Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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JayKay
Apperantly I am starting to worry about you.....
You must live in the fear now???.....will you sell ????
" '...Perhaps they will give more detail on the increased aggegate water cut?..'
The last RNS wording was ambiguos, we don't know if the water cut was stable or increased, it could be read either way...
Perched water = OK, expected, no problem
Formation water = Bad, implies coning, SELL SELL SELL"
JayKay
Wow.... unbelievable...even here you sow the seeds of discord......and suspicious......??????!!!!
JK,
"The last RNS wording was ambiguous, we don't know if the water cut was stable or increased, it could be read either way..."
Yes, I'd agree with you on that. But am hoping that tomorrow's (oops! sorry, today's) report may clarify such details somewhat.
One thing being, I suspect the company may be rather surprised by the way so many people on BB's like this have become so 'technically interested' and thus put every announcement under the microscope, picking up on such seeming ambiguities.
I mean, there's another thought I have had, related to the recent latest offload and its timing. Because since both wells have started (as we're led to believe) producing through the two separate flowlines, enabling the company to do various 'experiments' regarding well interactions, and so on. Which one may imagine require shut-ins, and so on. From which (logically) one might expect daily production to decrease somewhat. But the offload timing appears to belie this. So have they offset any decrease by temporarily kicking in an ESP on one well, then the other?
This is very technical stuff, and I don't personally have the answers. But I'd be very interested to learn them. But in no way from an 'investment strategy' way.
The only thing which might affect my 'investment strategy' will be the result of 204/30b-1A (now aka 'Warwick West'), and we won't know that for at least a couple of months yet.
JoeSoap,
"I note that there was no formation water in LC, but there was in WD.
What is the difference between perched water and formation water?"
That's a good technical question!
And my take on it is that given the context of the RNS about the Warwick Deep result, there may not be any difference at all.
My understanding of the RNS was that it was differentiating between returned drilling brine and other water emanating from the formation, whether 'perched' or not.
Whereas in other documents regarding the EPS production, the company is making it clear that the small water cut is 'perched water', which isn't coming from the aquifer underlying the field.
My opinion only.
From last Operational Update
https://www.lse.co.uk/rns/HUR/hurricane-energy-plc-operational-update-uc7zccpfh98cxov.html
‘Hurricane's analysis of water production continues to indicate the presence within expected ranges of stranded or perched water, with no indications of aquifer water. Production over the last month has been through a single flowline and therefore water cut cannot be attributed between the two wells. Further data will be available now that production through both flowlines has recommenced. This will facilitate better understanding of individual well performance and water cut. It will also allow planned flow rate variation to be undertaken, in order to optimise well performance.’
I think we need about 7 times that to get back to where we were this time last year.
Perhaps they will give more detail on the increased aggegate water cut?
I note that there was no formation water in LC, but there was in WD.
What is the difference between perched water and formation water?
There was nothing 'new' in 2018 interims that we didn't know aside from the financials.
However I'm optimistic they may add some colour to the EPS performance in light of offtakes -maybe some associated forward guidance on the financials and perhaps some more on Lincoln Crestal drill result (PI?) plus a kicker with some optimistic Warwick West rhetoric.
All good for at least a penny.
PART 2
· As at 30 June 2018, the Group had cash, cash equivalents and liquid investments of $210.1 million (31 December 2017: $360.1 million). This includes $39.0 million of liquid investments held in term deposits which mature within 12 months and $31.5 million held in escrow accounts
· The net decrease in cash, cash equivalents and liquid investments in the period was $149.9 million (including the effects of foreign exchange rate changes), the majority of which was related to investment in the ongoing development of the Lancaster EPS, with net cash outflow from operating activities of $2.7 million
Operational and corporate developments/outlook
· Lancaster EPS first oil guidance maintained at H1 2019
· Significant Lancaster EPS development hurdles achieved, including:
o Delivery of TMS and SURF
o Completion of the two production wells
o Conclusion of the offshore installation programme which included installation of TMS and SURF
o Final stages of Aoka Mizu life extension and upgrade works reached in Dubai, with sea trials to commence by the end of September and sailaway anticipated shortly thereafter
· Spirit Energy farm-in to GWA completed
o Agreed five-phase work programme targeting development with 500 million barrels of reserves, significantly accelerating development of the GWA
o Up to $387 million in carry
o Hurricane fully carried on first phase of up to $180.6 million, including the drilling of three wells on the GWA in 2019
· Transocean Leader rig contracted for the three 2019 GWA wells, to begin in Q1
ENDS
PART 1
"During the first half of 2018, Hurricane has been focussed on the Lancaster Early Production System (EPS) development. I am delighted to report that operations have progressed to plan and within budget, allowing us to reiterate our first oil guidance of H1 2019.
The two production wells have been completed, the turret mooring system (TMS), subsea umbilical, risers and flowlines (SURF) have been installed at the field, and the upgrade and life extension of the Aoka Mizu FPSO is in its final stages in Dubai. Sea trials for the Aoka Mizu are due to commence by the end of September, with sailaway to follow shortly thereafter.
At 30 June 2018, the Company had $210.1 million in cash and liquid investments, of which $178.6 million was unrestricted. With the well completion, TMS installation and SURF installation phases complete, we remain confident in becoming cash generative based on existing funds. I'd like to acknowledge the outstanding contributions of all our staff and contractors, and our Tier 1 contractors: Bluewater Energy Services, TechnipFMC, Petrofac and Transocean, in delivering the operational progress that has allowed us to reach this position.
As we noted in our 2017 Annual Report, the task in front of us is to de-risk and monetise the substantial contingent and prospective resources across all of our assets. The recently announced farm-in by Spirit Energy (post period-end) to the Greater Warwick Area (GWA) is a first step on this path. The transaction accelerates the appraisal and initial development of the GWA and frees up cash flow from the Lancaster EPS to further appraise and develop the Greater Lancaster Area (GLA) and Whirlwind. We are delighted to have agreed a development strategy with a like-minded company which brings significant operating and financial capacity, together with experience in fractured basement reservoirs.
Following this transaction, Hurricane's outlook for 2019 now includes three GWA wells in addition to first oil in H1 from the Lancaster EPS. The next steps on the GLA remain subject to data obtained from the EPS. However, we believe that we will be able to undertake a drilling campaign on the GLA in 2020/21, ahead of planning for further development. We are entering a very exciting time for the Company and its shareholders. I look forward to first revenues and continued appraisal and development of our significant Rona Ridge resource base next year."
2018 Interim results summary
Financial results
· The Group's loss after tax for the first half of 2018 was $75.1 million (H1 2017: $4.2 million), including a non-cash fair value loss on the embedded derivative element of the convertible bond of $70.2 million
· Operating expenses for the period were $4.7 million (H1 2017: $6.0 million)
CONTINUES