"Thanks to having a portfolio of licences at various stages of development, we will not be short of potentially high impact news flow in the weeks and months ahead."
Would do me :-) Although Hugh did speak of 50p once Ireland comes into play.
Sets us up very nicely now. We already have income from UK onshore. Now we can add some very healthy production from Wressle. I'm sure the EWT will give us no problems due to reducing production rates especially with its proximity to Crosby, which has been producing for more than 25 years.
haha good point talk about a professional ramp! 8% of Wressle does not = 3x MC!!! I was more interested in the EWT process and the fact Wressle has been de-risked somewhat
RE: Taken from the UJO bb
What SP Angel says is correct about the EWT etc but he is clearly not a financial analyst! An SP of 0.59 for UJO would give them an SP greater than EOGs adding £10m to their current MC because of Wressle. Well in that case add £30m to EOGs
Taken from the UJO bb
Equity Research Report by SP Angel Prior to the declaration of commerciality, a testing programme has to be undertaken, which can take time. The results of the tests are then integrated in to the geophysical model and the output used to assess commerciality. The EWT is the final stage in the process and if commerciality is declared, a production licence applied for. Following this news, we are reducing our assessment of the risks associated with commercial success on Wressle-1, and as such our Target Price moves to 0.59p; we reiterate our BUY Recommendation. Multi Horizon Completions May be Required Combined daily production during the testing period has averaged 351bpd & 2.16mm cfpd from 3 productive horizons, namely: (i) the Penistone Flags (testing flowed 89bpd & 1.7mm cfpd on restricted flow); (ii) the Wingfield Flags (182bpd & 0.46mm cfpd); and (iii) the Ashover Grit (80bpd). Given the potential completion complexity, further work will be required to understand whether the horizons will require individual completions (opening each zone sequentially), or whether there can be dual completions, or whether there is the possibility of comingling all of the horizons, which would be the best option of all. All of these parameters need to be understood before the design is finalised. Well Testing Not a Case of Opening Up the Taps A testing programme will ordinarily be constituted of a number of discrete tests, such as: (i) Draw Down Test: where the downhole pressure is observed as production rate is maintained; (ii) Build Up Test: where production is shut in and the pressure build-up observed; (iii) Interference Test: where the production rate is varied to observe any communication in the pressures of associated wells; the oil produced as part of these tests can be sold to help pay for some of the associated costs. The tests provide a range of information, which can be categorised as either for well description, which evaluates the productivity of the wells within the reservoir, or reservoir description, which provides information on the reservoir’s performance its physical attributes, such as porosity and permeability, heterogeneity, etc., as well as its “shape.” Collectively, all of the data is then integrated in to a single reservoir model, which gives a better understanding of what the production profile will look like, which in turn feeds in to the development design, resulting in cost estimates, which collectively allows for the economics to be evaluated and commerciality opined on.
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