London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Yeah don’t worry I get that, I felt like he was implying the full cycle cost of $17.62 was x4 - as you point out the daily running costs are lower than that at $10ish (if producing 500) but he explained himself.
Because the opex is mainly a fixed cost, the only variable is transport of the oil. The lease costs, manpower, electricity, diesel , the operators overhead, security, land rental etc are the same regardless of whether you produce 50 barrels or 500.. the only difference are the number of tankers. They have stated various opex costs based on the target 500/day. (£6, $8-9 and $10) So it’s clear that if your producing only 100/day rather than 500 that the opex per barrel will be higher.. Using an extreme example, if they were producing 25/day would the opex costs be only £150 per day if it’s £6/bbl. ?clearly not.
Got you and yeah I agree with that, my apologies, I was confused as so many people have been taking absolute crap here the last few weeks it’s hard to work out when someone is being genuine. I had read your comment as implying a change in project break even price rather than a daily - and obviously a month or two in the life cycle of the well will have a minimal impact overall but yeah. it will of course impact monthly net margins for now. Certainly more margins at $65 than $45 though, gotta take the rough with the smooth.
Mr Investment The only variable cost I can see is the tankerage. All other costs are fixed e.g. site lease, wages, administration, overheads, business rates, utilities, and depreciation of plant and equipment. So you have to divide your fixed and variable costs by the number of barrels you sell to get a cost per barrel. If the variable bit is a low fraction of overall costs, then the cost per barrel goes up as the number of barrels goes down, surely?
Cost per barrel is the determining factor for abandoning an oilfield if it exceeds the income per barrel.
Mr Investment, the problem is that the operator Egdon wants to use the cash flow from the Ashover Grit production to finance the development of the Pen*stone flags formation at a more optimal well location. So UJO will have to pony up its share of that. I am not sure that the sale of oil from Wressle at the moment is going to contribute much to UJO overheads in that situation.
Also, presumably the opex "per barrel" at 120 bbls/d is 4 times what it might be at 500 bbls/d, so it's not even sure any profit is being made at the moment with such a low free flow.
It's the proppant squeeze that matters and it is hydraulic fracturing after all, so the anti frackers will be out blocking traffic movements just like Preston New Road in 2019/20, tying up dozens of police officers.
Best to forget about Wressle and ask what on earth is preventing the extended well tests at West Newton, where all the value exists.
I think the majority here is realistic enough to know it’s not currently flowing at 500bopd, supposedly producing approx 50bopd (net to UJO)... instead of 200, that’s still a nice bit of profit at $65.
In fact, if it was flowing 500 barrels a day at $45, which is what a lot of people were expecting just before Xmas, then that would equate to $22,500 a day. There only needs to be 346 barrels a day at $65 to make the same ££. Oil price is up nearly 50% which certainly takes the sting off things for now. Let them get the squeeze on to 500, these 500 at $65 will be worth what over 700 would have been at $45 so it’s all relative.
Do not forget to add on Keddington and Fiskerton. It all adds up.
I have every confidence with the advice the JV took for methods to flow this, that we will achieve.
My favourite part is yet to come.. all rise the Penn-1 st one s.. watch those babies flow.
And the best bit is, we are in to March next week. And there before us sits the almighty West Newton. I bet Rathlin already know what is the timetable and they will roll in the equipment safely and efficiently. Now that will be quite something. Followed by...drum roll please...Biscathorpe.
And in the meantime the news is full of Race to Zero, COP26s, Hydrogen, Wind, you name it..
I have no doubt that they can increase the flow with the actions stated, but with a current rate of 100-150bopd, some 1/3 higher than when first tested (not checked if this is the case), is it feasible that this could increase by more than 3-fold to the 500bopd that was RNS'd as an anticipated, constrained amount? Don't forget that several posters here have suggested that without the consraints that Wressle would flow around 700-1k bopd. I think some people are perhaps being over-confident with expectations here. UJO's share was an anticiapted 200bopd, considerably higher than the current reported rates. Whilst the income is great, and to get this far is a good effort all round, these 'reported' figures seem disappointng given the previous RNS declarations of potential. Hopefully, we will have firm figures released in due course - perhaps it is still too early to make an informed judgement here? The market will want some certainty before we see any real impact to the SP, imo. Good weekend all
Each 44 Ton Tanker holds 239 BoO. Oil is flowing without a proppant squeeze, a third as much again from when it first tested. It will probably increase while the EU gets round to considering intervention requests.
If its only flowing @ say 120 bpd then this will be heading south as the market is expecting more. I think many will sell as the only research they have done is read bulletin boards and fallen for the 500bpd off the bat guff spread by some here and elsewhere. Im not saying this won't be achieved. Unfortunately this stock is retail lead and many retail investors are headless chickens. Imo.
The price should be moving north if oil is flowing. I'm starting to think its all a big money grabbing scheme tbh. Give the shareholders hope by building them a pump run off into the sunset with remaining cash and onto the next. Hmmmm ??