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Another step in the development of our Trinidad asset.
Paul and Lonny should have more time to focus on Morocco. That's where the real potential is.
The testing should happen soon 😎
I've more or less switched off from the testing program but it will happen.
Spain is starting to warm up and another summer of fun approaches. Life is good and if all goes well with predator then this year is going to be massive for me.
Good fortune to you all.
I think we are going to find that the current SP of 10p will cover the value of our asset in TT. This is now 100% owned and means we control what happens, when it happens and how it happens provided we stick to the terms of any agreement. That means the whole of the potential in Morocco is priced in for nothing at the current price that is for those who bought in ages ago then you are still well under water and just hope something comes through for us all.
Trinidad is not worth 10p a share. Maybe 1p at best.
There is great potential there but way too early to add that kind of value.
Ireland is not priced in either.
Morocco reflects a great asset that has not yet been tested. Testing results are key to the end game.
Morning Ibiza28,
The ITR gave us a very good idea of the potential future values of Cory Moruga:
“An appraisal well "Snowcap-3” is planned in the near-term by PRD intended to prove up the P90 resources case with an NPV @10% discount of £67 Million or 12 pence per share based on £159 million undiscounted post-tax profits for the Base Case of approximately 8.33MMbbl recoverable using a 15 year production profile peaking at 3,500bopd which equates to c. 58.2% of available 2C + P50 (Unrisked) Prospective Resources.”
Note that this relates to the P90 case; the P10 is 21.41mmbbls recoverable.
In addition, the figures are based on RFs of 23-24% but we know that RFs of 30% may be achievable via gas re-injection and, later on in the life of the field, there would also be an option for CO2 EOR to further increase recoverable volumes.
And then, as Keith mentioned recently, the utilisation of Nutech and Sandjet could add further resources via previously unrecognised sands. And it also appears there are old wells that may be able to drain untapped accumulations in the Moruga West field that extend into our block, as per Paul’s comments at the Proactive presentation: “...[Lonny’s] found lots of wellheads for us in the right place, and very interesting wellheads particularly in relation to the extension of the Moruga West field into our block.”
As I understand it, TRex still holds an 83.8% interest in Cory Moruga (as confirmed in the recent FY results) although, as per the RNS 12/1/24 “Discussions [have] commenced to acquire, subject to regulatory consent, the remaining 16.2% interest in Cory Moruga for an overriding royalty”. Hopefully we’ll receive an update on our discussions with TXP in the near future.
I think it was noteworthy in this morning’s RNS that our new T&T country manager’s remit included:
“… special emphasis on assisting to accelerate the processes required for the execution of the Cory Moruga field development project.”
The plan to accelerate the CM FDP has been mentioned a number of times already in company announcements and we know that MEEI is commercially aligned with PRD. So I get the distinct impression that Paul is very eager to progress matters in T&T as quickly as possible.
And there’s still the option that Paul may be interested in adding more assets to our T&T portfolio, perhaps Innis-Trinity (and other fields?), especially considering we know that CEG is now focused on Uruguay and is currently conducting a strategic review of its T&T business. We may have news on this around the mid-year offering the potential to re-start our CO2 EOR operations in the near-term.
So Cory Moruga clearly has a very attractive baseline production level which, contingent on a successful appraisal well, would alone be worth more than the current share price. And then there’s substantial upside potential in T&T that’s not yet being factored in to any valuation, IMO.
Just doing a bit of digging...
And it appears that our new in-country managing director for TRex, Geoffrey Leid, was previously on the board of Columbus Energy, who held the Innis-Trinity and Goudron fields before selling them to CEG. He then had a short spell (less than 2 years) on the CEG board as head of operations in T&T.
So I think the one thing we can know for sure about Geoffrey is that he’ll understand the current CEG assets inside and out, which may be very useful should Paul fancy taking control of Innis-Trinity (or all of CEG’s assets). I’m speculating here, but it’s potentially a very interesting connection…🤔
https://theorg.com/org/columbus-erp/teams/leadership-team
https://www.proactiveinvestors.co.uk/companies/news/921700/bahamas-petroleum-strikes-25mln-deal-for-columbus-energy-to-create-caribbean-and-atlantic-champion-921700.html
https://www.proactiveinvestors.co.uk/companies/news/976364/challenger-energy-unveils-new-head-of-operations-for-trinidad-and-tobago-976364.html
Hi all,
What “If”
The Oil Wells on our side of the Fence are in some way connected to the Oil Reservoirs on the Moruga West side of the fence, which BP operate.
There could be a very interesting conversation between parties in which supplying Co2 Eor technology from our side of the fence, could possibly repressurise BPs reservoirs on their side of the fence.
In a Mutual agreement of course, “If Possible”
Just a thought.
GLA
Wacky.
If our side hasn't been produced from, then if there is a connection, then any production we have would reduce pressure for BP?
Or BP have already sucked our oil out….
Yes,
There are numerous possibilities, I just found it Interesting that Paul put an emphasis on the fact that we have Oil wells which could penetrate the Herara sands on the BP licence, be them Virgin, Depleted or untested.
Interesting times coming up.
Let’s see if our Main Man in Trinidad can
“Cut the Mustard”
Atb
Wacky
Brv
In January you were critical of the management team of ceg ability to develop the CM field, you now seem to think that one of that team is now an asset. Why the change of mind?
FUDin,
If you have to ask things like that, maybe you should go have a lie down. 😴
Billyrayval
Was he on the ceg board when they unilaterally shut down our pilot co2 project?
Gudin, Zebra,
Clearly, the decision by CEG not to develop Cory Moruga would have been made by the executive management team, of which Geoffrey Leid was not a member. In fact, I find it interesting that Geoffrey only stayed with CEG for a relatively short time suggesting that perhaps he wasn’t very comfortable with some of the unprofessional actions of CEG’s executives?
More likely, Paul’s interaction with Geoffrey dates back to the latter’s role as MD of CERP during the successful collaboration at Innis-Trinity on the CO2 EOR pilot project (prior to CEG’s involvement). Presumably, Paul must have been sufficiently impressed with Geoffrey’s skill-set to have now employed him as MD of TRex.
And I strongly suspect that Geoffrey will be absolutely delighted to be now working with the executive team at PRD who have the vision, knowledge and business acumen to successfully develop assets such as Cory Moruga and also, hopefully, to re-start our CO2 EOR project in the short to medium term.
So uncomfortable that he stayed on as a consultant? Country manager for two years hard to argue he is blame free.