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You are not a shareholder in NCT as far as I understand it. The only reason you are posting here is that you have a grudge against Andrew Bell. Now that AB/RRR are partners in SC it brings you here. Our attention is not being diverted: there are now three partners in the SC field and they will make decisions together. I have for a long time repeatedly posted and brought up with Randy via email and at the AGM that multiple workover opportunities exist at SC. Although the new drills are exciting, the workovers and recompletions can be better business: ie., they have a better risk/reward profile. Try reading the NCT and the RRR RNSs, in this case they were particularly informative. Hint: significant uplift in resources and several new drill locations. ie., this well isn't just about getting 60/80 barrels of production. If you weren't so jaundiced you would be able to see this for yourself. If they can get 60/80 bopd from LM19 plus some gas for circa $60/$80k that is a better bet than spending circa $800k for 200 bopd and some gas. Try thinking about it and putting your hatred of AB away to one side.
"Our attentions are being diverted....." (You sound like a shareholder.......bottom reached?) I would divert your attentions elsewhere. Shoats Creek will tick over in the background - Northcote are not the operator when it happens, it happens...there will be a far more interesting initiative to get your teeth into soon. Far more interesting, by a massive margin. Think Mexico oil services, the company have given enough hints in RNS's... and some serious digging, of course, imo
LM21 - the last RNS explained what was happening; recompletions have always been part of the plan, well documented; it is pretty clear that State of Louisiana had moved the goal posts before LM21/22 could be drilled....both fully funded... "An update as to timing of anticipated spud date will be provided in due course and a spud in the near term is a top priority for Northcote. The originally planned spud date of May 16, 2016 was delayed due to a variety of factors including weather, land, regulatory and coordination issues amongst vendors in the well. "
Quick look at RNS's from Aminex re Shoats Creek 31 August 2011 "At Shoats Creek, Louisiana, two development wells are planned in the deep Upper Wilcox formation with partner and operator El Paso E&P, to follow up the Olympia Minerals 10-1 well ('OM10-1') discovery made in 2010. The first of these two wells was originally slated for spudding in July but the operator has delayed drilling because of rig availability. When this programme commences, shareholders will be advised. OM10-1 production has been restricted by lack of adequate water disposal facilities. In August, however, the state of Louisiana has approved an application to convert one of Aminex's adjoining non-producing well bores for salt water disposal and this will enable OM10-1 to achieve optimum production." Then follow the RNS, by date - strange - nothing at the above programme - even in 5/12/2011 Operational Update - no mention of SC whatsoever. Aminex appeared to have lost interest around that time as they concentrated on their new direction - Africa. Nothing on SC then until RNS 30/5/2012 when they announced Marketing of US assets, including SC. The on 27/7/2012 the sale was temporarily put on hold while the operators did some further work on Alta Loma and SC. It seems quite likely that there is quite a bit of unpublished data (plus seismic) picked up by Northcote/Springer when they acquired Aminex SC and Alta Loma interests in 2014.
If LM 19 were so good why didn't the company plan to re-open it way back when LM21/22 were announced? Why plan to go to the trouble and expense of drilling 2 new wells BEFORE reopening a well like LM19? Our attentions are being diverted towards LM19 and away from the delays with LM21/22.
What's your view on the potential of a few more recompletions - you seem to have a very good understanding of all things frio over at Shoats! ?
There must be at least half a dozen dormant wells worth retapping - could add easily add another 500 bopd to the bottom/top line......bodes well as SC becomes our secondary business quite soon...
If you look at the Aminex report they commented on behind the pipe assets. A lot more cheap improvements to be had in my view.
LM19 could set a trend, in which case we can expect to see a few more low cost re-completions, not only that but build up a bigger picture of the SC field.. "A successful recompletion will potentially add several drilling locations to the inventory of viable Frio drilling locations at the Shoats Creek Field"
Helpful I agree; that good news I am hearing is scheduled for next week : ) As you say, the question is how good......which ever way you look at it with the sort of costs involved, excellent risk V reward - just how many barrels.....(LM19 came completely out of the blue, no mention at all previously, I suspect this may have come about through GCW intervention....who knows...) LM 19. "Originally drilled to 12,000 feet to test the Wilcox formation, the well logs indicate at least 10 feet of net pay in the Frio formation. The the well is on trend with Frio production at Shoats Creek and shows in surrounding wells suggesting low geologic risk to this project. The decision to undertake this initiative was made due to the potential to add meaningful reserves and production at low cost. Initial results from this initiative are expected in the near term. A successful recompletion will potentially add several drilling locations to the inventory of viable Frio drilling locations at the Shoats Creek Field"
It will be good, if it hadn't worked we would know by now. The question is how good. I still can't see it being done for circa $40k as per the RRR RNS: likely nearer to $80k.
Update imminent - if good can see the company opening a few more dormant wells to maximise production - small outlay for a large return.
Low oil prices have not closed and emerging markets to the same degree. http://www.oilvoice.com/n/Oilfield-service-sees-a-bright-future-amid-current-downturn/c2a3f4200df8.aspx Mexico is under pressure to increase production - stating the obvious, as production increases so will oil related services support activity.
Of course it goes without saying I respect your words of wisdom - in fact you are better received here than other boards ( RRR for example) - all I was previously asking is an acceptable EXIT price for you....? Respect eh?
See Stuy's being trying to catch up blingybird up after hours....buy 10M @0.0325, every little helps, lol
Just answer the question and stop being so precious. :-)
If you expect a reply to a question then it is probably best to be respectful to the person you are asking a question drillingcrew.
Oil service companies are among the first to be hit when the oil price turns down as costs are cut and they recover slower as companies are wary of increasing investment to early. It is just as volatile its all linked. High oil price leads to high drilling, well completions etc as companies invest. Low oil price leads to lower drilling etc as investment is cut back.
Northcote is so diverse, it's not all about the oil..Were a mini conglomerate.. Ok, tongue cheek re SP, but I think I'm giving Blingbird a chase on holding :-) Nevertheless, I do expect a good rerun on my holding, that's the only reason we invest! .. I am happy to hold for the 0.20's and that is more than achievable by Xmas.. Hoping to get halfway there soon though..
Noli is quite correct - he gets it! "Which is why service companies will do very well as the market sector and oil price recovers."
lab rat - you fully understood the point I was making - NCT are moving to a less volatile business model; Mexico is an excellent country too do just that. Watch and learn.
What's your forcast for NCT's shareprice by Xmas?
Someone that suggests oil volatility is avoided by oil service companies is badly researched. Why would oil investors be getting back in if the oil services were not affected as you initially alluded to. They would have stay in as the they would not be affected.
Boring, I preferred the 1p conversation.
Lol.. The way I see it.. We're sitting .03 holding our gains well from yesterday.. A bit of news and were .04,. It's no secret RC has some very good news in the pipe.. Once out, perhaps take us to .06 .07, then who knows, he pulls off a blinder' and bags us from there .14.. Bring in RP contracts and whoosh, back into .20's.. Perhaps a few other bits of news Mexico.. .25 :-))