It's not 700 million cubic feet for #32A, it's 700 thousand. A huge difference. That statement in the article is wrong. 700 million cubic feet would be on the order of the most prolific natural gas well ever drilled, which was from Interoil in Papua New Guinea in 2009.
<.. if you ask me this is a sales pitch.">
Given the source of the article, I have to agree with you.
Maybe the installed 8km Thermoflex line is just to satisfy local by-laws on domestic gas production..Maybe the big volumes are going to go elsewhere.. The shard report posted today is a cracking report in my eyes..It confirms that well #34 is currently drilling..But the "eyebrow raiser" to me is this line regarding well #32A.. "Testing has determined that it will be capable of delivering up to 700mln cubic feet per day of gas. 700 million..Good god, it's not so long ago we were getting sweaty palms at 2 million cubic feet per day, This is 350 x 2 million.. if you ask me this is a sales pitch..Frontera seem to have "unleashed a monster" here..I have had to read this report 3 or 4 times to get my head round it.. Frontera quoted a good while back that 2 million cubic feet per day would bring in revenue of $500,000 per month...Have i misread something here because I've had a hard day at work..2 million per day = $1/2 million per month so 350 x that = $175 million per month..
You are touching on conversations held on this board some eighteen months ago, in the greater dougal days.
I can't for the life of me fathom out why FRR have spent so much time, effort and expense to produce gas from a field, in order to produce at such low volumes of gas. They do not have the money to build and operate a decent size gas processing plant, which is what they need to do if they wish to export to Europe with any meaningful quantities of gas.
Niko 1 has been a known known (to quote theprodigy aka Rumsfeld), for a long, long time. Previous RNS's from a few years ago were quoting 5000 bbls/day easily achievable in the short term. Instead we have ponced about with this mini gas production system. There must be a reason the business has chosen to do things this way, but I'm none the wiser as to why.
In the long term, I believe the only way to fully benefit from the MK field will be exporting the gas out to greater Europe, ..which of course is much further down the road.
As far as things are now, where they're just selling it into the local market, in addition to being a "new competitor", I wouldn't be surprised if they've had to give some sort of a hometown discount, ...if nothing else, just for 'political purposes', if you know what I mean.
The bottom line is, we shouldn't be having to try to piece it together ourselves. It would be much better if FRR just gave us the information straight up.
If they were getting multiples of North American selling prices, I would think that they would gladly share this information. But they haven't. I think their silence on the issue is rather telling.
Sure, things can change in the future, but for now, I strongly suspect that FRR is receiving substantially less money for their gas than many people may think. The recent announcement of nearly 200 million shares of dilution may be further evidence of this.
Sorry mate haven't got a clue but rest assured they will not be giving the gas away - competitive yes but it's Georgian gas and I'm positive the country will want Block 12 to work and to break away from imported gas, thus the gas will be being sold at a fair market price IMO :) Have you considered contacting FRR (PR?) to ask what the gas is being sold at? ATB. VW
Does anyone know what price FRR is getting for their gas? Anyone?
Sure, we may know what others get, or what the prices generally are in the region, or what FRR had "planned" on getting for the gas. But what are they ACTUALLY getting for the gas?
The reason I ask is that in FRR's RNS from Sept. 30th, they say.."As a new competitor in the local gas market.....". Emphasis on the word "competitor" ...(i.e. competition).
When companies enter a new market, and are attempting to gain market share, they often do so on the basis of price. This happens in many industries, be it automobiles, cell phones, whatever. They try to sell it lower than the others to bring in new customers, and draw existing customers away from the other guys.
So once again, does anyone know what FRR, as a "new competitor", is actually getting for their gas?
In their latest financials, I noticed FRR conveniently left out this important piece of information.
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