Oil and gas discovery fuels excitement
Thursday Sep 22 19:32 AEST
An oil and gas discovery at the Magnolia-1 well in offshore Western Australia could be a company maker for three of the six joint venture partners, according to an analyst.
Hartleys Ltd said smaller capitalised partners Norwest Energy Nl, Bounty Oil and Gas Nl and Adelphi Energy would stand to benefit the most with a discovery generating anywhere between 200 and 600 per cent leverage to current share prices depending on the size of the discovery.
A drilling campaign at the well is due to start in October or November and 3D seismic data has suggested the well could hold between 60 and 100 million barrels of recoverable oil.
Australian Worldwide Petroleum would only make small gains from a discovery due to its large market capitalisation.
The two other partners OPIC Australia and Coogee Resources are not listed on the Australian Stock Exchange.