Investment in and development of oil and gas properties
Useful Web Site
Why we bought the share
Originally proposed by Graham in November -
I have been following this share on the iii bulletin board for some
time now and it has been generating a great deal of excitement, so
much so that I bought the company myself - (well I bought two
pennyworth of shares).
The company is an Oil Prospector with rights to 70% of the oil
and gas rights in the Akkul field in Kazakstan. This field was
surveyed in the 1980s but work had to be abandoned when the
former USSR disintegrated. Atlantic Caspian have now analysed the
original results from the Russians seismic survey and have found
some encouraging results (a conservative estimate of 1 billion
barrels). The next stage is to perform some test drills and the
tenders are out and results will be in early next year.
One factor that interests me is the fact that they recentle
appointed as chairman no less a 'fat pig' than Cedric Brown (ex
chairman of British Gas) and he is working for peanuts (#20,000
pa). He is passing up his salary in exchange for of share rights.
I cannot imagine him having his snout in something which is
worthless.
Another significant connection is that Atlantic are in
partnership with a company headed by the brother of the president
of Kazakstan. But this might not be such a good idea baring in
mind what happened in Armenia this week.
OK it is a gamble. No oil no dosh
but a 40% chance of 70% of 1 billion barrels at 1 dollar a barrel
makes $280000000 which 9 times the capitalisation at current
share prices.
One drawback is that this one might require some nimble footwork
if it starts to go pear shaped.
And since ...
March 00 - Mainly staying within the 6p to 10p window the price is moved the lack of news on this share has prevented any great movement upwards. We accepted that this was a pure punt and removed the stop loss. Either they find oil\gas and we make a lot of money or non is found and the shares are worthless.