The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Big news still to come, but this will do for a starter.. Yes, also noted RC didn't do the RNS.. Make your own mind up on that ;-))
Looks like he has gone. Not on RNS. Imagine this will be covered at AGM?
One workover well - worth $3.8M NET to NCT - what is our market cap........err £2.7M.... re-rate about to start; excellent news......it was all in the original LM14 RNS update but not spelt out the way RC would have.....
Thank you, thought my eyes were playing up.. I gues that makes Nct one of the handful of e and p ers on the AIM market actually selling something and getting paid..
Was this the big news you guys couldn't talk about or is there more to come? See Randy has disappeared from contact list again!
Add in the numbers for the other workovers and RC#1 RC#2: that is a lot of money.
"This represents gross undiscounted life of well revenue at current prices of US$7.1 million or, net to Northcote, US$3.8 million based on a 52.8% working interest." Not bad for a workover! And more gaseous zones identified..... Note also gas sales will be monthly : )
Yes and finally they give us some monetary values too - well done!!!
Did I read that right.
Excellent - LM14 was as I expected the underrated news "LM#14 is expected to increase Northcote’s current net production at Shoats Creek by over 450% "
28 July 2016 Northcote Energy Limited (‘Northcote’ or ‘the Company’) Corporate Update Northcote Energy Limited is pleased to provide the following update regarding its ongoing development of the Shoats Creek Field in Beauregard Parish, Louisiana (‘Shoats Creek’). Shoats Creek Development Inc (‘SCDI’), the operator at Shoats Creek, has agreed a sales agreement to sell natural gas from Shoats Creek which should provide additional revenue from both existing and new wells drilled at Shoats Creek. HIGHLIGHTS: Delivery of an additional significant revenue stream in the near term via the sale of natural gas following execution of a sales contract with a subsidiary of Enerfin Resources Company Lutcher Moore #14 well (‘LM#14’) which produced 40 bopd and 2.5 mmcf of natural gas in testing will be the first to be tied in to the natural gas line; this is expected in September 2016 with first revenues in November 2016 LM#14 is expected to increase Northcote’s current net production at Shoats Creek by over 450% (Northcote has a 70% working interest and 52.8% net revenue interest in LM#14) Decision to test LM#14 was based on 2001 study which estimated LM#14 has unrecovered reserves of up to 120,000 gross barrels of oil and 750,000 gross Mcf of natural gas US$7.1 million gross undiscounted life of well revenue at current prices for LM#14 or US$3.8 million net to Northcote 52.8% NRI based on exploitation of up to six pay zones Northcote Chairman Ross Warner said, “We are pleased to secure a contract with Enerfin allowing us to sell natural gas from the Shoats Creek Field. As the LM #14 demonstrates, there are multiple existing well bores with tremendous potential for low cost near term revenue generation that could not be previously exploited without having the ability to monetise natural gas. With natural gas prices in the US having increased by over 30% during the last few months to $2.75 per thousand cubic feet, the revenue potential from natural gas is well worth exploiting in addition to oil.”
the music for sure, & that creaking sign-board. great film. & i love the sound of the ocean waves in the rail boss's death scene near the end.
Any shareholder IN NCT
Anyone recall the opening scenes in the classic film "once upon a time in the west"? The music - the tension - and then the action - .........................any shareholder is NCT is about to get the ice cream snatched out of their hand... Gonzalez is no fool - DYOR..
"Someone just said" Fast Eddie" exited five guys in Dallas, holding a huge binder on "Waste Management Mexico". exited or excited, lol both work : )
That might be Indigo but it could be someone else. If they can get on with gas sales now that would make a difference. The issue with gas sales is that it takes about six months to get paid; probably what NCT would need to do is use invoice discounting. 90 cents in the dollar plus 2.5% financing would do okay. They could probably drop the invoice discounting after a year. http://www.1stcommercialcredit.co.uk/invoice-discounting-factoring-for-oil-and-gas-industry-in-the-uk/
Reading between the lines....RRR RNS couple weeks ago.....cheaper recompletions way forward in short/medium term; on gas, note the partnership reference.... "We continue field expansion with the low-cost LM19 recompletion now nearly ready for fulltime production. The operator continues to work to firm the spud date for the LM21 and several additional recompletions have been identified for further development along with a plan to add natural gas production via a local partnership in the area. While development over the year has ended up being focussed more on cheaper recompletions than on new wells we expect production levels to continue to increase and meet out ultimate targets for the year. Shoats Creek continues to offer a variety of cost-effective development pathways to increased onshore US oil and gas production."
yes still committed to the drills but no firm timescales yey......LM21 very overdue suggests (understandably and probably rightly) there has been a medium term change in the original plan.....
RRR said they were looking to negotiate a position on the workover potential. Same probably applies to Gulf.
I am pretty sure that Indigo has its own tank farm and gas processing on its acreage.
Still committed to drilling lm21 and lm22 clearly stated in the last RNS.
Helpful entirely agree, LM21/22 I do not believe are now the immediate priority, not least the cost of a new drill - circa $800K; based on results todate and as stated in the SC update RNS, gas is clearly the focus and other low cost workovers (costing around 10% of the cost of a new drill i.e. $80K). No brainer in this climate. Not sure where that leaves GCW/RRR on the new drills, a few sweetners I guess. but can understand why plans change. Still waiting to hear on LM19 production figures. Sounded like a nice workover result (but oil rather than gas).
For starters I would like to confirm they now have a contract for sale of gas or have a way of selling it in the absence of their own contract; then that they either have or are about complete to the hook up of LM20, LM14, RC#1 and RC#2 for gas sales; then that they have reviewed the portfolio and have six immediate targets for workovers that will be worked over and hooked up for the gas sales by the end of August. That would indicate a sense of urgency and indicate progress. Get that done and they do LM21/LM22 whenever they like. With the oil price softening again, the workovers and gas sales become more important than new drills. IMHO DYOR
what about a serious re-rate then if they come out with the "right" news, whatever that might be...like others, I can think of a few news items which would put a rocket under the share price from here.... tick tock.....