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I'm assuming that they didn't plug the well throughout the entire column as it would have basic lining. Would be even better if they'd just capped it in case they needed to return to it.
I was thinking on another aspect whereby IF I3E did not take the Serenity project further, would they sell the asset licence to EOG?
"The well is already present and would just need to be represented as a production well, which I assume means cement lining and some restructuring." - this assumption is wrong - Its "plugged and abandoned " as is the original discovery well
"its a straight money making project......... Gauranteed!!" - I think they have to redo the CPR and define the potential recoverable resources - then go to Repsol to negotiate a joint development plan assuming they have anything to negotiate with - so nothing guaranteed about it.
This is what Majid actually said : "so there is POTENTIALLY a viable development plan" - no use of the word guaranteed. He also said the actual size of the field now needs to be determined and will be substantially smaller than originally thought.
D2B, even better...nowt to wait for lol
I dont believe its a Gov tax refund, just you pay less tax,
But the incentive is there to move quickly as it off-sets the Energy Profits Levy while it exists, Dec 2025
Thee only great thing about this.. is the simple fact that this won't be exploration or appraisal.. We already know the oil is present so it's a straight money making project.. Guaranteed!!
Once it's generating the cash we can do further appraisals to find a sweeter more lucrative spot for SA03 with all the data gathered so far..WITHOUT needing to raise cash from shareholders!
On the assumption we have monies being returned to us from the Govt., and the cash retained from placing >£2M we may not need the UJO loan as the development cost for an already drilled well would be substantially I'm assuming. It may be we are waiting to hear how much we're to receive back in cash before we align ourselves with I3E going forwards with developing SA01.
Don't also forget the amounting revenue from Wressle...daily!
With circa 90% of the cost of the well allowable against taxable profits the ultimate net cost of the well to EOG was less than £500k. If there is a development even on a small scale the return to EOG would be exceptional.
There should be £2.2m cash left from the placing and a further £1m available from UJO.
SO should be out informing the market of both the small cost with still a possibility of exceptional return on serenity and what the plans are for the cash "windfall"!!
Stas... I just finished watching the video & I also took same from the Majid interview, I don't believe Serenity is done, They're not going to let it go especially as it adds to the portfolio and the very low dev costs is more than worth it. The well is already present and would just need to be represented as a production well, which I assume means cement lining and some restructuring. The field could easily be expanded on in the near future as they can re-model and interpret the data, between SA01 and SA02.
The Serenity discovery well would not incur any further costs from EOG shareholders as we should have plenty of cash for our share of the project. As Majid also said, Serenity wasn't priced into I3E share value, and I believe the same for EOG. The only difference between both companies is the fact ours took a pounding from seller from the outset.
I still think EOG/I3E boys are talking on how and when to get this ball rolling and then EOG will come on with an interview as they want to have this situation presented in a positive light looking forwards!
I think your timescales are way out, expect something to happen with Tain next year in this oil price environment and now that this appraisal is out of the way and gov tax advantages available, I don't see all partners sitting on this now.
Even if you look on the worst case and they can only produce the same. at 1000BOPD would still be significant amount to EOG. But we could be speaking 3+ years minimum before we every get there. And it does depend what Repsol plan to do they could moth ball Tain like they have for many years now.
MikeR, looking at the Bid/Ask books on L2 I quite agree with you .. currently there is only one MM below 1.2 so the bid side looks solid
I am still looking at a 1.50p share price in the next few days.
DYOR
My take on Majid's interview
Well I took a few interesting snippets from that, Majid said there is a potentially viable development plan for a small field around the discovery. What was interesting is how he compared possibility to Tain stating that Tain produce over 4,000 bopd from a three foot sand, and that we have 11 foot (thus that would imply up to 14,500 bopd, if it works that way?).
Additionally, he noted very low break evens in the 20's so I do not, as Paul Drayton mentioned, think that serenity is done, certainly Majid in public does not at this time, but lets see what his data shows, but could still be quite prolific, just not the huge bonus he and Simon had hoped for, but 25% of 14,500 bopd would be huge for EOG, even half that would be significant and more than Wresstle. Watch this space as they say but the string to the bow is not yet broke.
Majid on Proactive click the link on the post below
please do let us know if you get an answer.
Sent my email request today for director support by purchasing.
I suggest everyone should do the same to get a response. Why not?
Gla
Hi GP, I’m with you on that - what does a 50% CoS mean if a failure is solely down to management or the technical team? It’s the inherent uncertainty that comes with exploration and why in the end you need to play the odds and drill as many high CoS prospects as you can afford. This is a high risk/reward area.
Selfish judging by the 'Hong kong fuey' book of daily charts, sell pressure definitely weening off, just need to hack it out next day or two and pressure should be completely gone! Then it's just the traders who bought in the lows to rid of and we should return to favourable sp. Any extra positive news would accelerate the timeline for sure!
"should be" means nothing on AIM.
Ivans yes agree about 2.3p my thought
I think it will be good to hear from i3e today about where we go with Serenity.
placing was done at 1.8p
we were 2p before placing and also before Serenity
so, we were 2p just on Wressle alone.
mcap tiny at 12m vs EDR 20m
EOG should be back to 2p soon based on Wressle alone
More chunky sells gone through today, but (at the moment) buys outweigh sells. Going up...