Wednesday, June 10, 2009

The "New Gold" Rush in Africa

Europeans rapaciously plundered the continent of Africa for gold and other resources; now the thirst for oil has brought attention to Africa, and its untapped petroleum resources...

West Africa now offers "unparalleled opportunities" for major and independent oil and gas companies, writes Patrick Morris, CEO of Vancouver-based Gold Star Resources Corp. (OTCBulletinBoard: GXXFF) in the June 10th issue of
AFROIL, Africa Oil & Gas Monitor, an online publication of Newsbase Ltd.,
Edinburgh, Scotland read by subscribers in 25 countries (; Week 23; page 5 Guest Column). Morris, author of a news column published in AFROIL entitled "West African Oil Rush, Challenges", reported that changing geopolitics, reduced security and political risks, the recent 1.8 billion barrel discovery in West
Africa's largest oilfield, the Jubilee in Ghana, and a new African foreign policy by recently elected U.S. President Barack Obama have all helped in making West Africa a "desirable destination for oil and gas exploration and production."

According to Morris, "For a long time West Africa has been off the radar of the international community because of messy politics and brutal civil wars. Also, apart from Nigeria and Gabon, there had been the disappointing size of oil discoveries made at times of low oil prices. All this is now changing. Expectations by countries and oil & gas companies to discover new reserves in the region are high. Exploration and seismic research activities are underway in all countries of West Africa bar Burkina Faso and Cape Verde. Governments are also actively involved. For example, in Liberia, the National Oil Company of Liberia (NOCAL) is promoting oil and gas exploration and development of its hydrocarbon resources along its continental shelf and slope. The sub-region is also gaining global attention as calm has been restored to countries such as Liberia, Sierra Leone and Cote d' Ivoire, reducing security risks."

Among other things in Africa, it's been recently announced that Uganda's oil reserves may rival Suadi's (even if there's just a quarter of truth here, that's still magnificent), and Brazil, an offshore drilling superstar, has been expressing interest in Angola's sub-salt formations which are reportedly "very similar to Brazil's."

- Brewskie

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