Tuesday, August 13 09:44:34
The ISEQ is higher this morning at 4,267, up 29 points as markets are positive about China and anticipating good news from European data.
Goodbody Stockbrokers looks at Dragon Oil and the latest from it's Tunisian activities:
Dragon Oil's partners in the Hammamet West exploration well in the Bargou Permit offshore Tunisia provided an update on testing operations yesterday. While the main flow test, post clean-up and planned acid stimulation, has been suspended due to a blockage in the wellbore, the early indications appear to be encouraging.
During the clean-up period, flow rates averaged 413 barrels of fluid/day with surges up to a maximum of 1,700 barrels of fluid/day. Jacka Resources reported 27 - 33 degree API oil recovered at surface. Gas recovered at surface contained limited CO2 (3pc) and no H2S. Prior to planned acid stimulation and the main flow test, coiled tubing inserted into the well became stuck and blocked the wellbore. Testing operations have, as a result, been delayed and are now expected to recommence in 7 - 14 days.
While the test results to date are clearly inconclusive, they are nevertheless encouraging from the perspective of pre- drill reservoir constraints (tight formation) and potential follow-on prospects beyond Hammamet West (Dragon 55pc, Cooper Energy 30pc Jacka Resources 15pc). On the basis of a 10pc risk weighting, we attribute 2.6p to our Total risked NAV for Dragon of £7.78 according to Goodbody Stockbrokers.