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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

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!.

Topped up again yesterday...the lowest I've been able to get in at over the past yr or so I've been buying....onwards and upwards... can only go up from here with all the good news due...(apart from the odd blip!)

Skyhigh good buy.
Steaming equipment now in Columbia according to email received from Blr to another bulletin board member so should be onsite soon!

Rutherford,
Yes, I hope it'll be a "good buy" and not goodbye!

Ruth, doesn't the steam have to be deployed and then left before testing flow rates? If I remember correctly on SER website theres info regarding Steam Assisted Gravity Drainage. Which implies steam deployed and then left for oil to move to base of well before flow testing can be carried out to see if its worked. Website below if your intrested in more info on this process. Would imagine temperatures approximatly the same in both areas of usage and humidity. Your thoughts appreciated...

http://www.seftonresources.com/assets/thermal_oil_recovery.asp

Very good link Explosive:SEY


I believe BLR (Kappa) will use SAGD although BLR have not stated as far as I am aware although they are saying they will be producer this year so assume it will take a couple of months for the steaming to take effect and they have mentioned potential increase in production will be 5 to 10 times initial rates although in their last RNS they were more conservative saying 3 to 5 times. Arce 2 I believe was mentioned as the one they will use to pump the steam down and then will be producing from the other 3. Supposed to be drilling 5 more on Arce before year end.
8 wells producing an average of 30 bbls /day and with steaming increasing it 5 fold we could be looking at 1200bbls/day. 50% belonging to BLR at say $40 dollars per barrel:
600@40 =$24000
365@24000= $8,760,000
Obviously costs would have to deducted for pipelines etc.but $6000000/yr. from Arce looks good in comparison to BLR,s value.
I believe they will drill a lot more wells on Arce if steaming is doing the trick and I have read that when the field is fully commercial they anticipate 50% of 3200bbls/day (2 years time).
Would add to all this that if they hit gas on Monterey (North Sea) in the next couple of months I believe that is the company maker.
Good luck.

I agree your assessment, Rutherford. It's all (hopefully) just a question of being patient.

Soul: been a lot of patience required with BLR but now should pay dividends!

Rutherford, I have to laugh at your unfortunate choice of words as I think that dividends are the last thing that BLR is going to be paying in the near term, HOWEVER some serious capital growth is on the cards!

My apologies; I have university a degree in Pedantics :o)

I wondered who would comment on that!

I have university a degree in Pedantics

and maybe a touch of dyslexia! LOL

Don't want to sound negative however I think 5 fold for steam production is a little high. There have been previous cases where steam has been used and no increased output has been seen. In others it only adds a small 1.5 multiplier to output. Here though I suppose as Kappa foot the bill any gain is an advantage to the BLR sp. Very interesting times ahead and plenty of equity growth knocking at the door!

Explosive, I dont believe kappa foot the bill. It is all split equally with BLR.
I think regarding the steaming it would depend on whether they HUFF and PUFF or SAGD. I dont think BLR has clarified that but I may be wrong there. I think if it is SAGD there is no reason to doubt the figures they are quoting. DYOR

SOUL
YES WAIT, I WILL. I WILL KEEP WATCHING THE MANAGEMENT THOUGH. SO FAR IT IS HEADING THE RIGHT DIRECTION. I REMEMBER CASPIAN HOLDINGS (CSH), I WAIT, AND WAIT, AND IT DID NOT LET ME DOWN, IT WENT FROM 8P, ZOOM TO 30. BE LIKE A HUNTING CAT. BEST LUCK.

Morning all. In case you haven't seen, good news from RIFT - could do a VOG, but PDYOR.

Hi Rutherford, just checked the Arce 2/3/4 fields and oil is heavy and sticky at 13.5api which is good for steaming. Any news with regard to Arce 4 drilling yet? Once drilled Arce 4 will be flooded left and then test pumped from 2 & 3. I expect if a sucess theres also a possibility that an addition well could be drilled or even steam flooding alternated between wells to ensure a good api and flow rates. The only other question here is the cost of production, do you have estimates or figures? We know theres a pipeline already running though the Arce site that can be used to take oil to refinery so transport covered. Have yet to see any prices on the cost of steaming....

None of this is doing the share price much good.

It is at a two year low and looks like going lower.