That was fast! It was nice while it lasted though. A new well will be drilled in 2013

http://news.yahoo.com/ke...122514039--finance.html

I'm with you on that.



Monday their report was upbeat, tuesday its bad again? it like they are playing a game, considering pancontinental shares shot 70% after the announcement, did someone at pancontinental want to dump his stock at a good price fully aware the well is not commercially viable?

If Citigroup is right, Saudi Arabia will cease to be an oil exporter by 2030, far sooner than previously thought.

A 150-page report by Heidy Rehman on the Saudi petrochemical industry should be sober reading for those who think that shale oil and gas have solved our global energy crunch.

• Saudi Arabia Could be an Oil Importer by ~2030 — Saudi Arabia is the world’s largest oil producer (11.1mbpd) & exporter (7.7mbpd). It also consumes 25% of its production. Energy consumption per capita exceeds that of most industrial nations. Oil & its derivatives account for ~50% of Saudi’s electricity production, used mostly (>50%) for residential use. Peak power demand is growing by ~8%/yr. Our analysis shows that if nothing changes Saudi may have no available oil for export by 2030.

• It Already Consumes All Its Gas Production — Saudi Arabia produces 9.6bn ft3/day of natural gas. This is entirely consumed domestically. It is looking to raise gas production to 15.5bn ft3/day by 2015E, implying a 2011-15E CAGR of 12.7%. However, peak power demand is growing at almost 8% pa. We believe Saudi Arabia will need to find new sources to meet residential & industrial demand.

http://blogs.telegraph.c...audi-oil-well-dries-up/

Haiya! Kwani they want to leave us with all the 'responsibilty'?. 2030 they say.
Ominous?

Let us keep in mind that

1. The L8 partners did not have the same results for their pre drilling estimates ie the seismic results, Pan con had an estimate of 4.9 BBO and 552b cubic feet of gas. Their gas estimate was below threshold to what Apache would ideally call commercially viable. Apache on the other hand, was estimating a 200-300MBO.

2. Mbawa (L8) is large so their is a possibility that they drilled at the wrong spot. Remember the first well that was drilled in Block 10BB (Loperot well) was also not very promising - shell got 13M net pay - it was abandoned in 1992, yet the Ngamia 1 well returned a reading of over 100M.

3. A thing to note is that oil slicks were observed at the floor of the ocean, so L8 has a very high chance of returning a oil play and may be gas.

I would like to hear what Tullow's observations are.

Thats the same thing I was thinking, kwanza this is offshore oil!!! So tununue ama tungoje ishuke even more, cant believe just Monday it was up 107% na sasa imerudi price ya Monday, si hii ni mchezo??