Had a chance to go the AGM today and I will try and summarize what had been discussed.
Blackstone Petroleum Inc has been approved and will take affect by the end of March early April. We might end up with a new stock symbol, but the TSXV might not provide the stock symbol Marc favours, thus we might stay with GNZ, as most people know the company by this symbol anyway.
Turner Valley; is still producing the 25 B/D and the well is financially sustaining itself at this level of production, they are expecting to see an increase in production once the water table is dropping some more. The water table has dropped significantly and they are starting to see more oil production. They are expecting between 50 – 70 B/D in the next two months. The second stage for this well is a possible dual leg horizontal well with the expectation of between the 400 – 600 B/D.
Noel; They will be drilling the first hole by the end of March, early April, The well is around 700 meters deep and costs will be around the $400k mark. They figure that they will be making a profit on anything above the $2-2.5/MMBtu. Total estimated resource could be 0.5 trillion cub. Nice bonus with this is, the BCgovernment is providing a 100K per drilled well royalty credit, also all the infrastructure is in place by means of roads and pipelines since Conoco has done most of the leg work. It took management 3 years to negotiate this farm in agreement.
Pincher creek; They are thinking of selling off their share to the other companies that are involved with this partnership as currently they are owning the 10-12%. Management is of opinion that the money and energy that needs to be spend in order to get this to a production level is better spend on existing properties that are current creating cash flow and paying off debt.
Pasquia Hills; Hatch is currently still working on the pre-feasibility study and are requiring further testing on the shale itself, they are in the process of running a bigger batch of shale thru the ATP process pilot plant in Calgary in order to get more accurate results on what to expect when processing the shale. Based on these results they will be able to spec out the right equipment for the distillation job and its by-products. They had planned doing this before Christmas, but the ATP office in Calgary had a fire incident and burned down the office. They have reorganized themselves and are back focussing on the sampling. Hatch has been a wealth of information on this project since they have been assisting in all kinds of oil shale projects around the world. Since they require more testing, the report will be delayed for a few more months, expect something by June – July, this will also include a 51-101 document, so it should be a full blown report that represents a value for the deposit.
With the Blackstone Petroleum name taking effect immediately, the company will start promoting its story on a more frequent base and has currently meetings set up with the institution investors from Toronto and New York. Marc did mention that there is starting to be more interest in regards to the oil shale side of the business as well established oil companies are investing big dollars to develop these types of deposits and investors are starting to follow that trend.
I expect the price to stay at these levels for the time being, once the company is starting to see results from its conventional plays and the pre-feasibility report coming out, one might see a share appreciation. The management team is defiantly on the right track. They have positioned themselves in some interesting plays for relatively good purchases. If one has time on its side than this play could pay off in a substantial matter. Like one poster said, where can you find a play like this for $0.05/share.
That is all can read from my notes. I will add on if I can think of anything else.
IMCO
Lana2010
