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Fox-Davies Capital Thursday Energy and Mining News Wrap

11th Dec 2008, 10:20 am Fox-Davies Capital Thursday Energy and Mining News Wrap

Heritage Oil  provided an operational update on their Kingfisher-3 well in Block 3A Uganda following the completion of appraisal drilling. Significantly the well encountered oil in all three of the Kingfisher reservoir intervals with a net pay of up to 40m and indications are that these intervals are in communication with the three intervals tested in the Kingfisher-1A and 2 wells.


The drilling of Kingfisher 3 marks the end of the appraisal drilling on the field as drilling moves into development phase. The well will now be suspended as a future producer in line with the Kingfisher-1A and Kingfisher-2 wells. Heritage holds a 50% working interest with the remainder held by Tullow Oil. According to the company the Kingfisher field is now the largest light oil discovery in East Africa.
 
Comment: This news yet again reinforces the prospectivity of the block and could lead to a possible reserves upgrade following the planned sidetrack which is expected to be completed in early Q1 2009.
 
Tullow Oil reported that it had obtained successful drilling results from the Hyedua-2 appraisal well offshore Ghana as well as the Kingfisher-3 well, Uganda, in which it is partnered with Heritage Oil. The Hyedua-2 well is located in the Deepwater Tano block and is the second appraisal well on the Jubilee field. According to the company initial wireline logs indicate an extension of the Jubilee Field It is expected that the a drill stem test will be undertaken to determine production rates and to further analyze oil samples and is expected to take four weeks.

Gippsland announced that the Company has completed a scoping study ('study') in relation  to an extensive alluvial tin  deposit contained within the 20km2 Exploitation Licences covering the 44.5 million tonne Abu Dabbab tantalum-tin-feldspar project in Egypt. Based on exploration data gathered during the early 1970’s and using  a high tin cut off grade of 1.2kg/m3, the Company has estimated an  Inferred Resource of 438,000m3 of alluvium containing in excess of 760 tonnes of recoverable tin metal within the alluvial  tin  deposits explored.  
 
Comment: Excellent news from Gippsland. This material only has to be screened and then feed into the gravity circuit at the proposed Abbu Dabbab processing plant. It represents a cheap source of tin metal for the company

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