It appears that Lucas Lunid may be proving his midas touch once again. He recently partnered with Chinese National Oil (CNOOC) to drill some wells in East Africa. This week the three partners (Africa Oil V.AOI which trades ar ound $.10 now) , and Lion Energy (V.LEO which trades around $.20 NOW and CNOOC seem to be hitting some excellent gas showing with potential of oil to follow.
I think that Lundi's Africa Oil and V.LEO will be jumping the stock ques with the recent discovery with many more to follow.
Africa Oil V.AOIand Lion Energy V.LEO this week put out an update on the Bogal one well:
Drilling of the Bogal 1-1 well is continuing. The well is currently at a depth of approximately 5,000 metres and is drilling ahead to a planned total depth of approximately 5,500 metres. CNOOC is the operator of block 9. A comprehensive set of wireline logs is currently being run to assess the hydrocarbon potential of numerous Cretaceous-age sandstones encountered to date. Africa Oil holds a 20-per-cent working interest in this project.
And recently The East African newspaper report:http://www.theeastafrican.co.ke/news/Kenyas%20oil%20exploration%20now%20renews%20hopes%20of%20a%20major%20discovery%20/-/2558/883174/-/961ml3/-/index.html
The presence of significant amounts of gas is usually taken as a sign that there is oil nearby.
As of last week, CNOOC had dug up to 4,600 metres deep, having reached the depth described as the “secondary target.”
The Chinese have to cover an additional kilometre of distance before they can reach the primary target — the point at which they can declare a “discovery,” depending on what they find at that depth.
Ministry of Energy officials, while describing the development at the Bhogal Well as “very encouraging” and “positive,” disclosed that the Chinese firm indicated they had established a basis for conducting two more three-dimensional seismic studies to determine additional drillable sites.
The Bhogal Well was identified several years ago by European multinationals Amoco and Total as a target with potential for oil.
The point of departure is that the Chinese are digging deeper than anybody has attempted.
At 5,600 metres, the well is the deepest ever in Kenya.
Neighbouring Uganda — with confirmed deposits of an estimated 2 billion barrels of crude — has been hitting oil at a mere 800 metres.