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Record production gross 30k bpd with opuama 11. Ubima 1 dual completed as a producer from 2 reservoirs, F7000 can be used later. EPS soon. Post opuama 11, rig moving to Gbetiokun to work over Gbetiokun 1 and then drill Gbetiokun 3. Gbetiokun field has 20 potential oil bearing stacked reservoirs!!! Expected production of the 2 wells is 15,000bpd limited by EPS. MM’s have been having a field day with this, I’m expecting a bounce. Another great rns...
Hi spike, yes a great Rns indeed, I did pick up on ubima though, in plan English what does this mean, will they just drill/search for other access depths to find the oil. Yes mms been having a right field day with this, I hope it re traces to at least £1.20 s but we will see, it was also mentioned again about the revenue flows by the eland team, wonder what there planning. Cheers H.
Hi hermi https://www.elandoilandgas.com/media/1266/ubima-appraisal-jul18.pdf The Ubima presentation suggested prior to Ubima starting the there was uncertainty in the D1000 & F7000 reservoirs. F7000 tested at 2500 bpd that’s is a fantastic result, excellent reserves upgrade! D1000 didn’t test very well so they intend to re-evaluate this reservoir for further appraisal drilling. Like you say, possibly drill in a different area but their now looking at these options. Also D1000 seems to low api oil, not the best. However, the Ubima 1 well has now been dual completed in the E1000 & E2000 reservoirs. They are much more confident in these 2 reservoirs, they always intended to put this well into production from these. The dual completion wells have been exceptional on the opuama field, I’m pretty confident here and I think ELA are too. GL.
ELA own 45% of Elcrest and Starcrest own the other 55% so in reality ELA get 20.25% of total production or 45% of whats credited to elcrest, on what they have said today OML 40 should give ELA 6075bopd and i recall the cost PB was $30 so a quick calculation (oil $76, fx$1.31, 220m shares) gives me an EPS of 20p and as this is Africa a PE of 7 is reasonable so its worth 140p max. However ELA i recall have the rights to the cashflow until a loan to them of $380m is paid off so revenue and cashflow look better for a few years. Correct me if i am wrong but i cannot see exceptional value here. 120-140p seem right and that is where it went recently.
Who pays the $30? Eland or Elcrest?
Cheers spike, massive sell went through 9m hindsight is a fantastic thing ah. H.
Well there's been some huge trades today yet the sp has finished flat. Yes hermi, hindsight is a wonderful thing but I'm here until both Ubima and Gbetiokun Eps's go into production, I'll reassess then. Both offer significant production potential, low risk geology, diversified export routes and reserve upgrades. It will turn soon...