London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The last few days everyone seems to be selling which is odd considering news could be at any time.
Hi Faz
For the sp to get to that figure a 20m + target will need to be tested and reserves confirmed
Only way we will do that if we farm it out or Prd find the $4.2m which the more I look at it is doubtful
If Prd paid Cerp from revenues it would take 400 days at 350bopd and leave nothing for them
Hi Willec,
Love your enthusiasm..but I think we have quite a few bridges to cross before 21.6p gets a look.. LK is well renounce for his eagle eye on deal making. I’m sure this will come good soon. I hope by Easter we will see massive rises in the SP..
patience required
.. faz
Will have to see who they will be participating their next target with and the arrangement they can conclude.
Also bare in mind Prd actually have no workforce. Fram employees are carrying out this work and will in fact be gaining experience to continue Co2 if Cerp deem it plausible. And Cerp are assisting with the design and planning. All useful information. Prd only have a rolling HOA for excess Co2 but if they ain’t using it I’m sure it would be made available to others. If they choose not to take up the offer of ownership of Fram from Cerp.
Personally I can see Innis going to PRD on a successful first stage trial, I can’t see them investing cash into a second stage project to then hand 50% of the profit to a third party... they’ll end up investing all their generated cash flow.
It’s a heavily produced field that’s experienced an extensive water flood hence why it’s ideal for CO2. I believe the opportunities for CERP are limited on this field but like a glove for PRD.
I assume the predicted price of 21.6p by end of Dec 2020 does not include a successful well at Saffron and Trinity, so the estimated prediction on successfull outcome here well mean a big rerating by VSA in sp.
Hi Garnheim
I doubt if any estimated figures would be added to the assets last September
ATB:))
Wasn’t it said that VSA would compile a new research note on completion of a successful result from Saffron. I guess a new share price target too. The probabilities and confidence on geophysicist reports should also improve along with prospect probabilities.
September financial report shows the current assets and liabilities and those figures used to work a Nav figure out since then more shares have been issued reducing the Nav.
Innis reserve figures are inconclusive and once the pilot is underway Prd are down to get new reserve figures when the repressurisation has occurred .
The total assets on Innis will not make that much difference to the total as of last September
A 50/50 jv will still leave the reserves with Cerp
The full EOR with a successful CO2 should increase the reserves from 8.9-15m barrels recoverable according to Prd including the pilot
So what you are basically saying Innis is at this price of 2.60p - 2.70p nothing what so ever has been priced in even though we have been producing for months now. Any kind of find thiis could be x3 or x 5 over night could it???????????????????
Prd have started pumping CO2 down the 4 injector wells on the AT4 block and the first tranche has been injected. What tranche means I can only assume to be a wagon load.
They are paying for all surface installations needed for the CO2 injection and the CO2. Upto a max of $800,000.
As far as I know this didn't include the well workovers completed last year.
Cerp would have still been receiving the revenues from the 150 bopd from the whole field ( not Prd ) and are still receiving them from the rest of the field and paying the costs and taxes.
Prd costs are capped at $10 per barrel. Does that mean Cerp are liable if anymore???
Prd have budgeted for $800,000 for the pilot and their costs have come in at $200,000 less due the experts saying that less CO2 is required to get the required pressures. They are intending to use those savings on the full EOR.
Will they still be taking revenues from the production to cover this cost ????
Cerp Nav is around 2.7p without any prospects . From Sep figures
Prd Nav is around 0.1p according to their Dec figures
Prd had £987,000 in cash in Dec
To get to $4.2m to buy Innis that would be 3.8p per share. I can only see a huge dilution coming there.
Cerp need the CO2 EOR and therefore Prd.
Prd will be spending their funds in Morocco.
I can't see this payment happening, the best thing in my opinion is a 50/50 split and Cerp still having ownership of the reserves
The pilot could be producing 350bopd for the next few years and the full EOR even more
As they're working well together why not get together and sort Snowcap out.
Just my thoughts on a complex deal