Bligh reviews its modus operandi

HYDROCARBON producer Bligh Oil & Minerals NL has drastically reviewed its modus operandi after recording heavy losses in oil and gas production.

After experiencing a huge drop in production from its US holdings, along with reduced oil and gas prices, the company has taken a hard look at itself, and is diligently applying its philosophy of ‘staying power and exploration’.

Bligh Oil directors reached a critical strategic decision recently when they elected to sell their asset base in the US, thus converting the associated cash flow into working capital.

This follows a review of half year results when it registered a $2.3 million loss on total operating revenue from oil and gas sales of $18.7 million.

Six months of oil production decreased from 82,000 barrels for the previous corresponding period to 7,573 barrels, averaging 41 barrels per day.

Gas output decreased to 65 million cubic feet from 575 mmcf previously.

At its recent AGM, Bligh chairman Alan Bogg emphasised two keys to success in the oil exploration industry — staying power and a program approach to drilling exploration projects — and opted to adopt both.

“Over the years Bligh has demonstrated its staying power. Now it’s in the early stages of a nine well exploration programme,” he said.

Two of these wells are located in Tunisia, one in Australia, two in Papua New Guinea and four in New Zealand.

In Tunisia, Bligh is preparing to drill AEJ#1 well on the Anaguid D lead in the Anaguid Permit in southern Tunisia. Bligh’s equity in the well is 20.84 per cent with Mobil holding the remaining major share. The well is targeting potential reserves of 50 million to 250 million barrels of oil and will be operated by Coho Energy Inc.

Other work in that country includes geological and geophysical studies as a prelude to deepening Chott Fejaj #3 well to a depth of 4,250 metres.

In PNG, Bligh holds 7.25 per cent equity in PPL 157 in the Stanley pros-pect. Santos Nuigini Exploration Limited through Barracuda Limited is operator of Stanley #1 which has been drilled to its total depth of 3,500m and is now awaiting a decision to test a 13m gross gas column intersected in the Toro formation.

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