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OK - thx - have lost my way through some of this - mea culpa
It would be good if they could do it alone I guess but its divvying up the produced oil that is the issue for me at least. If a revamped joint venture agreement is being looked at in light of recent developments then it may be back on that Spirit pay towards the gas solution and other things so that would be good . I am hoping that 7z is back on reasonably quickly though but I know its just wishful thinking until we know more . I was wondering, before the taking out of production of 7Z happened, what would happen if we got Lanc-8 as well as Lincoln Crestal and thinking that one of the current producing wells may be switched off for a bit at times anyway - as I (probably incorrectly) thought we could only handle 3 intakes from wells .
Speculate all you like, a possibly, yes, until we get a definitive answer.
Apacchewind
You need to read the RNS on 6th March GWA Joint Venture Agreements Update
The last part of the revised term is significant :
" If at any time Phase 2 is approved and a GWA tie-back to the Aoka Mizu FPSO proceeds, Hurricane will benefit from the original terms of the 2018 Farm-in through retrospective application of the carry in the proportions originally agreed."
Note the original terms.
Careful
In the current climate almost certainly No.
So Hur might have received OGA approval ( by end June )
and further work & consents for Lincoln tieback are now being considered by JV partners.
If Spirit didn't want to , could Hur do it alone ?
DC - I thought that agreement had been changed and Spirit although not preventing development of Lincoln Crestal would not have any commitment to any further funding after the l g lead items. So if we want to go ahead and develop LC then we are liable for all other monies required including those for the Gas Solution. What I do not get is how then , if we pay out all of the remaining development costs, the shares of the produced oil are to be calculated . The original agreement appeared to be 50/50 but that was bearing in mind Spirits committed spend - now that is no longer there is it still 50/50 - hope not!
I believe an RNS will not be issued until the fate of Lincoln is determined, hopefully not too long a wait. Cost of P&A is around £12M. If the decision is in HUR favour a detailed forward activity plan can then be finalised.
GLA.
According to the Petroleum Economist article it seems the Lincoln Crestal tie back is still a possibility;
"And the GWA joint venture has further applied to the OGA for approval of field determination over the Lincoln structural closure, with hurricane expecting an answer by the end of June."
Interesting to see if any mention is made in the next RNS. To my mind the main advantage of the tie back is that it necessitates connection to the WOSPL which will be part funded by Spirit.
haggis
"I think it is clear Lincoln / Warwick is no not-happening.
However Halifax may well be worth another look.
Possibly even the potential hidden jewel in crown?"
Agree. But if we run into further well problems, imv GLA may never happen. If they clean up and behave, from this sp we could be off to the races.
^ with benefit of hindsight company should just have focussed effort and finances on Lancaster. They shot for moon and missed. However easy to say that knowing the Lincoln / Warwick results
haggis - in my mind GWA was always a write off after the drilling results - i know others disagreed.
My impression (fwiw) was always that lancaster was always to prove the concept and then be sold off - hur keeping a stake . the cash was then going to be used to get at halifax which is the big one. GWA was always the lower prospect one which is why they didnt mind a deal with spirit - not on great terms initially i thought - but it got it going.
maybe the story would have been very different if they had gone for halifax first...in hindsight half of something would have been better than all of something that you cant afford to drill...
i only hope if hur is sold off as i believe it will be that they get a fair price for the assets - halifax - as whoever does get it and can drill it will potentially have won the lottery
Interesting article below with quote from Spirit Energy :
"He also described the results of its drilling campaign with Hurricane Energy on the Greater Warwick Area, west of Shetland, as “ambiguous” and the cause of “internal rethinking”."
https://www.energyvoice.com/oilandgas/north-sea/249839/spirit-energy-reaches-crossroads-at-north-sea-field/
I think it is clear Lincoln / Warwick is no not-happening.
However Halifax may well be worth another look.
Possibly even the potential hidden jewel in crown?
Yes, on 27mar2017 we had this kind of RNS news to celebrate:
Preliminary third party analysis from the Halifax Well indicates:
-- a very significant hydrocarbon column of at least 1,156 metres is present within the basement extending well below local structural closure (which is at 1,040 metres TVDSS);
-- that the basement reservoir below the final casing point (1,179m TVDSS) is pervasively fractured (based on initial analysis of borehole image logs processing); and
-- that porosity is consistent with that at Lancaster (based on initial petrophysical analysis.
......
Dr Robert Trice, Hurricane's CEO, commented:
"This is a highly significant moment for Hurricane and I am delighted that the Halifax Well results support the Company's view that its substantial Lancaster discovery has been extended to include the Halifax licence. We believe that the GLA is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.
The discovery of a 1km hydrocarbon column at Halifax validates the efforts the Company undertook to acquire the licence and drill, test and log the Halifax Well through the winter months.
Given the positive well results, the Halifax Well has been suspended to provide the Company the option to return to undertake further testing as well as provide the option to deepen the well and thereby establish a definitive oil water contact.
And the share price was around 56p in celebration of the 1km column of oil and that the field could extend all the way from Halifax to Lancaster - a distance of about 30km, if I recall correctly.
So, this looked like HUR had started to prove up an unbelievable amount of oil.... and hopefully, given time, they will continue to do so.
Snaffleman, to keep it short you say you were not impressed with Dr Trice attitude or presence, He at that time may have know he was leaving, these things are sometimes known months ahead not always overnight, just a thought maybe reading a little more into it than whats there, good post though..
Snaffleman, 14/45, very good post. Recommended. Even if these shares are taken over @ 50/75p, as long as it is not privately, I will invest in the new Company. If it is taken out privately, than any Company in Lancaster area is good enough for me.
I watched the dr thrice led presentation late last night and as a non subject matter expert I wanted to make a few observations and seek a more educated view by the few experienced oil peop,e who may still read this bb.
I was generally underwhelmed by the results of the drilling carried out on the GWA to date and got the general impression that they are underwhelmed also so much so that the only positive message they could come up with is the poor results just how good Lancaster is. I almost got the impression that there is very little enthusiasm for our commitment well on Warwick to the extent that I am thinking would tbe money not be better spent elsewhere. Bear in mind I am not a subject t matter expert on geology or oil. I like to clearly understand things like the quality of the data, the size of the prospects t, the chance of success. Finally I also got the impression that at Lancaster a sustainable 18000bpd would be largely seen as a success but anything less say 15,000 would be considered a failure to deliver. If the orospe ts are as grim as one would believe reading this bb why are the instis largely staying g on board and what was the positive potential that underpinned a share price of 50p plus a year or so ago. I need to watch the presentation again.
Can we please get back to mature relevant debate about the real issues that matter in respect of this investment