The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
113 bopd is approx a 6 fold increase pre the work over. (15 to 20 bopd)
Too early sorry "even talking 1000bopd"
As thought they hadn't finished updating, probably still haven't yet.
113 bopd will do for the first well. Looking forward to chalk talk 4H next month and another jump in production.
If interested in the co. would recommend the flagstaff video for their plans for using fishbones tech. Reckon they can up production significantly with this non fracking method even talking 100bopd.
Will make them look very cheap if successful imo.
Thanks flagstaff, appreciated.
Sorry Shutupyourface
Yes agreed,
Dooperlater is HmmmNice. Started a new account a few days ago as he knew he was about to be banned.
Shutupayface
You back already HmmmNice
That was quick.
Here today gone tomorrow 🤣🤣🤣
Pennpetro (LSE :PPP) an independent oil and gas company focusing on production in the Gonzales Oil Field in Texas, USA, announces that the Director and President of Pennpetro Energy’s wholly owned subsidiary, Andy Clifford, has conducted a Broadcast interview following the recent First Oil Production from its Chalk Talk 1H Well n Texas.
Please find the link to the interview below which I thought might be of interest :
https://youtu.be/LodtWEST3kE
Adrian / MMoriah,
You didn't just mention the wrong well, the whole post was about the wrong well because you didn't know which well it was that yesterday's PPP's RNS was about.
From the start of your post:-
'They had to shut the well on because of covid. A lot of the initial fluids were probably kill brine used to shut in the well. They been removed by the look. So yes excellent oil flow rates imo'.
The Chalk Talk 1 well was shut in in July 2022 because production had dropped to about 15 to 20 bopd, not covid in 2020.
and just to be clear which well was shut in in 2020 you then quote PPP, this is the last bit:-
'when forced to shut in our City of Gonzales #1 well due to Covid in 2020.'
Hardly only 'mentioning' the wrong well.
Here's the title of yesterday's post:- 'Pennpetro Announces First Oil Trucked from Chalk Talk 1H Well in Texas'.
As you say the well has cleaned up - funny when you were quoting revenues from 500bopd because or the initial 'clean up' rates PPP were quoting of over 800bfpd that you didn't take into account that they were unlikely to be representative of production rates. Who were you trying to kid - 182,000bbls in a year
Of yesterday's average flow rate 50bopd is required before the company makes a positive net cash flow and if Millenium have retained 25% revenue interest (as they have in the Whistling Straits 5 well) that would leave 25 bopd foŕ net income.
Hopefully the next workover which will be of CT 4H, scheduled for December, will yield a similar result, and by then let's hope the figure for the stabilised production rate at CT 1H remains in the 3 figures and the decline rate when calculated is modest - and you can work out which well they're RNSing about.
Yes I was 20 bopd out at 30 so sorry about that.
Even though the bopd May seem low compared to some companies so is our mcap. With more wells planned in I’m sure the bopd will start to add up fast and so will the revenue.
It hasn't "fallen from 400bopd" its changed from 840barrels of fluid per day (equivalent) whilst on pump to 90 to 110BOPD with the water cut not yet reported on.
Could be as the drilling fluids/water clears that oil flow will improve we don't know yet but do agree that with their Oct statement of 50/50 water/oil presumption there's room for improvement before the testing period is over.
Didn't they say 2 weeks or so for final declaration on flow? may be worth waiting before getting too stuck on this 100bopd initial no. imo.
Toptrader,
you posted:-
'Got a feeling it’s profitable from 30 bopd?'
Yet in the PPP annual report they stated:
'The Group expects to generate modest positive net cash flow when oil production regularly exceeds 50 barrels of oil per day.'
Whilst the about 100bopd is not a bad result it is an initial production rate so the question is if it's fallen from the approx 400bopd, plus a similar amount of water, 8 days ago to 90 to 110bopd now what will it be next week, next month as PPP determine the decline curve.
How good a deal for PPP, and not so smart for Millenium - though they did have 2 years of production data, remains to be seen.
Https://x.com/davidlenigas/status/1721892831751729167?s=46&t=XyfBTfKBFxdrc6GXCMdIsw
Outlook
In line with our strategy, all our operations are in highly active plays where the economics of drilling and producing remain attractive at sub-US$30 oil prices.
Got a feeling it’s profitable from 30 bopd?
What's the cost of them to produce each barrel?
Think this builds from todays news, first well producing 100bopd and first oil tankers left the site. Next well work over rig due early December. Company wants 2 producing wells before the new year. 100 barrels of oil a day at $80 for a year is $2.9 million. Mcap at £2 million.
Panman
It was tongue in cheek but they still have to have HAZMAT markings.
No it was a tanker full of gold apparently ibug.
Doesn't appear to be a hazchem warning system in the US. Seems strange?
"Hazchem is a warning plate system used in Australia, Hong Kong, Malaysia, New Zealand, India and the United Kingdom for vehicles transporting hazardous substances, and on storage facilities." Wikipedia
On the UKOG board you posted this thread title:-
'PPP farm ing in. They got an RNS out. Great flows'.
In fact they're busy and going to spending money on a workover rig for a Texas well - 'Workover rig for PPP's Chalk Talk #4H well booked for early December'
No mention of the farm-in which was meant to result in the Horse Hill obligation 3D being shot this year, PPP estimated it would cost £350,000.
Last week as 'baxtobax' (account since deleted) you were calculating that this well would produce 500bopd continuously - about 182,000bbls a year because they released an initial flow rate of 840bfpd with a 50% water cut. That was 30 October - about 8 days later it's 90 to 110bopd, no mention of water cut but mention of decline curve.
It's a good result but they need 50bopd just for a modest positive cash flow:-
'The Group expects to generate modest positive net cash flow when oil production regularly exceeds 50 barrels of oil per day.'
Still at least they acknowledge the likelihood of decline - not sure UKOG ever mentioned it for HH - and certainly not so prominently.
This well 1H and their next workover target, 4H, were practically given to them by the operator, Millenium. Not sure if Millenium retained a revenue interest as PPP only mentioned working interest when these wells were taken on (100% but they are paying $10,000 a month fot the facilities,) there's a mention in the annual report that suggests the net revenue interest may be the same as for the hardly mentioned Whistling Straits well at 75% but it isn't clear that these wells are included.
As for look at my posting history - please do, especially further back when the activities I've discussed have come to a conclusion - I was going to put fruition but that seemed inappropriate as for UKOG it was always failure to some extent.
No 3WE plate on the tanker. Was it really oil?
https://twitter.com/DavidLenigas/status/1721786803240243584
Hard to sday with them still optimising production, bears will likely believe 50's too high bulls that 110 will be stabilized, built upon.
Very good news that they are to continue drilling imo. One more drill this year and a couple in Jan they could see 450-500bopd if this success continues.
You're probs right on todays action though as I'm holding too and my stocks do the same
Nice to have an RNS update already.
I like the fact they state this:
"Initial oil production testing is now consistently yielding between 90 bopd - 110 bopd, which is significantly above the well's July 2022 shut in rate of around 15-20 bopd. This increase can be put down to the workover rig successfully cleaning out a number of bridge plugs (or blockages) below the bottom of the casing.
The well's production is still being optimised over this extended testing period and the Company will advise of flow rates and decline curves in due course."
It gives a reason behind the increased flow and keeps feet on the ground acknowledging that decline is expected.
What do people think it will level at? Hopefully it will be in the 50+ area.
With a Mcap below £2m still this looks like there's some potential here.
Although as always I'm expecting a red day. Because all my stocks go down on news😁
Adrian,
I'm not a 24/7 oil and gas basher. Just because UKOG has failed and failed again to achieve any of its claimed outcomes, with me and others predicting that failure, it isn't bashing - it's not only an honest opinion it's also been right not just your ridiculous ramping on hopes rather than kmowledge.
Whereas over the years you've constantly (except when you've sold and want the price to drop) promoted outcomes that have proved to be wrong.
With PPP beware initial rates for a well that has produced 55,000bbls of oil over 2 years and was so depleted that it ended up producing 15 to 20bopd. Depending on the recharge mechanism the pumped rate with about 50% water could drop very fast - we'll see. Definitely a red flag if PPP are coy about rates and what they represent - something Adrian should be very aware having been fooled over the years by UKOG RNS with a variety of flow rates obscuring what was happening.
Only read the first line but I like him so far..lol...
"Net zero is Net Stupid by virtue signalling idiots. Stop the boats!"
MMoriah is FOTH, Freeasabird, Adrian Watkins from Horse Hill so best to avid whatever he says. Also known as davethedrill1 on X
https://twitter.com/davethedrill1/with_replies