CGX ENERGY (V-OYL) $1.31 -0.04

We’ve been following two high risk, high reward

plays now for quite some time, and they are Africa Oil

and CGX Energy.

The trouble with high risk, high reward plays is that

many of these high risk plays have about a one in ten

chance of success, even with today’s advanced technology.

So usually the high risk, high reward plays end up

in heartbreak, disappointment or whatever you want to

call it.

But every once in awhile there is a huge reward and

that is why people love to play the game.

We wrote an article just a few days ago about the

uncanny ability of Tullow Oil and its much, much higher

level of success in the high risk/high reward game and

the number of new basins they’ve discovered, particularly

in Africa.

So guess what, Africa Oil has a hit and its their Tullow

operated well in Kenya.

Today they announce an oil discovery on their

Ngamia-1 well in Kenya.

Tullow Oil is the operator with 50% interest and Africa

Oil holds the remaining 50%.

The well encountered over 20 metres of net oil play

and was drilled to an intermediate depth of 1,041 metres

and have been successfully logged and sampled.

Interestingly, according to the announcement, the

Lokichar Basin where the Ngamia discovery has been

made, is one of seven basins mapped in Africa Oil’s

acreage, and is similar in size to the 9,000 square km

Lake Alberta Rift basin in Uganda, Africa Oil reports.

Meanwhile, CGX with their Tullow operated well, the

Jaguar, probably won’t have their results until near the

end of July. It is a rather deep well and certainly expensive

and more than a few people watching Africa Oil will

wonder if Tullow’s magic will extend to CGX’s play.

Meanwhile, CGX’s other play, the Eagle, should have

results rather shortly.

We catch up with Kerry Sully, Chairman of CGX Energy,

for updates on when their two wells might be hitting

the target zones and sweet spots, and any gossip

he may have, but he simply says, tight oil status on both

of the wells.