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The duration of the SV-29 drill is 7 months and 3 weeks.
The spud was approx.on 25th February.
The last three drils in the SV area :
SV-25 7 months & 10 days 452 boepd
SV-54 7 months & 5 days 565 boepd
SV-59 12 months 154 boepd
avg : 306 boepd
As seen from the above the duration is inversely proportional to the production boepd.
I hope to be wrong though.
AND workovers:
SV-6 Workover 394 boepd
SV-12 Workover 883 boepd
Better situation!
Three weeks delay of drilling results - is it good or bad. That is the question
Two new development wells should give 1.0-1.5 kboepd of new production in total, while the third one should explore the potential of the SC license
Not even close to doubling the production
Gas prices is our only friend
$12million
Nice to see we're back in the 40p's. I prefer this to JKX personally. No one on JKX talk about risk with Eclairs biggest shareholder with its billionaire owner Kolomoisky owing $2bn fromPrivat Bank fiasco to Ukrain govt and dont see why govt will pay JKX the $12 it is is chasing through the courts.
Hopefully the latest drilling will double our output from 5k tp 10k boepd by H2 2022.
Russian gas production is increasing, doesnt help to stop the price hike
Russian gas production up 9.6% YoY in September
On 4 October, Interfax reported Russian gas production for September. Total output of 61.0bcm in September 2021 was up 5.7% MoM and up 9.6% YoY. On a YtD basis, Russian gas production is up 11.9% YoY. Gazprom output of 40.9bcm accounted for 67% of Russian total output and was up 4.6% MoM and up 11.9% YoY. NOVATEK's 5.9bcm was up 14.4% MoM and down 4.6% YoY. Rosneft's 3.9bcm was up 2.7% MoM and up 18.5% YoY. Gazprom Neft's 2.3bcm was down 2.3% MoM and up 42.1% YoY and LUKOIL's 1.5bcm was down 2.0% MoM and down 7.0% YoY.
Surely the drop was caused simply by Putin's comment rather than a tree shake?
"Huge tree shake this morning and one can only imagine they're triggering peoples stop losses."
Putin kicking the tree hasn't helped either...
Huge tree shake this morning and one can only imagine they're triggering peoples stop losses.
SR123, you definitely have a point here
On the other hand, if ENW had $100 mn in cash, not $60 mn, what would that have changed for us, minority shareholders?
Not much, I reckon. Still no dividends, still no meaningful increase in production, still too much capex per well
Both have a number of pros and cons. I shared my point of view on both stocks many times
Under the circumstances, I would own both. The trend is good for both
Unless either or both of them pays a divi, cash balance by itself does not mean much
I am seriously concerned by JKX's ability to maintain its Ukrainian production, let alone to grow it. The latest well was a success (contrary to my expectations, I must admit) but before that there were several failures. JKX's assets in Ukraine are severely depleted, you should clearly understand this. The latest well changed nothing in this regard
ENW has better quality of assets, but the reserves are deep in the ground, so it costs a fortune to drill a well. 500-600 boepd initial production which quickly falls is not enough to justify a $12-15 well cost. Plus, it seems that the controlling shareholder may be benefiting from it
Anyway, the major driver for both companies now is gas prices. Seems that it will be a harsh winter for Europe. Share prices should benefit from this further
I made a lot of money on ENW and, to a lesser extent, on JKX back in 2018. Hope to repeat it, at least partially this time
Bad to be a small gas producer in Russia watching how gas prices skyrocket around the globe, while you can hardly cover your production costs))
The Russian asset brings no upside potential. The gas price is still $55-60/mcm, as we speak
Great to be fertilizers producer in Russia these days. Or to be a producer of whatever it is, which can eventually be exported, and which requires a lot of gas to produce
Yes, good performance so dar. Hope we’ll reach 55-60p by year end, at which level I will certainly sell
Need good well result. Any time soon
Hey, re JKX’s Russian asset, it’s long overdue, they should have done it years ago
The plan is to get out of Russia, as there is a real risk the asset is expropriated one way or another
The asset value is $30-40 mn. And it will not be easy to sell
Nothing about Ukraine, I reckon
Good to be in both JKX and ENW. For the record, I hold both for now
(Sorry all - not directly ENW related).
Krok, need your thoughts on JKX disposing of Russian assets. What is the plan?
Could this be the started of consolidation in Ukraine gas producer space? (possibly good news for ENW!)
Steadily rising for the last number of weeks and no surprises to see this and can see this continuing.
How far will it go - was in the sixties previously and now now better conditions so see this as a minimum.
nt
Other than the obvious ongoing high POG, is there anything else that may be influencing this morning's large rise?
JKX has cash but not has any intention to give a divi
The reason is that accumulating money to make new drills.
The wells are going very soon in deeply depletion.
ENW has understood this very early as seen by moving forward to increase the mcm/day with consumption of profits and acquire new fields like Arcona.
I covered key issues ENW if facing in my previous post. Now would like to highlight some brighter areas, which may support the share price going forward
1) Gas prices: 1H - $249/mcm, 3Q so far - $431/mcm, i.e. 73% higher
2) Production: slightly higher production in 3Q as in 1H (+4%)
3) Revenue - 65-70% increase, which translates to $33-35 mn revenue in 3Q alone
4) Additional production from well SV-59 should give a decent boost to revenue and profitability from 4Q forward even if it's only 500-600 boepd initially. Anything above that would be a pleasant surprise
5) Effective subsoil tax rate decreases as "old" production is replaced by production from new wells. Gas tax rate is only 6% for new deep wells
Officer Figby makes a good point. But then so does krok.
The idea that this is an oligarch getting off on his own reputation, building his business and milking his own Company along the way, while still maintaining his Stock Market credentials, is hard to bear.
But it's not anything we should ignore.
I'm sure I remember in 2018 when the cash held was going up. It went down and was explained by a lumpy drill payment partially in advance, sure they negotiate contract price b4 hand. Any way with the money invested in 2018 and the rest the production should be higher and the most obvious clues are the in performance of VAS field. Which they bought for some millions.
In the low gas prices they have bought a new license And have least fully paid for one drill now finished and partially another, on-going. So expecting lumpy reductions in the cash when the amounts get paid.
All the issues go away if they can get about 6-7K BOEP this year.
The issue was always what where they going to buy with all their cash they kept is local acquisitions have been on and off and challenged in courts all the time.
As Krok says the new licence will mean cash going down w/o immediate return this year. SC needs processing equipment.
Whatever at 6-7K BOEP and current prices finally being realised it will be P/E 1-2.
Hi straycat,
according to the last interim results Enwell seems to care to do the job -drills-in Ukraine by spent the earnings to capex.
I don't know how far can go but my question is why they don't take money from the bank - this period the rates are very low- instead of the earnings.
Of course they say that have zero debt but for me as i see this it's not taken in consideration by the market.
For me this thing appears very strange.There is something that we don't know ?
As for the price of the share , it depends on the results of the SV29. A flow, imo, => 1000mcm/day can change the game for the rest of 2021 , otherwise a flow circa 400- 500 mcm/day will have a small or nothing impact to share , as happened always in the past.