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The Upper and Middle Cruse layers have had downhole logging tools using the Schlumberger Quad Combo and Express.
These 2 tools should be able to provide Cerp with the knowledge of the reservoirs and the gross and net pay zones. Also where to perforate the casing.
Permissions from the Ministry will be required I believe.
These tools couldn't be used in the Lower Cruse because of the unstable geology.
The Lower Cruse casing logs didn't provide that kind of information but did give Cerp the confidence that their previous announcement that there are multiple oil shows down to Total depth was correct.
To some impatient posters it was poor RNS but for me it was interesting news, Leo's kept us informed and they are progressing as quickly as deemed fit.
Hi Bamps
I think one of those impatient poster is me
Jam tomorrow doesn't cut it
I would like some Jam today
I'm one of the aged ones and I don't know how many tomorrows I have
Hi Peter
You didn't come over impatient, I know your situation and must be hard.
The oil investing is a high risk investment and takes a lot of time I'm afraid. I've been in this for 10 years and we're always just about to make our fortune. For some newish posters who want an instant profit frustrates me.
If you want to meet up sometime and go through options let me know.
My friend has just bought his first shares at 72 and made a little profit in a couple of weeks with my help
I read the South Erin deal in an old Rns , trying to find it again
Bamps - South Erin deal detailed in 13/07/2018 rns - MWO 5 pre 31/12 2021 - tick - tock!
Pdf - CPR for South Erin available - Google West Indian International Group - good read for someone like you - I liked the pictures!
I can't find an RNS dated 13/07/2018
Peter - it was what could be considered a transformational rns - much discussed at the time - available by googling ' investegate rns CERP ' .
Peter - after you've read the geological report on that prospect you may wish to finish the following :-
There was a young lady from South Erin
Who claimed the forest layer was appealing
No smut though !
in4cedros
This is the best I can do
I wouldn't know where to begin
Of a lady who lived in south Erin.
This sweet damoiselle,
Knows very well
That in two O two one,
There's five wells to be done.
But she has the feeling,
However appealing,
This may not occur.
Other things may deter.
So clarify please
The action on these.
Here is RNS link ( https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CERP/13717981.html ), petersalkeld.
Also https://columbus-erp.com/news/webcasts/.
BW
“The interpretation for the Upper Cruse and Middle Cruse (the tertiary and secondary targets) are expected shortly.”
Shortly I would hope to be next week. Remember there was oil seep at the surface, there is a chance the oil is shallow at the SWP. If that is the case drilling costs would be much reduced to access it. Possibly we could avoid a JV or farm out. Ministry requires production from the lowest levels first, so all they would need to do is drill to the middle (or even upper) cruse and stop - making that the lowest point. Clove I think was estimated at only £500k to get to 2,200ft. I have a feeling there could be a strategy change once we see the logging results, hopefully next week.
Hi Razorman
The Upper and Middle Cruse at Saffron should be a better prospect than at the Clove position.
A P50 mean of only 170,000 barrels oil in place at 10% recovery = 17,000 barrels.
I would preferably see additional wells happen around Saffron as it's in the centre of the P90 contour and Clove is outside
ATB:))
There are a few scenarios for the Lower Cruse
1 - the horizons are the only stable strata where oil will flow and the sands below are too unstable to perforate , giving a net pay of around 25'
2 - oil is found in the horizons and the sands are commercial to flow, with water at the base driving the oil upwards
Gross pay of up to 850' and net pay ?
3 - the horizons are full of gas and gas/oil forming 3 gas caps. This can be then reinjected to reinvigorate the oil enabling the recovery factor to be greater
4 - water could be sat on top of the horizons and at the base
I would preferably see additional wells happen around Saffron as it's in the centre of the P90 contour and Clove is outside - I totally agree. Clove was just referenced as a likely costs for similar depth wells in better locations
Simple maths............. :/
https://blogs.dnvgl.com/software/2016/12/p10-p50-and-p90/
All the best (now......... where's my degree.......:()
also......Clove already has road access to site......... :)
I can't see the cost of Clove staying around $500,000
Now they know what to expect I think it will be cased with a larger dia drill but that's only my opinion.
After the successful completion of the well a farm in or joint venture is the preferred option. This has been stated a few times by Cerp
Other options for finance can also be used including forward selling, corporate debt to continue operations
Hi Bamps. The two Lind tranches must be close to fully used on Saffron and come April there'll be a monthly repayment of $163,000, the equivalent of nearly 150bopd at $40 net. Production level of course remains to be seen. I really do not see any choice when it comes to developing the SWP other than enlisting a farm in/JV. Apart from the fiscal benefit it would speed things up dramatically and hugely assist bringing Leo's 5 year plan to fruition.
Hi Obadhia
I hope the Lind tranches aren't used up yet as some was reserved for Suriname.
Bonasse is Cerp's best fiscal asset at $60 Wti price Cerp retain $50 revenue so reworking your figures a little makes 108 bopd to finance the loan which sounds a bit better
ATB:))
Bamps, that was the plan re loans BUT in view of the massive overrun in time, equipment hire, manpower etc what's left in the kitty is pure guesswork, we don't know what they started with, we're never privy to cash in hand info.
I would rather err on the cautious as far as WTI price is concerned and our subsequent net revenue.
ATB to you too, looking forward to additional news this week.
I spoke recently (last week) with Tony Hawkins. I calculated the repayments at $148k and asked about the companies ability to service that. He said that the repayments require a base level of production which they are already achieving. Also not all the funds from the two draw downs have been spent on saffron. Although he obviously wouldn’t tell me figures.
Thanks Razorman, hopefully a more optimistic current situation than I thought, I wouldn't disbelieve TH at this stage.
He made a big point to me that he is not a ramper and by nature is prudent and will always seek to underpromise, to improve the probability he can over deliver. A rarity on aim. I think the RNS Friday is the first example of Tony’s influence
With hopefully some more news this week, being the last week in Jan, could be expect a rise after last weeks losses or further falls???
Trading 94.8% below fair value with everything to come
https://simplywall.st/stocks/gb/energy/aim-cerp/columbus-energy-resources-shares
Krapp, I know you just deramper and that is all why are you so negative and that being the case I guess you don't own shares and again if you do not own share get off the board.
Irene - most people on here, given the COS for Saffron, wouldn't have predicted 0 bopd, but you did, in fact, according to your sweepstake, which you are very quiet about these days, most people predicted a positive outcome!
Most investors here understand the speculative nature of the business and don't seem to require an assurance of a minimum bopd figure before investing as CERP are unlikely to ever give such an undertaking !
I certainly wouldn't subscribe to any site that's inculcating such ludicrous notions to you ! If your opinions are self generated I'd recommend you consult the Government sponsored financial advice site to improve your knowledge!