There’s an outside possibilty that news could be on the way for holders of Sound Oil this week as Private Investors await the outcome of the Cataka-1 exploration well which commenced drilling on 31 December 2011. Targeting P50 gross prospective resources of 470 Bscf . (Sound Oil 20%) After digging around here for the last few days I’m more inclined to think that news will come early next week however one never knows the exact date. I think it’s looking like a tough one to call. Usually by this stage of the drill you would expect news to be leaking via a falling or ascending sp. No such luck here. On that basis alone I would urge *extreme caution* Sellers are about which is a sure sign of nerves. However that’s my personal gut feeling.
A positive result here for Sound will certainly enhance their sp which looks way under-value to me given the facts (amongst other things) that the recent private placing came in at 2p. The Casa Tiberi-1 well gas Discovery achieved a flow rate of 0.91 MMscfd on a restricted choke during clean-up operations. Not to mention the Bangkanai PSC (Sound Oil 5% carried) Rumour coming from the city that Salamander Energy, expect to commence drilling in EARLY April 2012. The development of the Kerendan gas field, however, remains on target. Salamander also recently increased their holding to 80% by purchasing the full authorised share capital of Elnusa Chariot, which held an 11% interest in the Bangkanai PSC. Salamander are the operator of the Bangkanai PSC and on completion of the transaction will hold an 80% interest in the licence. Salamander coughed up US$6 million to buy Elnusa Chariot outright. I wonder why? Maybe as Operator they know more than they are divulging.They certainly wouldn’t tell me anything!
So it’s eyes on here for Sound Oil who at long last seem to be getting their act together. Will they strike pay-dirt at Cataka1? I’m trying to find out as you read this! Of course if I do I’ll keep it to myself! (That’s a joke by the way!)