Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Buzz,
The pressure doesn’t make sense. Yes, pressure and heat have been the problems or should I say, getting the right mud balance to deal with pressure. As we know, historic drilling has been with heavier muds using Barite and net result has been a loss of drilling fluids into the reservoir hence the blockages to date.
We know that A5 has flowed at 3800bopd on a 10mm choke before reducing down to 1000bopd on a 4mm choke. Drilling fluids being the reason for loss of pressure and then lost metal bits, Clive’s packed lunch etc.
I suspect that it’s the same problem as all the other wells ie lost drilling fluids leading to a loss of pressure or it could be being managed very carefully on a small choke but at 120bopd, that’s very low so I suspect it’s the same problem. Interesting to see Clive saying that the initial results are encouraging so hopefully Shin is managing the process.
As already stated, such a low key RNS and obviously forgot about barge, latest shallow spuds, A7, 802 and 3AB !
Crude prices may not be helping sp but the cash is building and they have a hectic year on the operational front planned. So much to report on and all of it will have a material effect on sp. 3.75p ???, I really don’t get it.
" A5 had 3,800 bopd when it was flowing in its natural state, before the pressure became too much to manage. It is just a question of timing and investment to get this and the other deeps up and running. The share price is heavily discounted because of these difficulties. "
Can some one explain to a layman (moi) how too much pressure can stop the well flowing, it seems counter intuitive and what are the solutions if any?
Thanks.
Investeg - agreed.
Now go back to the 2018 Red Bus Presentation, look at the drills.
Then look at Kuat and Clives bonus structure when there are 3 B shares in issue and the SP is at 17p.
The share price was 10p and oil between $43 - $73.
They were existing off of oil traders and Kuats money.
Why would they have needed to issue another Billion shares ?
What would have driven the SP to 17p in their minds ?
The world has changed since then, they now have the cash flow coming from MJF and not the expected route of Airshagyl, oil price is higher and set to stay that way for the next 5 - 10 years, it is cash flow positive for general development and debt fundable for the larger drill and pipeline costs.
They also own 3AB now that Kuats Father has passed away has been divided up between Kuat, Kairat (now Al Mahri ) and Raushan, plus the boat and the upper structure at South Yelemes.
Note that 3AB acreage surrounds and covers anything under 2500 metres at the Total field, 85% owned- Kauts family have held and owned it for years they understand it would have value at some point, Total have recently announced they have fully expanded into that field.
South Yelemes has an upper structure and will also be horizontally drilled.
What is different now is that they have the horizontal drill technology, they own their own fleet of rigs and ancillary vehicles.
MJF is a powerhouse, a set of mini deeps that has removed the requirement to confetti print more shares.
There is no longer a requirement to print another 1B shares, at some point the market sees the proof it wants from drill success and tax receipts, understands there is no more dilution and sees the carrot of dividends appear in a frame work agreement and this goes on another long leg up.
It isn't 17p anymore either.
Until that point I hope it slides back into the 2's.
Agree with this CC, the deeps have established there is oil down there of high quality and significant volumes, however, the difficulties of extraction, given the high pressure, depth and complexities may ultimately require one of the big boys to come in and put in the investment to overcome the obstacles to get it out. A5 had 3,800 bopd when it was flowing in its natural state, before the pressure became too much to manage. It is just a question of timing and investment to get this and the other deeps up and running. The share price is heavily discounted because of these difficulties. The company needs to continue with its infill program on MJF, continue to increase production from horizontal drilling on SY and MJF and start to invest in additional storage facilities and pipelines to existing transportation routes to access the international export routes. The company has achieved self financing from early production without farming out any of its interest in the BNG licence and without any debt finance and is now in a position to drill further wells with its own drilling rigs and sell oil at higher oil prices to the export market. Only 2 remaining deeps still have to be drilled under the existing licence obligations, so all very much acheiveable. The company has committed to pay dividends from cashflow and profits generated in the near future, which is now a feasible option for management, this will be balanced by the need to invest funds in developing the MJF and SY fields and drilling of additional deeps and other acquisitions the company may identify in the coming years. Exciting times ahead.
You might as well discount the deeps as A8 is possibly blocked liked A5, A6, 801 and the original A8 drill were, they were only running 100 bopd at the end ( if at all ) .... coming from three miles under the earths surface and all it can produce is 120 BOPD ... that's the pressure and drilling mud playing its tricks again ...
Covid and security restrictions the Dutch acid might be months away, the last batch of acid was delayed for weeks at the border due to this ....
That's a positive in a funny way as it might make them focus on MJF and others will be selling off to weaken the SP for us to buy back in as and when ...
Suppose if you were to start scaling back in at around here it wouldn't be too sad.
Discount the deeps, cross off the boat rental, give away 3AB, ignore 3AB.
Call MJF only 6000 bopd.
70 % @ 4200 bopd @ $40 = $168,000
30% @ 1800 bopd @ $20 - 36,000.00
total $204,000.00 x 340 days $69,360,000
Where's that flag gone ....
Mr C ...
Yes it was on the news I watched it .... Armageddon avoided
cc - You swing like a flag in the breeze ! One minute its Armageddon next minute its a buy buy buy !
UN,
I'm already in lower so no need to try.
As i've said at 2p I hit go, if it doesn't hit then it doesn't matter, otherwise I have my pot i've built since 2011... you aren't going to worry about those 10 shares i've amassed are you ?
So you are trying to get back in lower FF!
Few Pi's selling in dribs and drabs and saying they are fed up with CASP.
Why sell in small amounts when you can clear them out in the hundreds of thousands ?
This will be back at 3p soon .... then the 2's ....