EOG were profitable before at that level on only 180bpd. Wressle should double that production and the fixed and variable costs will be much lower for many reasons. Everybody and their dog has an opinion on the future oil price and the many variables that affect it. I have been looking at the US Shale Oil production recently and the number of rigs in use and it seems that the effect of the low oil price is only now starting to bear fruit for the Saudis. I would expect a rapid decline now in US production but we will see.
RE: Two New Partners
'it is all about getting the oil (or gas) out of the ground and into the income statement. We are one of the very few onshore companies that are profitable in that regard. ' - used to be profitable, not anymore at sub $80/$70 oil.
Will surely be a good month - after all we still haven't got the final Wressle results - no mention yet of when they will test the Wingfield Flags payzone. Once all that is done an updated CPR will be due as well as a Field Development Plan with possibly an additional well. I'm not holding my breath on Holmwood - I think Government intervention was the only way we get a result there and the Secretary of State has to call in the appeal before the planning inspector's decision is published. The 14th Round awards will be interesting - just to see the companies now interested. Meanwhile Vermillion are still expanding their interests on the continent - surely they will consider a UK entry at some point - Europa being a suitable takeover candidate.
Big news due this week?
pic.twitter.com/s5OhASgdgN According to the times 14th round license awards due this week and hopefully Holmwood decision. Two pieces of big news, just wish the PoO wasn't such a downer
Two New Partners
This year already and plenty of news flow. If a placing was really required then in hindsight they have chosen the right time to do it given the fall in OP. There was a post a day or two ago that I keep thinking about - put aside the great prospects - it is all about getting the oil (or gas) out of the ground and into the income statement. We are one of the very few onshore companies that are profitable in that regard. Next week could be a plethora of good news - what would be really good for us if the Secretary of State calls in the Holmwood planning enquiry before the planning officer publishes his decision. I wonder if Hugh is working on that?
Thanks Jusmasel, very interesting. Think we will get a nice surprise when the onshore licenses are released and we see what the team have been bidding on and hopefully won. That plus we are due the verdict on our drill ready Holmwood license regarded as the best undrilled UK onshore prospect!
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