Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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25 % of 1 trillion cubic feet of gas.
Private player NewAge has hit disappointing results at its latest appraisal well on the Etinde block off Cameroon, where it plans a final investment decision on a development next year.
The company drilled the IM-6 probe with the Vantage Drilling-owned jack-up Topaz Driller to 3550 metres, deeper than the initial target as it hit higher-than-expected pressure due to gas shows at 3370.
This meant the partners plugged the well with cement and performed a sidetrack, block partner Bowleven said on Wednesday.
Although the primary objective of delineating the wet gas/water contact location within the intra-Isongo 410 sand reservoir was achieved, this sand package was found to be water saturated.
Etinde appraisal kick-off
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The shallower 510 sand package was water bearing, while the deeper 310 sand packages had gas shows.
“Following preliminary analysis of the well data, the decision has been made not to test the sand packages drilled at the IM-6 location. The well is currently being made ready to be plugged and abandoned,” Bowleven said.
NewAge and its partners have already discovered between around 900 billion and 1.1 trillion cubic feet of wet gas at the Etinde block, and were targeting an incremental 700 Bcf from the 410 horizon.
Bowleven chief executive Eli Chahin said: "Whilst it is disappointing that the IM-6 well did not make an additional commercial discovery, the data collected is vital in further defining the existing 410 intra-Isongo discovery.
“Specifically, after further analysis and reservoir engineering and modelling, we expect to be able to accurately delineate the location of the gas/water contact within the 410-wet gas reservoir and firm-up the reservoir volume.”
The rig will now move on to drill the IE-4 well east of IM-6, targeting a previously undrilled sand package.
Bowleven said any discovery at this well could prove up or de-risk a further 200 Bcf to 600 Bcf of resources.
disappointing to not have added to the resource numbers but this was far from a failure, primary objective was firming up the understanding of the prospect to give us a reserve number a FID can be built upon and thats what they did and will come of it. I wonder if the additional deeper discovery will be explored further down the line, to be fair i cant see COC hanging around until then, reserve numbers out then sale IMO? so lets hope IE-4 comes in better than expected. also interesting to see vast majority of todays trades are small (100k is largest i have seen) which indicates no institutional selling, probably only pi's...................sold by the end of the year? 50p+ will be a good result as things stand now IMO.
I bet they are! Possible additional discovery lower down.. sounds like they did not test to due high pressures and possible well stability issues but they certainly had a wee look :-)
Positive close?
someone happy to hoover up
Many on here were thinking the drilling results were " dead certs" and BLVN have a world class asset..Think again people and if you want to know what a world class asset is then look no further that Kosmos!!
at 45 pence can i go to the front of the queue the rest will be killed in the stampede some people on here are deluded it's the same rubbish getting posted bowleven is at an end and good ridence xx
Eli is a busy chap apart from Bow ..... what with Al jaber Group and Alix Partners plus there is only him and Matt MacDonald on the board (??) so they'll need to get their act together before talking to the sharks ....
45p , I would snatch their hand off, so would most and I think they would get it for that, maybe even less, very sad.
2 possible reasons. They need the time to finalise log analysis so can give definitive volumes or they want 4 days negotiating with new age,lukoil on a buy out price. From here a quick 45p would be tempting for most i suggest
...being happy to buy here at £2.75
WTF has happened to the prospects of this company?
Only 4.7 m shares traded, not a lot in the grand scheme of things and nothing to suggest that any of the II's are bailing out two-way traffic at the moment.
Yes I accept that it was an appraisal well and we await further news which may be positive but what I struggle with is trying to ationalise why the company delay the conference call for 3 working days including a weekend in between? So, if you wanted to manage the message to avoid doubt, selling, negativity etc would you not arrange to call for today? What will they tell us on Tuesday that they could not tell us today? After all, the CEO is not exactly running a huge conglomerate with multiple demands on his time so I think there must be a reason for that but pure speculation but that's all we have until Tuesday!!
Well COC are underwater at current price so hopefully their next step is to solve that little problem first
other positive news is the the CEO's options will never pay out as the only way we go above 45p is a takeover/sale. Interested to see what COC do next as they will be making a lot less than they had hoped from this investment.
It's simple, no? We were looking for commercial gas and we didn't find it at this location. It WILL allow them to give proper estimates of resources in combo with IM5 so in that sense it's a "success" - but no commercial HCs at IM6 is a failure no matter how you want to paint it. The gas kick at the even lower horizon is interesting tho, I wonder if/how they'll follow that up.
the worst kind of vermin, legalised theft
My view is this. The minute the mms (scxx) in my book smell blood, they will destroy and SP knowing that they will profit from its decline and from the inevitable rise. I work in the city and I know what these guys are capable of. If they could make money from your last breath, they would steal it from you
I have no answer to your possible reasons, all i know is that the original find on exploration drills has not gone away and appraisal wells are exactly what they say on the tin. The rns didnt say - sorry we made a mistake in 2010 and we dont have what we thought we had. i fully get rises and fallbacks but i say again this has no reflection on what was in the rns yesterday.
its aim nowt make any sense here just like in the heady days of companies hitting 3 to 4 quid that too was daft. its the wild west of trading you pays yer money and takes yer chances; as usual i'm cocking it up ha ha its only brass, i can still eat (just)
Jadee - so if the result of the appraisal well was as acceptable as you and some others suggest why has a third of the value of the company dropped in a couple of weeks? Is it market manipulation, is it due to a lack of understanding of the RNS, has the company failed to manage market expectations, have private investors lost patience with the company, is the nature of this company ie. cash shell wth few assets just misunderstood? Genuinely interested in views. I remain a holder and added at 27p but as baffled by others with recent events.
of the share price drop in a week on nothing , just an appraisal well result that was ok!!
was a larger initial drop than i expected! COC would be as bad at KH for delivering shareholder value if they do not sell immediately and return at least 45p cash to shareholders. An RNS suggesting an exploratory sale of Etinde and wind down of the company would fling this back into the mid to high 30's and thats the end outcome anyway. But from these levels its clearly a strong buy
great opp for getting the company on the cheap.
sell out 45p would not be surprised
still value but no big bucks to be made 100% upside but to big a risk factor will out soon when over 40