Testpack3 has posted an excellent comment on the 3legs board which I reproduce below. It was in response to today's FT article on shale.
Interesting in that it confirms fracking is v, expensive. Aggregate capex last year according to ft article was $120B, and generated cash of $122B. The capex is ongoing, and possibly increasing with inflation, and any fall in oil/gas price ( probable) is bad news for the frackers. Allegedly, The Permian shale in Texas, is the 'best' in the World ( well it would be, being in the good ol' us of a), and being dense and brittle is ideal for fracking. So to 3legs, as earlier posts of mine stated, I sold today, at a modest profit, since IMHO, the share trades show nothing like a gusher will be the outcome in Leblow. From memory, and apologies if incorrect, commercial gas flow is of the order of 10mmcfd. Gas prices are better in Eu than USA, and there is obviously, a near market, and big market in W & E Eu, who are presently importing gas from Russia. The whole point for me is this. Is the Baltic Shale conducive to commercial gas production from fracking. Other contributors have suggested 3legs is de-risked owing to it's cash hoard. If the present frack turns out to be a duster, will they shut up shop and distribute cash to shareholders, hell no. They will cash burn 'til either they get a gusher,or spend, spend and it's all gone. Again I will re-iterate earlier posts, should 3legs have a gusher, there will be plenty of buying opportunities after 'spike' profit taking. The sp will not find it's true value in 1 trading session. No share ever has, and no share ever will. I have taken a moderate position with San Leon, who hold zillions of acres in the Baltic play, and will gain on any good news from 3legs. It also has commercial fields elsewhere to generate cash. Unfortunately, it has 2.5B shares in issue. A10p sp would give them a MCap of £250M, assume PE of 10, can they generate PBT of £25m?. If 3legs find gushers, then it is more than likely SL will, and £25M PBT should be a stroll. So for me, SL is better de-risked, and offers most of the upsides of a 3leg gusher. All IMHO of course.
Surface and core sampling of oil shale from the Timahdit oil shale project was completed earlier this year. These samples are currently the subject of bench tests at the EOT/Enefit facility in Frankfurt, Germany to confirm the quality of the various layers of oil shale, and the oil yield possible from those layers.
Oil has successfully flowed from the Enefit retort process, and while tests and analysis are ongoing, the initial results are very encouraging. Final results will be utilised to update the project feasibility study and enable consideration of the upgrading options for the raw oil.
San Leon Energy produces shale from Moroccan license Print Email Wednesday, 27 August 2014 11:07
European shale gas company San Leon Energy produced the first oil shale from its Timahdit permit in Morocco
gasrig-EnricoStrocchi-flickrThe Timahdit oil shale project is likely to generate 11,000 bpd for 30 years. (Image source: Enrico Strocchi/Flickr)
Authorities from San Leon Energy stated that oil successfully flowed from the Enefit retort process during the bench tests. Though the company is still carrying out tests in the area, authorities have confirmed that results so far appear encouraging.
Final results will be utilised to update the project feasibility study and enable consideration of the upgrading options for the raw oil, added authorities.
Oisin Fanning, executive chairman of San Leon Energy said, “Our Timahdit oil shale project continues to show its long-term potential to generate up to 11,000 bpd for 30 years and the current work is designed to build the business case to attract capital investors.”
Local reports stated that the European company signed an MoU in January 2014 with Chevron Lummus Global to maximise technologies required to produce synthetic crude oil from raw shale oil at the Timahdit license area. Surface and core sampling of oil shale from the Timahdit license was completed at the time. The samples are currently the subject of bench tests at the EOT/Enefit facility in Frankfurt to confirm the quality of the various layers of oil shale, and the oil yield possible from those layers.
In addition, San Leon Energy also saw a well spud on the Nour prospect offshore Morocco. The well is targeting 300mn barrels of oil equivalent (boe), added San Leon authorities.
SMEs: $ 5 billion to 2016 on the lookout for raw materials
| 27-08-2014 11: 09
The company Treasury to 2016. invest in prospecting unconventional sources raw materials not less than £ 5 billion announced in the Parliament on Wednesday Treasury minister Włodzimierz Karpiński.
"Security and the independence of the Polish energy is a priority of the Government and policy priority właścicielskiej Minister of the Treasury. (...) In the system shall be entered in search of their own raw materials and maximum utilization of national resources. We want to take advantage of this opportunity, and therefore the company Treasury to invest in 2016 to seek unconventional sources raw materials not less than $ 5 billion, "he said on Wednesday in the Parliament Karpinski.
He added that in order to facilitate the process of searching, was prepared a bill that will simplify the administrative procedures connected with the exploration, extraction and transport of hydrocarbons from unconventional sources.
He explained that this project provides for, among other things. shortening the statutory deadlines for the consideration of cases by the authorities of the Administration and of the time limits allowed appeal, making it easier to obtain the relevant licences and consents.
"Effective supervision of companies in holding company Treasury, seeking synergies, to build the value of this group (...) in accord with the realities of the market (...) to serve the implementation of public policies, including, in particular, energy security, "said the head of the Department of the Treasury. He stressed that the basic task that you set for your term.
"Today, more than $ 60 billion is involved in key energy projects, which are a priority for government action in the field of investment, building of Jaworzna, through Opole, Kozienice, Świnoujście, Gdańsk and the Baltic-a safe, consistent and modern system for producing, generating, transporting, the diversification of energy sources," said Karpinski.
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