Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Even though it is in a different sector, it underlines my case - which I've made on LSE before - that it is simply impossible to predict when a share price going to take off.
60% of the total gain in the last year but in a completely different field that would be perceived to be not as high risk as the O&g arena.
In reality,the O&g business is completely out of favour.
Anyone with funds to deploy today would look elsewhere, however it's not that simple.
As the article I referenced yesterday highlights,there will be outsized winner s out of the energy transition.The LNG business seems to have a decent future if the experts out there are correct, especially if you are in close proximity to Asia.
The Aus government seem to agree and have put their money where their mouths are.
Not only is it an important industry in Australia,it gives energy security down the road.
No one wants to be caught paying the exorbitant prices paid over the last few months for lng cargos, on a regular basis,down the road.
As a matter of interest: how long did it take for the other distressed asset's share price to take off?
Long knife,the journey gets a lot more interesting from here.While I have downplayed this year's work,that would all change if we get a decent flow test from the kyalla.Look where the share price was last Nov before we know the problems they were having.
If that flow test is successful,I believe the share price will never see these levels again.If it isn't showing promise,then we will be waiting until later this year obviously,and the velkerri works.
I don't want to upset green lantern but honestly, anyone expecting anything less than two years until we see a possible exit will be seriously disappointed.Yes,it's frustrating but the budget available should give us max bang for our buck when a sale eventually arrives and to be fair to origin,the are spending the available budget in a considered manner albeit appearing to be painfully slow.I don't want this sold until every available dollar has been used to maximize my investment.I have waited 9 yrs , another 2/2.5 yrs will be ok.
The frustrations will subside if we see a rising share price and hopefully the flow test is the beginning of that.
Personally,I have been buying at these prices incase the kyalla "surprises "me ....in my own head I am expecting the worst but like newtofo,have a feeling it might surprise given it is at least flowing and there may be a solution found in the interim.
Finally,9 yrs ago I split some funds between this and another "distressed"asset, which falcon was essentially back then.The other asset is now 900%higher...... don't talk to me about frustrating.I could have been all in on the successful investment back then and have bought falcon today at a lower price than I did back then.
That's frustration!
Keep the faith.
I hope you’re right but this has been “2 years away” since I got into it. Also, you’re right. Almost 1/3 of the year is shot and I don’t know that anything has been accomplished. Hopefully they are ready to try the best of the 10 ideas they came up w to get the Kyalla to flow.
A good reminder Sneakysnake -- on the potential bonus from Santos drilling their two planned horizontals next door to the Amungee well. For any that have forgotten the phenomenal results that Santos achieved from just "a vertical well" at the Tanumbirini #1 well in the mid-Velkerri -- here is a clip from the Financial News:
At the McArthur Basin project, Santos said production testing at the Tanumbirini-1 well yielded results that "significantly" exceeded expectations. Gas flowed at an initial peak rate of 10 million cubic feet a day and averaged 1.5 million cubic feet a day during the first nine days of testing.
"The recent test results provide further confidence there is potential to achieve economic flow rates from multi-stage horizontal wells," it said.
Santos and Tamboran plan to drill and frack horizontal wells at the site this year.
From the Katherine Times reported in January or 2020:
The Santos Tanumbirini-1 well has been drilled vertically almost four kilometres deep, and had been previously drilled during early exploration in 2013.
Santos returned to the Tanumbirini-1 well in November to continue the test "of the significant resource potential of the onshore McArthur Basin (Beetaloo Sub-basin)".
The company said it had a four-stage stimulation (fracking) program at the previously drilled "vertical" well.
"Production testing is ongoing, with test results confirming a gas discovery in the Middle Velkerri shale gas play," Santos said.
"Gas flow rates of rates of over 1.5 mmscf/d (million cubic feet per day) have been recorded, exceeding initial expectations for the vertical well.
"Preliminary gas composition analysis indicates 90% methane, less than 5% total inert content and 3% ethane.
Theedgemarketing article
"Brent crude oil prices could fall to 10 USD if Paris agreement targets met"
Itguy
Good to see some action.
Many seem to ignore the impact our neighbour s will have on our operation.
You will recall UBS highlighting the value uplift we get from Santos or others showing "proof of concept "across the Beetaloo given the vast pervasiveness of similar shale.That is as important for 2021 as our work programme which is if anything a little underwhelming but valuable all the same.
I am here 9 yrs having been told at the time it was a 10 yr investment.I can understand people wanting out but by the end of 2022,this will look a whole lot different, especially when we have a few 3km horizontal s behind us and Santos have confirmed their initial findings.On a separate note,
Re the future of crude and LNG,there is a very worthwhile read on "theedgemarkets.com re how things shake out over the next few decades to 2050.
The future for lng and dry gas pricing is very bright if wood Mac are near the mark.
At the moment,imported LNG prices based on Henry hub pricing,re gasification, transport etc is in excess of 8 Aus dollars.
That does not allow for onward distribution after re gasification etc let alone the unknowable cost of energy security to Australia.
Finally,it is disappointing given Monday is April 19th that we haven't heard anything about a start date etc.
It only adds to the already considerable frustration out there .
Always remember one thing....the geology doesn't lie!
Ss
Looks like this rig is moving out of the basin.
Buru Energy secures rig contract for major Canning Basin drilling campaign
Proactive Investors Australia
“On track to start fieldwork”. The Ensign 963 rig is currently in the Beetaloo Basin where it has most recently been drilling deep and complex wells for ...
I see some drilling equipment being moved in the last few weeks.
https://www.facebook.com/ExpressCargoServices/
Seems Santos will be starting up soon...
"So I am very pleased to report that we will soon be mobilising a drilling rig to Tanumbirini
Station to recommence exploration and we are hopeful that our drilling program at the
Tanumbirini and Inacumba well locations this year will be successful."
https://hotcopper.com.au/threads/ann-2021-santos-agm-addresses.6007655/