Etinde Etinde (former Block 7) has been extensively explored and 15 exploration and appraisal wells have been drilled since 1967, of which 13 discovered hydrocarbons. Four separate reservoirs are proven producers: Biafra, Upper Isongo, Intra-Isongo and Middle Isongo. Although the Intra-Isongo sands have only been drilled by one penetration, this zone contains thick, high quality sands, which extend across the block. Delineating and extending this important discovery will be a key objective of the future work plan. Our project is at the development phase to optimize development of the Etinde Permit and options to monetize gas resources. Full development of the Etinde Field will deliver a world-class production asset exporting gas, oil and condensate whilst ensuring the viability of two key objectives of the Cameroon Government: establishing domestic fertilizer production and initiating an LNG project
Hi – Here sharing a suggested NPV model for Bomono, to aid in valuation, but with many obvious assumptions: - Moambe-1 (10MM.$ to drill and test-Dave Clarke). - Bomono License (now operational) costing 50% of annual corporate G&A (ie: c. 6MM.$) for production license period. - 9$/Mscf as minimum (from Gozomike). - Production online 2017. - 5MMscf/d=862BOE/d=5MMBTU/d=5.275GJ/d=1,465kW/d=1.47MW/d (100%efficiency). - Well(s) have 5% annual production decline rate. - Speculative costs of 6MM.$ for additional ‘pipes, nuts and bolts’. - 10yrs single Moambe well production yields 15BCF; 20yrs yields 23BCF; 35yrs yields30BCF. - Single Moambe well production starting at 5MMscf/d becomes uneconomic after 20yrs. - No liquids info available. Gas only model. - Awaiting Zingana flow rates to update. - In summary: 10yr NPV(10) per 5MMscf/d production is worth 49MM.$ today. - Note that should Moambe or Zingana fields/pressures support multiple producers/zones, each additional 5MMscf/d equates to approximately 49MM.$ for 10yr NPV(10). - So when total stable production is known for Bomono, every 5MMscf/d production initiated in 2017 is worth 49MM.$ today…approximately…sort of… Yes, it is just a model… Yes, I am invested long in BLVN… Disappointed to date with overall company performance, although not all problems have been internal, and severe lack of timely publishing of market sensitive info. However some tangible progress is now being made, if Cameroon Govt grants Bomono production license in short order; Lukoil get on with drilling now cheaper wells; and the Aminex deal completes at year end, coming online asap. A strong, diversified, and producing portfolio is the obvious goal, with incremental steps up in company value as opportunities come online. Hoping that once testing results completely released, BOD buys in significantly. I rarely post, but thanks to the posters presenting facts, details, info and sensible perspectives, both positive and negative. For reference: http://www.unitconversion.org/unit_converter/energy-ex.html http://www.spe.org/industry/docs/PRMS_Guidelines_Nov2011.pdf
Mayfair, No worries and I am fully aware that KH has experience within this sector however only as a Financial Director.
With respect to KH I do think he dropped the ball and even admitted it when Dragon asked to see the books and I can only think he was concerned that if they decided to proceed he would have found himself getting kicked off his gravy train.
I take it you think the 40% payrise and Bonus for the Chief are in line with current deals within the sector?
My background is 23 Years in the Industry so I have a good handle on how things work and where the sector current is and trust me KH is taking the p !ss
Neilmac, this is not to defend KH but rather to comment on your rather flippant statement about 'no experience' - KH has now been through four cycles where the doom and gloom-mongers have predicted Armageddon. Yes, there is a disconnect at the moment, trading at a discount to cash - not a discount to net asset value - but cold hard cash. But you only need to look at some of the barmy valuations at the junior end of the market, to realise that blame cannot all be laid on KH doorstep.
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