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"Kim had higher output and dry oil "
IIRC they only gave average numbers over a period - not the final few days of Kimm production
A lot of people think the pressure dropped so far, due to exhausting the oil in the fracture network, that it just wasn't worth it any more. That was always a risk - hence the EWT - they probabaly have an idea of how long they'd have to wait (months. years, decades....) for the fractures to refill............
The give away was when they didn't deepen HH2 - it would only have cost thema few days and less than £ 100k rather than a new well, but they didn't do it
Penguins,
It's been said time and time again here. Why has SS covered up the real Kimmeridge story? Why no HH2 drill into the Kim, why no comingled production, why not switch back to Kim and shut-in Port on HH1 as Kim had higher output and dry oil (when last in production), etc, etc, etc. Why no HH3 drill into the Kim, they could have used the Turkey dead duck cash to drill that!
The rampers don't want to answer these questions. Indeed some call me a liar, others have blocked, but it's a simple set of questions isn't it! The answers are equally simple; the Kimmeridge at HH is dead, I wouldn't be surprised if UKOG damaged the well and cannot produce from it.
All in my opinion, but when a company turns down higher revenues (higher output) and lower costs (dry oil) with what should be a simple switch from Portland to Kim, then there must be a very very good reason. In this case, my opinion is that they have killed the well down hole.
Go back to ramping Angus Ocelot… you seem to have some gullible followers there.
Ocelot,
In July 2020 the well and seismic was going to be starteded that year - well started nearly a year later. Seismic - who knows? Government permission fpr the farm in was in January 2021.
Licence application RNS'd by UKOG in December - haven't found when AME applied for them - apparently still not granted - although we know TPAO were awarded them ealier this year.
But UKOG has permission for 4/5 more wells at HH - SS has never explained what happened to drilling for the huge volumes of oil in the Kimmeridge they claimed previously, perhaps because they sneaked out a figure for contingent resources of 1.6mmbbls in the last final results - though more than the Portland's 1.5mmbbls (both gross P50).
They could have probably drilled another well at HH for the $7mm raised for Turkey.
The Blackhorse Badger Drinking Dipstick would have folks think that UKOG could just push the gas into the local ESSO pipeline, maybe switch it from oil to gas as and when they need to.
That's the kind of dross the dipstick dreams up. Putting new stickers on fire extinguishers makes him an expert in most things.
Hence UKOG's interest in the Resan field, it isn't subject to the UK regulatory regime.
Penguins
You are being very generous imo. They can't sell any of the gas during the 3 year exploration and appraisal stage. They can only flare it.
On completion they will need to go back to the council for planning permission for production. If we thought getting permission to explore and appraise was difficult just think of the opposition to production with the increase in HGV traffic. Just look how long it has taken to get this far. Some on here will be dead before it is decided imo.
Ocelot,
Very interesting, but any idea how much gas UKOG will be selling in January 2022? January 2023? January 2024?
Almost certainly none, and probably the same in 2025 - it takes time to build the infrastructure needed to export gas.
Beyond this it depends on commercial gas being found at Loxley - which will require further drilling and permissions.
UKOG must be making a fortune at those prices; when is the next dividend due?
Europe’s energy crunch is set to last as electricity prices climb to a record, fueling inflation and raising bills to millions of households and industries from Germany to France and the U.K.
Power prices for delivery next year surged almost 11% in Germany and 7.7% in France as freezing weather forced European utilities to resort to burning more gas, coal and even oil to keep the lights on. High prices this month is spilling into futures contracts for the following years, a sign that the crunch could last longer than many expected.
The world is facing energy shortages as economies recover from the global pandemic, boosting demand. At the same time, supply hasn’t been able to keep up due to years of lower investments in fossil fuels. Europe’s wide network of renewable energy sources hasn’t kept up either as low wind speeds reduced output for most of the year ...
Europe has been shifting away from fossil fuels and even nuclear power in a bid to reduce emissions. That’s leaving the continent relying on renewable power such as wind and solar, which are intermittent sources.
The closure of conventional power plants that can be quickly turned on and off “is increasing the impact of renewable energy production on market pricing,” commodities trader Trafigura Group said in its annual report. “The structural shift away from coal and nuclear towards wind and solar is also causing severe strains in the power system.”
https://www.bloomberg.com/news/articles/2021-12-08/energy-crunch-sends-benchmark-european-power-prices-to-record?sref=Em01M8Hr
https://www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5188708
Jan 22: 262.040p