Hope in East Africa

[Burn Notice]

"Hope is what motivates us to work hard and get things done.

It's the idea that something better will happen in the future because of what we do." - George Anderton

 

We have noted with interest the furore from investors - approaching almost maniacal levels – surrounding oil drilling activities in Puntland, Northern Somalia.

 

This drilling is being conducted by Horn Petroleum (the Operator), where two of the companies we follow, Range Resources and Red Emperor Resources, each have a 20% working interest. Recent announcement from the Operators have highlighted the discovery of hydrocarbons and a working petroleum system; and this has heightened excitement levels further.

 

So what’s it all about? Well simply put, such is the scale of prospectivity here that, should a real commercial discovery be made, it could have the potential to be one of the biggest oil finds in recent times.

The well partners have undertaken to drill two wells back-to-back, with one well already progressed and the other ‘ready to go’. Drilling a well of this magnitude is a rarity, drilling two back-to-back is a definite bonus. So people, it would seem, are well aware of what a discovery in one well would mean and what that may also imply when looking at the likelihood of finding oil elsewhere across the licences.

 

This activity hasn’t been lost at a local level either, with Puntland and Somalian websites drawing attention to the drilling and, in some cases, feeding back a whole array of rumours and speculation. Whether any of these rumours hold any substance is unclear and only formal announcements from the well partners should really be relied on.

 

 

 

We too are excited, because MiningMaven works on the principle of only engaging with sponsoring companies where their business model is compelling enough that we would invest materially in our personal capacity - hence we hold an interest here as well and have done so for quite some time.

 

So the stakes are indeed high and none more so than for the biggest stakeholders of all - the people of Puntland/Somalia.

 

Poverty and internal strife have been a running constant in this part of the world for as long as most can recall. But hope may now be afforded, not by means or charity or external aid, but by the remarkable possibility that the Country may be sitting above some of the richest oil fields on the planet!

 

And should oil be discovered in the manner many expect, the potential will exists to transform the lives of millions and generate conditions where the people of Somalia and Puntland may materially benefit from this new found source of wealth.

 

Oil revenues generate wealth, and can channel investment into desperately needed programmes, such as health and education. Significant building programmes could be launched providing sound homes and utilities to bring power, water and sanitation. Investment in infrastructure building roads, public transport systems and commercial enterprise will help population mobility and provide jobs with real incomes so that people may take control of their own lives. Oil revenues can also provide the resources to build police services and armed forces. How much more can people achieve when they know their security is safeguarded, lives protected and their right to a peaceful existence pre-determined?

 

But we often hear of countries, where substantial natural resources have been discovered, only to find that revenues are being channelled inappropriately, into the hands of selected individuals or groups. From what we have seen to date, should oil be found in Puntland, we would hope this would not be the case here; with stated good intentions and a seeming desire to ensure that all people across Puntland and Somalia share the benefits of the oil revenues with proper systems of governance and controls in place.

 

http://bit.ly/puntland190312

 

We appreciate that some may consider such theorising as idealistic, and we are not making any assumptions here. Its far too early for that. But when your starting point is one of hope, then its only fair to at least give that hope a chance of being born out.

 

Of course the ability to generate oil revenues requires foreign investment and this was forthcoming from Range Resources with their evident commitment to the development of Puntland oil opportunities. This required considerable focus and determination (and no small degree of risk appetite!), which resulted in the commitment of time and financial resources.

 

That commitment was further enhanced with the involvement of Africa Oil, Horn Petroleum and Red Emperor Resources. All these companies have staked a significant proportion of their financial and human resources on the success of the Puntland oil exploration, as have the myriad of investors backing each company with money and time devoted to research and investigation.

 

It has been a dangerous venture from the start and will probably remain so for some time to come. To identify drillable targets required material effort, over a number of years. Navigating the geopolitical challenges of in-country operations is never easy and this programme has also been fraught with difficulty; security concerns have required immense planning and resources. But with the vision of local leaders, the companies were able to commit to the drilling programme we now see in operation.

 

And should an oil discovery be confirmed, evidence of oil revenues being fairly distributed and the ability of foreign companies to operate securely in-country will be vital for ongoing development. Many other foreign oil exploration companies will no doubt be following developments closely, and their willingness to engage and follow these pioneers with investment to expedite further oil discoveries, will very much depend on how things pan out for the first movers in terms of development and production.

 

So, as investors we are in a unique position; that of being able to support a drilling campaign, the results of which could dramatically improve the lives of a local population whilst we also stand to benefit from a significant amount of upside should drilling prove successful.

 

One note of caution however: whilst for investors, the excitement is palpable and the potential enormous, the stock market is not a valuation mechanism - certainly not at this stage of the game. It is simply a place to buy and sell shares. Almost inevitably, excitement on this level can lead to rather stretched overvaluations, especially should a major oil discovery be confirmed. The simple fact is that, whilst many investors are reluctant to buy when shares are lowly rated, they will desperately try to buy when excitement is running at fever pitch and the share has exhibited a rocketing uplift in price.

 

As events unfold we will be interested to see what the market’s reaction is. Undeniably a major discovery will be a game changer for all companies involved, and further continuing drill success will build blocks of value that few other oil companies could look to match. And of course it’s not just us who are watching; with the world’s major oil companies hovering, a material discovery, and demonstrable evidence of the ability to work in-country,will surely attract a diverse range of interests.

 

 

http://www.miningmaven.com/k2/news/blog/hope-in-east-africa/

[General Duke]

Incredible. Thanks for the update. I am hopefully this will be the transformative moment we have been waiting for all this time.

[General Duke]

Burn notice, I thank you my friend. Keep updating us.

[Carafaat]

those shares will hit sky high with the annual propaganda and fall deep and loose value to being worthless. People loosing their money like in 2009,2011. When share was sold for 29 and then lost value to 2dollars.or in 2011 in went from 22 to 6 dollars. Wonder how deep shares will fall this time after your usual propaganda.

[General Duke]

Your losing your mind boy. Today in East Africa it's he gold age for Oil exploration. Everyday new wells and reservoirs are being found in South Sudan, Uganda, Tanzania and as far as Mozambique. This is no laughing matter.

You never even believed there was a rig or drilling. Then you disappeared when the forts pictures came out. Now you are foaming from the mouth, and repeating the same mistake.

It's evident that this is big event, a transformative event.

[Mario B]

General Duke;806207 wrote:

Your losing your mind boy. Today in East Africa it's he gold age for Oil exploration. Everyday new wells and reservoirs are being found in South Sudan, Uganda, Tanzania and as far as Mozambique. This is no laughing matter.

You never even believed there was a rig or drilling. Then you disappeared when the forts pictures came out. Now you are foaming from the mouth, and repeating the same mistake.

It's evident that this is big event, a transformative event.

Apart from S Sudan [$4 billion a year] and Uganda [ $1 billion a year], it's gas and we are talking about.

[Carafaat]

my concern is not with oil beign found. but with the financial ponzi scheme behind Range Resources intended to propagate the oil discovery so people buy this stock and loose their money. just like 2009, 2011 and now again.

 

Oil exploration is conducted on many places in the world and there is oil in Puntland. But nowhere else are people encouraged to buy shares of a company with only a percentage ownership of the oil exploration contract. how else would it loose value from 30 dollar to 2 dollars in 2009; people have a short memory to forget this scheme has been done 2 times before.

[General Duke]

Hydrocarbon boom & exploration is taking place all across East Africa. This is not a phony project as much as some of you would like to believe.

[GaadhHaye]

Burn Notice;806166 wrote:

"Hope is what motivates us to work hard and get things done.

It's the idea that something better will happen in the future because of what we do." - George Anderton

 

But hope may now be afforded, not by means or charity or external aid, but by the remarkable possibility that the Country may be sitting above some of the richest oil fields on the planet!

Beautful---more so when Bakken discovery the largest discovery in recent years in the world (North of U.S.A.) has been proved to contain only less than 4.5 bbl---yesterday's Globe and Mail---Canada's Wall Streat Journal

 

 

That commitment was further enhanced with the involvement of Africa Oil, Horn Petroleum and Red Emperor Resources. All these companies have staked a significant proportion of their financial and human resources on the success of the Puntland oil exploration, as have the myriad of investors backing each company with money and time devoted to research and investigation.

 

It has been a dangerous venture from the start and will probably remain so for some time to come. To identify drillable targets required material effort, over a number of years. Navigating the geopolitical challenges of in-country operations is never easy and this programme has also been fraught with difficulty; security concerns have required immense planning and resources. But with the vision of local leaders, the companies were able to commit to the drilling programme we now see in operation.

African Oils and partners are willing to invest $50 million Dollars for the drilling activities in Puntland despite concerns about Alshabab threats----current issue of MacLean Magazine

 

 

]

[General Duke]

Carafat stop talking nonsense. The Oil exploration is taking place in Puntland as we speak.

Regardless of how you feel about Range Resources, you can not deny their tenacity and resourcefulness.

Like the Texan company Hunt Oil with Yemen.

 

Ponzi scheme in this instance means that nothing is being drilled. That's nonsense and the whole State is waiting anxiously for he results.

[NASSIR]

Carafaat;806201 wrote:

those shares will hit sky high with the annual propaganda and fall deep and loose value to being worthless. People loosing their money like in 2009,2011. When share was sold for 29 and then lost value to 2dollars.or in 2011 in went from 22 to 6 dollars. Wonder how deep shares will fall this time after your usual propaganda.

Lol. Koley soomaali uma dadka gadanaya , bal maxaad u diidan tahey hadii dhul Soomaali ka taliso laga baaro kheyraadka dabiiciga ee Ilaahey ku maneystey. Aan adkeyno maamulka ka jira meesha, awoodana waxaa leh shacabka laakinse yeynan is hortaagin dadaalka meesha ka socda.

 

Let's also holds the expectations to a reasonable level. This is a long term schedule.

[Carafaat]

Nassir, I have nothing against Oil exploration in Somalia and even support geologicly mapping the resources.

[General Duke]

^^^Carafat you are clutching to straws lad. You are against the Oil drilling in Puntland because of clanish reasons and no more...

[Burn Notice]

thanks GD

 

fortunately most puntlanders are as forward thinking as you which is why the project has moved forward and a historic commercial find will soon be announced...listen to the opening ceremony on youtube...fantastic words by ALL involved

[Burn Notice]

i'm feeling generous today Carafaat so here's a free lesson

 

"don't look at how things ARE but how they MIGHT be"...you will live a happier and more prosperous life

 

...take the time to look over my years of posting and you will know what i mean :