The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Yeah. dropp on MEN and BYOT is understandable as they will be cancelled. but this news was just delay. Will go back where it was.
And look at BCE - Beacon Energy - more recently who claimed their drill was going to flow at 900bopd but they only managed 40bopd.; and look at Desire Petroleum in the Falklands who declared an oil find that turned into water a couple of days later.
Every dill is differrent.
Nige,
Bad timing for sure just before Easter break, but a lot of companies will release updates like this. They may need to do an acid squeeze or something similar on part of the well, but all we can do is guess at present. I'd assume they didn't want to take time to get this engineering work done or folks would have been shouting for an update if we hadn't got one by end of April etc, they do have to keep the market updated etc. More prospective zones in TO-14 yet to be tested, so its a wait and see. Hopefully we'll get more updates on the engineering work over the coming weeks.
You could be correct as these delays have put the timeline out now for sure and the company would be coming under more pressure to update. Maybe the could have held off a little longer, but perhaps that still wouldn't have made a difference. It may take weeks to sort out the issue they've encountered. I'm sure we'll hear in due course.
Regards,
Ed.
Look at JOG market update in Sept 2017, and then consequently update in following October. A lot argued back then how orchestrated the update manoeuvre was to let in the bigger party(ies). Price shot up over 400%!
Yeah, bouncing strong!!!
Let's believe that TO-14 is going to flow at 12,500bopd - that's 2,500bopd net to Corcel.
Or that is what we were led to believe anyway in the RNS dated 28th December 2023. Unfortunately it hasn't happened so far.
I think the best approach is to claim to not have noticed or read the RNS and to see the drop as an unexpected buying opportunity - and by the way, that is me being sarcastic.
Bouncing strong
Especially if tle loss is 50% or more.
You're here so I doubt that... and who's this we? You sold out.
The only guarantee here is that we will get weeks and weeks of complete silence.
Hi Breq,
Are these kind of issues fixable?
All we know from the RNS is:
Things are taking a long time. Still testing TO-14. TO-13 testing not started yet.
TO-14 is probably a carbonate rock issue ie when they start flow testing it, the well gets blocked up. Previous RNSs stated no water, only oil shows and pressure back to previous levels.
My guess is Sonangol thought it best for reservoir management reasons to test levels different to historic producing depths. But they found the carbonate is being pulled into the well and blocking it. So they’ve been trying to fix that with limited success so are now thinking they have to test the historic producing levels which may have better rock characteristics. They were prolific producers before.
That’s the only way I can reconcile the very positive previous RNSs with this latest negative RNS.
Wondering if they might do a sidetrack. Also maybe FFD will be horizontals in the historic producing levels to improve reservoir management.
TO13 might flow
Morning Ed,
Bit of a shocker this morning.
Don’t you think it’s a bit strange to release an update saying there is a problem, when they are still trying to work it out?
A lot of wells must encounter issues along the way , that eventually get sorted out?
I am sure they could have waited a while, try and find a solution and then inform the market as to whether they have been successful or not?
The only credible reason I can think of is because of the timelines on the presentation?
All very strange
Thanks Nige
Thanks Art
Another 25 per cent down. Don’t rush to buy these imo until they go much lower or the company reassures.
Will someone please post the link to Corcel's X webpage that is updated only with company news. Thanks in advance.
Morning Nige,
That's the thing though they haven't completed the test of TO-14 yet let alone testing TO-13. In fact the RNS also reads
"The Operator is following through with the completion program for both wells with continual updates to the program based on new information obtained with progression of the engineering work."
To complete the wells they must think this engineering work ongoing will solve it.
Regards,
Ed.
No worries, I genuinely don’t feel like many here can see the wood for the trees.
IMO the RNS was deliberately vague to tick the ‘updating the market’ box with ‘we might have a problem’ but confusing enough to be fooled into buying more in the hope that they interpret it the way the main market is clearly not…
8M market cap isn’t so cheap if you have licenses no one else wants, dry wells and have a board that pumps upbeat and confident news coming soon on social media, only to deceive them with the real ‘bad’ news, hours later. Each to their own I suppose, but how people have money in this stock the equivalent value of a nice detached house, boggles my mind, they must know what we don’t
Maybe posters are just being sarcastic when they post that they are 'buying more' or 'topping up', etc, etc
Sorry Sniper88.
I did not read that as being sarcastic though I can now when I reread it. To be honest there have been far too many bonkers posts here since the RNS was released to know what is going on.
Blimey, who needs to average down. I got out at a small profit yesterday anyway. I certainly won't be buying in again unless they can produce some half-decent flow rates.
ART you might not have noticed that my post was entirely sarcastic! And I was humouring those on here who seem to think all is rosey and nothing could possibly be wrong here.