Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Happy monday!!!
Absolutely fantastic news! An early strike which will shore up the share price. Investors can now relax and enjoy rest of the ride.
Hard to put exact value on it given wide potential gross range (19-60million). However there are plenty hints in RNS that further appraisal will likely see that revised upward in time.
This result seems to justifies the current market cap (£40 million) and more. Not least given there are further drills due in short time frame and we now have a 2/2 strike rate.
At a guess this should open at £1+ then rise as word spreads.
Well done Helge and team.
The Longboat has finally departed!
Massive news! Well done all.
Great news - congratulations to all who held long and strong!
Egyptian Vulture is a huge structure - they were always going to be conservative in their estimates after just one well, but I’m sure there will be further appraisal wells planned pretty soon.
Still work to do but very promising.
Great news, and West Hercules will soon move onto Ginny/Hermine.
It should certainly put a base under the SP.
I do like it when an overwhelming discovery is notified by a somewhat underwhelming RNS!
Talk about under promise and over deliver - on steroids!
Still should put everyone in the blue now.
Trek
For context they were anticipating 17.6m of sand in a gross interval of 55m.
They got 13m net sand in a gross internal of 37m.
So the total column size was a bit smaller but the net to gross was slightly better, and the porosity was pretty much as they expected.
No oil/water contact at this location and the top Lange sands were encountered slightly shallower than they thought which might be a good thing as the upper Lange has the high net to gross.
Lots of work for the geo teams to be getting on with now - such a significant discovery should hopefully be appraised fairly swiftly.
I have to say I’m surprised it’s only opened in the 80s after that result. But as haggis pointed out that result pretty much underpins the share price now so any further discoveries out of the next 5 wells should be a bonus.
It’s also good that they haven’t overrun on either of the first two wells. Both completed before schedule - although it’s only days if they can keep that up there should be some cost savings which can be put into the appraisal budget.
Excellent news given EV COS 25% next up ....
The chance of success associated with the Mugnetind prospect is 51%
@pauldrayton: "work to do" is a reasonable summary / but a very nice problem to have!
As you say the well still needs to be fully appraised before a proper value can be attributed.
Without getting carried away its fair to say this result should give the share price a solid base (... and I am smiling!).
Fair play to Helge, he always thought the COS for EV was higher than the operator's estimate. I have to say, the size of the structure is quite exciting!
Thanks to Paul's fine work, we also know that we have two shots at Mugnetind.
Every single trade this morning is a buy.
Share price only going one direction...
https://www.lse.co.uk/ShareTrades.asp?shareprice=LBE&share=Longboat-Energy
icemax, with regards to Mugnetind, I think the second well will only happen if the first is a success. Essentially it would be classed as an appraisal well if they make a discovery. If the first well is not successful then it won’t happen. So not quite two shots at it but possibly a swift sidetrack to assess the extent of it if they find anything interesting.
Thanks Paul. Would it not be the case that if the first drill encountered an issue, it could be sidetracked? I bow to your knowledge!
I've done some maths:
On 2/7 fields drilled the firm has 4.65mmboe net low end, 8.25mmboe middle and 11.85mmboe high end combined recoverable resources. Per share this works out as: Low: 32.6p
Mid: 41.97p
High: 60.28p
https://twitter.com/ProAIMTrader/status/1452543182340775940
On ii I can’t even get a price to buy 500 shares atm!
Trek
Mangaged to top-up another 9700 shares @ 0,84 .... Which was my average after buying over some time... AFTER this discovery. Great, and thank you!
Me too - managed to grab another 5k worth @84p, took nearly an hour to fill though.
Happy days!
Just have to appreciate the market being irrational initially here. Looking at the SP history with just the cash in hand, and what was only hope at that point. Now, two drills in. Egyptian Vulture was a low COS drill. Still plenty to come.
It's irrational in that it's an illiquid stock. On days like there needs to be sellers before people can buy.
Great news...super reassuring .....looks like we are finally on our way to become a full cycle E&P business!
Well done HH and team - cost-effective exploration led fast route into production and cashflow generation!
2 drills = 2 discoveries = 100%
Well done to everyone who held strong.
Never in Doubt (wink emoji)
ATB
Malcolm Graham-Wood "I have just spoken to Helge Hammer CEO of Longboat Energy and this is a fantastic discovery. Liquids a big bonus and I’m a very prolific area."
icemax, just to come back to you on Mugnetind, yes they could sidetrack if they encounter problems but operators can do that on pretty much any well and it would only be a few metres from what was planned.
The drill permit that AkerBP applied for was for two wells, drilled from the same rig location (so I’m guessing a sidetrack appraisal from the same wellbore). They won’t do it if the initial well is dry, but it’s nice to have the option to crack on immediately if it’s a success.
Well this is the news I've been desperately waiting for.
SP is still vastly undervalued, but I'm ecstatic with the results. When news spreads of how significant this discovery is, we should be well over £1, but I expect with 5 drills left we should be looking at £2 plus by March-July next year.
Nice to see our stock go into auction...makes a pleasant change!
Malcolm Graham-Wood "I have just spoken to Helge Hammer CEO of Longboat Energy and this is a fantastic discovery. Liquids a big bonus and I’m a very prolific area."
————
Hopefully we might get an interview with Helge after the next two wells to summarise the position at the end of the first stage. It would be useful to know if he’s opened his champagne yet!