give me and others a giggle and explain how you reach that conclusion ,given that FRR were on tip tv yesterday and have been trading for many years. ,,come on its Friday and the SP is on the up give us all a Friday giggle.....seriously FRR bucking the downtrend today as most oilies are down due to news on oil pricing . the biggest downside is the lack if investors willing to have a punt in this sector at this time. Small PIs and major investors are going to shy away from oil/gas till the price goes back up .. however FRR is a great undervalued company long term and if they get some more news at AGM and then the BIG independent CPRs then this is major re rate 2015 .. well one can hope ..
When I came up with the figure of 5 mmscf pipeline capacity some 18 months ago, a few assumptions had to be made i.e. pipeline diameter and the operating pressure of the Georgian gas grid, where our gas enters.
I assumed 6" pipeline diameter and a grid pressure of 70 bar. If the pipeline diameter is 8" and the grid pressure is much lower, say 50 bar or less, then the FRR pipline can transport much more. But only up to a point, called the choke point i.e. No matter how much you raise the starting pressure and lower the entry point pressure, the pipe will simply not flow any more. This is the choke point, and pipelines are not operated near their choke points.
If we could solve the unknowns, then a better estimate of pipeline capacity can be made. :)
- RNS obviously a pull forward from AGM – but SN will want to say something more on the day. Suspect this will be strategic/financial
- Hopefully everyone eligible now votes. I have supported both resolutions.
- Cairn influence there in style I suspect. Personally I liked the warmth re his team – and as I have said before check them out on the web site. Great experience and industry knowledge. Most important of all – a confidence and assertiveness not seen before.
- I suspect this RNS had to be cleared with Georgian authorities – reference to strategic importance and Varang (which I suspect has not yet completed the full sign off process)
- I still hold the view that MK will be fully/partially sold/partnered. And GOGC will be involved in this. Might just be me but it reads as if being prepared for this (ie the national strategic reference).
- Allowing Frontera to then fund the other fields
- Is 7mmcf the maximum capacity for a pipe of this size – Coggy or other might help?
- Whatever we should assume we are currently on 5, and should average around 7 through next year. By my estimation – with oil - the end Q2 annualised revenue (ie run rate) should be exceeding 40 million US$, and relentlessly heading north. This allows for price challenges, downtime, and Varang share out. Niko 1 will drive this.
- We know that current operational costs are in the region of 12 million US$, and will of course rise. The maths really start to look very impressive.
- The results RNS at the end of Q1 should be a stonker, reporting on 2014, Q1 2015, and of course CPR. And hopefully publicly forecasting future revenues.
Finally many thanks to Dog for sharing events on Wednesday (your stop loss sale) – it helped me to manage my own wobble. Despite your short term angst and frustration I am sure you will still end up with a great and deserved return!
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