From the latest company's drilling update....17 Feb

http://moneyam.uk-wire.com/cgi-bin/articles/200402170700084897V.html

Can anyone with mining knowledge explain these terms....

What does sidetracking mean? Approx how ong will that take?
Approx. how long will it take to correct a deviated section?
Is 'crude oil in shale samples' a good indication that there is oil?
Is 'Gas-bearing porous sands being logged' a good indication that there is gas?
Basically what does logging involve ?

Any views re AEX potential??

Regards
Stephen

dh - can you provide us with a brief resume?

Its basically an introduction to AEX going through their operations round the world and prospects. Not that much different to what is in my note on TMF.

Darron

Hi Darron,

I take it that that post on TMF is yours then? Cracking post and thanks for taking the time to outline the case.

EE's post on the risks is also excellent and well worth a read for those who may have missed it.

Cheers

Gav

No problem Gav and Thanks.

Certainly everyone should be aware of the risks that ee has outlined much better than I have.

Darron

The increased activity of the last couple of days is now clarified with the announcement by Darron's Company.

As mentioned several times on TMF this is not for widows or orphans but the risk reward ratio at the current time (the current market cap is only around 20 million) to what may happen should North Korea start producing oil is extremely attractive.

;o)

gav - just seen you last and Darron has been kind enough to post here too.

Kids and School Holidays..........

How can I trade like this in bits and bobs....

Doh!!

Hi All,

DPRK is at best a couple of years from producing oil, although significant finds by Aminex next year or the year after, would certainly 'make' this company.

I would really like Aminex to re-open Nyuni-1 and use some decent equipment down there to get the oil flowing and measured, then we could be looking at support of 30p a share or more, while we wait for DPRK results.

Meanwhile Oil is only going one way ....

Cheers,
PM

MARKET WATCH
Crude futures prices hit new highs

Sam Fletcher
Senior Writer

HOUSTON, Aug. 25 -- Crude futures prices escalated to record highs Aug. 24 in the forefront of an approaching storm and worries about tight gasoline supplies.

Tropical Storm Katrina is expected to strike the coast of southeast Florida as a minimal Class 1 hurricane early on Aug. 26. The storm will likely miss most offshore oil and natural gas operations in the Gulf of Mexico and therefore is expected to do little damage in those waters. Still, the memory of earlier storms that have curtailed gulf production was enough to worry traders.

Markets also reacted to the Aug. 24 report by the Energy Information Administration that US gasoline inventories plunged by 3.2 million bbl to 194.9 million bbl, at the bottom of its average range during the week ended Aug. 19 (OGJ Online, Aug. 24, 2005). "Demand growth continues to be robust for gasoline," said analyst Paul Horsnell of Barclays Capital Inc. in London.

"There are two simultaneous, but different, processes of price formation at work in the oil market at the moment," Horsnell explained. "First, there is the gradual feeling out of the nature of the interaction between oil prices and the macroeconomy, which is an attempt by the price mechanism to rebuild a sufficient degree of slack along the supply chain." The other process, he said, is "more short term and dynamic and concerns the impact on prices of there being insufficient slack along the supply chain at the moment.

"In other words, the first process seeks to find a price that could offer a sustainable balance between supply and demand, while the second process prices in the additional degree of risk produced by a system with limited flexibility," Horsnell said. "The jury is still out as to whether higher prices are sustainable in terms of their macroeconomic impact, while there are some immediate issues, (eg, hurricanes, refinery outages, Iran, Iraq, etc) that could cause a further short-term move up."

Energy prices
The October contract for benchmark US sweet, light crudes escalated by $1.61 to a record-high closing of $67.32/bbl on the New York Mercantile Exchange, before bumping up to an all-time high of $68/bbl for a front-month contract in overnight trading. The November crude contract gained $1.53 to $68.01/bbl. On the US spot market, West Texas Intermediate advanced by $1.71 to $67.08/bbl. Gasoline for September delivery jumped by 6.78 to $1.93/gal on NYMEX. Heating oil for the same month increased by 4.6 to $1.87/gal.

The September natural gas contract soared by 30.1 to $9.98/MMbtu on NYMEX, "on a firm [spot] cash market, concerns about Tropical Storm Katrina entering the Gulf of Mexico, and a soaring crude oil market," said analysts at Enerfax Daily. EIA reported Aug. 25 a 60 bcf injection of natural gas into US underground storage during the week ended Aug. 19. That compared with injections of 52 bcf the previous week and 84 bcf during the same period a year ago. US gas storage now stands at more than 2.5 tcf, down by 27 bcf from a year ago but up by 136 bcf on a 5-year average.

In London, the October contract for North Sea Brent crude increased by $1.36 to $66.01/bbl on the International Petroleum Exchange. The September contract for gas oil gained $2.50 to $590.25/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes rose by 75 to $58.90/bbl on Aug. 24.

Agree with all re the risk warning here, it's not to be taken lightly. But I would hope all here realise that.

SWW, perhaps you need another pc, or someone to look after the kids during the holiday's!

this is flying along now! The potential on this is massive happy to stay in long term as its a multibagger for sure! Short term rise is always nice as well I wonder how much of the gain it will hold onto? Any pullbacks is just a buying opportunity for me

yoo. is going to be avery good buy at this price.paul.

Tanker Hi,

AEX still flying .... MM's doing those small buys again to push the price up.

YOO, I agree, interims out next week, will show the figures much better than last years results, and maybe they will declare they are running cash-flow positive now :)

Cheers,
PM

todays IC page 57 BUY

MP Hi,

I guess that explains todays buying, and probably some from the last few days, by those who work for or print IC ....

Cheers,
PM

Dear All,
Earlier today I did a search on threads contributed by PM1, Tanker & Goldfinger. I then checked the ones with up to around 100 posts and had a recent posting (by anyone). This one came up and it seemed worth a go, later on I was browsing IC lunchtime and by coincidence it was there today as posted above. I've just bought 1k @ 15.5p as it was rated a buy and is below the year high of 17. I know I'll not gain as much as the rest of you being in earlier & lower, but I just wanted to say thanks and good luck everybody.

I've seen "multibagger" mentioned and was wondering what your REALISTIC/REASONABLE short, med and long term targets are.

Cheers.

Welcome aboard.

Personally I can see 18p short term, as in next week and medium term 30p, as in by year end.

As for long term there are many variables and the real progress is to made in 2006, so your guess is as good as anyones.

Sidetrack drilling
A remedial operation which results in the creation of a new section of well bore for the purpose of detouring around "junk", redrilling a lost hole or straightening key seats and crooked holes. Also called sidetracking. Thats the textbook version from what you've said they are sidetracking to correct a deviated section, regarding time frame it depends on how much has to be corrected and at what depth!!
'Gas-bearing porous sands being logged', this is the analysis of gas density within sands, its an indication of gas however the logging exercise will calculate how much gas is present. e.g. x (gas amount) per square metre etc. Can anyone elaborate any furhter??

MadPAd - could you let us know what it says, thank's.

IC view''the shares haven't been buoyed by the Korean ventures-but that's wrong.Buy''.Suggest you get hold of a copy and read the article as well.

Thank's for that Mad Pad. Should be plenty of buying on Tuesday then!

I'm in for the long term so buys or sells on Tuesday wont concern me too much,in any event I'm allready up 41 percent,infact Iwould expect a bit of profit taking after such a sharp rise.