Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Goodbody / Sundayroast
It is wrong to talk about these wells being self financed / self funded. You are forgetting about the raise in February this year, while a realistic reading of the current financials suggests that there will be another funding event in the near future. As this will likely be on the back of success at Coho-1 and Cas-1, it is though nothing to worry about. In contrast you have CERP, seemingly now running on fumes, awaiting the result of its 45% geological (geological!) CoS Saffron well (once it finally spuds). CERP’s forthcoming funding event is one to worry abound - failure at Saffron would likely make it distinctly unfriendly to shareholders. We are lucky that Paul Baay is not the kind of CEO who exposes shareholders to that level of risk..
Lots of buying this morning.
Transformational news just weeks away.
TXP certainly have achieved a lot in the last few years.
Being able to self fund drills of circa $3mil for a company this size is extremely impressive for a MC of only £20mil
Hardly any dilution over the last few years, not like most AIM oilies.
This company will just continue to grow exponentially, and were just on the edge of that tipping point.
Nows the time to load up!
*Aim Oilies
Also like how they call these exploration wells because they see development being 10,, 11 wells on a prospect! They even have permissions to drill additional wells on these existing pads if they see value in doing so. Many aim oulies would rip their own arm off for just to be able to self finance a single well. Have they already transformed by being able to self finance. I think maybe so......
If they hit those kinds of flow rates they might find it difficult to keep IP under wraps. They like to let them flow for a while but many eyes probably watching these drills. These are the Deepest drills (inland) in TT over last 25 years, so pb said....good stuff.
So much news flow in its way.
If flow rates from Coho are good, circa 1000boe per day combined with positive logs at Cascadura we should see a long over due re-rate here.
Seriously undervalued, opportunity knocks.
Getting ready for the bounce back .
PB mentioned that TD for Casca would be by 31 October and that the 1st flow test results would be ready a week from today but there are 2 intervals being tested so may be another week for results. I think ressults any tiome from early next week though more likely the following week.
Goodbody
PB talked about the first week in November (possibly he meant the first full week in November) for Coho-1 flow test results and Cas-1 logs. Not expecting anything before then, certainly not expecting anything more this month.
My understanding is that the testing rig should be at CoHo-1 now.
Also 2.5 weeks into drilling Cascadura so should be reaching the first pay zone very soon.
zeusfurla
That might be his aspiration but he has form on this one - they all do. PB has managed to raise at successively higher prices though, which is no mean feat. If he can keep that run going that will be good going.
From Paul's interview comments it sounded to me like Casca and CHinook were funded and if there was an issue with Brent prices oover the next few months Royston may be pushed back a quarter. If there is any additional equity required I suspect it will be linked to Royston next year and not imminent. HOwever I trust Paul on the timing and thinking on this and woyuld expect him to take a longer-term view than just the next 6 months - ie to be looking at least 2 years ahead and including new Heritage well development next year too whatever that turns out to look like.
lol Yeh ok.
Goodbody
When AIM O&G CEOs say, or at least leave you with the impression, that there is no need for a placing they are being aspirational rather than informational. TXP is not running on fumes like the awful CERP but a placing or similar funding event almost certainly awaits us in the near future. The hope is that it will be on the back of good news from both wells and therefore nothing to be afraid of.
It will certainly be interesting over the next 4 weeks. Given CasCadura will be able to turn to production straight after testing it will be a game changer sooner than people may think. I think people also miss the fact that they are doing less work overs on existing wells so that capital expenditure is being refocused on these drills. Hence no need for a placing! They are comfortable to finance development through credit and exploration through working capital. They have this properly planned out. Great stuff.
Sundayroast
PB seemed to think more likely the first week in November for news in both cases.
Roaster - I share your enthusiasm but also observe you have a troll setting the agenda on here!
As I said in my wiped post I've listened to the media and the programme is exciting although it may take some financing and although bank have apparently suggested they are happy to pay for gas infrastructure possibly shareholders might have to chip in - dependant on how much bopd / boe cash flow is actually achieved. I'd suggest if the results are good shareholders won't mind a Placing as it will, almost certainly be at a SP above current levels .
I wouldn't be fretting about any possible reduction in existing production - I believe no significant work has been done on existing wells so if I was a betting man I'd be thinking a bit of decline was more than likely but I doubt if any decline is worth crying about when weighed against the likely position say 6 months hence!
Over on CERP we entertain trolls but we robustly comment on their views - especially Dross who posts as if he is playing Fantasy Oil & Gas Manager !
Flow rates from Coho, I'm hoping they can get around 1000bopd from all four sands.
Cascadura logging results, 95% COS so all should be good.
Then straight onto Chinook, a bit of an unknown but PB and the team must have done their due diligence.
We could be adding circa 3000bopd to our production from these 3 alone.
All for £20mil MC