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

Smiler, there will be more opportunities with FOGL - after all, they are still a long way from actually finding any oil.

Glad to hear Carrizo is doing the biz - eagerly awaiting Monterey results.

How bad is this result in regards to the company as a hole, does anyone have an opinion?

It's grim !

BLR will be in discussion with Kappa within the next two weeks so hopefully that can be resolved.
Regarding Monterey, it is very disappointing, and the only positive is that it is not plugged and abandoned. Revaluation of the well and possible sidetrack will take months to process and then possibly go back to it.
I am holding for now as not much downside left!

Same here !... there will be good days!

bargin buyers are beginning to come back in..wouldn't mind some more myself!

Will hold for a while to see if it recovers, might give it the chop if I need the cash.

Regaining a bit of ground now:

BLR Bid: 0.8p Offer: 1.2p Change: -0.15

Strange goings on as back up to 1p. Could we see a bid from Kappa now? May be the ideal time from Kappa,s point of view. Any thoughts?

sorry to be a smart arse, but (a) perhaps you guys should ahve followed my advice of a few days ago and (b) having failed to do so then, why so keen to keep beating your head against the wall?

This stock has always been volatile. Didn't know Kappa were likely to bid. If there were to be a bid, it would at least put us all out of our misery. Considering I was convinced in March that this was a sure thing, it's amzing what this stock has put us all through.

Aha, Cynic, that's because we're all so clever and think we know better.

I refuse to trade any more this week as have had a real churn of the portfolio - again! Will come back to it with a clear head on Monday.

learn from the guys who refuse(d) to let go of SEO

soul traders: sadly no such thing as a sure thing in the exploration business, but not a lost cause on Monterey yet. Wintershall are evaluating the well and may sidetrack in the future to drill along the payzone. If there is such a thing as positive news out of all this it is the fact that the well is suspended for now and not a Plug and abandon which would have been worse.
I dont know that Kappa would bid but just a guess as they want on the LSE and maybe an easy route for them if they sort out the differences with BLR or just buy up their shares.

Friday, 1st December 2006 14:33

Black Rock Oil completes Monterey well testing; DTI approves well suspension

LONDON (AFX) - Black Rock Oil & Gas, the UK-based exploration company with interests in Colombia and offshore UK, said testing of the Monterey appraisal well 49/8c-4 in the Southern Gas Basin has been completed.

The well flowed natural gas (principally methane, ethane and propane) from several intervals. However flow rates may have been impeded by relatively low reservoir quality and reservoir damage within the well, the company said.

The well flowed at around 850,000 cubic feet/day through a 2 inch choke, less than can be expected from a horizontal development well, but in common with many other vertical appraisal wells in the Southern North Sea.

Black Rock said application has been made and approval granted by the DTI to suspend the well while the field operator prepares a series of development options Monterey.

newsdesk@afxnews.com

Agree Ruth this is far from being a lost cause..... At least we never stuck a blank!!

Bad start to the day but a strong fight back - lets hope it continues.
I personally will wait and see!

rodrod1 - 4 Dec'06 - 12:31 - 2874 of 2874


with thanks to hopeitflys on iii:

Thank you for retaining some faith in Black Rock.
In fact, over the course of Friday we saw only about 2% of our issued shares
traded.
However, the crux of your email concerned the news on the Monterey field and
also the position with Kappa.
As regards the Monterey test results, the operator unfortunately lost the
drill tip right at the last moment and had to withdraw the string which
meant that the hole had to be filled with mud for safety reasons. Having
recovered the drill tool, they went back in to test but found that the mud
had damaged the well so that it flowed at a lower than anticipated rate.
Despite this, hydrocarbons were found and Wintershall are now actually
developing a development programme and will go back to the well already
drilled to go back in to drill along the reservoir horizontally together
with another development well to tie back to a production platform.
We are currently in discussions with Kappa. Dr John Cubitt is currently in
transit and I am scheduled to fly to Colombia tomorrow to join him. The
issue here is that Kappa have consistently asked for money well in advance
of actual expenditure and have even asked for advances against parts of the
programme that have yet to be agreed with us.
Black Rock's management have taken a firm stance on this and I would hope
that you would agree that we are trying to protect your interests and those
of our other shareholders.
We appreciate your loyalty and hope to lay out our plans for the company
going forward in the near future which I am sure you will approve of.
Regards
Peter Kitson
Finance Director

It looks like Loon have also had problems with Kappa in keeping to timelines.
Taken from Loon report:

Future Activity Loon was not active in Colombia during the quarter. Loon
continued to press Kappa with respect to the tie-in of the Ventilador-1 gas well
drilled in the fall of 2005. As of the date of this report, there is no reliable timeline
that we can suggest for the commencement of production from this well.
An additional well will be drilled in the block, though it is likely that this will
not take place until the first quarter of 2007.
http://www.loon-energy.com

Found this on another board, interesting reading I thought!

""It seems to me that the penny has finaly dropped for Kappa, they have ambitions, but the next step up is quite different to what they are used to.

Being a privately owned company in Colombia, they will not be used to scrutiny of city institutions and private investors assocciated with a listing on the LSE.

Kappa have requested and recently had accepted a revolving credit facility for $30M by the IFC World Bank.

The IFC have said, "IFC is also working closely with Kappa to help the company develop best practices in corporate governance, environmental and social management systems."

Obviously they have their work cut out lol, but Kappa will be learning a new word "compliance" and would have already met certain criteria in order for the IFC to be able to commit to Kappa thus far, whilst the IFC's intervention will be on going.

Adding to the pressure for Kappa to resolve this matter with Black Rock in a correct manner is the FACT the the IFC are also considering an "equity investment", which will provide the company with financing required to grow its operations.

http://www.ifc.org/ifcext/lac.nsf/Content/SelectedProject?OpenDocument&UNID=278F3F2C8D790BEA85257178006439F9

Compliance, is something Goldman Sachs will have a hand in developing with Kappa, which am sure played apart in the coming together this week

The above are very real reasons for BLR holders to feel bullish on a resolution of this situation imo !""

Look for news at end of week or first thing next week regarding BLR and Kappa and also possibly Monterey should have a way forward by then.