Hi, Not posted for ages but read everyday, I'm not an expert, just been invested since Betty and have averaged down to 130. Someone mentioned that for Statoil to have shelved Bressay then there would have had to have been proper research, a long presentation and plenty of consideration for the Statoil BOD to be convinced to start planning over again. The savings must be truly worth it. I completely agree with this but there is something else I feel. They have analysed the data to death, they can see that if this XEL Bentley setup was applied to their Bressay field then there will be significant savings. They will have checked and re-checked to come to this conclusion, as this is not a light decision to make. BUT and I feel this is a BIG BUT, you would not shelve the project and start again unless you were CERTAIN that you would be able to have access to the techniques used. They haven't gone and scrapped a field plan in the hope that they can guess how to achieve these rates, have they?? Surely not. If the XEL BOD had said that it's Top Secret and they were not going to let on how to do this then how could Statoil shelve the project?? They would only scrap it if they knew that they were certain that they were going to have access to the secret, surely?? But how have they got it?? I can only conclude that XEL are holding all the aces here, the value of their IP has been demonstrated by Statoil having made the giant leap of scrapping this field and now MUST ensure that they do not fail in obtaining the secret. If they don't get this hold of this technique then what do they do? Say oops sorry, we are going back to our original plan?? No idea what has been agreed behind the scenes but I can't see Statoil scrapping such a major project in the HOPE of obtaining the 'secrets', I believe that they have already secured them, they must have done!! My guess is that the full buyout has been agreed on, but the final act is dependent on DECC.
DECC has issued a letter of comfort to XER to confirm its support for the Field Development Plan ("FDP") for the Bentley field and is broadly satisfied with the phased development approach from a resource recovery perspective. This now leaves the formal approval of the FDP subject to funding and any amendments to the FDP that may be proposed by XER following the results of Phase 1ADECC has issued a letter of comfort to XER to confirm its support for the Field Development Plan ("FDP") for the Bentley field and is broadly satisfied with the phased development approach from a resource recovery perspective. This now leaves the formal approval of the FDP subject to funding and any amendments to the FDP that may be proposed by XER following the results of Phase 1A.
I had a browse through the Canadian exchange's copy of Xcites Q3 submission. I noticed they'd started some work on EOR studies. It's the first I've heard this? I don't know if everyone has seen the reports, and management comments. Mainly the same as the RNS but some additions 'ie' EOR. http://www.sedar.com/homepage_en.htm
Some snippets from the whole lot.
'Further expenditure has also been incurred on enhanced oil recovery studies, purchase of long-lead items, engineering and preparation for the next phase in the development of the Bentley field. Income from the sale of technical well data and of the sale of surplus oilfield equipment has offset this expenditure. Additions to Property, Plant and Equipment in the nine month period ended 30 September 2013 of £5,644,778 comprise principally the purchase of long-lead power generation equipment for the next phase of the Bentley field development, in addition to investment in new purchase ordering and invoice automation software in readiness for increased operational offshore activity.Until such time as the Department of Energy and Climate Change (“DECC”) approves the Group’s Field Development Plan (“FDP”) for Bentley, the accumulated costs to date in appraising the Bentley field remain within Exploration and Evaluation (“E&E”) assets. It is anticipated that upon approval by DECC of the FDP and the Group’s decision to commit to commercial production, the Group will undertake an impairment review prior to transferring the E&E assets carrying value within intangible assets into tangible Production Assets under the successful efforts standard accounting treatment for oil and gas development assets.'
From the reserves upgrade RNS "Finally, an updated Field Development Plan will be submitted to DECC in the coming months, which will reflect the results of the successful well test last year and the greater capacity of the first phase of development"
Draft FDP shows the new approach which is different from the one previously submitted to the DECC - 1a (Note no funding was in place when they issued the previous FDP)
" A formal Field Development Plan will only be submitted once the complete development package, including funding, is finalised"
Formal and final will only be submitted when funding is in place / this only takes a few days to approve by the time it gets to this point.
Sellhigh,,,,almost certainly unless someone ese comes in with a better offer....or maybe there already is a multi alliance offer ? think about it, the Bentley alliance already includes some big names like BP,,,imagine if BP, and Statoil invested ? they could use all there advantages and cost savings, spread the risk and all profit ! one thing is for sure, its qute because either the deal is almost done with Statoil or there is a lot of interested parties all wanting a slice of the cake ! And Buddy o excuses saying your old in your 50's....goodness me , that's when men are in their prime !
A lot of oil and mining companies are getting to the sort of levels where if we did get another boom-time on AIM there would be some very good profits to be made - even on some of the FTSE100 and 250 ones as well. It was easy back in 2010 and i think a lot of us have since learnt that it isn't always like that and you have to adapt to the ever changing market. ATB.
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