Oromin Explorations Ltd. – operator of the Santa Rosa oil & gas prospect in Argentina

by Sam Kiri

As the world economy gradually recovers, the energy demand and companies in the oil and gas business are expected to win back the investors. Both producing companies and exploration companies saw new highs in their valuations during the heady days when oil prices surpassed $140 a barrel. Matters have changed now but going by improving statistics good days are not too far ahead for oil companies.

We have highlighted the potential for oil and gas exploration companies in Argentina in a detailed report few months ago. To the impressive list of companies in that space, a worthwhile addition is Canadian Venture and the US bulletin Board listed Oromin Explorations Ltd. (TSX.V: OLE, OTCBB: OLEPF). Oromin through a wholly owned subsidiary has 67.52% interest in an oil and gas prospect (Santa Rosa prospect) in the Cuyana Basin, Argentina. Otto Energy Limited, Australia owns the remaining 32.48%. Oromin is the project operator.

For those who are less familiar with the terrain, the Cuyana Basin is in Argentina’s Mendoza province, which has seen considerable exploration activity. During a licencing round in 2006, the province received 18 bids to explore four hydrocarbons blocks. Two of these blocks, namely, Nacunan and Los Tordillos Oeste blocks are in the Cuyana basin.

The Santa Rosa prospect covers a large, shallow untested dome structure in the under-explored eastern half of the Cuyana Basin in Argentina. The property is underlain by the same sedimentary sequences as producing oil-and-gas fields in the western part of the Basin, and has similar geological and structural settings necessary for the source, maturation, migration and accumulation of hydrocarbons. Data from seismic surveys have identified drill sites for proposed future test-wells.

Oromin announced the mobilization of the rig for drilling well OLE.MD.SREX2001 on the Santa Rosa Dome prospect. After spudding, it will take approximately 7 to 10 days to reach the target depth of approximately 1,300 metres to test the Conglomerate Violaceo, Barrancas, Potrerillos and Las Cabras formations. The company is expected to make an announcement when spudding commences. Santa Rosa Dome has a National Instrument 51-101 compliant technical report.

In addition to its oil and gas interests in Argentina, Oromin is currently developing gold prospects in Senegal, with some of them having NI 43-101 compliant resource estimates. The company is serious about the development of its properties and recently raised $20 million through a private placement. Busy days are ahead for Oromin both in Senegal and Argentina.

About Oromin Explorations Ltd.
Oromin is a growth-oriented resource company focused on exploring the Sabodala gold concession in Senegal, West Africa and the Santa Rosa Dome oil prospect in Argentina. The company is well financed and managed by experienced industry professionals with a track record of discovery.

July 15th, 2009
Categories: General . Author: admin