Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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27/09/16
Eog sold 3.34% Wressle for £600k cash giving mark to market valuation on remaining 30% of £5.4m.
The disposal rns came one day after the Wressle CPR.
Mark to market now with huge proppant squeeze success 3X or 4X
2X underwrites the current mcap.
New CPR is key - everything from Wressle has so far been big ticks for the greatly improved flowrate. Let’s not forget too that whatever it’s initial decline rate Crosby Warren is still producing and providing a nice little revenue stream after 35 years.
SO's description of 1,216 bopd as an optimum rate sounds really great, up to a point But it would have been even more helpful if he'd said how long he expected it to last. If it's anything like our Crosby Warren field - which is only about 10 km NW of Wressle - peak production lasted only about a year before there was a steep decline rate of about 50% over a 3 year period, as was seen in the early 1990's. IMO we need to see a significant reserve upgrade to give us a longer peak rate than Crosby Warren's.
I think the p’stone flags continues onto Broughton North 2km away from wressle, lots of work to be done, could be huge.
Thanks Grey,
SO describes the 1216 bopd as an optimum rate. Is he alluding to a reserves expansion in the near future? Cheers
Hi VernetLes.. Thanks for the reply. Your arithmetic certainly supports what you are saying, that 10% of Wressle could be worth £6 million. Don't forget, though, that the Ashover Grit reserves are only about 0.6 million barrels, which isn't big enough to support a 3 year plateau rate at 1,200 bopd because this would produce 1.3 million barrels over the period. By adding both the Wingfield and Pen'stone Flags oil we could perhaps get a further 1.7 million barrels with an extra well or two, but this won't happen overnight. Our adjacent Crosby Warren oil field has been producing at very low rates for the last 25 years of its 35 year life, and this is down from an initial flow rate of 700 bopd. If Wressle behaves in the same way it will have a huge impact on the net present value and, IMO, what a buyer might be prepared to pay. Even so, I feel that there's a lot of extra value to be found at Wressle, and this is why I'm invested. I'm also hoping that UJO's CPR work will confirm this with a much higher flow rate potential than at present, and with increased reserves.
Hi G.P
3years x £50 operating profit per barrel at 1200 bopf plateau rate
I expect Ujo have already been rebuffed for less than this including part shares.
Bgf have SO's feet to the fire is my best guess to ensure Wressle delivers for shareholders
Hi VernetLes. I do hope you're right as I've just increased my stake in EOG. How, though, did you calculate that 10% of Wressle was worth a minimum of £6 million? If it's just a"guesstimate" it sounds really great, but the market must be completely daft in that case. Let's hope so anyway, since the current market cap is only about £11 million
Leaving aside current production Ireland and Morocco, 10% of Wressle has to be a minimum of £6m value in my book. The read through company mcap should be £20m or about 4p
Dyor
Apologies - hit the wrong calculator button! Only £7m profit on 1000bopd, would need the full 1500bopd to roughly equal MCap in a year. Still not bad revenue from one asset and our other production will be highly profitable at these OP levels as well.
@Tovoc. At today’s oil price it would only take 1000bopd from Wressle for EOG to make more profit in a year than its current MCap!
It's now $91, at $91 Europa will be raking it in, we just need to be producing at our maximum estimates of between 1200 and 1500 bopb ASAP to benefit from the current oil rally which is predicted to go over $100.
IMHO
$90 dollar Brent
well over 4 months since UJO's Wressle RNS, surely the CPR should drop soon? "Leading energy consultancy, Gaffney Cline & Associates ("GaffneyCline") commissioned by Union Jack to prepare an updated Competent Persons Report"
I would like to think that given the recent news any percentage of wressle was not for sale unless to a very strong bidder. There’s a possibility it could be one of the most lucrative licences the uk has ever seen
Varadkar's statement is very encouraging. With regulatory sign off we should have little problem farming out both licences..the obvious JV partner being Vermillion at Corrib.
Have I missed something or is there a reason UJO had a cpr done on the licence for wressle?
Just listened to the Varadkar clip and it sounds like an unambiguous restatement that in the Irish Gov view current licences still stand and that if exploration in these licences discovers more gas it can be brought ashore - but they won’t be issuing more exploration licences because these probably wouldn’t be producing gas for 30-40 years. Based on this statement can’t see any grounds whatsoever for Minister Ryan not to sign off the various permits on his desk for our current licences. While politicians may speak with forked tongues, on the face of it this would look like Inishkea/Edge should be game on - although perhaps we may have to wait for the Energy Review to provide Ryan with some political cover.
@Mr BB. If that is an accurate summary of what Varadkar said then that’s fantastic news for EOG! Let’s hope we see more along those lines as it looks like serious politicians may now be willing to put their heads above the parapet to address the gas issue in Ireland. Come on Mr Ryan let’s hear your plans for managing the huge gas shortfall!
Just to remind everyone that all of the SP gains this week have come from people recognising the value in EOGs assets and not from any news release. We are still due a Wressle update on CPR, flow rates gas handling etc. The RNS last week was on the downhole pressure analysis from data taken in early December. Our last general operations update was 6 weeks ago and they had a lot of plans to upgrade gas handling and explore the potential for flowrates subsequently. Think good possibility for news next week - especially as it’s the Anniversary of first flows on the current Wressle operations - slow but sure!
Posted by Swizz on the other board(PVR forum).
Good news for all Irish explorers.
EU to keep 'green' gas and nuclear labels
“The EU Commission is going to stick to labelling gas and nuclear power as "green" in its taxonomy for investors, EU financial affairs commissioner Mairead McGuinness told German newspaper Frankfurter Allgemeine Zeitung Wednesday. "We may be able to tweak the proposal in one place or another to address some objections, but we actually have limited room for manoeuvre", she said, after Germany, among others, complained about the labelling decision.”
hTTps://euobserver.com/tickers/154213
An interesting exchange with Tánaiste Varadkar during leaders questions in the Dáil today, in relation to rising energy costs, EU inclusion of gas in the taxonomy and existing exploration licences, his response very much underlined that the Irish government will be supportive of existing licensing and if they do indeed result in gas being found, it will be brought ashore, hopefully the Providence board were watching!, …GL S
The timeline is 31.00 to 34.00
hTTps://twitter.com/i/broadcasts/1vOxwyPoDOWGB?t=27s
@Yanis We need a few more of this kind of trade. Great to see after a long time.
Oil heading up, gas heading up hopefully SP will continue to do so too!
IMHO
Plenty of sells mopped up today. Clearly a buyer in the market here. Hold for gold
1 mil buy at 2.19p and 10mil+ volume today.
Looks like the 2.0p resistance has been concurred. The rerate continues.
Slaw , the strong oil price fundamentals and an excellent Wressle result have transformed prospects here. Ride the wave is my approach.