The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Before any of us is carried away by Cloughton's 184 Bcf of GIP (P50 Case) and the possibility of our drilling an appraisal well soon, I reckon about £2.5 to £3.0 million gross would be needed for a well, of which our 40% share would be £1.0 to £1.2 million. Unfortunately the Carboniferous sandstone reservoir here is, quite frankly, pretty horrendous as it flowed at only 40,000 cu. ft per day from an overall section more than 4,000 feet thick. So IMO it would need to be fracked to get a commercial flow rate, which is no longer on the cards. Perhaps it needs a whole series of proppant squeezes!
Inishkia the main one though we need news on
Maybe find out next week if we’ve gone for any more
Hi itsawarap. New lIcence awards are usually based on the quality of the work programme offered by each applicant. If there's competition for a particular licence area, I suppose it's an auction of sorts, in that if you offer to drill a firm well you are more likely to be awarded a licence than if you've only offered a well which is conditional on, say, some seismic data looking good once it's been interpreted. I think the process used to be called "Discretionary Awards".
Are the new licences offered at a fixed price or by auction? thx.
Is George Yates and family really only going to be happy with 30% of Wressle field future revenues...I think not.
Petrichor/ Heyco takeover court sanction hearing is today with completion Thursday.
New North Sea Licence. I did here on the news a few days ago there had been 100 new licenses up for grabs and only 113 applications, so EOG may well be landing one of them this autumn.
I emailed WH some time ago. His reply was to take the licence to the next stage which would be a commitment to drill, or the licence would be lost. To be honest I don't think Mr Rayn would put the same licence out for tender again, he would lose face by seen as back pedaling. He would take less pressure form all sides if he granted an extention. If inishkea is lost we still have Wrestle field development and Broughton North / Sernity (a few years before any income on this one i think) / Cloughton gas which I think could be a big deal UK needs gas WH will be pushing this one as EOG have taken operatorship of the licence, history of drilling at Cloughton, winter coming and I would think political pressure on the local council might help get this done.
It’s a good point. Does the licence just require drill confirmation by December with the ability of having the funds in order to fulfill the requirements or does EOG need to actually drill by this point?
My hopes are if the farm out fails, then Mr Ryan see sense and allows a licence extention. They can't afford this to fail, better a licence extension than to start all over again.
@Leigh I can’t help but feel what else can the Irish government do but allow drilling of new prospects which I think was a sticking point in regards to the farm out? The UK will be reliant on Ireland in the worst case and appears to be a 2 way street. I maybe reading this wrong but Eamon Ryan’s confirmation of the need for gas moving forward is a big step in my eyes. I’m open to the opposite opinion.
How would this effect EOG and farming out inishkea. If EOG don't commit to a drill by end of December 2023 it's all over the licence will be lost and handed back. Surely its a game over if they can't farm inishkea out.
How can Ireland possibly sit on potential reserves and sign an agreement to the uk not to counter supply gas in the event of a cut off without drilling further?
https://www.gov.uk/government/publications/cooperation-for-natural-gas-security-of-supply-uk-ireland-memorandum-of-understanding
New gas deal signed by uk and Ireland. whilst it focuses on renewables surely Ireland have to focus on supporting this! Very interesting
https://www.rte.ie/news/2023/0911/1404655-gas-ireland-britian/
Inishkia drill needs to start imho Corib field depleted by 2030
Like WH didn't have the gas in place number for Sept 7th,...nah, major news inbound in the very near term
Just the major news to arrive then is all systems go !!
The water cut detail is on todays UJO update which is worth a read
Rabbit away GP - always an interesting read.
Because of the water cut issue at Wressle I’ve looked back at the NSTA's production figures since they were first published for July 2022. A couple of quite interesting things have emerged: 1. The average Gas / Oil Ratio (GOR) from July '22 to Feb '23 was fairly consistent at about 650 cu. ft / barrel for each month. The GOR then seems to have jumped in March '23 to 716 cu. ft / barrel and declined fairly steadily since then. The later average GORs are: March '23: 716, April: 695; May: 687 and June '23: 675. I assume the March GOR increase had nothing to do with the water coming in as: 2. According to the NSTA, water production started in late June ‘23, when a total of 92.5 bbl of water was produced. So perhaps a little water may have been produced in the last few days of the month. The GOR changes made me wonder if there may have been a small gas cap within the Ashover reservoir situated above the Wressle-1 reservoir penetration point. The 2015 Ashover DST doesn't really support this idea since it produced no gas at all, which seems very odd to me, but we have always produced a lot of gas since the field came on stream. I suppose it’s possible that gas is getting into the wellbore from either of the shallower and much gassier Pen*stone or Wingfield reservoirs but, in any event, a small gas cap or gas flow from another reservoir could have helped with oil production. As the gas depletes, the reservoir pressure will reduce, with resultant lower oil flow rates, and perhaps allowing the water to come in. Whether the GOR is now much lower than it was originally, or the imminent development of a much higher water cut is on the cards, are moot points. But I think both of these events should be easily be overcome by a satisfactorily working jet pump. Sorry to rabbit on; this may all be a load of tosh!
Another good performance from Will Holland.
Volume arriving. SP on its way up in anticipation of major news imv
I got my sums wrong for 4.7 million there's, its more than that.
God only knows, perhaps the promised PR hasn’t started yet??