Oil Basins Ltd. (OBL.AX) is an Australian-listed junior exploration and development company. The company successfully listed their shares in Australia in 2006, raising $2.5 million. Oil Basins is involved in the exploration of oil and gas in the offshore Gippsland Basin waters of southeastern Australia, the onshore Canning Basin of western Australia, and recently in the offshore Carnarvon Basin waters of Western Australia.
Oil Basin’s exploration portfolio includes three areas onshore in the Canning Basin, along with two offshore areas, one in the Gippsland Basin and the second, recently acquired offshore acreage in the Carnarvon Basin waters of western Australia. The acreage that Oil Basins has in these areas are considered to be medium-to-high risk exploration, ‘drill ready’ prospects containing more than 250 million net barrels of potential oil. Approximately 100 million barrels of the potential 250 million barrels of oil was added by the company purchasing additional acreage in 2007.
The company has several factors in their favor. Oil Basins’ small size allows the company to remain agile and flexible and able to quickly make opportunistic purchases such as the recent purchase of the Carnarvon Basin acreage. The fact that the company’s projects are considered to be ‘drill ready’ should make it easier for Oil Basins to bring these projects online. The company has only 34 million shares issued and a small overall market cap. However, if the company’s projects come to fruition, Oil Basins will be one of the most leveraged companies to the price of oil on a per-share basis.
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