Pilot Energy adds multi-billion barrel potential
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Pilot Energy (ASX:PGY) has added upward of 3.5 billion barrels of oil to the menu as it attempts to find a farm-in partner for a key WA offshore permit.
The ASX-listed oil and gas player told its shareholders yesterday that it had received numbers back from independent assessors Gaffney, Cline & Associates about the oil potential of its deepwater WA-507-P permit.
Running the rule over three key leads in the permit, GCA came back with a high case of just over 3.5Bbbls, a low case of 604MMbbls, and a best case of just under 1.6Bbbls of oil.
It put the geologic chance of success at between 16-18%.
Resource estimate from Gaffney, Cline, & Associates covering WA-507-P
Of the three leads, the Dalia updip proved to be the most prospective with a best case of 764MMbbls.
While the numbers are very early stage for PGY, they do represent a starting point as it attempts to lure a larger feed-in partner to the party.
‘GCA’s findings clearly confirm the potential for the very large and previously quantified exploration leads within WA-507-P to be oil-bearing,’ managing director Iain Smith said.
‘We look forward to progressing our geological understanding of the permit in order to further de-risk the exploration leads, as we work towards attracting a suitable industry partner to fund the future exploration program.’
Historically the north west shelf has been more gas prone than oil-bearing, but the GCA estimate gives PGY and potential farm-in partners food for thought.
GCA has estimated the permit to have a 30% probability of oil against a 70% probability for gas meaning gas is still the most likely play, but the presence of oil would be intriguing to the like of Eni and Statoil who are exploring in the area.
The news effectively doubled the share price of the microcap, up 100% to 0.2c approaching late trade.
About Pilot Energy (ASX:PGY)
WA-507-P is one of three plays Pilot Energy has on its plate since it disputed a legal dispute in Alaska brought about from operations from its predecessor, Rampart Energy.
It has since had a name change and changed focus.
In addition to the deepwater block, it also has skin in the shallow water game, looking at WA-503-P.
Finally, it has a 30% stake in Perth Basin assets held in joint venture with experienced Perth Basin operator Empire Oil & Gas.
Its Perth Basin play is to prove up a gas resource it can sell into a domestic market which could lose a fair chunk of supply in 2020 when domestic gas reservation requirements from the North West Shelf LNG suppliers lapses.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
