The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Irene AKA LLL, your comments would be more meaningful if you explained why 99.8% of your posting histories are on a share you're clearly are not invested in( yes I've stalked your posting history, no I don't believe you're a women and fancy you) Never reported anyone yet and don't ever intend to as prefer an honest adult discussion, are you up for that?
the answer is simple: they will wait until WTI return to much higher levels.
Cheers Bamps, just maybe we'll be a whole lot wiser to a range of topics come next week if LK can emerge from his deep sulk.
Hi Obadhia, mossma
I appreciate the original economics were probably worked out at a higher WTI but from the Cerp presentation Innis would produce revenues of only $30 due to spt etc so there is not much wriggle room.
The original estimate for the pilot was $800,000 and a 30% saving has brought it down to $600k.
If the Herarra 2 zone is at my low estimate of reserves then the recoverable reserves will only just cover the $600k costs
Cerp will only gain if they buy it from us even at a lower sum, then that money used on Saffron where the fiscal regime will make us more profit than Innis.
Thechancer asked about a merger, I hope not, the Moroccan venture with Sound cost me, the sandstones can get very tight with a Darcy less than 1 and I would exit here if they did merge.
If there is a merger- I'm just throwing in for discussion "Echo" just a thought, that looks more Leo than Prd.
Hi Bamps, appreciate all your fiscal workings but Innis viability costings wouldn't have been done at $25 WTI., by all accounts it's a temporary dip.
I would hope that at a more realistic $45 the whole project produces really worthwhile returns to both parties.
Bamps, the original estimated costs of $600,000 might be lower than expected, allowing for some wriggle room and the PRD statement regarding commercial viability, just a thought.
Also, it is worth bearing in mind that PRD have been asked to carry out other projects in Trinidad, so I can see that the PRD chairman might be talking up his business model as a low oil price option to other oilers in Trinidad.
back up to $25.89 and showing strength - hope for good meetings over the weekend
Today's oil price is $25.49
From Prd website Innis has 89m barrels of reserves they are saying that CO2 could retrieve 17%, so that's 15,130,000 barrels on the whole of Innis. The pilot area is targeting 10% of that =1,513,000 recoverable barrels less 10% that will not be retrieved = 1,361,700
This was from 5 zones in the Herarra sands, it was decided that Herarra 2 zone was the best for the injection of CO2, I have not found how much they are targeting.
I have in my notes the original pilot would have 90,000 recoverable barrels less 10% not retrievable but it looks like it maybe more than that from the above figures.
On today's price to get back their costs of $600,000 they would need $7.4 per barrel if there are 81,000 recoverable barrels or at a higher figure of say 200,000 they would need $3
$10 lifting costs and 22.5% taxes @ $5.74
At 81,000 barrels costs =$21.14
At200,000 barrels costs =$18.74
At the higher level there is only $6.65 per barrel profit to go towards the full pilot and if they have to pay Cerp 50%= $3.32
Is it viable I'm not convinced yet