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Solid today gas is rising.
U.K. gas now 49% up.
+46% live @ 255p/therm
https://tradingeconomics.com/commodity/uk-natural-gas
U.K. gas ticking up from +44% in the blue !!!
Impressive figures. Surely iog should be trading way over 100p ps when the market shows confidence in its sustainability
It is expected to be in excess of the combined Blythe and Elgood rates.
Assuming a current stabilised flow of 55mmscf/d we should expect to at least achieve that or more.
So by late Q4 we should be producing up to 110-120mmscf/d combined.
GG
Do they know the expected flows from Southwark great gig?
Southwark have two planned wells due to be in production in Q4 2022.
The first well is in advanced stage of the programme and the rig will then drill the second well which has already had the 30” top hole section completed prior to the issues with Scouring.
The additional 24” pipeline has been installed so looking good to achieve Southwark gas production Q4 to add to the current Blythe / Elgood production
GG
U.K. gas up 44% to 250p/ therm
Southwark
P1 - 46.3
P2 - 71.2
P3 - 104.7
To add to the current producers before the year is out?
Indeed CalE are another of the beneficiaries of the issues LOG caused us.
They got a very good farm in off the back of it including not just the share and royalty but also protection to a degree from cost over runs and ability to choose not to participate in what they correctly identified as a high risk drill at Harvey but always with possibility of joining that after the event.
Is it Southwark that will be online by the end of the year also guys?
What some people seem to be missing when they calculate revenue is that there is a revenue royalty 20.2% of IOG’s net share payable to CalEnergy Resources (CER), to be paid via entitlement adjustments, up to a cap of £91M over Phase 1 life.
So, you have to reduce your revenue estimates by 1/5th for 2022 and 2023.
Combine a respectable 35/55.6 and 74.1 bcfe until the end of the year.
No more hiccups and that is very respectable
Southwark at the end of year to added to this?
46.3/71.2/104.7 bcfe
Blythe bcfe 25.4….42.5…55.8
Let us not get carried away...
Revenue for H1 will not be very large. But if there were no more issues with Elgood and Blythe, if prices stayed yp you could see revenue of £75M. Remember condensate will decline very fast and gas production also declines. Remember Elgood reserves are not high and were revised down.
Elgood's Gross Estimated 1P/2P/3P Reserves 9.6/14.1/18.3 BCF
Nevertheless, a lot of value is being added to the company everyday.
That’s circa £182m pa on currents flows ie more than market cap by £30 odd million quid.
IOG is raking in approx £480k a day net to IOG at current flow rates and NBP price. This is going to be a cash cow. Intraday does not concern me here. Value will out eventually.
Imagine the daily cash inflow with Southwark running and Russia shutting off European gas over winter. The mind boggles.
+11% @ 185