Poor response to Canoro sale offer

Vol 12, PW 22 (09 Apr 09) News in Brief

NTPC might be the only hope for Canoro Resources, as it tries to sell its remaining 15% stake at Arunachal Pradesh exploration block AA-ONN-2003/2.

“The best thing about this block is that NTPC holds 40%,â€‌ reports a source. “NTPC is a public company.

Any amount it spends hardly makes a difference – it’s not accountable. If Canoro touches NTPC’s feet perhaps they will take it!â€‌ One company approached by Canoro tells us it is not interested, citing rugged frontier terrain and an over ambitious seven-well Phase-I well commitment as major deterrents.

“Geologically the block is good, no doubt,â€‌ we hear. “But each well will cost nothing less that $10m.

Already it costs them Rs1cr for every 1-km of approach road to the drill site. Even Geopetrol is uncomfortable.

They are paying from their own pocket.â€‌ Family-owned Monaco-based Geopetrol (30% and operator) shares this block with Canoro (15%), NTPC (40%) and Canadian investor Brownstone Ventures (15%).