I remember the last time they drilled, their sp was £6 plus and there was a lot of excitement. All good publicity for little old EOG who just so happens to have one of the biggest and most diverse collection of licenses over that way
Looks as if PVR mean business with appointment of contractors for a $35m drill on their Druid prospect next year. All or nothing I guess for PVR but they have managed to raise the finance from somewhere. If Druid comes in EOG will rocket through the roof...
On the subject of Gas, a little birdie has told me that Centricas Rough field may have to be decommissioned. If that's the case then the UK will lose approximately 70% of its overall gas storage and become heavily reliant on European storage/supply, that'll make uk based gas producing assets a good play come the colder months....
Wow, just read about Sound they went from 0.89p to well over 50p! They did this by changing focus on Gas rather than oil. There's foresight for you! I would invest if I had the cash! Europa's in both Oil and Gas so has a very good chance of doing well too. The Irish blocks it picked up with over 1.5tcf was a very good buy, we just need a farm out partner for either the oil blocks and/or the Gas blocks. The Gas blocks may end up being the bigger of the two earners as its close to already constructed infrastructure, thus can come online quicker, especially as Europe don't want to be dependent on Russian gas.
INteresting RNS from Antrim this morning. They say they have been looking for M&A but have found no suitable partners - well Sound offered them a chance and EOG have beeen trying to get hold of them. Seems the AEY directors are more interested in their pay off.
But they also say in the absence of offers they have written down the value of their Porcupine licence to 0 while still open to offers that means an offer of £1 would and should be acceptable to them.
The planning application for Wressle production forecasts 40 truck movements a week. A tanker holds 210 barrels of oil and I assume that 40 refers to 20 in and 20 out so 4200 barrels a week or 600 a day. 200 a day to EOG then which equates to roughly £2.7m a year gross at todays Oil price.
@crushcutfluor: I'm referring to the "very near term deal" that Hugh talks about regarding the Irish farm out in his latest interview. That combined with a previous comment that we have a 80% chance of hitting 20p, or was it a graph! IMHO
I don't think this is true. It will take a few years to bring the Irish oil into production; looking at the current price is of little use as the price will be very different by 2020 the earliest Irish oil can be productionised. By 2020 the oil price is predicted to be much higher for two reasons i) increase in world consumption, (year on year), ii) the decrease in capital spending on new fields, leading to a shortage of supply, (existing fields will also become less productive over time). IMHO
Just reminded of something I was looking at the weekend. The actual current price of oil is of course a concern to all Oil companies and may well limit exploration but most importantly it has a limiting effect on the development of discoveries into production because that is where the big bucks are needed.
On the other hand though the oil price is of a lesser concern to the big boys who must find a way to replace their underground assets. Statoil for instance produce 2 million barrels of oil a day around the globe. They cannot afford to stop exploration but they can stop devloping confirmed discoveries. Statoil have just announced a reduction in Capex of $1b but that still leaves them with $11b to play with.....
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