George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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We are still in a bit of a pickle. Its sounds great to have someone like Exxon jump in and take over but Exxon has a lot on their plate, plenty of targeted sites on their current blocks to keep them busy for a long time. Any completely new player that jumps in to take lead should also want to spend time completely re-analyzing all the data. But also someone like an Exxon or Hes may be looking at how can a drill in Orinduik also help me in my other blocks. Unfortunately I see more delay. :(
Exactly. An averge of one well per quarter for 13 quarters, and that's just for Canje! Quite phenomenal for ECO and WTE, yet the penny still doesn't appear to have dropped with investors. Too busy salivating over EUA and altcoins.
Thinking if Exxon took operator-ship of Orinduik it would make perfect sense (if Hammerhead is still a valid FPSO target). Take a look at the Macro fossil fuel situation now! Positive for Guyana-Suriname basin.
But dont forget eco is exposed to 13 wells in canje in the next 3 years as well, and working on further exposure that if i read the map correctly is in kaieteur.
Great input, made me recheck my self.
Contacted gil to be sure we have the right data.
So the two teriatery wells means they completed their first period commitments and the next well is to be drilled by 2026.
That explains the low sp as the market considers the worst case scenario of no drill on orinduik for 3.5 years.
Its all up to tlw farming out now.
GLA
My reading of the Orinduik contract is that no well was required during initial 4 year phase ending Jan 2020, one exploration well is required between Jan 2020 and Jan 2023 and one more between Jan 2023 and 2026. TLW exceeded the initial period requirements by drilling two wells in the initial period when none were required, but the obligation to drill one by 2023 and another by 2026 remains.
https://oilnow.gy/tullow-eco-petroleum-contract/
Will come down to price Tullow want. Their balance sheet is still constrained so they will want upside and full carry. They probably need to do 2 drills on Orinduik and Kanukku at c.$65m cost per licence. Cant see TQP being happy for other.operator to take Orinduik. Imagine Africa oil would be keen to sign up to a split across partners of exploration costs.
Now Tullow have said it, at least partners know what they want to progress.
Do you really anticipate they will do the bare minimum, because I certainly don't. I expect everyone is pressuring TLW to get on with it, government included. Unlike the UK North Sea with hundreds of licences, Guyana barley has a dozen and only half of those are as advanced as Orinduik. Government and industry seem keen to put as many barrels on the books as rapidly as possible so either TLW gets on with it or they will be put under great pressure to move aside or reduce their stake IMO.
If the project maturation work is now done then TLW is at the right stage to farm down its Orinduik interest. I will not be surprised to see two or three wells announced for starters as soon as that is done. Note that Exxon is blowing the minimum requirements out of the water on both Stabroek and Canje. There are several very large cretaceous prospects in the north east quadrant of Orinduik near to Liza and very close to Hammerhead. If I recall correctly, one drill could target three stacked prospects totaling well over one billion barrels. I'm pretty sure plenty of industry participants will be itching to have a go at that given the track record of the area.
I am certain there will be a farm down and the Cretaceous will get drilled out on Orinduik. The only question is when the farm down occurs. Given the huge prospectivity and rate of drilling in the area, I expect it will be sooner rather than later. Important not to be out when news finally hits as this will unlock the door for ECO.
GLA
Harel:
You wrote:
"They are commited to drill the next well in orinduik no later then november 2022, so its just a metter of time for an official drilling update.
If tlw is to farm out then they wouldnt want to do it with their back against the wall, so i guess it wont be long now.."
where did you get the timeline to drill a well from?
I understand the there is not obligation to drill a well in Orinduik until June 2.026 (the date of the end of the petroleum license´s 2nd renewal period).
See most recent MD&A report (page 10):
"As of the date hereof, the remaining Exploration activities and the aggregate expenditure of such activities as estimated by management based on current costs for the Guyana License is as follows:
Exploration Activities Expenditure US$ Company’s share of Expenditure US$
By June 2026
• 2nd renewal period – Drill one further exploration well (contingent)"
Regards
Fernan