I guarantee 99% of UK O&G traders/investors have never heard of Balochistan. Indeed having just read some of the BB loons I’m changing that to 100%. That is about to change. Balochistāns’ capital is Quetta it is by land mass the largest province situated and the westernmost province of Pakistan, bordered by Iran to the west, Afghanistan on the northwest, Khyber Pakhtunkhwa and the Punjab provinces northeast and east, by Sindh province on the southeast and by the Arabian Sea on the south.
It’s the last great onshore oil, gas and mineral resource play left on the planet. That is a fact. The province POTENTIALLY contains huge Oil, Gas and Mineral Resources. Estimates vary from 6 billion barrels of oil to 75 billion with gas in the hundreds of TCF. It’s the main reason why the Chinese have spent $40 billion constructing the Chinese Pakistan Economic Corridor known as the CPEC, as well as financing and building the port of Gwadar taking a 99 year lease to operate it. Think about that…….. Or better still google the ever shifting sands of Geo Political Alliances currently slugging it out on the world stage, seeking control of the earths resources. Make no mistake Balochistan is now coming into play and that play is huge.
Now lets get down to the UK Privateer Coro Energy pantomime: “O yes they are. O no they’re not in negotiations”, currently doing the rounds on the BBs, Twitter, and Financial Forums. Are we to believe anonymous posters or do we believe sourced articles circulating in Pakistan/Balochistan as well as UK’s Upstream Online?
Occam’s Razor: If it walks like a duck, quacks like a duck, looks like a duck, it’s a duck. There is no doubt that Coro Energy are in negotiations re O&G licences in Balochistan. At what point those negotiations are at isn’t known. What is known is that Coro must have physically been in Balochistan/Pakistan and held high level ministerial meetings as well as meetings with virtually all the main Pakistani O&G companies, if it hadn’t have happened it wouldn’t be reported in over 10 different Pakistan Newspapers/Journals… Just because it’s written in Urdu doesn’t make it any less valid. It’s happening.
The article in Upstream writes that Coro are seeking Joint Ventures one of them is purported to be a 100Million barrel of oil with 850Bcf of gas ‘stranded asset’. If that is even half correct the financial implications of such a tie up would catapult the Coro SP into multiples of multiples. We’re talking literally billions of dollars in production. The kicker is, subject to Due Diligence, a stranded asset has already been discovered. There’s no uncertainty: the hydrocarbons have already been found
I’m thinking out loud here. Going back to the GKP days. Gulf Keystone managed to manoeuvre themselves into Iraq/Kurdistan a region beset by a full scale ‘Shock and Awe’ USA lead war. One of the main movers in GKP was Ewen Ainsworth. We all know the story and the meteoric rise in the SP of GKP. Ainsworth is a board member at Coro Energy. Balochistan doesn’t have the instability of full scale war, what it does have is internal disputes between State and Federal governments on the share of Mineral, Oil & Gas resources, with a very low level local insurgency that’s on its last legs. With the appointment of a new Balochistan Chief Minister who has made it clear that it’s time to develop the provinces mineral/hydrocarbon wealth, Ainsworth is probably worth his weight in gold.
There’s literally 1,000s of oil seeps all over the Baluchistan region. So much so the locals often come across them. This video is well worth a watch.
Current Balochistan Licences
There’s nothing on the AIM, and hasn’t been for several years, that has caught investors imagination, mainly bread and butter plays. Balochistan is totally different it is huge. Whatever the true state of play of these negotiations is, any deal or JV signed has the potential to be earth shattering especially if the oil is already there…
The driving force behind Coro is James Parsons and it is JP who has travelled, literally 100s of 1,000s of miles every year seeking deals trying to bring value back for share-holders. To go where no one else or any company would go is impressive. It takes guts. No CEO should get an easy ride but to search the globe year after year all the while being hounded by disgruntled BB howler monkies can’t be pleasant. The tenacity of JP should be applauded. This, if it comes to pass, is a company maker.
Coro may be on the verge of entering the last great Onshore Oil, Gas & Mineral Resource play on the planet. 10% 25% 30% of any deal OR JV, if struck, would be transformational. To put it into context 1TCF of gas is 166Million BOE. At a $76 a barrel that’s over $10 Billion dollars gross. 25% of that is what? The market cap of Coro is circa $8M.
This SP could motor upwards over the next few months especially if there’s a JV with a stranded asset. Currently trading at a third of a British penny. Short term 3p, 5p 10p isn’t out of the question. If there’s a deal on a multi billion dollar stranded oil/gas discovery we could see 50p on production. Remember GKP? Of course I’m now a shareholder.
Any thing under a penny is an absolute steal!!!
Viva
Dan