Lansdowne Oil & Gas. The Next Big One!

“Lansdowne Oil & Gas are an independent oil and gas exploration company listed on the AIM market of the London Stock Exchange since April 21st, 2006. Lansdowne has its operating headquarters based in Dublin, Ireland with its registered office in London, England.”

So says the company blurb. Well says “I” Lansdowne Oil & Gas could very well turn out to be the next Nautical Petroleum! Some of you may recall that we called this stock quite some time ago on the old WordPress blog when they first listed. SVS Securities were selling them like hot-cakes on a cold day. I did purchase a chunk then averaged down when they fell towards 20p. It was always a question of holding onto them as their Barryroe interest progressed. It was hard to hold especially when profits began to hit 80%/90%. So being the prudent methodical type I derisked sub ten bob (50p) then derisked some more, hindsight is a wonderful gift.

I always try to be pre-emptive when it comes to tracking Institutional investments, better to get out before them than after. Alas todays’ RNS news release only goes to show how well placed Institutions are when it comes to nudge, nudge, wink, wink, information.

With approx’ 140 million shares in issue Lansdowne recently completed an Institutional placing at 55p raising some £10 million pounds to further progress Barryroe. Now if you take a look at the share split there’s roughly 73% of the company not in public hands that means that three-quarters of the investment is Institutional. And for good reason.

Lansdowne are focused on oil and gas exploration and appraisal opportunities in the North Celtic Sea Basin which is as I’m sure most know, offshore southern Ireland. Lansdowne, as operator, holds rights, through its wholly owned subsidiaries, to five Standard Exploration Licences with one Licensing Option in the proven oil and gas prone shallow waters of the North Celtic BasinLicence 4/07 Midleton/East Kinsale (gas  prospects)....Licence 5/07 Rosscarbery Galley Head & Carrigaline (gas  discoveries with potential for 112 BCF  GIIP/ 86 BCF recoverable;  the  Rosscarbery Prospect – 92 BCF GIIP / 71 BCF; and five other prospects with  potential for 368 BCF GIIP / 277 BCF recoverable)….Licence 5/08 Amergin (has potential for 739 mmbbls STOIIP with 231 mmbbls recoverable it is a proven oil reservoir)….Licence 2/07 Helvick (This well was tested and flowed at a cumulative rate of circa. 10,000 BOPD from four zones).Licence  1/11 Barryroe (Lansdowne  recently participated in the successful appraisal well 48/24-10z which tested  43 degree API oil at 3514 bopd)

All of the above licences to varying degrees represent a terrific opportunity and are stand alone oil/gas plays. Today Providence updated the markets further, regarding oil in place figures on Barryroes’ Middle Wealden/Basal Wealden reservoir zones which pre today sat at  1,043 MMBO (P50) and 1,612 MMBO (P10). Providence has now completed an evaluation of the in place volumetric resource for two additional logged hydrocarbon bearing intervals at Barryroe. This assessment, which was based on previous well data, together with 2D and 3D seismic data, estimates an additional total P50 oil in place resource of 778 MMBO and P10 resource of 1,165 MMBO. These numbers are absolutely mouth-watering and explains why Institutions held & have been slowly increasing their positions through-out 2011 & up to the present day. Lansdowne own 20% of the above. That’s a 20% p50 resource of 1.821 billion barrels of oil. Which comes to about 360 million barrels of oil, give or take the odd million. Now let’s cut the figure in half to 180 million barrels of oil and assign £2 per barrel to the company which comes in at £360 million pounds giving a valuation of approx’ £2.57p per share. And that is on Barryroe alone. Is it any wonder why Institutions are still gnawing away at stock when there’s so much at stake. Remember that it isn’t a case of finding the oil it’s already been found and it’s already flowed. It is only a matter of time before this stock goes into orbit!

Oil is already in place in vast quantities, the only remaining question is just how big is Barryroe? The whole of the North Celtic Basin is under-explored. Oil from Cretaceous reservoirs was previously successfully tested at flow rates of between 1,300 bopd and 1,600 bopd, in the 1970’s, from three previously drilled wells on what is now called the Barryroe Oilfield. That’s in addition to the successful Barryroe 48/24-10z appraisal well that tested 3514 bopd in March, 2012.

The penny will drop soon enough. I don’t normally give buy, sell or hold rec’s I usually tell people to watchlist and use the articles as a spring-board to research further. This is a massive oil play going on right under our noses. It is only a question of time before they treble or quadruple on further good news. 250p/300p target! Lansdowne Oil & Gas are one of the best oil plays currently listed on AIM.

Remember Nautical? These will go the same way.

 

Viva!

Dan

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