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totally agree. Is common sense.
I still believe Innis is not economical at these levels but I am not party to the information they have, so I can't say Prd are incorrect with their statements.
But let's look at what we've got -
90,000 recoverable reserves less 10% that will not be retrieved =81,000 divided by 350bopd = 231 days to deplete the reservoir
To pay back the $600,000 cost they need $7.4 over the 231 days at 350bopd
At $10 cost per barrel as they've stated gives $17.4, so as far as I can see there's little wriggle room.
Still believe it should be put on hold, till the crisis is over
Re Innis there are a few details I'm still unclear of.
How many barrels have Cerp been producing on the rest of Innis.
Is the $10 costs capped for Prd included in the $600k?
The reserves quoted for phase 1 are 90,000 barrels does this include the lower levels that have been shut off? With a cast iron plug it doesn't look like they will be reopened
From the Prd web site they are hoping for 350bopd with little tailing off, is there enough storage on site or will it piped to other fascility.
I'm not too sure of what phase 2 of the pilot is. I believe p1 is the injection into 4 wells and possibly p2 is the extraction from 2 wells and injection of the other 2.
At 350 bopd it won't take long to deplete this reserve.
I still believe the whole field is worth hanging on for but not at these prices
Bamps the prd presentation from 2019 makes interesting reading, page 14 got my attention, is there a clue to the possible bopd's they are looking to recover, bearing in mind the $ 20 oil price comment this morning.
https://www.predatoroilandgas.com/wp-content/uploads/2019/02/New-Presentation.pdf
I can’t say for sure, given no updates from the company on financials for a long time, but I assume we will be in cash conservation mode, so agree w Bamps it seems likely to pp Innis.
Bamps - this CO2 project is scaleable so it's important that it's seen to work by going into production, particularly if they can cover costs. $20 oil is unlikely to be sustainable for a long period IMO.
I just can't see $20 a barrel being economical for Innis, wish Prd would have explained why they think it is.
$20 less taxes less $10 costs leaves about $4-$5. That would take 435 days to pay back the $600,000 at 350 bopd.
435 x350 is more barrels than the estimated reserves of phase1 which is 90,000.
Why not put it on hold and keep to the planning and technical side for improvements later. That Rns doesn't feel right to me definitely nothing for Cerp at Innis.
Poor Update from Cerp but predictable
The PRD RNS does read well, informative and positive, focusing on the companies strengths.
they need to start communicate about their entire business
Razorman - thanks for sharing that - always good to see some detail emerging. I noticed MEEI stats had been issued by T&T Government up to end of January showing that IPSC broadly in line with previous months - does suggest that W/F is assisting in keeping up the flow on Goudron which is probably quite a cost effective tool but like others I'd prefer to hear these things from the CERP management in due course although I'm not yet up for joining the band of non invested trolls who are worrying themselves sick on behalf of shareholders about the absence of news.
Cerp needs to start and promote the c02 project
Trinidad
The Company's Enhanced Oil Recovery ("EOR") project in Trinidad remains on track for revenues and encouragingly for Predator the project economics are still attractive even at WTI 20 $/brl. Trinidad like most countries has implemented restrictions on movement of people for non- essential work and these policies will remain in place for at least the next few weeks. The Inniss-Trinity Field does remain operational and oil field personnel have been issued with passes to travel to and from the field.
The Company has injected more CO2 into AT-5X as part of initiating Phase 2 of the CO2 EOR pilot project and has observed encouraging downhole pressure build-up. The remote access data gathering system that was put in place before Coronavirus struck allows the Company to monitor real-time pressure data and to adjust injection pressures and CO2 injected volumes remotely through the Company's CO2 EOR operating personnel in the field. The next step is to inject CO2 at even higher pressures and on a continuous basis and Predator's CO2 provider is currently working to achieve this objective as quickly and safely as possible working under the current revised HSE protocols.
Good RNS over at PRD, including positive outlook for the CO2 pilot in Trinidad. Leo, Tony and Gordon - can we have a meaningful update here please including coronavirus impact mitigation measures ASAP!!!! Angry face emoji !!
Circumstances have changed during the last few weeks do you not think?
It’s a few days extension to finalise the details
https://www.sharesmagazine.co.uk/news/market/6855771/Operations-update-Goudron-renewal
I may be looking too much into this, but id dthey not know the term was coming to an end?