lokichar","tag-morocco","tag-ngamia-1","tag-premier-oil","tag-tanzania","tag-tarfaya","tag-tullow-oil","tag-turkana","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2013\/12\/06dec_tanzania_468map.gif?fit=468%2C476&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-5a","jetpack-related-posts":[{"id":2040,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tullow-oil-cuts-on-offshore-exploration-to-focus-on-east-africa-acreage-as-crude-oil-price-drop\/","url_meta":{"origin":320,"position":0},"title":"Tullow Oil cuts on offshore exploration to focus on East Africa acreage as crude oil price drop","author":"Samuel Kamau Mbote","date":"November 12, 2014","format":false,"excerpt":"Following the drop in global crude oil prices Tullow Oil says I will be reducing on exploration cost as well as focus on high margin oil and its major basin-opening potential. \u201cIn light of current oil and gas sector challenges including the commodity price environment, we are reviewing our capital\u2026","rel":"","context":"In "Prices"","block_context":{"text":"Prices","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/prices\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/tullow-oil-jubilee.jpg?fit=600%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/tullow-oil-jubilee.jpg?fit=600%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/tullow-oil-jubilee.jpg?fit=600%2C400&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":234,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oil-abandons-dry-wells-in-kenya-ethiopia\/","url_meta":{"origin":320,"position":1},"title":"Africa Oil abandons dry wells in Kenya, Ethiopia","author":"Samuel Kamau Mbote","date":"December 12, 2013","format":false,"excerpt":"Canadian explorer Africa Oil has been forced to abandon drilling at one of its wells in Marsabit County and another in Ethiopia after failing to encounter any traces of oil or gas. 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The company that has exploration and production licenses in West and East\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":618,"url":"https:\/\/www.oilnewskenya.com\/index.php\/taipan-resources-hunting-elephants-in-kenya\/","url_meta":{"origin":320,"position":4},"title":"Taipan Resources: Hunting Elephants in Kenya","author":"Samuel Kamau Mbote","date":"March 1, 2014","format":false,"excerpt":"Story by MarketWatch The East African Rift Basin system is one of the last of the great rift basins to be explored. It was only in 2012 that Tullow and Africa Oil struck first oil in Kenya. 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