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

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.

With grateful thanks to a poster on ADVFN who has indicated his approval... some background to Rutherford's post above.



Ok, folks, I have been inundated with requests for what news I had, and as I can't distinguish good e-mail addresses from the bad, its fairer to tell everyone, and you can make of it what you will. I usually don't make things so public, as it usually starts an argument as to the credibility of it, and so prefer to keep quiet. As Gismot has now posted that we will be receiving news by the end of the week, I feel I can, and should now, corroborate it.

I spoke to Peter K early this afternoon, just as he arrived back at the office from Colombia. He was a very friendly open sort of guy, although he was very careful not to divulge anything price-sensitive. It seems this spat had been building up, and the situation had been developing from before Dr.J and PK took office. (my assumption is therefore that IB may not have been so keen to front them, and as it went on, it became more difficult to stop these things from happening, and it may have been a contributory factor to IB feeling he couldn't stay as MD). However, the meeting went very well, and JC and PK went straight in from the off, taking a very tough line, and leaving Kappa in no doubt whatsoever what was expected of them, as a party to the JOA (joint operating agreement). It was easy to communicate, as the main man is actually Canadian, and his number 2 is Colombian, although speaking very good English. Kappa actually understood our concerns, and they reached a very satisfactory
agreement on the matter in hand. Both parties agreed to announce a joint statement on the resolution of this dispute, and PK was actually in the process of sending Kappa the draft of the joint statement for their approval. This will then be passed to the NOMAD for their approval, and as soon as it is approved, will appear on the website later this week. He hopes it may be Thursday, but if not approved by the NOMAD by then, could be Friday.

On the subject of Monterey, He was so bullish, you could feel his confidence coming down the phone line. It is certainly not a dead duck, and they will be talking with Wintershalls either Thursday or Friday to discuss all options and will make a decision on the way forward. Monterey is important to them, and this is by no means a big setback. A statement will also be made to the markets/website regarding Monterey as and when they feel prudent to do so, but could be very soon too. (my assumption is possibly at the weekend they may have the decisions from all parties).

(But although Monty is so important to them, it appeared to me that they see the biggest and best prospects for the 'company changing' growth to be in Colombia ..... just my opinion, based on the tone of the conversation).

Well, I hope you all get some confidence from this brief bit of news. I am extremely optimistic, although I was always confident that we would come through all our problems eventually, but now I am even more so.

Thanks for the post dilydave, furthers my own post and that of Rutherford. Anyone any thoughts on the revolving credit facility of Kappa in respect to getting the job done?