Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Wressle was always the life line but turned out to be a money spinner which has transformed our finances. We now have the cash to make the rest of our assets deliver without having to resort back to the begging bowl. Now get Ireland away and with the excitement that potential would generate we could suddenly be centre of attention - rather than the dusty folder at the back of the cupboard.
Hi Copper3. You're right about Wressle starting production Jan 2021, but it was at only about 80 bopd initially. It didn't reach 550 bopd (and better) until the proppant squeeze, which took place in August 2021. Since then we've had about 2 years at rates of up to 1,000 bopd, but averaging about 750 to 780 bopd, I believe. All the best.
Wressle started production Jan 2021 , initially at 550 bopd if I recall corectly, then its increased to 750 sometimes 800 bopd, total 495,000 bo over 2.5 years
EOG now expect CPR to be at top end of (3P) reserves up to 1.15 mm stbo Ashover grit
if same applies to Pennistone that would be 3C at 2.75 mm stbo, and also 3.57 bscf gas
So ashover may start slow decline but give 2 years more good production with some residual low yield year(s)
It may be better to drill Pennistone , and forget second well on ashover.
Pennistone lots of gas so they need the gas to power or gas into mians gas sorted -
Maybe the CPR will be delayed another month to see August production and water ratio.
So CPR published early September??
We wont get any clear guidance from EOG management, until then, ( just half dis-information) but I'm hoping Pennistone if sorted correctly could be the big prize, waiting for someting further at Cloughton to happen, or maybe just maybe, either of Inniskea or Serenity for Xmas.
Is that too blue sky thinking.
This is great news for Europa; they will be earning very good money per month.
Oil expected to still go higher.
We at least have no issues with cashflow.
IMHO
This explains the delay of the CPR.
Now the following questions arise:
1) What happens to the plan to bore another hole into Ashover Grit?
(This was expected to happen relatively quickly!)
2) How fast the water content is increasing per month; is the increase fast or slow?
(3% suggests this is relatively fast!)
Unfortunate news; the news gives the impression that our gold goose seems to be running out of steam but hopefully still has much to give.
We need GOOD news on Inishkea!
IMHO
I was told some time ago that there are five 500 barrel storage tanks on the Wressle site and that four are for oil and one is for any oily / reservoir water coming from the separator. So there could only be a couple of water disposal tanker runs per month, depending on the size of the tankers,
Hi itsawrap. You are completely correct. Let's assume 780bopd x 3.72% water cut x 31 days in July, which is about 900 barrels of water. So 4.5 x 200 bbl takers of water per month.
GP, are you sure about your maths? 3 or 4 tankers of oil per day so 90-120 per month
3.72% water for July means 3 or 4 tankers of water, too much to store on site imo
Hi Pboo. It's probably not a tanker load of formation water yet, but Egdon must presumably be storing it one site or getting rid of it somewhere. So, If EOG wanted to put permit in place, they could presumably apply to the EA or NSTA for it, since it would provide some additional revenue for them, but I'm not sure where to find such an application , if there is one.
Greypanther
I think you will find they do not have Enviromental permission to dispose of water from other well sites.
They are very strict.
Very unlikely that the same wellsite could be used, the well is a block of cement now and any land ownership was probably rental, we are going back to the 1980's here. I've had a peek at ANGS and a 6MMSCF/d well here would correlate with their earnings, which makes Cloughton extremely interesting. TROVE also believe that this is an extension of a near-shore mega-structure. It would be nice to see some prompt progress here, for a change.....
Serif,are we expecting update next week ?
Bobby,yes agree regarding Mcktcap
Looks seriously undervalued imo too, hence a cheeky little top-up this morning at 1.25p,
Re:revenue
Saw this yesterday from CurryPasty on the other board.
since the Ā£5.1 m as at 31/1/23, UJO have declared another 4 x $1m revenue, so EOG 3/4 that, or another $3m
so, with other proiduction should have Ā£8m cash now, less some costs
11m mcap is pathetic
Copper3,sorry I don't know.
Perhaps CCF if he's about would.
UJO released their $17m RNS yesterday so another $750'000 for EOG since mid June
Bonnybee, Just a question- Do we know where the previous well location was. Can this be re-used subject planning.?
Will Holland, Chief Executive Officer of Europa, said:
āWe are very pleased to be assuming the operatorship of what we believe to be a material licence and plan to progress the asset to appraisal drilling operations as quickly as possible. This initially involves engaging with the various stakeholders to secure the necessary permits and approvals.
The Europa technical team is now working through the subsurface data to calculate a range of probabilistic recoverable gas volumes and will produce a conceptual development plan for the field, which we believe will demonstrate the material potential value of the licence. There is undoubtedly a significant volume of gas within the structure, which could be brought online relatively quickly and would displace imported gas volumes. Domestically produced gas generates employment, local and national tax revenues and has a lower carbon footprint than imported gas. As such development of Cloughton is fully aligned with the UK Governments British Energy Security Strategy and Net Zero 2050 goals.
I look forward to updating shareholders of our progress as we work through the asset data, refine our estimates for the gas volumes and establish a conceptual development plan.ā
It transpires that Cloughton is a somewhat overlooked asset, it was in the portfolio gathering dust as a potentially tight gas play and historically with gas at 30p/Therm had marginal economics at best. At 50p or even higher Cloughton looks āvery, very interestingā according to Holland.
With Egdon agreeing to transfer the operatorship and letting the EOG team take it on means that whilst the subsurface team will be able to shoot some seismic and identify a well location for a potential drilling programme the above ground team may have to work somewhat harder.
āThis is because there will be plenty of stakeholders judging the site location for the pad and given that it is an onshore UK greenfield development, engaging with the planners, landowners and of course coming up with a plan which will include all permitted activities. The deal is helped by the approval of the NSTA and of course any gas eventually produced would not only displace imported volumes but would enjoy a lower carbon footprint.
In addition to that, and especially after the recent Government announcement on hydrocarbon policy, the development would create local employment, contribute to the Exchequer both locally and nationally as well as meeting the UK Governments British Energy Security Strategy and Net Zero 2050 goals.
Although the company has not given any volumes in the RNS there does appear to be a possible economic amount, partly based on the 1968 well data but on it being labelled a favourable appraisal opportunity.
So, Europa has opened up what is clearly a sleeper and they would dearly love to land this with a well that demonstrates the reservoir can deliver commercial rates of gas, but it should be realised that the above ground proc
Just to recap, I promised to update on EOG after speaking to the company, earlier in the week CEO Will Holland kindly spent some time with me for background purposes.
Europa recently announced that it has assumed operatorship of licence PEDL343, which holds the Cloughton gas discovery.
Operatorship of the licence was transferred from Egdon Resources U.K. Limited to Europa and approved by the North Sea Transition Authority, the industry regulator, with effect from 27 July 2023. The partners in PEDL343 are Europa (40 per cent), Egdon (40 per cent) and Petrichor (20 per cent).
The Cloughton field was discovered in 1986 and encountered gas throughout the Carboniferous section. The well tested at rates of up to 40,000 scf/day on natural flow, however with the right completion and production optimisation techniques, the Company believes that a well could flow at 6 mmscf/day. The gas is good quality sweet gas with >98% methane and ethane.
The discovery well encountered 60 metres of Carboniferous net sandstone reservoir with high gas saturations. Given the large areal closure and net sand present within the well there is a large volume of gas in place that has already been discovered. Cloughton is therefore a gas appraisal opportunity with the critical challenge being to obtain commercial flowrates from future production testing operations. A location for an appraisal well pad has been identified and following successful testing operations, the field would be monetised by connecting to the nearby gas grid. Such developments remain subject to securing necessary permits and approvals.
from malcy's blog.
so, looking at the overall comments from the companies it is clear that the reservoir is behaving as expected, indeed having produced some 492,876 barrels of oil already the fact that it hasnāt already produced water is in itself more interesting.
the amount collected of 3.72% isnāt therefore unusual and to be expected and more importantly the partners are āprepared to handle itā. the recovered volumes from the ashover grit are at the higher end of the current cpr of 2p 0.54 mmstb and 3p of 1.12 mmstb and with that in mind the preparation of a new one is underway at the moment.
with this new information that will be slightly delayed, but it will surely be able to give an idea of how much the full field recovery will yield given that there will be more oil in the ashover grit, wingfield flags, *****tone flags and other nearby prospects.
having said all this i would contend that actually wressle has actually well outperformed expectations and indeed i would never have guessed that it would be doing this much now. and what is more that if i had predicted such an amount i would have undoubtedly expected some water.
water or none wressle has been and will clearly continue to be, an important and extremely profitable asset not only to the companies involved but to the country as it adds the most highly efficient energy that is at all possible to our mix.
Ireland needs gas, EOG has gas. I expect things to come to a logical conclusion. In the meantime, Wressle is paying the bills.
Remember the gas is about to be monetised? That could land any day now. It made sense to get the water cut RNS out of the way first, yes?
ā The first phase of the gas utilisation project was completed in January 2023, whereby three microturbines were connected to provide site power which have resulted in a c. 10% increase in oil production. The second stage is the installation of a gas engine to generate 1.4 MW of electricity into a local private power network.ā
Extra cash coming and some decent projects to spend it on.
Buying opportunity.
Over Ā£1m knocked off the market cap for a difference of Ā£20k.
I hope WH has learnt a lesson after today. Sentiment is everything with AIM juniors and he's certainly given us a kicking today.
Vol. Sold 4,093,911
Sold Value Ā£49.99k
Vol. Bought 2,460,408
Bought Value Ā£30.64k
Keep seeing posters wondering why WA bought some more under 1.5p. Donāt think itās a mystery. Either Ireland comes in and he makes many multiples or we are a likely target next year for a buy out because of Wressle income, the additional gas and drills in which case heāll likely get 3p or so based on Egdon.
It may not work out for him but it looks pretty good odds with strength of OP and the lifetime of Wressle ahead, which is not going to stop making us a lot of money because of the inevitable water content - see CCFs and GPS comments below.
Just picked up 300k shares. Good price.