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Hi Serif. I think the short (600 metre) gas pipeline is the best current option, although burning the gas on site to generate electricity, most of which would presumably be exported, is another option. It probably depend on where Egdon and the partners think that further development wells should best be drilled to maximise gas and oil recovery from the P'stone reservoir. Further wells might be needed at the Wressle site, or perhaps they already are considering additional sites., maybe such as Broughton guess no-one knows until they tell us about their next steps.
GP can you see an credible alternatives to a pipeline? With the other reservoirs to be brought on line being apparently more gassy, what else could work for them? I would hope they have already started the process of applying for permits, I can’t think why they wouldn’t as there seems no real loss in applying even if they later changed course for some reason.
Hi maytheforcework. IMO gas won't provide any short term cash for us. That's because before they can even start building the pipeline - if that's what they decide to do in the end - they must have all the planning consents / permits (such as from the NSTA, EA and North Lincs Council) all in place. I reckon this could take six months in total from when Egdon apply for them. So I don't personally expect any gas sales until late 2022 if we're lucky, or more like early 2023.
With the revenue that gas could provide immediately, they could build the pipeline backwards, that is from where it should finish back to wressle. That wouldn’t interfere with oil production, or is that a barmy way of doing it?
91% of cost allowed against production costs is one hell of an incentive to get started today.
Biker888 and SlawekT
First 6 month they made £0.7m profit, with oil at over $100 2n half they are likely to make over £1m profit, they have around £7.5m in the bank and they only have mkt cap of 22m.
Serenity is appraisal well even with that potential they should be above.
The overhang of the placing should be clear, but appears there is a seller in the background.
Tacuma,
Thanks for the reply and I fully sympathise with what you are saying. I think I now know who you mean.
@ Yaris. Hi, lets see what reply's turn up from this one, you'll soon work it out. It's a little bit negative with an upside of optimism.
When I came here there were about 200 million shares in issue, now almost a billion, we have had a disastrous run of failures and poor acquisitions. Romania, France, Holmwood, Southern North Sea, several in the Porcupine basin, Padraig and one on the Slyne basin.
Investors have long memories and watch these things carefully. Our only claim to fame is the fact that we have a stake in somebody else's success. Some of that we sold some time ago.
With this kind of history, I'm not a bit surprised why we are still dragging along the bottom. In saying that , I have to believe that like the proverbial oil tanker, it takes a long time to slow down and then turn the corner.
I still have a considerable stake here and still believe that it will come to fruition although I have hived off quite a large holding elsewhere. I posted that I would if we reached 3p or above.
I not only have a sizeable sum invested here financially but I also have some kind of emotional attachment which is ridiculous I know.. Europa and I go back a long way.
The point is Yaris, I really don't want some clueless oik lecturing me about posting negative comments, let alone the abusive and abrasive attacks verbally. This chat board is just not that kind of place at all.
Nuff said, Good luck all LTH's as usual.
Surely it’s just the impact of the 390 million new shares. Must be all but gone through now, but seeing the money Egdon have accumulated it is very frustrating that our Board didn’t try to lessen the full dilution for Serenity by using revenue more actively. Maybe if someone can make the pub event they might ask them what has been the advantage of not doing so for shareholders?
Very good question M1, I am also puzzled why this SP still remain around 2p levels. This should easy trade above 3p by now...
Why is this trading so low?
Tacuma,
Who is “Rudey’s apprentice”?
just dropped in to see what's going on . saw that Rudey's apprentice is still posting and its off to the back of the cave for me.
GLA as usual.
'I don’t think that what GP highlighted is a negative. Flared gas is lost revenue'
Yeah, that makes sense.
SelfishMcNimby, I don’t think that what GP highlighted is a negative. Flared gas is lost revenue. I don’t know if they are considering at least gas to wire, anybody knows?
Let's face it GP, you like to highlight the negatives - ' I was highlighting the fact that a lot of value is being lost'
Since there's F all the company can do to speed the process up, it seems pointless in referring to it as a loss. It's simply a fact, and highlights how much more value there will be in the future. So, it's a POSITIVE.
@GP I didn't realise how important and valuable the GAS by product was. That's great news for our future, but sad we are flaring the gas. I'm amazed the government and its institutions that licence/issue permits take so long when this precious gas is so badly needed especially now. This will be a great source of additional revenue hopefully by Q3.
Wressle just has so much potential and keeps on giving.
We are closer to the light at the end of the tunnel then ever before! :-)
"This time next year we'll be millionaires!"
IMHO
Hi Selfish. I wasn't saying, or even suggesting I hope, that Wressle should be shut in as that could result in many months of lost income before the gas pipeline is in place. As you suggest, I was highlighting the fact that a lot of value is being lost. With oil currently at $114 per bbl and UK gas at 160p per therm, the oil is worth about £68,400 per day on a gross basis, and the flared gas could be worth maybe £6,560. So around 9% of their combined value is being lost. This is regrettable when the UK could do with the gas, small though it is.
Surely it's best to sell the oil at guaranteed high prices, rather than shut down the operation in order to wait for the gas pipeline to be installed and risk the oil price dropping in the meantime, GP? I'm not even sure they can just turn it off and turn it back on again when it suits. What do you suggest, GP?
Or are you simply trying to highlight just how much more value there will be to Europa shareholders once the gas issue is resolved? If so, don't forget the sharp increase there will then be in oil and gas production - possibly twice what it currently is.
If Wressle's GOR (gas / oil ratio) is still about 550 cu. ft per barrel and Egdon is currently flowing the well at about 750 bopd, then we are flaring / wasting over 410,000 cu. ft of gas per day. This is about 4,100 therms and, at the current UK gas price of 160p / therm, that's about £6,560 per day (gross) going up in smoke. I wonder how long it will take to get this matter resolved. Our share is about £2,000 / day, which is enough to pay a few salaries!