15% probability of oil in the Portuguese offshore

Despite decades of exploration activity, and some sub-commercial production in the Lusitanian basin, Portugal has yet to discover a commercially viable oil deposit.

However the she search for oil is on again in the Portuguese offshore. This time Petrobas, Petrogal and Partex are the main players.

In a first phase USD$90 millions is being spent in 2 and 3D analysis of the the local formations. A test well is expected to cost USD$20 million. Petrobras estimates the chances of success at 15%, but reveals that their research points to a positive EMV, i.e. either very large reserves or an even larger disappointment.

Sources at the Colorado School of Mines were very skeptical about the conclusions reached by Petrobras and suggested other reasons beyond pure economics may explain the investment at this stage.

Can Portugal be the new Norway?

map of the Portuguese Exclusive Economic Zone in the Atlantic

Mining: 30% of exploration companies expected to close

Independent research organization the Fraser Institute has released its Survey of Mining Companies 2008/2009, based on the opinions of 658 mining executives and managers worldwide.

Economic slowdown led the vast majority of mining executives to expect a severe contraction in exploration activity, and at least 30 percent of exploration companies going out of business.

Udachnaya pipe open-pit diamond mine, Yakutia, Russia