|Horn Petroleum Corp - HRN.v is advancing oil and gas assets in Puntland, Somalia.
The Company holds a 60% interest in the Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen.
Horn Petroleum Corp - HRN.v
I'm not in HRN, but their 20% joint venture partner Red Emperor Resources, listed in England and Australia. They're almost a pure play on Somalia like Horn.
HRN hit 12-20m of potential net pay in the first drill at an upper zone where they weren't really expecting to hit anything. They need to go back and test to see will it flow.
The SP is under pressure right now because in the 2nd drill they hit water at the corresponding zone, so investors are worried that HRN in fact found 12-20m of water, not oil. I seriously doubt it, hence my purchase at these bargain prices.
The primary zone is lower down, and in the first drill they found only 3m net pay, but they expect this to be bigger in the second drill as it's much closer to the centre of the basin.
There's also the chance that the basement will contain oil, and investors are a little suspicious as to why the first drill didn't go down a few metres more.
Will all the political stuff going on in Somalia now, HRN have said that they are trying to "manage expectations" so I believe we will only get complete confirmation of commercial oil until after August 20th (the deadline day for the new constitution to be enacted).
I have high hopes of a multi bagger by the end of August!