SomaliNet Forums

Have you guys noticed that the company drilling oil in Bari region of Puntland is called Horn Petroleum and 49% of it is owned by Africa Oil - it was originally 51% owned by Africa Oil, but they have now put it down to 49% after the first well was suspended.

I decided to do a little research into them and it seems like they are both based out of Canada. As you know Africa Oil drilled for oil in Kenya and found major discoveries in the Turkana region of Northern Kenya. Africa oil's Stock price went from being $2/Share to over $10/Share within discovering of the oil in Kenya, the stock sits at $8.63 as of today.

Ok, as for Horn Petroleum which is independent of Africa Oil, there stock price went from $1.45-$2.05/Share to plummeting to $0.70/share after they announced the suspension of the first well in Puntland called Shabeel 1. They did discover oil in shabeel 1, about 15-20m of it, but i guess they hit a rock or something, and because of that, the markets didn't respond too well, it caused the stock to lose half of its value. Horn Petroleum says it will test the shabeel 1 well right after it finishes drilling a new one called Shabeel North. The stock has been rising so far, i guess in anticipation of this new well called Shabeel North. The stock sits at 1.54 as of today, and has gone up and down, but seems to have increased from 1.30 to 1.65 in less then a month.

So Horn Petroleum says the reason it couldn't test the first well right away was because the testing equipment is not in Puntland yet, and that instead of just letting the rig sit idle and waiting for the equipment to come into the country, they went ahead with drilling the second well.

So NOW the second well is almost finished drilling, and i guess news of discoveries should come out, if any! Then i guess they will evaluate if the oil they found in the first and second well is commercial!!

OK SO! I live in the states, and obviously not in Canada, otherwise i would go visit their office to know more. Plus i'm not in Bosaso, so i cannot also find out of the actual operations and how it's going.

So i guess i do not know if it's wise to buy Stock Shares into Horn Petroleum which is drilling now in Puntland or not??

What do you guys think?? We all know there's oil in Somalia, specially Puntland, but we somalis talk alot, and if you go ask your uncles or their friends, or even average Somalis, they will tell you millions of negative things about the current oil drilling, some will say they are not actually doing any drilling,they are in the mountains looking for precious stones, lol, really!!
And some will say they are actually drilling and they are not disclosing anything too good until the Somali Federal Parliament approves the resource sharing of Somalia!!


So IS there anyone who has any inside info on this exploration going on in our land?? Because i would like to buy some shares, but i need some convincing.

So bro/sis should i put my really hard earned money into this Horn Petroleum or Not?? Please advice!

Here are their company websites:

1) Horn Petroleum http://www.hornpetroleum.com

2) Africa Oil Corp http://www.africaoilcorp.com

Personally, I wouldn't sink one red cent into either company.
If you examine range resources so called concessions, you`ll see the basis of their claims to proven oil reserves revolve around Conoco`s work in the nugaal basin during the early 1990s.
That is to say, before they even set foot in Somalia the "proven oil reserves" were already recorded.
Both companies are basically running a racquet. It works something like this.
The exploration surveys of the 1990s was purchased. Local tinpots from p/l were thrown some peanuts to sign "concessions" for anything and everything.
Range then went to various commodity indexes waving their pieces of paper, and then were able to be successfully quoted.
These companies make their money by share price increases and sell on options, without ever producing a single barrel of oil.

Now before some folks fly into a rage, I`m not saying there isnt any oil in p/l. What I`m saying is this.
The potential oil/gas in Somalia will only ever be realised by the major oil companies in agreement and cooperation of a stable permanent Somali government.

thnx for sharing dabagale!

There's something they are not telling. This excuse of not having the right equipment is questionable because they could just take samples and do it somewhere else. However, drilling a second well in the same area is a positive sign. Should you buy it? well I am as confused as you.

The whole thing is scam.

That's pretty interesting find you got there, thanks for sharing.

Waryaa do you have any updates as on the last drill you spoke to someone at the site less than a week before drilling stopped and what he told you turned out to be correct

thanks

I actually bought Africa Oil just before it increased in price... Right thing at the right time but I did not buy enough. I now wish that I had put in more.

I bought Horn shares at the same time but not too many either just about 500 shares. I did put a stop loss on the stock. Therefore, I sold when the stock priced halved back in May after a badly worded press release from Horn. http://hornpetroleum.mwnewsroom.com/pre ... 0791383001. I think they did this badly worded press release on purpose because they offered $15 million of PP shares within the following week at 80 cents.

I actually bought Horn shares again when it was at 80 cents. I did not purchase too many shares ... only about 1500 which I hold still today. Horn Petroleum (HRN) is a very risky stock to buy but you never know it could hit $5-10 by the end of the year or it could be zero.

I would not hesitate to purchase Africa Oil (AOI) as its assets are more diversified. Africa Oil stocks are actually trading at about the same price as RIM (blackberry maker).

Africa Oil now owns about 45% of Horn as opposed to the 60% it owned prior to the May Private Placement offerings.

wright456 wrote:Waryaa do you have any updates as on the last drill you spoke to someone at the site less than a week before drilling stopped and what he told you turned out to be correct

thanks

wright, that man is out of the country now

Hi Waryaa

Thanks for replying. Shame he's out the country as he was correct in what he said and probably the only credible source I've read on these drill since drilling began back in January

If you learn anything else please don't be shy to share the news

All the best