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Presentation from Thursday 6th July 06 can be seen on oilbarrel !


Monterey appraisal well suspended pending Wintershall evaluation. 1/12/06
BLR and Kappa in dispute.
BLR to meet with Kappa within next two weeks 1/12/06

1p Warrants?? Wish I had some!! Does anyone know if these are tradeable? or should I just go after a directorship?

Black Rock Oil - Issue of Warrants
RNS Number:9888BBlack Rock Oil & Gas PLC25 April 2006For immediate release 25 April 2006 Black Rock Oil & Gas PLC ('Black Rock' or the 'Company') Issue of warrantsBlack Rock (stock code: BLR), the UK-based exploration company, announces thatit has today issued warrants to those directors of the Company who had recentlyjoined the Company's Board to subscribe for new ordinary shares of 0.5p each('Ordinary Shares') at an exercise price of 1p per Ordinary Share (the'Warrants'), being the same price per Ordinary Share as the placing announced on18 April 2006 by the Company. The warrants have been granted as follows:Director Number of Exercise price Expiry date WarrantsTony Baldry 5,000,000 1p 21 April 2009John Cubitt 3,000,000 1p 21 April 2009Peter Hughes 2,000,000 1p 21 April 2009The issue of the warrants was approved by Ivan Burgess as the independentdirector.

Interesting read - apologies if posted already

http://www.oilvoice.com/Black_Rock_Provides_Update_On_Near_Term_Production_Opportuni/5877.htm

Off to the sun for a while. Hope to see the sp rising on a column of steam when I get back.

Have a good one, Dave. We all hope so too. Otherwise we'll have to come round to your place to drown our sorrows in your duty-free.

sorry but fail to see that the news in any of these latest RNSs will have any real influence on sp .... As to BLR itself, I can muster no enthusiasm ...... Heavy oils are at the bottom end unsexiness for not only are they sold at a discount to light(er) crude, but even with modern technology, the extraction success as % of total reserve is again pretty low.

Thanks Soul. I hope its the bubbly DF I open!

*
cynic - 21 Apr 2006 20:11 - 235 of 256
"Confess I cannot get get excited about BLR as it specialises in heavy oils which are unsexy to say the least, and for good reason ..... in a nutshell, though one may find large resreves of same, it is very difficult to extract economically and effectively, thus leaving a good % in the ground .... also heavy oil sells at a significant discount to light."

-----------------------------------

The message is getting boring. If you are not interested, why bother posting?

This board is for the exchange of views ..... Though you are more than welcome to disagree with my view (why?), at least I put some logic behind my posts rather than just saying "Avoid" or some such ...... By the sounds of it, if I was putting forward that BLR was the best thing since sliced bread, with some sort of supporting reasoning, you would not consider it boring at all.

Cynic,

Still on my watch list. When talking to the Technical Director at Master Investor 2006, I was informed that the company believes that lighter crude exists within their licence areas, but needs further exploration drills. They need the heavier crude which is close to production to pay for later light crude exploration. A means to an end.

Now that is worth listening to ..... Thank you

Cynic

Your commennts from above do not do yourself justice. How and why would your heavy oils comment bare any significance to investing in this company? The reward for finding heavy oils is as you point out less than finding sweet crude. But even finding light oils does not gaurantee top dollar. Secondly cost of transportion to refinery bares significance to the rewards of finding oil of any type. The last and most important is how much movement to the share price would a commercial find of any type mean.

Regards

Dr Square - depends on the starting point of the stock; an over-simplification I know ...... it seems to me that in many instances, stocks get hyped on scant evidence.

If I may use ELP as a good example ...... This has never been more than a blue sky company (my opinion of it and its management are irrelevant), but around January from memory, the world and his wife decided it was time to jump on board just because ELP were going to drill a good prospective well ...... The world and his wife took it to mean that finding commercial quantities of oil were almost a foregone conclusion ..... IMO, most of that "find" was factored into the price when it went close to 50p ..... In the event, a duster was the result, with sp crashing back to <20p.

The converse is also to be found in many shares when there is relatively unexpected good news ...... MPH has been interesting to follow in that respect of late.

As for BLR, I took a look at the company, and though it is quite interesting, especially in the light of very high (light!) crude prices, I cannot and do not see anything that warrants great excitement, though I guess with such a low sp, one's losses cannot or should not be that great, even if all goes pear shaped.

I am not sure that I have answered your question, but at least I have attempted to.

Thanks Cynic

I bought ELP at 42p for the sole purpose of unloading a lot a couple of days latter and running the rest as a free play. What you may of missed with ELP is that it was to prove up a possible play type. If Jaguar had come in the risk of the other 2 plays would have diminished by multiples and so the company would have increased significantly above the immediate oil in the ground effect.

As for BLR at the current moment it is not flavour of the month with myself. Colombia as you rightly say will not return the sums that a light oil field discovery would but it will provide revenue hopefully above costs? stopping the possibility of immediate recievership and underpinning the share price.

Why I am not happy with BLR is the fact that they do have the Monterey field. The rig is due to spud at the end of JUNE and would be worth a multiple of the market cap. The field is proven at 165, flow rates are the key to a commercial find. and they have been busy raising funds for a 5 million barrel field?? Have we the money for the North SEA? AGM presentation said 3 million for all commitments that is including 2 holes in the North Sea. But all we seem to get is Arce. This is in my opion not in the best interest of the share holders.

Dave-w? Have a good time. I hope to be able to have another holiday from my profits in this.

Regards

I won't dwell on ELP, though I made money on it both short and long ..... It is one of my whipping boys!

For what it is worth, have just taken a postion in SEY ..... and also hold several other speculative stocks - sorry; stocks of great potential! - in addition to more solid stuff (BUR, BARC etc)

Cynic, I'm not sure that the gap between light and heavy crude prices is so great as to be a detracting factor. We're hardly talking about the difference between Armani and C&A here.

As I pointed out in a previous post, WH Ireland reckoned on BLR making $25 per barrel net of costs - given that the report was published at the beginning of last October I guess they were using $50 a barrel max. It could have been as low as $40 in the light of comments they made at the end of their report when evaluating the NAV.

I agree with Dr. Square's argument about the effect on the SP - that's the thing to be concentrating on - in which case your argument about the starting point of the stock becomes relevant because BLR has been neglected and oversold, IMO.

Merely expressing my view .... No prob :)

cynic / Soul

What a refreshing change to debate rather than get punch drunk. Nice to see you in SEY short or long? I got burnt big time on ELP the RNS arrived a day early for me. LOL glad you took some of it.

Now the heavy oil factor is an interesting one. OPecs alledged 2 million barrels a day spare capacity? Now this is dearly needed and was last year. I have read the possible reason why this has not been used is because it is heavy oil. Before we all get to scared that is down to refinery specifications. I am only new to this game and am learning all the time. BLR are close to a refinery that deals with heavy oil it is partnered with a firm that owns its own rigs etc, etc the model is good IMHO. The management I reserve judgement.

Cynic I agree with you if I am reading you right. People seem to be jumping on anything with oil in its name.

I will say this share is not for widows and orphans.

Regards

Excellent posts today. Regards goal.

After an exceptionally fine dinner, I am not as compus mentis as I should be, so will come back tomorrow ... Meanwhile, lest you should worry, I am long of SEY

guess these arent the same black rock oil shares that are being bought out by shell canada. oh well will have to carry on working for a living. btw: is there any relation with the company black rock that has been bought other than the name?

I'm prepared to stick my neck out and say there is no connection, Rob. Black Rock is a popular name. CAN$24 a share, though, would do nicely :o)

Interesting to see that the other Black Rock is also a heavy oil play. Reading their recent quarterlies, I see that they mention the discount at which heavy oil trades compared with WTI. Last year it was up to $28 per barrel, but now is down to around $18 - $20, giving them a price of around $40 - $45 per barrel at the time of their reporting.

That's a bigger discount than I thought (apologies to Cynic!) but whether such a discount applies to the oil that BLR is producing in Colombia remains to be seen - the Canadian company doesn't mention an API grade. At current crude prices, we would still see $50 per barrel or thereabouts.

I remain optimistic about our BLR's prospects; here's hoping there's good news soon.