Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Don’t worry you were about as accurate as Longboat’s exploration team have been!
Apologies may have got crossed wires there as that is south American offshore block. Got confused with the Exxon Sarawak news and collaboration etc. pardon me
Offshore Malaysia really hitting up with Petronas third hydrocarbon discovery just announced. This time in deep water 5000+ deeper than lbe block ( kertang 1000+) Not an overstatement to say this region offshore Malaysia is prolific in terms of discoveries. Lbe may actually be in right place at right time with this licence.
Mubadala off Indonesia excited about making a giant and game changing 2TCF gas in place discovery in water depth deeper than Longboats Block 2A which is in water depth ranging from 100 - 1400m with the proposed Kertang well location at 1,000m.
Kertang 9 TCF mid case recoverable estimate.
Multiple follow on structures.
Will be interesting once we gain a farm out from our current 52.5% to accompany us with Petronas and Petros
Updated 13 May 2024, 11:01
United Arab Emirates operator Mubadala Energy confirmed it has made a giant gas discovery with potential for more than 2 trillion cubic feet of gas-in-place with its Tangkulo-1 ultra-deepwater exploration well on the South Andaman gross split production sharing contract offshore Indonesia.
Tangkulo-1 was drilled to a depth of 3400 metres from a water depth of 1200 metres, just a few months after Mubadala made a major discovery with its Layaran-1 well, also on the South Andaman PSC. The operator earlier said that Layaran has the potential to host an estimated 6 Tcf-plus of gas although industry sources have suggested the figure could be higher.
"When added to our recent success at Layaran-1, this game-changing discovery promises to transform Indonesia’s and Southeast Asia’s energy landscape and demonstrates that South Andaman is one of the world’s most exciting energy plays," commented Mansoor Mohammed Al Hamed, Mubadala Energy chief executive.
The Tangkulo-1 well encountered an 80-metre gas column in a good quality Oligocene sandstone reservoir that was confirmed through an extensive data gathering campaign that included obtaining a full core of 72 metres, wireline logging, sidewall core, pressure and fluid sampling.
Utilising a new drill stem test (DST) design, the wildcat flowed 47 million cubic feet per day of "excellent quality" gas and 1300 barrels per day of condensate. Mubadala noted that, although testing was constrained by testing facilities, the estimated well capacity is between 80 and 100 MMcfd of gas and more than 2000 bpd of condensate.
Unlocking further potential
In line with company’s gas-biased strategy, Tangkulo-1 is an important pillar in the cluster’s development story, with the discovery unlocking further potential in the southern part of the block and indicating an additional multi-Tcf of prospective gas resources in nearby structures.
On completion of the Tangkulo well, the West Capella is lined up to drill an appraisal well on Layaran.
Mubadala operates the South Andaman PSC with an 80% working interest and its sole partner is UK independent Harbour Energy on 20%.
https://www.upstreamonline.com/exploration/game-changing-mubadala-energy-confirms-another-giant-gas-discovery-offshore-indonesia/2-1-1642620
The problem is, it's always "next year" with this lot. Let's hope they can make some meaningful progress this year.
You wait until we see some movement here, Q4 / Q1 25 will make Norway look like a side show.
I expect the SP to be nearer 40-50m as that firms up.
That said buying production assets has been slow, with no real excuses. Now H has moved he can fully focus on spending some of the Japex budget
Agree Paul. How many years do they need. Wish i wanged my money in a ftse divi payer
Still holding myself and would like to add more around the 17p mark. Spare cash all went into ECO at 9p which has accelerated - perhaps thats where the traders have gone - to help me along!!
Although I am no fan of the ex FPM management who follow the mantra of increasing MC rather than SP, along with hefty wage bills, I do see a recovery going towards the Norge drill later this year. Happy to sit and should funds allow add.
Charlatans.
Is this company ever going to do anything?
Meanwhile the management are coining it in.
Let’s march onwards to the early20’s
So they are not talking to Malcy at the moment. Lets hope ots because they’re working on something they’re not yet ready to unveil.
Lol Ash. I think the difference is now, that Longboat finally have someone (JAPEX) behind them. Let's see what they come up with.
In the meantime, I noted Malcy has been scracthing his head about the recent management changes:
"As I write I am waiting to talk to Longboat management about a series of management changes which leave me somewhat unconvinced. The company has a large number of excellent directors but are they all in the right place? As a former Faroe fan I cannot understand why Helge has left the management team, I am known to be a huge fan of James Menzies so that area is in excellent hands but I guess better folk than me will tell me one day… I must be missing something, it wouldn’t be the first time."
Based on our miniscule production investment to date i think there's 3 hopes in that, no hope, bob hope and envelope
Good shout Zengas,
Long story short, it's easily doable. Repsol, Source, Var, Shell (reports) are looking to either sell up or refine their portfolio in Norway so opportunities are around. Helge, for his lack of charisma has been in Norway for decades, has the connections and managed to convince JAPEX to join us and fund us.
It's potentially doable. One thing you may have potentially missed is the barrel per 2P reserves. Okeas was transacted at an initial cost of $5.36 per 2P bl which would value the upfront cost at about $284m for 53 mm bls P2 and then discounted back to whatever effective date is used (perhaps 1/1/24 or earlier).
I posted this on 1/3/24
Okea bought their 4 interests (not long after LBE )n Statford, Statford Ost, Statford Nord and Sygna for $220m giving 13-15,000 boepd, 41 mmboe 2P, 8mmboe 2C and upside of another 14 mmboe.
Acquisition of 28% WI in PL037 from Equinor, comprising 23.93123% WI in Statfjord Unit, 28% WI in Statfjord Nord, 14% WI in Statfjord Øst Unit and 15.4% WI in Sygna Unit.
Production in 2024 this year estimated to be 16-20,000 boepd (though likely reduced by 10% this year).
Effective date 1 January 2023
Initial fixed consideration of USD 220 million including tax balances of approximately NOK 300 million.
This was transacted at an initial cost of $5.36 per boe 2P.
However this would expand to a profit share on bls sold between $75-$96 in 2023, $64 - $85 in 2024 and $53 - $72/b in 2025 where Equinor get 90% of the profit in those ranges after tax and effectively increasing the 2P per barrel cost.
Happy to be wrong btw Mommur. I'm always please to see other investors getting mega returns.
I'd just rather LBE aren't bought out by SQZ because I don't see the Ring Vet Vest being a big priority for them. They seem more contempt with draining every inch of BKR regardless of the diminishing returns they receive with each cycle.
I'm just not sure on SQZ in terms of their desire to truly branch out of the CNS, that's why I originally sold out.
They should, in my view be a 100,000 boepd company by now but they seemed too contempt and focused on BKR. Outside of R3, which was a plan that came with Rhum on the sale of the field. I'm just not sure what they've achieved. The last Tailwind acquisition seemed insane from a synergy point of view. SQZ had touted itself as a company focused entirely on gas production to then acquire a company focused entirely on oil (and fairly low rates).
Mitch Clegg IMO was the downfall of SQZ and it was crazy to save him from his failed time at Circle Oil, once TCW stepped aside as CEO the company has stagnated, in 2021/22 they we're given a miracle from the bull run in Nat gas prices and they still failed to do anything meaningful with the profit. I don't see them doing anything meaningful in Norway unfortunately.
Serica has commented on looking at Norway Assets, Deeko. With the backing of Mercuria, may well have the slide rule going. Bigger fish than Longboat, which I considered a tasty morsel for Serica as well!!
Also worth noting, all other acquisitions in recent months - Kufpec, Barge etc have self funded the acquisition through production revenue. No money has actually changed hands with most deals.
The marketing documents seen by Reuters state 53 mmboe reserves and 29,000 boepd
Helge has stated that Longboat have potentially $200 million available in financing between the JAPEX intracompany loan and additional supplementary financing.
Repsol assets would be valued at around £420 million at $8 per boe as per the recent benchmark acquisition price.
6 months of production backdating between acquisition announcement and closing of the acquisition would come to $160 million at a conservative 30$ per boe of production. N.B. current production is 29,000 boepd.
Reserve based lending for the remaining $60 million.
Hopefully this is the reason HH has moved directly over to the LBEJAPEX JV full time. That would launch LBE into the stratosphere, set the stage for the Ring Vei Vest project development, fund a continuous drilling campaign in Norway and set the stage for Malaysia development.
Ps. To be fair, at Coro JM did the Duyung acquisition in 2019, but that is probably 2-3 years from production, so succesful in one sense , but a poor return on cash .
I liked the previous set up. Whilst I like JM and he was succesful 3 companies ago, he subsequently was ceo of Tap oil though it had a producing asset in SE Asia, he was unable to raise funds and there was a boardroom coup pushed by a shareholder and he resigned. He then went to Coro plc and again didnt manage to close a meaningful deal and then didnt want to reduce his salary as the other board members had during covid and was therefore squeezed out/ resigned.
Though he touts his connections, In neither company over a total of around 4/5 years did he manage to complete a meaningful deal.
As a result of this history and having been persuaded by his charm, I dont see him as ceo material anymore. and was pleased that the HH and the Norges were in place to manage him.
Let's see about Nick...