No oil. 2 Shabeel wells will be Plugged and Abandoned.

[GaraadMon]

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2012) - Horn Petroleum Corporation ("Horn" or the "Company") (TSX VENTURE:HRN) is pleased to provide an update on the drilling program ongoing in Puntland (Somalia).

 

The Shabeel North-1 well has reached a total depth of 3945 meters and has encountered metamorphic basement at a depth of 3919 meters. The well penetrated 149 meters of interbedded sands and shales of the Triassic Adigrat Formation with no oil or gas shows and only minor porosity exhibited on electric logs. Accordingly, the well is being plugged. As noted in a previous Puntland drilling update, the Upper Cretaceous Jesomma sands did exhibit porosity and hydrocarbon shows but produced only fresh water on a drill stem test. These sands are similar to the Jesomma sands encountered in the previously drilled Shabeel well in respect of log response and oil and gas shows. It has therefore been determined that additional testing of these zones in the previously drilled Shabeel well is also not warranted.

 

Based on the encouragement provided by the Shabeel wells, the Company and its partners, Range Resources and Red Emperor, plan to enter the next exploration period in both the Nugaal and Dharoor Valley Production Sharing Contracts ("PSC's) which carry a commitment to drill one well in each block within an additional 3 year term. The current operational plan would be to contract a seismic crew to acquire additional data in the Dharoor Valley block and to hold discussions with the Puntland Government to gain access regarding drill ready prospects in the Nugaal Valley block. The focus of the Dharoor seismic program will to delineate new structural prospects for the upcoming drilling campaign.

 

Keith Hill, Chairman of Horn, commented, "While we were disappointed that we were not able to flow oil from the first two exploration wells in our Puntland (Somalia) drilling campaign, we remain highly encouraged that all of the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks. We look forward to working with the Puntland government to move our exploration project to the next phase which will likely require us to focus on prospects in different areas of the basins. One should keep in perspective that it often takes a number of wells to find commercial hydrocarbons and we plan to continue our aggressive program to unlock the potential of this highly prospective region."

 

Horn holds a 60% working interest in the Dharoor and Nugaal Valley blocks and is the operator. The other partners in the blocks are Range Resources (20%) and Red Emperor (20%). Africa Oil Corporation holds an approximate 45% equity interest in Horn.

 

Source:

HRN Petroleum

I'm probably set to lose boatloads of money when the TSX opens, no biggie :cool: Then again, the money I've lost is measly in comparison to what news of oil could've done for the region and Somalia. It's not over though, I think they'll re-survey the the basin with 3D seismic testing (which they should've done from the beginning). Also, drilling in the Nugaal valley will likely commence soon and it has far more potential.

[Miyir]

See as learning. most money was made the first six months of 2012. I am guessing you have invested through broker? Simple rule when investing speculative trades do lot of research if its outside of your field or experience second always buy low and sell high or sell high and buy low (lots patience).

 

it was fun watching the stock going up and down, experienced traders made lot of cash. I am waiting next ride, use the experience You gained the first loses and set up your own online account to trade (most banks will set up for small fee) You will make back more than you lost in a short time.

 

Disclaimer: Speculative trade is not suitable for everyone.

[GaraadMon]

Miyir;861210 wrote:

See as learning. most money was made the first six months of 2012. I am guessing you have invested through broker? Simple rule when investing speculative trades do lot of research if its outside of your field or experience second always buy low and sell high or sell high and buy low (lots patience).

 

it was fun watching the stock going up and down, experienced traders made lot of cash. I am waiting next ride, use the experience You gained the first loses and set up your own online account to trade (most banks will set up for small fee) You will make back more than you lost in a short time.

 

Disclaimer: Speculative trade is not suitable for everyone.

Thanks for the advice. Although I invested after the initial 12-20 net pay was discovered at the first well, it didn't seem speculative at the time as they had apparently hit oil, it was just a matter of getting it to flow. The CEOs of all three companies were talking about 70% chances of recoverable oil, and a potential 100-150 mbbl payout. Then it all suddenly turns to water.

[Che -Guevara]

Good effort

[Somalia]

It's disappointing but they found oil shows in both cases so no one can lose hope. The rig will be moved to Nugaal this coming month and offshore exploration is starting, we will bounce back in no time.

[Miyir]

Blackflash;861219 wrote:

Thanks for the advice. Although I invested after the initial 12-20 net pay was discovered at the first well, it didn't seem speculative at the time as they had apparently hit oil, it was just a matter of getting it to flow. The CEOs of all three companies were talking about 70% chances of recoverable oil, and a potential 100-150 mbbl payout. Then it all suddenly turns to water.

I am in for the long run. I think they will hit BIG.

[GaraadMon]

Miyir;861240 wrote:

I am in for the long run. I think they will hit BIG.

I'm under a similar impression. I just hope we aren't given the same gong show later on in the drilling campaign.

[Mooge]

the first two didn't produce anything. i read it is standard in oil exploration that every 10 wells, 1 is found to have oil. that is 10% rate. so they have many wells to go. go guys go. get this damn thing going.

 

20 wells in dharoor

20 wells in nugaal.

 

if 40 wells dont' produce anythign, i will give up hope. so far we did only 2.

[Miyir]

The difference between us is experience and I am going to make money either way.

 

Speculative trade means any trade until proven. the big solid oil business you see today started that way. its hit and miss.

[Taleexi]

I wanted oil to be discovered but there are many more places for further exploration.

[General Duke]

Based on the encouragement provided by the Shabeel wells, the Company and its partners, Range Resources and Red Emperor, plan to enter the next exploration period in both the Nugaal and Dharoor Valley Production Sharing Contracts ("PSC's) which carry a commitment to drill one well in each block within an additional 3 year term. The current operational plan would be to contract a seismic crew to acquire additional data in the Dharoor Valley block and to hold discussions with the Puntland Government to gain access regarding drill ready prospects in the Nugaal Valley block. The focus of the Dharoor seismic program will to delineate new structural prospects for the upcoming drilling campaign.

This is just the start. Insha Allah khair..

[Timur]

Two wells empty? I think you guys read that wrong. Only the second well came up empty, they never tested the first well. They will now test the first well, Shabeel-1, and move the drill to Nugaal as they finalize the offshore agreements.

[Mooge]

^^ doesn't it say both are not worth it? could be wrong

 

It has therefore been determined that additional testing of these zones in the previously drilled Shabeel well is also not warranted.

every 10 wells, 1 become a success once you know there is active working petrolium system. they know there is active petrolium system in both nugal and dharoor so that is the good news.

[Abdi2005]

I pray to Alla they never find Oil in somalia, any one who knows the trobles that folows with having oil would not be excited about this,

having oil when you are weakest country in the world is a dumb idea, one warship with 10 aircraft is enough to subdue us and take our oil with the help of a puppet goverment.

 

Ilahey ayan kabarya in aan weligeed lagahelin shidaal dhul soomaaliyeed, inkaar kadaran dunida masoomarin.

[Timur]

You are correct Mooge, both wells of the the Dharoor valley basin are being sealed off. Now it is time to explore the Nugaal valley basin, which is far more prospective than the wells of Bari. Let's see how that plays out, I am very excited for it.