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Many thanks holy, that's what I thought.
Cperkin, they raised £5 million for the two wells last year and both wells are definitely all funded through to production. In the 3rd Dec 2020 RNS they explicitly state: “The two wells proposed to be drilled in the First Phase are intended to further increase production and cashflow from West Rustavi and Block XIB”
Seems we are not so far apart holy ref BLOE at least. Do you know if the money for the 2 wells was for the drilling and completion to production? I have been caught out before with BOD claims after the fact that the well monies quoted was dry hole costs only....
Cperkin - The Scirocco comparison is not to do with delays with Ruvuma, I am talking about the £4.5 million from the Horse Hill sale that was supposedly ringfenced for acquiring other assets but instead disappeared into directors salaries, administrative expenses and consultancy fees over the next two years. This is what I am almost certain would happen with Block's funding for the second well if it is delayed for any significant time period. The money was raised last December to drill two wells and I expect it to be spent on drilling two wells and nothing else.
Personally, I think that Block must be fully funded for the second well. If they are not then that is it as far as I am concerned, I will not be putting any money in to any further raisings and will instead be calling for the wholesale replacement of the existing board as they will have completely betrayed our trust.
It is one thing for an oil drill to not go as planned (this is the nature of the game and we all know that some drills are successful, others are less successful and still others are complete dusters) but is a completely different thing for a company to raise money for two drills and then spunk all of the cash on one. I do not think that there is any chance that they have done this but it they did then it would have been a complete betrayal of shareholders trust and they should not be given the opportunity to drill again.
It is pretty simple from my point of view. If the BoD still have the money to drill the second well then they should be allowed to get on and do it but if they haven't they should step down and appoint someone with successful in-country drilling experience to take over and try again with new funds.
These two wells are the existing BoD's last chance as far as I am concerned. If they do not get a decent combined flow rate from the two wells then they have let shareholders down and should fall on their swords.
I would be interested to know how much the delays are costing the company? 200 employees are a lot of mouths to feed for a company running at a loss, I would have thought the chemicals should have arrived and can only hope that the 14 day lead time doesn’t turn into 3 or 4 weeks with global logistics still struggling.
Not sure holy that a comparison with SCIR is in any way useful, the delays there in terms of Ruvuma have been 100% due to the Tanzanian Gov, thankfully since the last president was voted out and the energy minister replaced this year it's all green lights there now.
I am not fully convinced that BLOE are fully funded and I expect to see a placing before year end especially without decent flows from WR-B1a despite what the board claim in their RNS, this well has already cost significantly more than was budget ($3 mill) exactly by how much we will have to wait and see.
Like you say lets hope we see 500 boepd sustained flows.
holyroller Excellent points, GL all.
My concern about changing the board after WR-B1a is that this may mean that the second well is never drilled. As we have both seen from our disastrous time at Scirocco, funds once received have a habit of simply disappearing into administrative expenses if they are left in any small cap company too long.
At Block, the company raised money last year to drill two wells and so we are fully funded to drill the second well. One thing I can guarantee is that if we waited around for 6 months while finding new management then that drill money would disappear into administrative costs and we would no longer be fully funded to drill the well.
Even if WR-B1a only produces 100 bopd then we should still drill the second well. If that one is also a failure then we should mobilise to get the board out and, as you say, replace them with an experienced team with Georgian operating experience.
Hopefully it will not be necessary though. Remember we could still end the two well drilling campaign with 700+ bopd flowing from the two wells and this would be worth around $20 million per annum in gross income which would leave us all be saying how well the company has done. Here’s hoping anyway.
Personally I would want to see a change post WR-B1a results and not wait any longer if it's a dud. If the well does not perform then you have to question both the business model and the ability of this BOD to act as operators. They would be better just buying production from an experience driller and operator and maintaining a non operator low G&A workforce.
Either that or dump the lot of them and bring in an experience team with previous successful operating experience in country.
I don’t mind waiting until the first week of December if they can turn this around and post some decent results by then. Hopefully we can also get the second and less risky well under way by then so the board will have at least delivered on their promise to drill two wells this year by then. Hopefully these will finally deliver us all with some good news.
If the neither of these wells deliver good news to us then we need to mobilise as private investors and get rid of the current board without letting the Scottish contingent get their hands on the company. Our assets have such potential there must be someone out there who can deliver the commercial production that we all want if the current lot cannot manage to do so.
From my point of view, if we do not get significant results from on or other of these two wells then it will be time to really make our feelings known and get rid of the current board.
1st week December seems about right, this well needs to flow at a sustainable production rate, no 1000 or 500 boepd initial results followed by a huge decline 3 months later. So better that they do it slow and careful imo. I have seen mixed results from such treatments in the past even where the chemicals have reduced the flow even further so the jury is out on this one till flows are published.
It was a month from completing the wellsite and access track construction at WRBA to spud.
The rig arrived on site ten days before spud if i recall.
If we say that prep work at JKT did not begin until the Q3 ops update was released, then we could be looking at a November 8th for spudding or thereabouts. That is on the basis that the prep work progresses at the same pace as WRBA.
it was four days to reach TD on the vertical in WRB1, then onto horizontal -Second casing point after a further month. drill ops complete sept 9th. eleven weeks from spud to drilling completion.
Aj's timelines seem good -
+a penny a share would be helpfull......
And are we expecting news on next drill spud imminently? Lots still to look forward to, you’d think we were a dead duck reading some of these posts. Fundraising is par for the course with early stage o and g firms. Hopefully we won’t need one if wrb1 flows anything like half decent.
Prolong as much as he (Paul) can right?
Only that the chems should really be on site now.........!
All the best (other than knock a week off ya thinkin......... :()
When does everyone think that we are going to get the updates on the results of the cleaning and the flow test of WR-B1a? My thoughts are that given that we had to wait for the chemicals to arrive, carry out the cleaning and then flow test for several days to check the rates that it will probably take until the end of the first week of November, with the chemicals hopefully arriving next week. Does anyone think differently?