We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Posted by Kickmuck on 29th September 2018 :-
Well, things are progressing nicely here.
Firstly, just lets recap on the last two and a half years of technical progress in Block 12. This is a petroleum engineering story at its best – we finally figured out how to drill clean holes in this tricky geology and we got zones to flow that have baffled drillers for decades. The Soviets fooled around for so many years washing out the sands and spitting cement; this really is a classic story of how one of the worlds great under-developed regional plays gets conquered. It’s taken years for Frontera to get to this place, but then it took years to realize that the Permian in West Texas could do what it’s doing now – read, understand and see the similar story.
OK, on a very basic evidential level:
Q: Is the oil there in the Block 12 license area?
A: NSA have presented cautious oil and gas in-place estimates based on data they have audited from the Frontera drills and data they have generated themselves. We also have some Ryder Scott work. These data estimates are staggering and no one can deny this is not absolutely world class land with several great plays – based on the petroleum consultants data.
Q: Can we drill holes, work the rock and sustain a major field set of commercial flows?
A: Frontera have presented an exploitation & development methodology for a super-multi-well strategy which has excited certain parties to take an interest in Block 12 over recent years, from MND Group / VTB, through to the recently announced majors – these are the ones the market knows about…
OK, I totally agree that retail stockholders are lacking straightforward data to reassure the exploitation and development story, but if you step back (or talk to the right people) it’s now clear to see that the Block 12 geology has been capitulating like a woodchuck since 2016 and the grind of it all has been getting the deals to plug the whole thing in. It just needs a whole lot of money throwing at it now.
Next, a deal was finally nailed with mucky old Yorkville to help clean up and ready the Frontera balance sheet (announced in early June) and a little tussle subsequently developed with Yorkville (thru August and into Sept). My understanding is that this is not complicated stuff and an explanation on Thursday next at the stockholders meeting needs to be listened to really carefully to make sure there’s no misunderstanding by retail - I understand that a sensible outcome has already presented itself and just needs working through with the lawyers. Like someone said on here, you don’t fight over an empty box.