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KK
3AB they've given 15% away for one deep drill - guess however that is dealt with will be the pointer for BNG, plus point is that Total etc are already tied in with the Kazak Government at Dunga so there may be some flexibility.
So in a big circle that could give another pointer to the dividend framework agreement,
Step one - pump the shareprice via increased production and announcement of a large dividend payment.
Step two - placing.
Nothing to stop them doing a placing and diluting KK and nothing stopping a concert party of multinationals hoovering up the whole of the placing to get their foot in the doo and provide the cash and expertise for multiple drills ?
KK.
If they hit in the Devonian they could debt fund the first well, thereafter at 2k bopd + the field becomes self financing whilst oil stays above $40 international and $10 local. We know that $30 is their breakeven point and below that they need funding ( RNS ).
The easier route is to farm in a multinational or two and sit back and wait for the remainder to be bought out or paid dividends from mass production, but this may give them problems.
Problem with farms in's etc is the sub soil users agreement, a sale transfer can only be accomplished if the owner (Caspian Sunrise Plc ) holds a 99% or greater of the whole field.
Link this in with the Dubai tax vehicle and concert parties tax vehicles after the demerger from the concert party all being in Baverstock and they would lose this carefully constructed tax advantage by selling any part of their share holding below 99%.
The ruling is that under 99% they have to apply to the Government to be able to sell the field and send the money offshore and it can be blocked or redirected, at 99% and above they have autonomy to sell the whole package, for that reason I would expect them to develop the fields and sell off in one transaction which noting their tax implication court failure may have to be MJF, S.Y and BNG as it is viewed now as one block with no further recourse to appeal.
Re: oil in the Devonian, either the whole of that land is awash with oil and they can drill anywhere and strike oil or their seismic interpretation of the geology is very, very good.
That’s my biggest bug bear and they have to improve communication if they were to ever move from AIM. Agree, WHI are useless when notified that communication is wrong and Mr Umbetov must be on the payroll !
I don’t believe they get to become a huge O&E company as they’ll be absorbed by one of the big boys with KMG being part of the game. The costs to develop the elephant fields is immense and only a game for the largest players.
Imagine them landing the first commercial we’ll in the Devonian......lol. Where’s the oil going. A 5kbopd gusher and a couple of containers up top.......lol . If and it is IF, they found a large field, they’d have to prove it up with appraisals before sale, they’d have all the infrastructure costs etc so would have to be funded. Still possible with 3AB landing or barge sale but how long will they stay independent.
Nice problem to have but nothing wrong with a little dreaming. As far as we know there’s oil at Airshagyl down to 5300m. It’s unexplored and until they drill it we can hope that they find oil and can commercialise it.
Somm, you’re not the only one who’d be multi, most of the investor base would be .
Somm,
depends which RNS we are meant to use to calculate the likely results date, they really are useless with details, their Nomad isn't up too much either, WH Ireland, Nominated Adviser & Broker.
Would expect Mr Shin to have smartened up on these RNS and provided Clive with the correct date to report, or this guy who is mentioned in every RNS as a Qualified person:
Mr. Asslybek Umbetov, a member Association of Petroleum Engineers, has reviewed and approved the technical disclosures in this announcement.
Contradictions in RNS
6 or 8 wells producing ? ( new well +1 noted )
Spud date for well 154, 8th or 26th April ?
8th April 2021:
Note the slightly shorter drill depth quoted of 2400 for well 153 than the 2548 for well 154, but as per their contradictions in other data and the Clive 'isn't technical' caveat who knows ?
The Board is also pleased to report a new shallow well, 154, has been spudded on the MJF structure with a planned Total Depth of 2,200 meters. The well is expected to take 2 months to drill and if successful should be able to produce towards the end of Q2 2021.
Additionally, management are considering the use of horizontal drilling on the MJF structure to further increase production.
21st September 2021:
Well 154, which was spudded on 26th April 2021, and completed in July 2021 with a Total Depth of 2,548 meters. This was the first of our wells to utilise horizontal drilling techniques, with the final 200 meters of the well drilled horizontally within the reservoir unit.
21st Sept 2021:
At 30 June 2021, there were 9 wells drilled on the structure of which 6 were producing. The key development during the period was at Well 154, which was spudded on 26th April 2021, and completed in July 2021 with a Total Depth of 2,548 meters. This was the first of our wells to utilise horizontal drilling techniques, with the final 200 meters of the well drilled horizontally within the reservoir unit.
We are using the same horizontal drilling technique at Well 153 and at the date of this report have re-drilled approximately 2,200 meters of the total planned of 2,400. The final 200 meters will be drilled horizontally into the reservoir unit.
6th Aug 2021:
Operational update
Production from the BNG Contract Area is currently running at the rate of 1,950 bopd, with 100% coming from 8 wells on the MJF structure. Included in this production is a contribution from New Well 154 of approximately 700 bopd.
A5 - Note they also say in RNS there is a shortage of drilling equip in country as the reason for further workover rig purchase and have prev advised due to shortage of drill pipes they needed to perform one well at a time and have taken them on and off of A5 on prev occasions so not including A5 in the expected schedule of works for 2021..
Airshagyl
At Deep Well A5 we plan to drill a new side-track at this well from a depth of 3,850 meters to 4,500 meters commencing in October 2021, provi