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

IMO the sp will rise steadily over the coming months. I'm glad I topped up at 1.12p. The only way is up now!

Monterey gas well spuds


Friday, September 22, 2006

Drilling has kicked off an exploration well on the UK Southern Gas Basin Monterey prospect.

The Wintershall-operated 49/8c-4 well spudded this week with Noble Drillings Noble Kolskaya rig operating in a water depth of 35 m (114 m) and the drilling programme is expected to take up to 53 days to complete drilling to a total depth of 4,020 m (16,465 ft) and a further 20 days if tested.

Drilling partner Black Rock Oil and Gas revealed Monterey is estimated to contain up to 165 Bcf of gas and the well is designed to appraise the commerciality of the deposit.

Monterey was originally discovered in 1989 with the 49/8-2 well which intersected a 91 m (300 ft) Carboniferous gas column and flowed at 5 MMcf/d on test, despite formation damage. If Monterey it is of a commercially viable size, the reserves could be tapped via either the Windermere gas platform 15 km (9 miles) to east, or via the Schooner and Ketch fields, lying to the south.

Gemini Oil and Gas is part-funding the costs of the well up to $4.27 m (2.4 m) in exchange for a share of Black Rocks future revenue from the field.

Black Rock has 15% interest in UK blocks 49/8c and 49/9d, which are operated by Wintershall.

Friday, September 22, 2006

http://www.offshore247.com/news/article.asp?Id=6008

Well it looks like the shorters had their way on Friday, not a single buy recorded but 1.6M sold short on the news, luckily the guy went home at ten to four having wiped out all my profit. Today he is back buying after an initial short and I guess we will see buying back up to 1.8 or 2M today' hopefully restoring the SP.

What can happen if it gets right in the north sea? Oh yes can be very interesting. i will behave like a hunting cat. focus on the target, admire it, calm every cell in my system, keep the spot on, wait, wait, wait, till in one single leap catch my target. Not easy though. the joy of a hunting cat. patience can pay big. best luck.

Well after buys of almost 3M since 08:11 this morning the price has shot up from 1.14 to err, umm 1.4!!! with only 8 sell transactions the price is obviously being held down artificially.

Yes, grim isn't it !....

Can't help thinking that it's a good time to top up but...I've done that on 4 ocassions and every time it's fallen further! so I'm not going to buy any more and just hope the sp rises over the next couple of months!

You must be one of my ilk then, whose minor purchase seems to affect markets dramatically. Here's a deal, you buy some, then after its dropped like a stone I'll but some and it will shoot back up. Mean while you can short it! knowing that my buy wil push it throughthe floor :-)

Okay, then please stay away from FEP tomorrow. :o)

SOUL T

had a look at FEP good show !! : )

Trouble is that as far as I can see from Ivan's statement, Gemini is merely acting as a bank and I simply dont believe it. Unless Gemini have a further stake in BLR proceeds from Monterey 49/8c-4 or some other part of BLR revenue, why would they put up U$4.274M? Unless maybe the rate of interest is criminally high. Perhaps this is why there are still no full details of the deal.
Come on Ivan if you read this please tell us the truth, we wont tell anyone!

Perhaps Gemini and BLR really believe they are going to produce commerical hydrocarbons.

rpaco: Gemini fund other exploration wells for oil and gas explorers on the AIM and with similar agreements. I doubt you would have preferred another share issue so I think it was a good piece of business by Ivan. As soul trader said they must be pretty confident of finding gas!

may be of interest.

North Sea producers forced to give gas away

04 October 2006
Britain's big energy suppliers came under renewed pressure to cut bills yesterday after wholesale gas prices fell below zero, forcing North Sea producers to pay customers to take supplies off their hands.

In a highly unusual development, spot prices fell to minus 5p a therm due to a combination of weak demand and excess supply in the system, catching out a number of big producers, including BG and Shell.

This is the first time in nine years that wholesale prices have fallen below zero. But domestic gas users failed to benefit because all the free gas was snapped up by power stations and large industrial consumers. This caused prices to rebound later in the day.

The plunge in UK gas prices was caused partly by the Norwegians pumping huge amounts of gas into the UK to test the newly-opened Langeled pipeline from the Orman Lange field in the North Sea. This coincided with unusually low demand because of the warm weather.

When gas producers are pumping more gas into the system than there is demand for, they can either pay a charge to National Grid, which is responsible for balancing the system, or pay traders to take the gas off their hands. Most producers with "long positions" are thought to have done the latter because it was cheaper than paying the balancing charge.

A Centrica spokesman said that household gas consumers were unable to benefit from the price collapse because virtually all supplies for the domestic market had been bought months in advance at much higher prices. The price of wholesale gas for delivery in January was still being quoted at 74 pence a therm yesterday. However, Centrica, and a number of other operators of gas-fired power stations, did take advantage of the price fall to buy on the spot market. Large industrial customers on flexible contracts will also have benefited.

John Hemming, the Liberal Democrat MP for Birmingham Yardley who has fought a long campaign over alleged manipulation of the gas market, said: "Consumers should get a cut in their gas bills from the temporary negative prices as the shippers use their higher prices to justify putting prices up. I am not holding my breath on this though."

Wholesale gas prices have fallen by about a quarter since June because of expectations that supply will be plentiful this winter thanks to delivery projects, such as the Langeled pipe-line, and adequate stocks.

Britain's big energy suppliers came under renewed pressure to cut bills yesterday after wholesale gas prices fell below zero, forcing North Sea producers to pay customers to take supplies off their hands.

In a highly unusual development, spot prices fell to minus 5p a therm due to a combination of weak demand and excess supply in the system, catching out a number of big producers, including BG and Shell.

This is the first time in nine years that wholesale prices have fallen below zero. But domestic gas users failed to benefit because all the free gas was snapped up by power stations and large industrial consumers. This caused prices to rebound later in the day.

The plunge in UK gas prices was caused partly by the Norwegians pumping huge amounts of gas into the UK to test the newly-opened Langeled pipeline from the Orman Lange field in the North Sea. This coincided with unusually low demand because of the warm weather.

When gas producers are pumping more gas into the system than there is demand for, they can either pay a charge to National Grid, which is responsible for balancing the system, or pay traders to take the gas off their hands. Most producers with "long positions" are thought to have done the latter because it was cheaper than paying the balancing charge.
A Centrica spokesman said that household gas consumers were unable to benefit from the price collapse because virtually all supplies for the domestic market had been bought months in advance at much higher prices. The price of wholesale gas for delivery in January was still being quoted at 74 pence a therm yesterday. However, Centrica, and a number of other operators of gas-fired power stations, did take advantage of the price fall to buy on the spot market. Large industrial customers on flexible contracts will also have benefited.

John Hemming, the Liberal Democrat MP for Birmingham Yardley who has fought a long campaign over alleged manipulation of the gas market, said: "Consumers should get a cut in their gas bills from the temporary negative prices as the shippers use their higher prices to justify putting prices up. I am not holding my breath on this though."

Wholesale gas prices have fallen by about a quarter since June because of expectations that supply will be plentiful this winter thanks to delivery projects, such as the Langeled pipe-line, and adequate stocks.

smiler
thanks for the post. no bad, at least if it comes to the point where our gas bills are seriously reduced, we can recoup some of our investments losses. on the other hand we may find some undervalued gas businesses to buy waiting for the gas price to recover again. Mad world of ups and downs. best luck

And to you georg, are you still holding FAO ??

smiler
yes, and i will not sell any of them. after the fund, there will be consolidation in my view, oil price is falling now, so this is the best time to do all the house cleaning before next summer. I believe things will happen very fast here, i keep my eyes wide opened.

Thanks for your thoughts :)

any news on the acre 5 appraisal?

No RNS's. Can't be bothered to check the company website as it's too soon into October for me to start panicking, and given that oilers' drilling schedules always, always, always slip, I'd rather just wake up one morning and be surprised.

steaming to start soon ?? can not be far off !!