www.blackrockoilandgasplc.co.uk
www.vsaresources.com
www.oilbarrel.com
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

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.

Soul

Sold out Friday. So all the best hope it comes of and I have to post a well done, I got it wrong message.

Regards

Sorry to see you go, Doc - now it's just me and Bruce on the BLR bench, apparently!

Keep playing the patience game, is what I'm telling myself, after a week of fruitless faffing elsewhere in my portfolio. Looking forward to that Arce news . . .

Have held now for 3.5 years and another six months is probably the most exciting for BLR in that time so holding till then but sorry you have sold out DR Square and hope you dont live to regret it but then again I may regret holding another six months. Good luck.

soul trader,
I am still hanging in with this one too. I am running at a loss so far [in at 1.53 and 1.5] but I feel sure the SP must go up sometime.
Alex

Hope it goes up also as I was in at 2.3p (did my usual stupid thing of buying at the top of a spike only for it to straight down again!)

Everyones bin there at some point....:-(

RobertAlexander -I think you've probably done fairly well if you have got in at around average 1.5p. That's about my average cost too. There have been very few opportunities to get in much cheaper, and the wide spread makes the paper loss look a bit dramatic at the moment.

I agree with Rutherford that now is the most exciting time - and think how far BLR has come after all those dusters in Australia.

Pity about the beating all the E&P's are taking today, but quality will come out in the end - I hope BLR is one of the winners.

SP still a bit choppy, but apparently up off the day's low of 0.9p. On a dummy trade I was just quoted 1.15p to buy vs 1.03 to sell at present which makes for the tightest spread for a while.

spread alot better now ;-) Whilst it lasts.

Nice narrow spread persisting this morning.

My broker's indicative quotes: BLR Bid: 1.1p Offer: 1.2p Change: 0.05

Just in case you havn't received this from BLR.

Dear Investor

As Managing Director and a significant shareholder, I am as concerned as all on the Companys low share price. With the exception of the recent negative resource market trend there is no real explanation.

I believe the Company has a bright future and its acreage is as good as any other small oil and gas explorer listed on AIM.

While for a number of reasons activities have been delayed, and as released to the market we expect the Arce 4 development well on the Arce Oil Field to commence drilling in the coming weeks. The rig is currently drilling another well for another Group and on completion of that well will move to our contract area and commence drilling the development well. Following completion of Arce 4 the rig will complete the Arce 2 well ready for production then move to the Baul Oil Field in the Southern portion of our area to evaluate if that well can be re-completed for production.

The steaming equipment for production at Arce has been ordered from California and our team are endeavouring to establish the exact delivery date.

The appraisal well in the Southern Gas Basin of the UK sector of the North Sea is still on track to be drilled during the coming summer.

At this time the Company still expects to have production before year end.

Please feel free to contact me during business hours on either my mobile 079 1718 5129 or the office 0207 240 3953.



Yours faithfully
Ivan Burgess

OJ, thanks for posting that. I'm glad to see that BLR has posted the letter on its website as well and that they have been so good as to keep us informed.

A box on the homepage contains the following reassurance:

Managing Director,
Ivan Burgess, welcomes
all calls to discuss
Company activities.

Please be advised
that the development
of Arce-4 is due to
commence during the
next couple of weeks

Starting to rise now.