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If we take Brent at $40, minus transport costs at $9 so call it $30. Schlum contribution of 242bopd plus 155 from WR = 145,000 annual production at $30 = $4.35m revenues. Brent at $30 = $3m revenues. That’s not a bad point from which to secure funds for development of next phase, and it ignores any gas revenue.
Understand that ops costs will grow but until we know the details hard to comment. My point is that when Block get to the point of needing to raise funds, demonstrating revenue is a big positive and opens up further options. With the share price at these levels I’d suggest they will look at other sources as alternative to placing.
Spud there is no way this management team will be able to raise cash after this debacle. Farmout to a competent crew best option depends on what comes out of the 3D once it’s finalised.
Geo - agreed that’s high on my list of options. Whatever we say about gas being the big boy, it’s clear that with less cash in bank than anticipated we are more heavily reliant on oil price than I’d realised. Still, we have the relative luxury of being able to time our oil sales in to what will hopefully be a more stable and sensibly priced marketplace. Not sure what others think but $40 dollar Brent for 6 months following any cuts that are agreed today and tomorrow would feel okay.
Believe that Block energy holding back the 3D survey , once things settle down then the survey will be released.
suspect that there maybe a several big targets
Bringing the price rise to 3p to 5p then announce weeks later to raise new capital to drill.
Its the Ace in Block energy cards as well getting the gas connected which put a positive spin on the shares
Spud it’s all about oil pal gas is a pipe dream. 1mmscf is a joke.
$40 until December bankrupts the entire Shale patch most of Canada and sets Saudi up for default and a revolution.
Oil will bounce back, it has to . Even if the management are muppets? what did we expect it’s AIM and as far as I can see the CEO has no oil industry experience or expertise,, however this price is too low now I think.
Everything is down to the 3D results!
If this is smoke and mirrors again im going to raise a complaint to advertising agency stating it should be called 'blockhead energy'
If the 3D results are just another smoke and mirrors as you raised hustler,
i think this whole thing is just a scam and the real company behind this is 'block head energy' lol
Gave the benefit of doubt to this company over many months mainly because it just seem posible you could do raise at 11p based on bluff. I was wrong, hands up guilty as accused.
Didn't believe you could withold important information without informing the market promptly, wrong.
I'm entirely responsible for my investments but this has been a shocker.
This is not a good situation by far however I do feel that if they would have gave us the update on W51 only then the price would still be here.
So it looks like they've threw all the bad news into the update and the price is where they expect it is for now and the major shareholders would have been updated before.
Im P'off like most and down heavy but IMO I still think there is still some good news out there but because of this COVID 19 situation the news will be drip fed but accompanied by a steady rise.
Your logic makes sense Samplemix, but there is nothing logical about this company at this current time.
They have been following this logic for along time now and covering it up with far fetched rev targets. All we want is growth facts now. What we have now that can make money tomorrow!
its simple
Seems my post was deleted..
The truth hurts.
samplemix1962 Excellent sensible post just about sums it up for me.
The schlumberger producing block we have acquired.
In the block presentation on the acquisition it states XIb has produced 245 BOEPD. What have schlumberger been doing with the gas do they have a deal and connection with BAGO/GoG ? or did they have a flare permit in place ?.
Trying to asses the gas potential/reality of the XIb acquisition.