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DLL - Deloro Resources - Page 2

post #21 of 660
Got filled , now lets wait and see.
post #22 of 660
just got filled at 39.5 cents 20k shares. go dll go
post #23 of 660
Little end of the day selling, there wasnt the follow thru volume I expected. Will wait a few days and watch for more buying interest before reloading.
post #24 of 660
nice buying op today. picked up just over 30k. This may settle back a little further but either way, the numbers don't lie...DLL is very undervalued at this SP IMO.
post #25 of 660
Originally Posted by mouserman View Post
"By applying a 2.5-to-10-per-cent recovery factor, the McLaren field may yield recoverable reserves of approximately 1.58 million to 6.31 million stock tank barrels. New advancements in heavy oil recovery technology may enable considerably higher recoveries of the original oil in place."
At 75$US a barrel , even the lowball figure of 1.58 million barrels has an insitu value of 125 million $ CAN.
DLL's market cap still under 10 million , even after the runup.
I didn't believe my DD at first, it showed DLL was a multi bagger with the market cap.
post #26 of 660
post #27 of 660
Looks like it is heavy crude oil. I don't think it's rated the same as light crude.

From the NR:
THE WILKIE is a heavy oil project on a land package of 3,765 leased acres. These Government of Saskatchewan leases cover a channel in the McLaren zone ½ to ¾ of a mile wide and approximately 5 miles long. The zone is at a depth of 2,035 feet with six vertical wells and one horizontal well drilled into the structure defining a heavy oil pay zone with gross sand thickness of 30 to 50 feet.

From Wikipedia:
Heavy crude oils provide an interesting situation for the economics of petroleum development. On one hand, due to increased refining costs and high sulfur content, heavy crudes are often priced at a discount to lighter ones. The increased viscosity and density also makes production more difficult (see: reservoir engineering). On the other hand, large quantities of heavy crudes have been discovered in the Americas including Canada, Venezuela and Northern California. The relatively shallow depth of heavy oil fields (often less than 3000 feet) contributes to low drilling costs.

Using the Petro-Canada site, I found for the month of June the light/heavy differential was $23.95 http://www.petro-canada.ca/en/investors/100.aspx
Also from Encana website: http://www.encana.com/doingbusiness/...cing/index.htm

Light Sweet $74 - $23.95 = around $50?

I have no idea what I'm doing, can someone please comment?
post #28 of 660
If my figuring is around the ballpark, $50 X 1.58M = $80 million value?
post #29 of 660
That would be lowballed estimate, but either way its still undervalued
post #30 of 660
I think that is probably close - some heavy oils are tarsands and some are shale oil- and the processing is different for all types. I do believe that number I quoted was for the oil extracted from the heavy oil/ tar sands . Hence the difference between the 63 million barrels of heavy oil and the final product of between 1.58 and 6.3 million barrels of refined oil.
Correct me if I am wrong.
post #31 of 660

heavy crude

So what does that equate to the SP value of DLL.
post #32 of 660
Lo0k for other companies who have similar reserves and see where they are valued at . DLL also involved in waste water disposal project as well. That will be near term revenue producing or they will sell a % for some capital.
I think DLL looks very cheap.
post #33 of 660
Originally Posted by whitetail View Post
So what does that equate to the SP value of DLL.
I agree with Leebert, I believe DLL's worth alot more either way.
post #34 of 660

heavy vrs light

My take on heavy vrs light oil is roughly 40 / 60
Heavy value is 40% that of Light
Correct me if I,m off.
post #35 of 660
What are oilsands and heavy oil?

Heavy oil and bitumen (the primary hydrocarbon component of oilsands) are types of crude oil, a naturally occurring petroleum. Petroleum is the general term for solid, liquid or gaseous hydrocarbons. Hydrocarbons are a class of organic compounds consisting only of carbon and hydrogen and which are the basis of oil, natural gas and coal.

Technically, crude oil consists of pentanes (hydrocarbon chains consisting of five carbon atoms and 12 hydrogen atoms) and heavier hydrocarbons (hydrocarbon chains longer than five carbon atoms in the formula). It may also contain other substances such as water, natural gas, sulphur and other minerals.

Conventional crude oil is oil that flows naturally or that can be pumped without being heated or diluted. Crude oil is commonly classified as light, medium, heavy or extra heavy, referring to its gravity as measured on the American Petroleum Institute (API) Scale. The API gravity is measured in degrees and is calculated using the formula API Gravity = (141.5/S.G.) - 131.5, as illustrated in the table.

Industry defines light crude oil as having an API gravity higher than 31.1° (lower than 870 kilograms/cubic metre), medium oil as having an API gravity between 31.1° and 22.3° (870 kilograms/cubic metre to 920 kilograms/cubic metre), heavy oil as having an API gravity between 22.3° and 10° (920 kilograms/cubic metre to 1,000 kilograms/cubic metre), and extra heavy oil (bitumen) as having an API gravity of less than 10° (higher than 1,000 kilograms/cubic metre). The Canadian government has only two classifications, light oil with a specific gravity of less than 900 kilograms/cubic metre (greater than 25.7° API) and heavy oil with a specific gravity of greater than 900 kilograms/cubic metre (less than 25.7° API).

A less rigorous definition of heavy oil is oil that is “not recoverable in its natural state through a well by ordinary production methods.” However, some heavy oil less than 22.3° API does flow very slowly but most requires heat or dilution to flow into a well or through a pipeline. Heavy oil from the Lloydminster area of Alberta and Saskatchewan has API gravities ranging from 9° to 18°. Heavy oil makes up about 15 per cent of the world’s remaining oil reserves. It usually contains impurities such as sulphur, heavy metals, waxes and carbon residue that must be removed before it is refined.

The definition is more appropriate for bitumen, oil that “does not flow, or cannot be pumped without being heated or diluted.” The bitumen mined from the oilsands deposits in the Athabasca area of Alberta, Canada has an API gravity of around 8°, but is upgraded to an API gravity of 31° to 33°. This upgraded oil is known as synthetic oil.

Oilsands are mixtures of sand, water, clay and crude bitumen. Each oilsand grain has three layers: an ‘envelope’ of water surrounding a grain of sand, and a film of bitumen surrounding the water.
post #36 of 660
How are oilsands and heavy oil produced?

Thermal in-situ recovery

For both oilsands and heavy oil, steam is often used to facilitate production by softening the bitumen, diluting and separating it from sand grains, and enlarging or creating channels and cracks through which the diluted oil can flow.

Existing in-situ technology uses natural gas-fired boilers to generate steam. The process requires a lot of water-up to three cubic metres for each cubic metre of bitumen produced-but more than 80 percent of the water is recycled.

Current in-situ production technologies recover between 25 and 60+ per cent of the bitumen in the reservoir-a somewhat higher recovery rate than most conventional light crude oil wells.

The two most successful methods are cyclic steam stimulation and steam-assisted gravity drainage (SAGD).

Cyclic steam stimulation: a three-stage process involving several weeks of steam injection, followed by several weeks of “soaking,” followed by a production phase where the oil is produced by the same wells in which the steam was injected. As production declines, the injection phase is restarted. The high-pressure steam not only makes the oil more mobile, it creates cracks and channels through which the oil will flow to the wellbore.

Steam saturates the oilsands formation, softening and diluting the bitumen so it can flow to the well during the production phase.
post #37 of 660
How are heavy oil and bitumen marketed?

Like conventional crude oil, producers sell synthetic crude to refineries, petrochemical manufacturers and other consumers either directly or through producer groups or marketing companies.

The field price received by Canadian producers, after transportation and marketing costs, is largely established in the Chicago area where Canadian crude competes with U.S. and foreign crude.

Prices are based on prices for benchmark crudes, such as West Texas Intermediate (WTI), North Sea Brent and Edmonton Par Price.

WTI is determined through futures trading on mercantile exchanges and reflects global supply and demand. WTI has an API gravity of 40° and a sulphur content of 0.5 per cent.

Other crudes are compared to WTI and priced according to API gravity, sulphur content and location, all of which affect processing and transportation costs.

Sweet light crude comprises a higher proportion of usable fractions and requires less refining. It is therefore priced higher than heavier crudes.

North Sea Brent has an API gravity of 37° and a sulphur content of one per cent. It is therefore priced lower than WTI.

The Edmonton Par Price is based on 40° API gravity and 0.5 per cent sulphur content, similar to WTI.
post #38 of 660
More Canadian oil produced will be of the heavier Bow River Stream variety, which sells for about C$48 per barrel, compared with Edmonton light oil, which refiners would buy for $71 a barrel.

The heavy oil is cheaper for refiners, but "they'll get less gasoline out of it and more pitch," says Rodrigues.

The industry spokesman says prices for heavy oil increase somewhat in the spring, when demand for ashphalt and tar increase as construction and road work season ramps up.

Canadian wholesale prices are also affected by U.S. markets, because this country exports refined fuel, according to the federal Competition Bureau, which has investigated and rejected conspiracy theories about gasoline price fixing.

"Given the commodity characteristics of gasoline, commonly published wholesale prices among competitors is a normal practice and insufficient to raise suspicion of conspiracy," the bureau said in a report.
post #39 of 660
look at ral.t and ie.t , both have good technology in producing heavy oil
post #40 of 660
Ivanhoe is an interesting play and I have looked at it as a trade a while back, might not be a bad investment long term either. No matter what price this heavy oil is, its not going to be hard to get rid off inventories of it. I hear that options are betting that oil goes to $100 a barrel by 2008. As well here in Sask there is a boom in oil/gas refinery expenditures. By next year groundwork will be undertaken here in Regina to expand our Co-Op oil Refinery by $1 billion yes b-illion to expand our capacity to 35,000 barrel a day capacity. Oil and gas is just starting to boom here in SK
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