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

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.

Indeed - right now BLR is the star performer in my otherwise thoroughly weather-beaten portfolio!

BLR tipped as a play of the week in Shares Mag.! --- ;Black Rock Oil at 1.2p
don't have access to the full story yet but it sounds promising !

Just downloaded the article using the "Shares Magazine" button above. Very exciting reading, underlining what we already know about the co and pointing out that its current valuation is "ludicrously low". Burgess is on record as saying that the co could also be a good takeover opportunity (although one hopes they'll succeed in staying independent).

An independent resources assessment is also planned, probably before the end of the summer, which could see a sharp revaluation in the shares (pleeeeze!!!!).

I'm glad "Shares" has chipped in to confirm what some of us have long suspected - that BLR is a gusher in the making.

Holding tight for the Arce/Monterey news . . . .

Shareholders,

This is the article from Oil Barrel 02.06.2006

Black Rock?s Prospects Brighten With The Development Of Its Colombian And North Sea Assets
Shares in Black Rock Oil & Gas, the London AIM-listed junior, have been in the doldrums for some time following some dry holes in Australia and disappointing drilling results on prospects on the Isle of Wight in southern England.

The company has a raft of interests in the UK North Sea and in southern England. In Ireland there are part blocks including 04/5 and 04/6 in the North Celtic Sea and 04/8 in the Irish Sea. There are prospects within these blocks within the Jurassic and Triassic zones.

This year Black Rock?s prospects look brighter partly because of development of a North Sea interest but mainly because of what looks like a successful foray into projects in Columbia in South America.

Black Rock has 50 per cent of the Kappa Energy-operated Arce oilfield which lies in the Las Quinchas Block in Columbia?s Middle Magdalena Basin. There have been a series of appraisal wells. Arce-3 came in pretty much in line with expectations, flowing between 25 and 36 barrels per day of sticky heavy API 13.5 degree, while Arce-2 flowed at rates of 10 and 60 bpd. Arce-4 will be drilled in the coming weeks, following which the partners plan to steam flood the field, a process that should increase the flow rates. Steam flooding is a common technique on heavy oilfields in Colombia and has been proven to increase production rates by a factor of five or ten. The equipment has been ordered from California and the company is awaiting an exact delivery date. Should the technique work then further production wells will be drilled into the field to increase the daily production rate. From the first four wells production could emerge at around 600 barrels per day or 300 barrels per day
net to Black Rock.

Black Rock and Kappa also hold a 50/50 interest in the Baul oilfield also in the Middle Magdalena Basin. The partners have agreed to re-enter the once producing field. Discovered in 1960, 5 wells were drilled and there was 100 feet of net pay. Baul-3 produced 16,610 barrels of oil from a 14 feet sand interval. The well was shut in during 1961 due to low oil prices. There will be re-testing late in 2006 or early 2007. Estimated recoverable reserves are put at 2-3 million barrels of oil of which 1 million is contained in the proven 14 feet sand.

Las Quinchas is also home to the Bukhara prospect. Discovered in 2000 one well was drilled and there was 175 feet of net pay. However, a test in 2005 proved inconclusive. There will be re-testing late in 2006 or early in 2007. The field could hold recoverable reserves of up to 75 million barrels of heavy waxy crude.

Leaving aside Baul and Bukhara as something for another day, Arce looks more positive and could be producing before the end of this year. Three hundred barrels a day might not sound like a company-making situation or be anything Shell or BP might be interested in. But as we always say at oilbarrel.com, most things are relative. For Black Rock its means it would make the crucial jump from being a hopeful explorer to a producer. At a time when oil prices are sky high it will mean critical cash flow to promote other ventures. It is true that heavy oil is more expensive to draw than lighter crudes, but there are offsetting cost factors. In order to shore up production the Colombia government has announced their intention to reduce corporation tax from 38.5 per cent to 28.5 per cent. (This has helped make Colombia a favourite for small E & P companies.) There is a pipeline running through the Arce acreage linking to a refinery capable of handling heavy crudes, so transport costs a
re low.

Black Rock chief executive Ivan Burgess told oilbarrel.com that all in all with oil prices somewhere in the US$60 plus a barrel range, net cash flow to the company could work out at US$25 a barrel. Assuming the 300 barrels a day target a day is met then the company could earn net cash equivalent to a sum not unadjacent to US$300,000 a year. This is significant for a company which currently has no income. The company is hoping to book reserves of between 2.5 million to 10 million barrels of oil equivalent before the end of 2006 from Arce, Baul and Bukhara fields. Arce is thought to hold between 5 and 10 million boe. Assuming each barrel is worth US$10 in the ground this means a value of US$25 million taking the low figure. Compare this with the company?s market capitalisation of 6.4 (US$11.9) million and it all looks good for Black Rock, providing of course it comes right.

Elsewhere Black Rock has a 15 per cent interest in Block 49/8c in the UK Southern North Sea. Wintershall operates the block and the plan is to drill into the Monterey zone to test the commerciality from a proven gas field in the third quarter of 2006. Arco made a significant discovery in the Monterey in 1989 when a well flowed at up to 5 million cubic feet a day. The operator estimates mean recoverable reserves of 165 bcf. If the test if successful the hope is development via a 2 well subsea tieback, probably to the Markham field and a development plan for production in 2007/2008.