spot on fella great post rpo should of been 30p without this crisis but lets be honest i carnt see an energy sanction, mrs mertel would not agree to it. fill your boots the omly way is up imo gla.
That's what I reckon.... Nothing to back that up with, but would be great to see!
Will be interesting to see how the well water cut falls and how they use the pump. By September, when the two wells can be analysed, rpo should be able to make plans for a future drilling campaign. I am hoping for more information on well costs and so the internal return rate. If they can predict an IRR of over 25 then that would be a good basis for a drilling campaign . It is still risk on , but this a good start to rebuilding the company. Hopefully it will drop below the current SP for those who wish to add more.
lots of people in anything for a short term game, personally ive been here for ages and intend on seeing it through, the bigger picture here is massive it just needs time !! and may pi's are impatient !! gla
Some big sells going through taking swing profits - strange. The whole RPO / Bazhenov story is simply not understood or known by the market. Why sell at this juncture? This is about defining the economic viability of the Bazhenov, RPO have just taken a small but very significant step towards this. Do people actually understand the RPO investment proposition ?
Initial Drill Results: Excellent
'Three large fractures were placed in the 600 meter horizontal section of the well. After initial clean- up the well produced an average rate of 1,350 bopd over the test period with a watercut of approximately 50%. The watercut is steadily declining, as expected, and this will allow for further optimisation of the performance of the electrical submersible pump. The second well in our current campaign, well 251, is currently being drilled and is expected to be completed in early September. In this well, the company will employ, for the first time in Russia, a completion system designed and implemented by NCS Energy Services. The system allows for a larger number of customised fractures to be placed along the horizontal wellbore than the completion technology that is currently available in the country. The initial flow rate is well beyond expectation, 550 bpd would have been a good result. This begins to demonstrate the economic viability of the bazhenov formation. This is the most successful horizontal fracture in the area to date and will have the whole industry sitting up. Let's see how the well continues to perform after optimisation. If the next well using the new technology produces an equally strong result then it can be considered that RPO leads the industry in the development of the biggest unconventional oil deposit in the world. As for internal rate of return, 1350bpd with current MET exemptions blows through the hurdle considered as economic viability. The market really does not seem understand how important this well result is. Lukoil will want a part of this.
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