Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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You can get both Gas and Oil from the same well.
They simply come from different pay zones and depth depending on geology.
There are lot of wells in China basins that produce both.
5900 boepd (from Gas)
1000 bopd Oil
Are very significant numbers and CEO was pretty confident in the interview of achieving that.
Best to get in while price still low. This could shoot well over +1p at todays multiples in my view with successful horizontal sidetrack at West Newton.
IMHO, DYOR.
2bfair I think they would be very interested in the rest of the Corallian portfolio as it is to be sold lock stock and barrel for the newbies and for Persi to disseminate more inaccurate information i will repost exactly what is up for sale and is much more than just Victory which would multi-bag us on it's own.
Hi Persimmon. Interesting comment that we won’t get an RNS about Victory being sold to a producer “for sure”. I asked a few weeks ago why you were so sure it wouldn’t be sold and you said it was due “to concerns about return on capital for a relatively small field”. Clearly this means you’ve modelled the potential returns a producer could realise from buying Victory, what exactly did you conclude? The returns a buyer would get would depend on what they paid - this could be much less than RBD’s NPV calculation of the value of the field and still be multiples of the current RBD share price. Would be interested to hear some details of your analysis.
Hi Canchat. I think there's a good reason why RPS didn't say how many wells might be required for the development of WN, and it's presumably because it wasn't what they were asked to do. As VHB points out , the RNS states that all the modelled flow rates are based on one well. We don't yet know how many wells might ultimately be required for a full scale WN development. IMO that's mainly because the Rathlin and the partners don't yet know WN's full areal extent, but it does seems to be quite extensive. Onshore UK wells don't come cheap these days. I'm now a bit out of date, but I'm thinking £3 million gross for a vertical well and £5+ million gross for a horizontal well, depending on its length. So I'm hoping not too many!
VHB - Thanks for your reprint of the RNS.
Yes I read that and came up with TWO.
ONE in the gas zone. ONE in the oil zone.
I almost thought that it was an error? Is it really possible to achieve those levels of production from one horizontally drilled well in each zone in what seems to be difficult geological materials?
Do you have any idea as to how long these horizontally drilled wells would have to be and at what cost?
CHAT
Thats what well hope vhb but we need the horizontals to be drilled correctly
Canchat.......
"This poses the question: - How much money would Rathlin need to spend to achieve these outputs? Any answers/guesses?"
A lot more money than they have now. Placing incoming very shortly!!
GP and others - I have read the 17 January RNS and the RPS statements (modelling). What I have not read is: - How many horizontal wells would be needed (in their opinion) to achieve the possible stated outputs? This poses the question: - How much money would Rathlin need to spend to achieve these outputs? Any answers/guesses?
CHAT
I would imagine they will be happy to monetise after winning the lottery lasy year courtesy of RBD
Yes Uggy100, but what about the Corallian share holders. Or will metaphorically speaking it be a 'DRAG ALONG' if you get my precise wording, kicking and screaming?
They will know the appetite players will have for the Victory project & will act accordingly. We are not in a position to faff about. If there is a value to be realised it will be monetised in fairly short order.
I should have added Uggy that if there was it would have the usual deceptive 'but due to a confidentiality clause we cannot provide any further details at this time'. Seen it all before to waste time in the forlorn hope something else will turn up in the meantime. And guess what, all those up to their neck in RBD would swallow it whole.
Uggy100....of course there is that possibility, but it would not be about a sale to any producer that's for sure.
Bull**** persimmon. The next RNS could just as easily be about Victory.
OK now we have had the good news RNS,.I guess the BIGGY will be announced very soon, before the impact of the good news has time to dissipate.
Hi Gray Panther, Agree with you. Actual flow rates at this level would be more convincing - a lot! But hey if RPS have over egged the cake/pudding/whatever even a chunk - this is still a superb flow rate. Also if it were based on actual flow rates we would not be where we are today, the picture would be completely different and brighter and SP would be reflecting that.
Guess you have to ask your self how much trust do you want to place in the qualified person and make your decisions based on a combination of that and your thoughts on the planning review outcome.
I'd be far more convinced about the recent RPS modelling study if it was based on an actual, reported WN flow rate of oil and / or gas from one of the WN wells. RPS are a very well respected consultancy, but IMO they may have "over-egged" the cake a little in their report. Well, it's only an opinion!