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

which one of you have just bought the 19.5 Mill woweeeeeeee
..good luck to them whoever they are :-))

Thanks, Aldor. Naturally, I shall be inviting all of you to the "BlackRock-Hits-20p-Pool-Party" at my new villa in the South of France in due course ;o)

St,Did u buy it on T+10 or you are giving it more time ?

St,Did u buy it on T+10 or you are giving it more time ?

my bee must have talked to the guy who bought 19.5m

Its all looking increasingly attractive. Not the no brainer some claim but, nudged by my broker, I doubled my holding this morning... sorry to all if the sp now does what it usually does when I buy!!
rgds

plm2349. It wasn't a guy. It was a broking company. By the way, if your bee cannot find something more interesting to say, could you politely ask him to fly elsewhere.
Thanks.

Amir, my sincere apologies, I was attempting to be humorous. My own holding of BLR is very much more modest. The pool party is more likely to be a bring-your-own-bottle affair at Bournemouth beach. In November. Sorry.

Getting slightly more serious, I don't know what your investment strategy is, but personally I would not be inclined to buy BLR on as short a term as 10 days - I assume you're referring to CFD's or similar? I am holding long, probably for a year or three as in the very short-term this share is way too unpredictable. Sometimes it has gone up by over 50% on good news; at other times, like currently, it has done very little. You'll have noticed that it hasn't yet developed a continuous uptrend. The placing might have put the brakes on the SP this time around, in spite of the large volume of stock traded in the past couple of days after the operational update came through. The good news is that the share is still affordable, IMO. My average cost is 1.5p. I'd have added more in the last few days but the truth is I'm fairly heavy in this stock already.

For an idea of timescale, it might be useful to look at companies like JKX which started off as tiddlers and then went seriously multi-bagger. It took a period of about 3 years. I do not think that BLR will get as big as JKX is at present unless some very aggressive expansion takes place, but you might well be looking at holding for that kind of length of time if you want to get that kind of return in percentage terms.

WDIK, all IMO and PDYOR.

Just topped up @ 1.2 while the going is good... Roll on the pool party, or maybe will forget about them until retirement ....

Write up on oilbarrel.com today about BLR although nothing new.

The write-up was, however, optimistic about Bukhara, albeit that the real issue is going to be whether the waxy crude can be extracted. If Bukhara can be brought onstream then it would be a real company-maker for BLR.

Black Rock Oil & Gas Inches Towards Maiden Production In Colombia While Global Energy Development Plc Plans Busy Second Half As Output Continues To Mount
Black Rock Oil & Gas took another step towards first production this week with news that the latest well on the Arce heavy oilfield in Colombia flowed just over 30 barrels per day. The Arce-4 well in the Las Quinchas licence was drilled down to 3,000 ft and encountered a gross 300 ft column of 16-17-degree API oil. The crude is liquid at room temperature and flowed just over 30 bpd (30.5 to be exact) using downhole mechanical pumps.

This rate is in line with the other wells tested to date on the field, which is reckoned to hold around 5 million barrels. Arce-2 flowed between 10 and 60 bpd while Arce-3 flowed up to 36 bpd of sticky 13.5-degree API oil. (("THESE HEAVY CRUDES ARE COMMON IN THIS AREA of the Middle Magdalena Valley of Colombia and their VISCOSITY IS NO BARRIER TO COMMERCIAL PRODUCTION: many of these fields are in PRODUCTION and there is a SPECIALIST REFINERY with SPARE CAPACITY in the area. ))

FROM OILBARRLEL.COM









'
''''


Indeed, Black Rock and its 50/50 partner Kappa Energy plan to bring the field into commercial production before year-end. The rig is now due to re-complete the Arce-2 well on the field while the partners await the arrival of steam production equipment. The start-up of steam testing operations could increase flow rates from the field by a factor of five. If successful, additional development wells will be drilled into the field to further increase production.

As chief executive Ivan Burgess pointed out at last weeks oilbarrel.com conference in London, steam flood operations on the adjacent Chicala oilfield which borders Las Quinchas has taken output per well to 150 bpd. At this point the numbers on the Arce deposit start to look very interesting.

The licence is also home to the Baul oilfield, which was discovered in 1960. The Baul-3 well - five wells were drilled into the structure - produced over 16,000 barrels from a 14-feet sand but was shut in the following year due to low oil prices. Estimated recoverable reserves are put at 2-3 million barrels of oil of which 1 million is contained in the proven 14 feet sand. Black Rock and Kappa plan to re-test one of the old wells this quarter. If successful, this could add a second near-term production project to the books.

The Bukhara oilfield looks promising. It holds 175 ft feet of net pay and could hold recoverable reserves of heavy waxy crude. However a test in 2005 proved inconclusive due to poor quality cementing downhole. There are plans to re-test Bukhara next year, by which time Black Rock should have made the transformation from exploration start-up to junior producer.

Nice one Aldor3. This is just the beginning with a whole raft of new drilling coming up too! :::
Baul 3 ----September 06
Arce 5 ----October 06
Arce 6 ----November 06
Arce 7 ----December 06
Arce 8 ----January 07
Arce 9 ----February 07

We can look forward to lots of good news and hopefully the SP will go north appropriately.

Interesting article :

Saudi Arabia and U.S. oil company Chevron Corp. have successfully extracted previously unreachable Saudi crude by injecting steam into oil fields to loosen sludge-like deposits, Chevron said.

Steam injection tests began on six wells this year in the Wafra oil field, located in a neutral zone shared by Kuwait and Saudi Arabia, Chevron spokesman Michael Barrett said Wednesday. Oil from the area is shared equally by both Related Products

Petroleum Refining in Nontechnical Language, 3rd Ed.

Well Production Practical Handbook


countries.

Saudi Oil Minister Ali Naimi said steam injection could be used to add "tens of billions" of barrels to the kingdom's proven reserves of 260 billion barrels--the world's largest, the Wall Street Journal reported this week.

The dense sludge-like oil had previously been considered unrecoverable, since it is so thick it cannot be pumped to the surface like lighter crudes. But injecting steam into the reservoir heats the viscous, heavy oil to a syrupy consistency that allows it to be pumped out, Barrett said.

Rising prices have pushed oil companies and governments to try to capitalize on languishing deposits of oil that were previously thought too difficult to exploit. In Canada, steam is also being used to coax oil from the enormous oil sand deposits in northern Alberta.

Crude oil prices have more than tripled over the past 4 years on surging demand in China, India, and the United States. Global demand has already swallowed up Saudi Arabia's entire production of light crude.

Chevron, based in San Ramon, Calif., will incorporate its test results into a large-scale effort to extract oil from the Wafra field, Barrett said.

Currently, Chevron operates just one steam injection well, four production wells, and one observation well in Wafra. That will grow to 16 steam-injection wells and 25 producing wells, Barrett said. The U.S. oil giant declined to say when commercial production would begin.

Chevron and Saudi oil officials want to see if the technique will work in the trickier Middle Eastern oil geology dominated by porous rock formations. Besides Wafra, the Saudis are considering using steam injection at the gigantic Manifa field, also thought to cradle a large reservoir of heavy oil, the Journal reported.

Barrett said Chevron uses steam to heat and recover 650,000 barrels of heavy oil per day, mainly from fields in Bakersfield, Calif., Indonesia, and Venezuela.

Hi Ruth, yes a good article, have heard and seen this before where steam assisted drainage is used. Apparently best results come from sandstone as very porus.

Does anyone know when the next update is due on BLR?

Marcel, according to the recent presentation, the next steps are the steam testing of Arce 2 - 4, for which equipment should be arriving shortly and which will run through till the end of the year, and from mid-August the drilling of gas prospect Quad 49 (Monterey) in the North Sea, which should be completed by the end of October. Those are the likely news highlights for the summer, barring delays!

Link to presentation

Looks like the markets may now head north again following Fed chiefs hints at rate rise pause. Glad I topped up again @ 1.15 earlier in the week. Fingers crossed that some stability ensues...

The current fall is not a general market problem, but a correction from the oil exploration 'oil dot com' boom. It looks like continuing. It is hitting the oil explorers, not the oil producers.

article in todays mage flow rates should increse over the coming months at Arce 4 well!.