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Bugsy find last night of a second Oil auction by the GG in a few days @ 70 to 80K barrels in total dose seem like some one is producing and looks in excess of 1000bpd. This is a significant rise to normal. Some say it is not FRR Oil as its not the normal route to market for FRR.
However, if FRR have declared commerciality of the wells and not testing product then GG will want to monitor the revenue and ensure it is tallied and that the correct amount is offset against the 300/400M (arbitration?) value. FRR have a track history of not delivering production figures as they are “testing” results. So I expect GG are all over any production and will insist of their C&E people keeping accurate records. We may get a clarification during F2F with ZaZa.
As Frr have kept up the production as coming under as testing for a while now, I would think that GG would want to keep tabs on it & class it as production not testing.
That bugsy find was crucial. Think FRR have advanced further than folks realise/ that we are being told (for the moment)
Bugsy you are da man :)
if it isnt FRR oil then whose is it? Mole will know if there is any other production in Georgia
its not ours im sure
Its from the Teleti field which is operated by schlumbereger - i think.
Copied from the link bugsy-b posted :-
Georgian Light type oil will be delivered as follows: 3.1.1.1. under EXW
(INCOTERMS 2010) terms, on the oil-gathering facility located on the
territory of the Primary Oil Treatment Unit of JSC "Georgian Oil and Gas
Corporation" in village Sartichala, Gardabani region (stationary object
registration number 1120057) (to be loaded in oil tank cars supplied by the
Buyer);
As the oil from T39 contains condensate, I assume it requires treatment to separate the oil from the condensate. This facility is also on the rail network en-route to Batumi :-
https://upload.wikimedia.org/wikipedia/commons/0/01/Un-georgia.png
http://nortonsafe.search.ask.com/search?chn=&cmpgn=&ctype=maps&doi=&geo=&guid=&o=APN11908&p2=%5EET%5Ecd00gb%5E&page=1&prt=&q=sartichala%20georgia&trackId=&ver=&d2=sartichala%20georgia
http://www.searchanddiscovery.com/documents/2014/20273nibladze/ndx_nibladze
Dedoplitsakaro in the above link is the nearest rail terminal, just north of Taribani (NNE).The line then runs through Sartichala (on the middle link road map, which if compared with the first link, the S5 road is near to the rail link).
bugsy-b's post :-
There was an auction of crude oil in Georgia on September 10th.. 6,000 Tonnes of crude...
Today they advertise another auction on October 1st, Also 6,000 Tonnes of crude...
6,000 Tonnes is around 42,000 Barrels of oil...
Someone has cracked the geology out there by the look of things..
http://www.gogc.ge/uploads/other/1/1379.pdf
5000t of light crude x 6 = 30,000 bbls (conversion rates are 6 to 8 depending upon the density, so I have used the lower rate). Assuming that the first train is from August and the next from September, then that equates to 1,000 bbls/d, which is the rate that Zaza said FRR would be producing by the end of the year.
30,000 x $75/bbl (the rate we were paid previously) = $2.25m each month.
https://en.wikipedia.org/wiki/Barrel_(unit)
The oil from T39 is 41.5 API, which converted to specific gravity = 0.8179. The oil up for auction is 0.810 - 0.845.
Copied from the link in bugsy-b's post :-
Georgian Light:
Density: 0.810-0.8450 gm/cm3 at 20 Co
Sulphur content: max 0.3%
Water content: max 1%
https://www.easycalculation.com/physics/classical-physics/specific-gravity-oil.php
The route fits. The 1000 bbls/d fits. The density fits. Perhaps FRR have to sell via government auction so that they have all the figures of sales. Then they will know when all recovered costs have been met and taxes are due (out of their 51% cut).
I've re-posted this as it was lost in the dross.
Copied from the link bugsy-b posted :-
Georgian Light type oil will be delivered as follows: 3.1.1.1. under EXW
(INCOTERMS 2010) terms, on the oil-gathering facility located on the
territory of the Primary Oil Treatment Unit of JSC "Georgian Oil and Gas
Corporation" in village Sartichala, Gardabani region (stationary object
registration number 1120057) (to be loaded in oil tank cars supplied by the
Buyer);
As the oil from T39 contains condensate, I assume it requires treatment to separate the oil from the condensate. This facility is also on the rail network en-route to Batumi :-
https://upload.wikimedia.org/wikipedia/commons/0/01/Un-georgia.png
http://nortonsafe.search.ask.com/search?chn=&cmpgn=&ctype=maps&doi=&geo=&guid=&o=APN11908&p2=%5EET%5Ecd00gb%5E&page=1&prt=&q=sartichala%20georgia&trackId=&ver=&d2=sartichala%20georgia
http://www.searchanddiscovery.com/documents/2014/20273nibladze/ndx_nibladze
Dedoplitsakaro in the above link is the nearest rail terminal, just north of Taribani (NNE).The line then runs through Sartichala (on the middle link road map, which if compared with the first link, the S5 road is near to the rail link).
bugsy-b's post :-
There was an auction of crude oil in Georgia on September 10th.. 6,000 Tonnes of crude...
Today they advertise another auction on October 1st, Also 6,000 Tonnes of crude...
6,000 Tonnes is around 42,000 Barrels of oil...
Someone has cracked the geology out there by the look of things..
http://www.gogc.ge/uploads/other/1/1379.pdf
5000t of light crude x 6 = 30,000 bbls (conversion rates are 6 to 8 depending upon the density, so I have used the lower rate). Assuming that the first train is from August and the next from September, then that equates to 1,000 bbls/d, which is the rate that Zaza said FRR would be producing by the end of the year.
30,000 x $75/bbl (the rate we were paid previously) = $2.25m each month.
https://en.wikipedia.org/wiki/Barrel_(unit)
The oil from T39 is 41.5 API, which converted to specific gravity = 0.8179. The oil up for auction is 0.810 - 0.845.
Copied from the link in bugsy-b's post :-
Georgian Light:
Density: 0.810-0.8450 gm/cm3 at 20 Co
Sulphur content: max 0.3%
Water content: max 1%
https://www.easycalculation.com/physics/classical-physics/specific-gravity-oil.php
The route fits. The 1000 bbls/d fits. The density fits. Perhaps FRR have to sell via government auction so that they have all the figures of sales. Then they will know when all recovered costs have been met and taxes are due (out of their 51% cut).
http://www.searchanddiscovery.com/documents/2014/20273nibladze/ndx_nibladze
See page 8 of the above link.
http://nortonsafe.search.ask.com/search?chn=&cmpgn=&ctype=maps&doi=&geo=&guid=&o=APN11908&p2=%5EET%5Ecd00gb%5E&page=1&prt=&q=sartichala%20georgia&trackId=&ver=&d2=sartichala%20georgia
Zoom out to see the location i relation to the road and rail network on the above link.
If this FRR, then we are off to the races and this YA palaver will be history.
Also, we need to remember that ZM has already said that the extended testing programme is generating revenue, enough to cover operational costs and to service that £265K monthly debt repayment (listen from 15:05 - published 28th July, 2018).
https://www.youtube.com/watch?v=6wlp-nZl3C0&t=940s
1 barrel [US, petroleum] = 158.9872972 litres
So 1 barrel weighs:
158.9872972 x 0.8179 = 130.0357103 kilograms
1 metric ton is 1000 kilograms:
1000 / 139.908821536 = 7.690 bbls/t
5,000 t = 38450 bbls
Divided by 30 = 1282 bbls/d`
T39 = 529 bbls/d at 8/64" choke
T45 = 270 bbls/d
Dino2 = 315 bbls/d
Wells flowing previously is about 130 bbls/d (from memory, but I might be wrong)
Total = 1244 bbls/d
Zaza did say in one of the podcasts that the gas was increasing. Then there's also zones 9 and 13 which could have been added to T45 and Dino2.
Therefore, the amount of oil that FRR may be flowing also fits what is being auctioned.
Excellent work Madpunter!
Another possibility is that the second train only took 20 days to fill = 1922.5 bbls/d. Perhaps the choke has been gradually opened up during testing. FRR did say that they expected the rates to be significantly higher for production, so perhaps they are putting it to the test,
My previous post on the subject is copied below :-
1 barrel [US, petroleum] = 158.9872972 litres
So 1 barrel weighs:
158.9872972 x 0.8179 = 130.0357103 kilograms
1 metric ton is 1000 kilograms:
1000 / 139.908821536 = 7.690 bbls/t
5,000 t = 38450 bbls
Divided by 30 = 1282 bbls/d`
T39 = 529 bbls/d at 8/64" choke
T45 = 270 bbls/d
Dino2 = 315 bbls/d
Wells flowing previously is about 130 bbls/d (from memory, but I might be wrong)
Total = 1244 bbls/d
Zaza did say in one of the podcasts that the gas was increasing. Then there's also zones 9 and 13 which could have been added to T45 and Dino2.
Therefore, the amount of oil that FRR may be flowing also fits what is being auctioned.
We'll find our at shareholder meeting what is actually going on we have a right to know.
Flow rates
Ya debacle
Majors who are they
Funding
And anything else that you can think of
Thanks for posting Bugsy-s find again Madpunter.
If this turns out to be FRR, then we know how instantaneous the rerate will be -- of course, not to mention any confirmation of a JV :-))
Good luck all
Tsbs, who do you think you are asking for info like that? Cheeky monkey!
Anyone would think you are one of the owners of frr.
Tsbs - you could always take him to court for pre-selling
or is it
Fire - take him to court for not allowing you to pre-sell
I'm confused - maybe I don't know how the market works
Anyhoo if you still were it's got nothing to do with you cos if there are ndas in place and good flow rates were to slip out there may be a bidding war from competitors.
God forbid!
I very much doubt FRR is producing 1,000bopd as Zaza said he expected that by YE so to be doing that over 3 months ahead of schedule seems highly unlikely. Bugsy, do you believe that oil at auction, due to its make-up, to be from T-39 or could it be from another producer?
RB40 could be way off the mark here but I think Mole suggested it could be BP.
Stand to be corrected though.
Retire, Not utterly convinced the crude is ours.. The object of the post was to show that these oil auctions, which in the past were advertised about twice a year, are now becoming more frequent, and the volumes of crude are expanding..
I think the crude being dispatched from Dedoplitskaro (our local) was Georgian heavy crude, I don't think we pump heavy crude, If memory serves me right we had small quantaties of medium crude from MK (well 35).
I'm sure Jindal have heavy crude coming from one of their wells..
Thanks mate. Here’s hoping T-45, Dino-2 and T-39 are producing 500+bopd between them.
Pretty confident in that respect retire.. These auctions which I think are selling crude produced from fields near to our block, are now showing bigger yields.. Probably using the same techniques as us in almost identical reservoirs I would guess..
Well done Rb, your 5,000 post .. I know you were hoping to retire by your 4,000 lol
I've re-posted this as it was lost in the dross.
Copied from the link bugsy-b posted :-
Georgian Light type oil will be delivered as follows: 3.1.1.1. under EXW
(INCOTERMS 2010) terms, on the oil-gathering facility located on the
territory of the Primary Oil Treatment Unit of JSC "Georgian Oil and Gas
Corporation" in village Sartichala, Gardabani region (stationary object
registration number 1120057) (to be loaded in oil tank cars supplied by the
Buyer);
As the oil from T39 contains condensate, I assume it requires treatment to separate the oil from the condensate. This facility is also on the rail network en-route to Batumi :-
https://upload.wikimedia.org/wikipedia/commons/0/01/Un-georgia.png
http://nortonsafe.search.ask.com/search?chn=&cmpgn=&ctype=maps&doi=&geo=&guid=&o=APN11908&p2=%5EET%5Ecd00gb%5E&page=1&prt=&q=sartichala%20georgia&trackId=&ver=&d2=sartichala%20georgia
http://www.searchanddiscovery.com/documents/2014/20273nibladze/ndx_nibladze
Dedoplitsakaro in the above link is the nearest rail terminal, just north of Taribani (NNE).The line then runs through Sartichala (on the middle link road map, which if compared with the first link, the S5 road is near to the rail link).
bugsy-b's post :-
There was an auction of crude oil in Georgia on September 10th.. 6,000 Tonnes of crude...
Today they advertise another auction on October 1st, Also 6,000 Tonnes of crude...
6,000 Tonnes is around 42,000 Barrels of oil...
Someone has cracked the geology out there by the look of things..
http://www.gogc.ge/uploads/other/1/1379.pdf
5000t of light crude x 6 = 30,000 bbls (conversion rates are 6 to 8 depending upon the density, so I have used the lower rate). Assuming that the first train is from August and the next from September, then that equates to 1,000 bbls/d, which is the rate that Zaza said FRR would be producing by the end of the year.
30,000 x $75/bbl (the rate we were paid previously) = $2.25m each month.
https://en.wikipedia.org/wiki/Barrel_(unit)
The oil from T39 is 41.5 API, which converted to specific gravity = 0.8179. The oil up for auction is 0.810 - 0.845.
Copied from the link in bugsy-b's post :-
Georgian Light:
Density: 0.810-0.8450 gm/cm3 at 20 Co
Sulphur content: max 0.3%
Water content: max 1%
https://www.easycalculation.com/physics/classical-physics/specific-gravity-oil.php
The route fits. The 1000 bbls/d fits. The density fits. Perhaps FRR have to sell via government auction so that they have all the figures of sales. Then they will know when all recovered costs have been met and taxes are due (out of their 51% cut).