Northern Petroleum/Wessex – short delay on Guyane News ( and Tullow note)

PUBLISHED: Oct 03 2012 @ 23:47 | Comments (4) | More info about Tom Winnifrith

Followers of AIM listed oil stocks Northern Petroleum (LSE:NOP) and Wessex Exploration (LSE:WSX) might have been expecting news from the second well to be drilled in Guyane in early November. I should warn them that it now looks likely to be late November. It does not change the story for Wessex or Northern much of an iota as I shall explain below, but update your calendars.

The delay is down to bad weather. I picked up on this in a broker research not I have only just noticed from Irish broker Dolmen which reported back on a meeting last week with field operator Tullow (LSE: TLW). You can see that note HERE.

As it happens I am not sure that this well will drive transformational news for Wessex and Northern as it is merely gather new information on an existing (albeit it looks to be very large) find. A new well targeting another structure in the same block (there are a number) might have been more sexy. But I guess Tullow is in the business of proving up barrels for extraction not in doing a “promote” and so I am not sure that when the results of the Zaedyus appraisal well do emerge it will drive that much of a re-rating.

I continue to think that Northern is very cheap – as explained HERE

As for Wessex? I think some folks like the sex and excitement of a company so heavily dependent on one asset. But a) this is risky and b) Northern is a far better play on that asset. I explain why that is the case HERE

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