EEN - Undervalued & Oversold

Bob
RE: MXP

As you say, MXP will take time to deliver on the promise. However, I think they are making pretty good headway on the shallow wells. They are drilling a new well every 2 weeks and they are scheduled to continue at this rate for the whole of 2007. The wells are so cheap that under the new selling arrangements taking place in January, each well will turnover it's own costs in under 3months on just 250 bopd. They have already proved with the first 5 wells that the oil is there.

What stood out to me though, when looking at their licenses, was 'Kuzbak'. WH Ireland recently covered it in their Buy note.

They mention a possible 4,000 ft prospective pay. I find the prospect of 4,000 ft pay quite mind boggling:

From WH Ireland Note:
"The Kuzbak lead has been described as a possible Carbonate build-up. The nearby supergiant fields have such Carbonates and their presence was keenly sought. The potential reservoir has 1250 metres of prospective pay and covers 152 sq kms. If this is an oilfield, recoverable reserves seem likely to exceed 5 bn barrels. Tengiz is only 50 km away. It has a reservoir of the same thickness, at the same depth and its areal extent is 225 sq km. On the face of it, Kuzbak is likely to be two thirds of the size of Tengiz, which holds 9 bn barrels. This would suggest that Max is looking at a 6bn barrel prospect. There are precious few such fields in the world, but Kazakhstan is the one country where they are still being found."


Not surprising then that 5 majors have already approached MXP to supply the necessary cash and muscle.

Sorry for O/T guys, I just thought Bob would be equally impressed.
Regards
JT