Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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It’s 1000 today - access via investor meet.
Register and you’ll get an invitation email with a link.
I’m off for some Pilates to get in the mood!
Looking forward to tomorrows investormeet talks,
Thank you jc-123. Good read.
Correction. It’s 4 layers!
https://genelenergy.com/wp-content/uploads/2020/08/Genel-Energy-Pareto-conference-FINAL.pdf
Also from memory, the drill is supposed to target 3 stacked layers of the reservoir I think. So although the first layer is close to the surface, it will end up being much deeper due to lower sections of the reservoir. It all has to be tested also. In other words it will probably take longer than we think.
Thank you. That was a fist postponement as it was first end of 23 drill time ( from memory). So we are already coming to the tail end of the 18 months period. If drilling is started in the last quarter of the year, I will be happy.
The most recent timing inidication I can find from Genel is last years year end report saying 12-16 months from a year ago. Hopefully we’ll get an update on 26th
I don't forget. It is a big plus given Genel record of progressing things on their own in general. However, this is just a press article with very vague (middle if 2024) indications if timings.
What Genel told the investor has been pushed back first to beginning of 2024 and now we don't know. As far as we have been told drilling has not started and there is no indication when it will. Only told civil work has been completed and they are "evaluating" the next stage. For me, in Genel speak it means not much is happening.
Hopefully, I am wrong ... I will be one day. Lol.
Don't forget the JV partner is CPC. You'd have thought the Taiwanese national oil company won't let timescales slip the way Genel normally does. We haven't had any indication of delays and as far back as August last year, the timescale for a drill was mid 2024.
http://somalilandstandard.com/taiwanese-oil-firm-to-drill-somalilands-first-oil-well-in-mid-2024/
As far as I know they have not started drilling. The problem with their communication is that they always postpone what they said they would do.
Finding oil should be fairly straight forward if we are to believe what was said before. It should be large and close to the surface. Let's see if they can do differently than before I.e. funding oil rather than dust.
I still think it will be tough to make it commercially viable (because or operational/political/safety problems) but I would you be proven wrong.
The 2023 full year report said “ Genel continues to target a spud date in the next 12-16 months, acknowledging the challenges of operating in such a frontier area with limited existing infrastructure.” They might be getting close to spudding…
According to Malky (oil analyst Malcom Graham-Wood) on today's RNS from Genel;
“Genel have issued their updated P2 reserves, which fell from 92.2m barrels at the end of 2022 to 88,9m barrels at the end of last year. This takes into account 4.5m b’s of production and the stripping out of the Sarta reserves, showing that there is still upside at the Tawke PSC, which is generating cash even in the current local sales environment.
Genel therefore remains in a very strong position, well funded and still looking for opportunities to diversify the portfolio.”
Today’s rising oil price should help!
Sorry the title of my last post should have read
"Tawke has largely recovered from the March 2023 pipeline shut down"
I am looking forward to Genel’s HY results as costs have been cut and local sales are good.
Any news on Somaliland and the Morocco Farm Out would be a bonus.
Today DNO reported on fields where we also have an interest;.
“At yearend, gross production from the DNO operated Tawke license (75% ) in Kurdistan had largely recovered from the March 2023 export pipeline shutdown and was averaging 80,000 boepd. Post pipeline shutdown, the Company’s net entitlement share has been sold at prices in the low-to-mid USD 30s per barrel on a cash and carry basis and transported by traders by road tanker or pipeline to local refineries. Concurrently, Tawke license operational spend was cut by some 65 percent from pre-pipeline shutdown levels as drilling activity was curtailed and staffing levels reduced.”
Investor Meet set for 26 March.
That will be full year results and hopefully an update on everything else.
I wonder what is happening with Somaliland. Initially, drilling was forecast for end of 2023. Then it was only preparation work which Haas been completed if I remember right. Normally drilling should be fairly straightforward and oil should be found pretty close to the surface ....
Any thoughts?
Back to triple digits? Where do we think is fair value now?
Erbil & Iraq agree to resume Kurdish pipeline exports
https://www.kurdistan24.net/en/story/34163-Erbil
Years ago the gas from BB fields was the reason for investing. The oil was merely a sideshow to fund gas field development.
Doubt Genel could afford to develop BB until pipeline is reopened and decent reliable sales payments are back and regular.
Im expecting this to rise to £1 over the next few weeks, should be a good return from these lows, imo
I was invested in CNE when they won their arbitration case against the Indian Government. Enforcement then would have been via the New York Convention, although the GoI eventually paid up without the need for it. It allows for confiscation of assets held in any country that is a signatory to the Convention, which is most of the Western world I think, so it certainly has teeth.
I'm still of the opinion that it will not come to that, though. I suspect that re-instatment of GENL's rights to develop the fields will effectively be any award, and not much in the way of hard cash. Where GENL goes from there is another matter. Just my opinion.
* I mean if they want western companies to invest in Kurditstan, KRG can't go about ignoring judgements issued against them. Adhering to an International Court of Arbitration is fundamental to FDI
I suppose if they want any western companies to invest in KRG, they can't go about knocking debtors...
I am no legal expert but I would have thought there must be legal rights to recovery or else why did the KRG eventually cough 2.4 billion if they could get away with not paying?!
Winning the case is one thing, getting paid another. Who enforces that the payment is made?
IMO there is a good chance of Genel being successful in its claim against the $1.4 billion they spent on the fields as the KRG lost its case in 2017 with UAE-based Dana Gas and its partners with a final settlement of $2.24 billion. At the time, folk said they wouldn’t pay up because they couldn’t afford to pay their teachers and army. but they coughed up rather than go back to court