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"May see this as a downbeat post", since when do you post anything but
Quite sure the operator Selva Maria Oil know their stuff, no doubr ranger will be along in a minute to agree
I do remember addressing the issue of bringing wells back into production many moons ago.
Some thought that I was being negative.
The reality is like ranger104uk says, that operationally the outcome will be mixed.
Where the results are good or even great, Dr Bessa will proclaim success from the rooftops.
But at the other end of the spectrum, we may even lose some wells; where the cost (operational / workover rig time) exceeds the future potential production.
As a lesson in how things can go catastrophically wrong, I do remember one oil well that did not produce one litre of hydrocarbons that cost many, many millions of £'s before being abandoned.
Given that we shut these oil producers in as a deliberate program, one can only hope that wax inhibitor or even diesel was employed to keep lines free and operable to enable a successful restart of production. We shall see.
The imperative will be to open up in a considered way, rushing like a bull at a gate will achieve much less.
WT
Agree but ultimately it will be incremental income to the company so in my mind all good as this will surely grow in terms of the output that they can exploit from these wells.
Don't expect these wells to come back online like opening a tap.
Some might have pressure build up but some may have stayed the same or decreased some my require intervention as in workovers (yes them elusive things again) as fractures will have waxed up over the period.
May see this as a downbeat post but a realistic one, we all will be hoping for pressure increasing just be cautious in our expectations.
More from the Interoil RNS when they bought their 8.4% interest in SCS.
Facts about the Santa Cruz Assets
- The Santa Cruz Assets consist of 12 oil and gas fields with significant production from Upper Jurassic Tobifera and Lower Cretaceous Springhill.
- There are 83 wells in the Santa Cruz Assets, including 72 producers and 11 water injectors.
- There are no pending exploration investment commitments agreed for the respective licenses, and capex requirements for 2020 are expected to be low.
- Significant potential to further increase production including through a program of new drillings and workovers.
- Upcoming Campo Limite exploration well (CLi-x1001) providing potential upside.
- The other license holders are Echo Parties, which are subsidiaries of Echo, a company listed in the London Stock Exchange AIM, that recently, in a separate transaction, acquired a 70 per cent interest in the Santa Cruz Assets from Phoenix Global Resources, and IOG Resources S.A., a subsidiary of Integra Oil & Gas which acquired 21.66 per cent from Roch.
- Selva Maria Oil will be appointed operator until Interoil has been granted the operator licence from the Argentinian government.
Link to the RNS below. Great shame we must depend on information from a junior partners website.
https://www.interoil.no/?page_id=13&year=2020&PressReleaseID=2229418
WT
I spent some time doing business consultancy work investigating failing companies mostly franchises but also small O & G companies. It is surprisingly easy to buy or have on your books non existent assets that you get billed for and pay to have serviced or repaired. A very easy way of offloading funds.
So yes the likes of the gas compressors comes to mind, all they need to say is they are making a saving by buying them. money goes out for the purchase, then money goes out for service or replacement items. nobody really knows as Echo probably haven't even seen it if it is there.
Simples
Maybe we should set up a crowdfunder and direct the funds to Interoil so they could mount a takeover for the 70% Echo holds. They seem to be doing a better job of communicating with Echo's shareholders, than Echo are.
Maybe we should set up a crowdfunder and direct the funds to Interoil so they could mount a takeover for the 70% Echo holds. They seem to be doing a better job of communicating with Echo's shareholders, than Echo are.
WT, speaking of how many wells we have i find it strange our junior partner (interoil) state the Santa Cruz sur as follows, (Chorillos, Campo Bremen, Ocèano and Moy Aike) consist of 13 producing fields with 42 oil wells and 30 gas wells, this is at odds with MH / ECHO summary as stated in the last question & evasion session.
Interoil info can be found at the below link.
https://www.interoil.no/?page_id=7
Agree WT, I want to see what we own and where.
Would it not be great to see regular images of work progressing on infrastructure and Workovers?
For all we know could be all pie in the sky!
I remember when there was an investor trip out there, I didn’t go, they did not take them to our drill site but somewhere else.
This should be our company brochure.
Not flashy or money ill-spent, but hard information that informs what we have in place - today!!
It should describe what our oil and gas wells are, within the fields where they are they located.
It should show maps of our gas and oil fields and the various pipelines.
It should show where trucks are used to transport our oil.
It should have photographs of our recently purchased gas compressors.
There should be a photograph of our workover rig.
And photo's of the oil export terminal.
And information of the gas and oil flow rates.
Is this too much to ask, after all we are ONLY the people who own the assets that our company management operate on our behalf.
This surely is a case of the tail wagging the dog, rather than the other way round.
And it is not as if we have no cash, we spend it on salaries - so let us see it spent on behalf of the long suffering shareholders and attracting new shareholders in?
Once, prospective new investors can get a glimpse of what they are buying into, they just might write a cheque.
At the moment we just look like a bunch of amateurs.
It is this sort of issue that our discredited Chairman should be addressing on our collective behalf.
The notion of extracting one's digit, springs to mind!!
WT