Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Another bloe buy note just popped up on Twitter
https://mobile.twitter.com/EliasJones01/status/1380883931151613952
This exactly. This is moving from a discovery and appraisal play to a production and cash flow play. So what we need are strong commodity prices ( tick ) and rising production ( tick hopefully) and a capability to monetise it ( tick )
Finally the puzzle pieces are in so it’s time to get drilling and flowing the gas. I’ve got a feeling that first drill was no fluke and we will see some excellent results.
Gas prices crashed last year , so my understanding this is a government contract.
So the next review will be a increase as based on average prices over 12 month period over the EU , as we know the price of gas has increased.
Main thing gas is online and BAGO paid for the connection - And REVENUE is flowing as we type
Lets look forward lads
As said AJ have said knew nothing regarding oil and gas when invested in late 2019 ( my god been that long ) , so have picked up bits and pieces.
So at 100m the oil & gas rises through water to where the water table is at say 300 metres then oil starts separating and rises to top of the well.
At 700 Metres a pump is installed to accelerate the recovery of oil which is pumped to to of well via tubing installed which is then undergoes a further separation in oil storage tanks.
So the main reason is to accelerate the oil recovery not the gas.
The Georgian Oil & Gas Corporation ("GOGC") holds public tenders to sell its gas once volumes reach minimum quantities. Minimum gas quantities and tender dates are variable each year. The results of each tender are published in local papers.
Gas deal was revised and is agreed annually.
During 1Q 2021, the Company achieved its first gas sales. For the period from 15 February 2021 to 31 March 2021, it sold 38.4 MMcf of gas for $125k, resulting in a weighted average price of $3.26/Mcf. The price of the gas sold is at a fixed discount to the price of the last tender completed by the Georgian Oil and Gas Corporation ("GOGC")9 for the sale of its gas, as provided in a revised Gas Sales Agreement signed with the buyer of the gas, Bago LLC, in May 2020.
AJW
Many posters on this board including myself, and possibly yourself as well, have been under the impression that we were to be paid a fixed rate of $5.24 Mcf for the gas. According to this weeks RNS, this was changed in May, 2020 and we are now only receiving $3.26 Mcf - My point is why have we not been made aware of this until now??
There seems to be a bit of a misunderstanding here, possibly my fault.
The post below are MY COMMENTS, NOT Malcys, the only reason I mentioned his name at the start was because he touched on the same points in his recent blog, and I then expanded on them.
Lets forget about Malcy and concentrate on the facts.
Hepseal did bring up the conversation regarding WR16aZ and was surprised being connected as required a water pump.
My assumption is over a period of time gas built up in the well and overcame the water problem , but once production started its revert back to a trickle over time.
Block energy know this and needs the water pump installed in order for gas to escaped at the higher end of the well once free of water.
No expert of oil or gas but that's my understanding then could be talking crap
are the sure the O and G sector bear market had nothing to do with it ?
Old Malcy was matey with James Parsons at SOU..went to a few events where he was in attendance... £1 to 1p was the result!
Hepseal,
This is the type of post I want AJW to reply to! We can ramp all we want but constructive criticism is just as important and I totally agree with the points raised.
I’m fully invested but the lack of transparency is annoying.
Fossil Malcy was big on Bahamas petrol!
Firstly I am not necessarily a fan of Malcy, and he does seem to be friendly with certain people, but he does raise a couple of very important points:
1) It is now apparent that Block are receiving only $3.26 Mcf for the gas based on an agreement in May, 2020 whereas as late as the 7th April, 2020 RNS we were told the rate was still $5.24 Mcf - Why the sudden change and why was the market not told until now?
2) Between the 16th Feb, 2021 RNS and the 7th April, 2021 the total production flow has decreased from 940 boed to 573 boed. Assuming the base flow from the other fields has remained constant, and with reference to the production charts in the Stephen James podcast in February this decline is partly due to the WR16aZ shut in (approx 260 boed) but the remainder would appear to be a reduction in flow from WR38 from approx 500 boed to approx 400 boed. It should be noted flow rate is an average figure over the period so the actual figure at the end of March could have been less.
3) Leading on from the above, the recent corporate presentation and a previous RNS indicated that the WR16aZ remediation would take place at the end of 2021. All of a sudden it has been brought forward, once again we have not been told why, we have been left to guess.
I am not trying to stir things up, I am still invested here, however I did take some of my shares off the table on Friday afternoon for the above reasons.
gregpeck7 if you looked at our chat room and convert the positive and negatives into a chart you will see a spike that has grown and increased on daily basis.
It be interesting to see if this occurs next week or we just have the regulars who chat on here.
Strongly believe there has been a correlation to buying at low price followed with RNS of increase in holding.
Looking at the holdings its balanced with slight favour on the CEO side with the white knight , also PI are generally in accounts i.e Barclays and when vote occurs always goes with the CEO.
That said you can ask your broker to put your vote against which can be painful on the phone , until PI have access to electrical voting which would change CEO mind set.
Just remember with Malcy (I dont read anymore)
2 of his biggest ramps
PANR - Oh dear..... And that was the original license areas
HUR - Oh dear
Both were mega buys for him
I did not coin the phrase "up the PANR" for no reason!
He is an absolute dinosaur.
Lol just Marcy blog , seems very miffed.
Do suspect that he works for a collective team , bit like Oilman Jim and why I imagine that he site in a one bedroom flat wearing 15 day clothes drinking beer at 10am with ashtray full.
instead of oil on his face just pure dirt and oily hair from 2 years not washed.
Excellent summary greg.
MP
Agree thats why I put my research note out about this one yesterday.
Fully cashed up, incredibly low enterprise value, they are through the "getting ready" as I call it phase now - the boring bit, and now they into the drilling and the ramping up - the exciting bit. And thats the bit that attracts investors. Building an EPF and laying a few pipes does not quite get the pulse racing like putting the drill bit into the ground. Workovers are now in full swing. 3 Spuds THIS YEAR all high impact. Now is the time to be going LONG for the big rewards.
If you have not read my note take a look here.
https://twitter.com/01l_m8nd8r1n/status/1380429993348595712
You can download or read it online. Its only high level and a lot more could be added.
First well RUS BA targeting a not insignificant 4.4 mmscf/d. Tied into the gas system and immediately becoming a cash cow assuming success. I assume this is the lowest operational risk well identified. It really does feel like Block could be about to turn a page and become a decent production/exploration company.
MP
more like it, back over 3p next week - have a nice weekend
Always said its a game of chess
This is more like it!:-))