Macro Tsimmis

intelligently hedged investment

Oilsands Quest (BQI) update

Posted by intelledgement on Mon, 05 Nov 07

Oilsands Quest (BQI) management released an independent estimate of barrels equivalent of original bitumen in place (OBIP) for their Axe Lake property in Saskatchewan this morning, and The Street was underwhelmed. The estimate was pretty much in line with management’s earlier projections—1.344 billion barrels compared with management’s earlier guesstimate of 1.5 billion. However, evidently, there were shareholders out there who were hoping for more, as the price per share had just been bid up to a new 2007 closing high of $6.38 yesterday…today was a different story as the stock closed at $5.57, down 13% in one day. (Welcome to the spec port! LOL)

Management also discussed plans for this winter’s drilling (eight rigs) and for the Axe Lake reservoir field test program expected to be run next year, subject to regulatory approval. According to the press release, “This program is designed to evaluate the reservoir’s response to varying temperatures and pressures of steam. These tests will contribute data to the design of the pilot in-situ production program, which is currently planned for start-up in 2009. Oilsands Quest and its technical consultants are evaluating in-situ recovery techniques for the production pilot, with an emphasis on existing techniques that utilize steam and steam with solvents.”

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