BaysilHope, thanks for for your thoughtful and thought provoking comments.
I , for one small shareholder, did not know the estimated capacity of the Ecu RODA system.
On production, what probability would you assign to 7500-8500 Bopd? I assume the company will report on the 7200 below.
"The Company expects a production rate of 7,200 BOPD to be achieved during Q1 2017, assuming the resolution of social issues by central government during January and February 2017 as discussed below. On that basis, existing guidance of 7,500 - 8,500 BOPD for 2017 remains unchanged."
IMSO - obviously AMER knew the capacity constraints of the Ecu RODA system - but with the OBA 4 mths late- Indigenous tribal litigation, Social Unrest affecting performance - it probably took the view of a slower release of critical data and BAd News and stop an SP collapse and their jobs. I see an opportunity here, Capex for Oil margin and volume. AMER could well act as a sub contractor funding and building necessary infrastructure upgrades for P-Amazomas in exchange for volume concessions and oil margin and get in close with a multi-national. That way keep control of cost and become a quasi- partner offering necessary skill and expertise.in a very troubled area. First mover advantage. Quote' Detailed engineering and costing work is underway with respect to the construction of the Chiritza pumping station within the RODA system, which will serve to increase system efficiency and Amerisur's transport quota under the agreement currently being negotiated with Petroamazonas. 'the Chiritza project continues to be very interesting to the Company and I hope to complete the technical and commercial arrangements in the short term, thus allowing a rapid start-up of the project itself. All the ingredients are present for a quick lift off to 7.2kbpd and more - a faster route to Oil Trading where the real cash is - IMO a silent SP break out is on the cards - soon. RNS states O/p up Feb 17 I believe. GLA only an idea.
As opposed to an exploration well - which is high risk, costly, as it's time consuming logging all NEW data from cores & can take 2 mths and a step out well which tries to define the boundary limits of a reservoir horizontally & vertically, an infill well targets a known section of a proven reservoir, it is therefore low risk, quick, does not need in depth logging and is an efficient and a very profitable investment as it immediately accelerates the draining of the reservoir i.e immediate increase in output and increases reserves with that boost in output. Infill wells = great highly profitable business. IN our case Plat 24 could add +1kbpd if conditions on the ground i.e. peace allows. Hope that helps. So the update is +ve news whence we get an idea of output data - mth end hopefully.
The essential proposition here is that the pipeline will save $15 per barrel in transportation costs. No one seems to have questioned this. Is it believable? How much will Ecuador charge to use their networks?
Think that we are just catching up with everyone else. Plenty of sex and violence with virtually all my other E and P this week except this little baby. Likewise although reservation about BOD perhaps the start of a rerate and it remains a favourite for 2017
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.