G. Joel Chury's  Instablog

SOURCE: The Bottom Line Report, via VantageWire - Capitalizing on a domestic market that currently imports over 90% of its petroleum, Anatolia Energy (TSX-V: AEE) has accumulated 336,509 net acres over eight onshore licenses within the Anatolia Basin in Southeast Turkey in addition to retaining its interest in the 51,450 net acre LLA-24 block in the Llanos Basin, Colombia.

Together with the privately-owned Turkish conglomerate Çalik Enerji, Anatolia has identified 15 prospects in Turkey and four in Colombia, and is poised to develop both conventional and unconventional oil targets among five major exploration areas (Four in Turkey and one in Colombia). One of these trends, the oil source rock, the Silurian Dadas shale, holds significant potential as modern techniques designed to unlock tightly held hydrocarbons, such as horizontal drilling and multi-stage fracturing, have yet to be employed in Turkey.

TURKEY

While Turkey is establishing itself as a pillar in the region, in terms of growth, continuity and security, the country's future is hinged upon its energy dependence.

Led by a popular Prime Minister who was elected for the second time with over 50% of the vote and a solid majority in parliament, the government has a mandate to continue its growth and development. In order to keep up with its rapid GDP growth (11.7% in Q1 of 2011, the fastest growth in Europe), a move to mitigate international energy dependence is essential.

What Anatolia is seeking are light oil developments coming from the source rock that's abundant in the region. Turkey is proven to be an "oily" place, where a number of light and heavy oil fields have been discovered with some more developed than others.

With a growing economy, government support and a secure region with a lot of room to grow, Anatolia has strategically chosen Turkey as its main stage from which to operate going forward.

A TURKISH PORTFOLIO IN TWO PARTS

Though Anatolia currently has four exploration areas across Southeast Turkey, the company's portfolio and working interest are really built on two concepts: Development of Conventional Light Sweet Crude (between 25% and 50% W.I. in six licences), and Unconventional Shale Oil (50% W.I. in three licences).

The former is appealing from an expedient route to cash flow standpoint, while the latter is where the majority of the upside appears.

UNCONVENTIONAL PLAY - DADAS SHALE AND ITS UPSIDE

The Dadas Shale holds the most upside potential for Anatolia going forward. Embedded in the same regional source rock that spreads across the entire Northern African region and which has hosted over 300 different oil fields, the Dadas has exhibited signs of a very rich shale oil reservoir.

Anatolia intends to focus where this shale intersects the oil window in a recoverable form. If the hydrocarbons are embedded too deep, they convert into natural gas under the pressure. And despite the fact that natural gas prices in the region are much higher than what is seen in North America, the target is still undoubtedly liquid in nature.

Anatolia believes that this source rock will be in both its Bismil and Sinan properties as well as in its 480,000 gross acre Antep licence. The idea is to produce oil directly from this shale in a similar fashion to that being uncovered in North America's Eagleford Play.

Like any other shale play, true commercial production will require horizontal drilling with multi-stage fracturing techniques in the well bores. While this can be expensive, proving the concept of these shales in the near term can be one with less expensive vertical wells, specialized analysis of cores, increased seismic data analysis and by using existing well bores to do pilot tests.

Fortunately for Anatolia, this first step has already been completed by nearby neighbors. TransAtlantic, successfully flowed hydrocarbons from a pilot test earlier this year on their Goksu well as did Turkish Petroleum (Turkey's National Oil Company) in its Ciksor well. This encouraged Anatolia as these vertical wells and fracs proved that hydrocarbons were movable within the Dadas, as gas and condensate flowed with just a mini-frac within the Goksu and Ciksor vertical wells. One can only imagine what the flow rates would be with a proper horizontal well coupled with multi-stage frac implementation.

The emergence of the Dadas Shale as a potential resource play received further attention on November 23rd, 2011 when Shell entered into an agreement with Turkish Petroleum to test the Dadas potential in southeastern Turkey through a 5 well work program. Other major oil companies have expressed an interest in developing the Dadas production in this region.

CONVENTIONAL PLAY - BISMIL, BESNI AND ANTEP

Already with a light, sweet crude discovery on the license, Bismil is Anatolia's most advanced property. Hence Bismil is the first licence to be drilled, with the initial Çaliktepe-1 well drilled in late 2010 and more recently Çaliktepe-2 which was drilled in late 2011/early 2012.

While the Çaliktepe-2 ultimately resulted in a dry hole, it accounted for only 300,000 of Anatolia's 52.3 million barrels of prospective resources. The well did, however, serve two very important functions. First, it provided a critical data point for Anatolia's technical team to better map the remaining prospects on the licence, which the company feels have not been impacted by the dry hole. Management anticipates that another well could be drilled at Bismil in 2012, based on this updated mapping. Secondly, five cores totaling 30 meters were extracted from the Dadas shale and shipped to Calgary where they are being analyzed using state of the art processes specifically designed for shale reservoirs. Results from this analysis are expected in April 2012.

The Dadas Shale continues to display excellent oil source properties and potential as an unconventional oil reservoir and the company anticipates testing the shale further by completing a horizontal well and fracture stimulation from the existing Caliktepe-1 and 2 wellbores at an estimated cost of $3million/well.

Through recently completed seismic programs on the Besni and Antep licenses, the company is analyzing the data to determine drill targets for these high impact licences targeting light oil. Antep is a sizable licence sitting on the Syria border where major structures from Syria come into Turkey. These structures represent potential that is an order of magnitude greater than the Bismil licence where resource potential can be upwards of 20 million barrels per structure. Despite smaller structures than Antep, Besni offers the potential for high productivity wells that present very robust economics given that they are shallower targets and, hence, cheaper to drill. This is evidenced by the Turkish state oil company's recent discovery in the area that commenced production at 3,000 bopd.

NEW OPPORTUNITIES

But as much as is known about Turkish oil fields, information pertaining to neighbouring basins in Syria and Iraq is shining a light on what Anatolia is also pursuing in 2012. Successful redevelopment of heavy oil projects in Syria has left the AEE team keen to seek redevelopment properties in Turkey. Similarly, the team is eager to extend the Zagros foldbelt play into Turkey.

COLOMBIA

In addition to its suite of Turkish assets, Anatolia still has a remaining asset in Colombia as part of its amalgamation with Bolivar Energy. The LLA-24 block is situated in the Llanos Basin in Colombia and provides the opportunity for multi-zone stacked potential. The block, covering an area of approximately 147,000 gross acres (51,450 net) is surrounded by light oil production and numerous oil field discoveries. Drilling of the first exploration well (Las Palmeras-1) is currently in progress with results expected before the end of March 2012. Upon the completion of drilling of Las Plameras-1, Anatolia will have earned a 35% interest in the block. Assignment of this interest is subject to approval by the Agencia Nacional de Hidrocarburos.

MANAGEMENT

From a leadership standpoint, the Anatolia Energy team is a veritable who's who of international experience. Leading the way is CEO Bob Spring, with nearly three decades of oil and gas mileage, most notably punctuated with his role as VP Exploration and Land for ConocoPhillips Canada where he was in charge of an operating budget of $120MM, and a key member of Conoco's International Exploration team.

Mr. Spring is accompanied by Tim Marchant, Anatolia's executive chairman, with 30 years petroleum experience in Canadian and international exploration, development, production and business development. Mr. Marchant most recent position was VP Middle East BP International.

Spring and Marchant's support comes from a board that brings experience in raising equity, joint ventures, exploration, international geological work and technological expertise. Between the Board and Management, this team literally brings hundreds of years of oil and gas know-how, peppered with roles of high-importance among big players such as Nexen, Suncor, BP/Amoco, Exxon, Enerplus, Petro-Canada and Pacific Rubiales.

But more important than the companies listed on the board's resumes, are the countries on the map that this team has operated within. Spring and his team bring experience developing projects within a list that includes Algeria, Libya, Yemen, Albania, Egypt, the United Arab Emirates, Kuwait, Albania among other countries, but most importantly also includes Turkey and Colombia.

FUNDING, PARTNERSHIP and EARNING STRUCTURE

From an investment standpoint, Anatolia should be easy to follow in 2012, as it inherited $16MM from its recently closed merger and listing.

The money is slated to be spent on drilling and completions only, as the structure of the partnership with Çalik directs all of Anatolia's spending into the ground. At the core of the deal is a commitment of $26.5MM to earn 25% on the conventional play in Bismil and 50% on each of the other licences. To date, Anatolia has funded $18MM of that obligation, which has included five seismic programs and the drilling of the Çaliktepe-2 well.

In addition to its favourable business procedures, Çalik appealed to Anatolia with its land positions, technical know-how and regional awareness. With a management team consisting of primarily formerly TPAO (state oil company) staff, Calik knows how to drill wells, shoot seismic and appease locals.

Prior to its partnership with Anatolia, Çalik has proven that it can work effectively with Canadian companies, through teaming up Anatolia Mining, (now Alacer Gold). which had built up a gold asset in Turkey. With Çalik's support, the gold asset went into production, and built the company into a $3B market cap gold producer.

THE BOTTOM LINE

Anatolia Energy has established a significant land position with a successful partner, Çalik Enerji, in the petroleum starved country of Turkey. Through combining low-risk conventional oil plays with the larger upside shale play in the Dadas, Anatolia stands to play a big part in aiding Turkey's move towards reduced energy import requirements. By bringing a heavily experienced management team and modern drilling and development technology to Turkey, along with the help of a local giant in Çalik, Anatolia has plenty of upside in one of Europe's fastest growing economies.

G. Joel Chury
for The Bottom Line Report

Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. The Bottom Line Report makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. A fee has been paid for the production and distribution of this Report. Expressions of opinion are those of the Bottom Line Report only and are subject to change without notice. The Bottom Line Report assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

As broken last week by VantageWire and the Bottom Line Report, Blackbird Energy and its partners have officially entered into a pooling agreement with Trilogy Energy.

SOURCE: VantageWire.com - As covered late last week in the Bottom Line Report, and on the front page of VantageWire.com, today Blackbird Energy (TSX-V: BBI) (BKBEF.PK) and its partners have confirmed that they've completed negotiations with Trilogy Energy (TSX: TET) (TETZF.PK) and TAQA North to pool P&NG rights within the Bigstone area of the Montney Formation, known for its liquids-rich deposits.

The recently signed "Cross-Conveyed Pooling and Participation Agreement" pools Blackbird and its partners' section 28-060-22W5 with the adjacent section 33-060-22W5 jointly held by Trilogy Energy and TAQA North the purpose of drilling an extended reach horizontal, Joint Well on the Pooled Lands.

"Trilogy has been very active and successful in utilizing horizontal drilling and multi stage fracturing techniques to develop resource plays including the Montney, and we look forward to the positive results this relationship should achieve," says Garth Braun, President and CEO of Blackbird Energy.

"Recent well licenses issued in December and January for extended reach Montney horizontals at locations in close proximity to our Bigstone acreage by industry competitors provides us with further evidence of the reserves potential of the Montney. The pooling of a portion of our lands has resulted in expanding our gross acreage position, a feat (gaining land position) of which is becoming more and more difficult with the heightened focus the Bigstone area appears to be attracting."

Going forward, Blackbird will hold an undivided 12.5% pooled interest in the Pooled Lands and will participate as to a 12.5% working interest in the development of the Pooled Lands. This setup may potentially include drilling up to 4 additional extended reach Joint Wells on the Pooled Lands.

The pooling results in Blackbird holding interests in a total of 8 sections (5,120 acres) or 1.75 net sections (1,120 acres) of land at Bigstone, instead of its previous 25% interest in 7 sections (4,480 acres) or 1.75 net sections (1,120 acres).

Work is set for the pooled lands, with the initial Joint Well scheduled to be drilled from its surface location within LSD 4 of section 28-060-22W5M through underneath LSD 5 of section 28-060-22W5M, then drilled horizontally approximately 2,568 meters through to a bottom hole location on the Pooled Lands within LSD 13 of section 33-060-22W5M. Blackbird's original partner, Donnybrook Energy Inc. (TSX-V: DEI), remains operator of drilling operations and has secured a drilling rig. Drilling is expected to commence this Friday on March 2, 2011.

G. Joel Chury

Editor in Chief

VantageWire - Energy

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Disclaimer: No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. VantageWire makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the VantageWire only and are subject to change without notice. VantageWire assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. The author of this article does not currently own shares of any of the companies mentioned in this article. Furthermore, VantageWire assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

SOURCE: The Bottom Line Report via VantageWire.com - After delivering returns to shareholders of about 8,000% since the mid-2000s, Ingrid Hibbard, President and CEO of Pelangio Exploration (TSX-V:PX) (PGXPF.PK) might be entitled to enjoy the fruits of her successes. But with five new discoveries on the Manfo Property and recent high grade intersections of11.94 g/t gold over 10 metres, 9.05 g/t gold over seven metres and 16.72 g/t gold over four metres, Ms. Hibbard and the Pelangio team continue to focus on their mission of finding major deposits on world class gold belts, this time in Ghana, West Africa.

To bring you up to speed, the road to Pelangio's rapidly developing new successes in Ghana was paved by the successful 2007 spin out of the Detour Lake deposit in northern Ontario. That spin out went on to become Detour Gold (TSX:DGC) (DRGDF.PK), now a $2.7 billion company developing a 15.6 million ounce gold reserve that is destined to be the largest single-source gold mine in Canadian history.

Pelangio had already acquired a toehold in Ghana prior to the Detour Lake spin-off through Ms. Hibbard's relationships in Ghana. In 2006, the company had optioned a 290 km² property beside the world's largest vein-hosted deposit held by AngloGold Ashanti. The high-grade Obuasi Mine has now produced over 30 million ounces of gold since 1897 and still hosts a further 29.5 million ounces of resource.

Pelangio's developing relationships with the local communities, traditional councils and local and regional governments since 2006 and, in particular, a strong local team of geologists, led by Sam Torkornoo, Project Manager, provided further property acquisition opportunities. In mid-2010, the Company optioned the Manfo Property, which had been brought to the Company's attention by Mr. Torkornoo. A series of large geochemical anomalies sparked the interest of Warren Bates, Senior VP Exploration, and subsequent drilling programs identified five new near surface discoveries, with both significant high grade and bulk tonnage components.

Pelangio is now drilling the Manfo Property's five discoveries to prove up their resource potential and actively seeking new discoveries on the remaining underexplored area of the property.

HIGHLIGHTS:

• Manfo Property - The Company Maker
  • Five new near surface discoveries with excellent potential for further discoveries on a 100% owned, 100km2 land package on the Sefwi greenstone belt
  • Exploration/discovery model based on neighbouring mines: Newmont's Ahafo (10M ounce reserve grading 2.54g/t) and Kinross's Chirano (2.43M ounce reserve grading 2.43g/t), each of which hosts a series of open pit deposits on significant strike lengths with upside potential for underground high grade deposits
• Obuasi Property - The Potential Game Changer
  • 100% owned, 290km² land package on strike and adjacent to AngloGold Ashanti's world-class high-grade Obuasi gold mine, which has produced over 30 million ounces of gold since 1897 and hosts a further 29.5 million ounces in reserves and resources in a series of 14 ore shoots
  • Exploration goal is to discover an Obuasi-style ore shoot, which grade over 7g/t gold at the neighbouring mine and hold up to 5 million ounces each

Ghana - West Africa's Shining Light

Pelangio holds an enviable exploration package for a junior totaling 550 km2 in Ghana, certainly the most stable country in West Africa and arguably the best blend of geology and jurisdiction in all of Africa. The country has held a series of transparent and democratic elections since 1992, with the most recent 2008 election being won by the challenger in a run-off, followed by a peaceful transition of power. With decades (or even centuries) of gold production and solid government institutions, Ghana has both the local infrastructure and social/governmental support to advance exploration successes to production. The potential for huge deposits is also world-class - likely no other country in the world has seen more 5 million plus ounce discoveries in the past twenty years. The majors have taken notice, with the list of those active in the country including Newmont, AngloGold Ashanti, Goldfields and Kinross.

Manfo Property - The Company Maker

Pelangio acquired an option on the 100 km2 Manfo Property September 2011. The Company has subsequently completed nearly 30,000 metres of drilling on the property, and is focusing on five new discoveries: Pokukrom East and West, and Nfante East, Central and West, as well as further targets that the Company is developing beyond the previously identified anomalies.

The discoveries made to date at Manfo are all near surface and potentially open-pittable. So far the drill intersections are exactly what the company had been hoping to see, bulk tonnage values in the range of 1.5g/t over 30-70m, but also containing a number of high-grade discoveries near surface and at depth, including 36 g/t over 9 metres, 8 g/t over 12 metres and 14 g/t over seven metres at Pokukrom West, and 25 g/t over 5 metres, 16.7 g/t over 4 metres, 12 g/t over 10 metres and 9 g/t over seven metres at Pokukrom East. The potential for high grade deposits under bulk tonnage open pits is certainly on the Company's mind, particular considering the neighbouring producing mines.

Due to its proximity, it's not surprising to see why Newmont's Ahafo mine is viewed as a comparable to Manfo. Located only 14km away, Ahafo is targeted to produce up to 600,000 ounces in 2012 at a low cash cost of approximately US$500/oz. The Ahafo resource grades 1.83 g/t, but this grade is significantly bumped by the growing underground resources currently being delineated. As is being proven at Manfo, Ahafo is a string of deposits along approximately 15 kms of strike, with serious underground potential being identified by Newmont, particularly at the Subika deposit, which is at the southern end of Ahafo, just northwest of Manfo.

Today, Pelangio is at a much earlier stage. But the entire infrastructure required is local. The hydroelectric line servicing Ahafo runs through the northeast corner of the Manfo property, and the property is well served by paved roads, easy access to water and a huge mill at Ahafo only 14kms away. These factors give Pelangio significant flexibility going forward as they assess the economics on the project.

Obuasi Property - Game Changing Potential

Pelangio's 290 km² Obuasi Property is one of the most intriguing exploration land packages in the world or, at least, as the Company states, the best exploration address in Ghana.

The property is beside the Obuasi Mine, a 60 million ounce deposit, which so far has yielded 30 million ounces over the past 100 years. With another 30 million ounces in reserves and resources to go, AngloGold Ashanti is pulling gold out at a rate of 300,000 ounces annually.

The Obuasi Mine comprises a series of 14 ore shoots, each averaging between three to five million ounces of gold each. AngloGold is currently building up resources at 15-20g/t, but very deep, and below current infrastructure. This comes after the original mine produced for 30 years at over an ounce per tonne from the late 19th to early 20th centuries. The opportunity to make high grade near surface discoveries that are mineable to great depths doesn't exist in too many places in the world any more, but Obuasi is one of the few remaining. Though it's a trickier exploration play, Pelangio's exploration for the next Obuasi-style ore shoot affords tremendous blue sky potential.

Pelangio drilled just under 10,000 metres at Obuasi during 2011, with the best results received so far including 25 g/t over one metre, 11 g/t over two metres and 6 g/t over two metres. Importantly, these results are very similar to areas hosting ore shoots at the neighbouring Obuasi mine: quartz veins with visible gold in broader zones of arsenopyrite mineralization. More drilling is needed, but Pelangio looks to be on the road to discovery.

The Bottom Line

Pelangio's Manfo property is the company maker, at which Pelangio will build up resources and likely make a number of new discoveries in the coming months and years. Obuasi may need a bit more time to confirm a discovery, but the reward for a new high grade discovery beside the legendary Obuasi Mine cannot be discounted. Today, Pelangio Exploration provides the investor with two opportunities in Ghana: Invest in Manfo, Dream of Obuasi.

G. Joel Chury
The Bottom Line Report

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Legal Disclaimer/Disclosure: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. A fee has been paid for the production and distribution of this Report. The Bottom Line Report makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the Bottom Line Report only and are subject to change without notice. The Bottom Line Report assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.