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My earlier comments on T&T focus on water flood was specifically because without it depletion rates in the shallow oil fields are too great. Once the company has oil production at profitable rates they will be able to drill some wells to explore further and increase proven reserves. Hopefully success will come sooner rather than later but at this point nobody really knows.
Good debate today and interesting observations along with good research. ..the range board is a much better place without that moron called bickers
I don't recall being "guilty of following Rainbow's track on depletion" My views on depletion are my own and would have been formed well before Rainbow started posting here. I do recall Celticheart and the multi id rampers at the time getting very confused between "depletion" and "decline" though. I posted clarity on the topic and contributed to the debate although it again was not appreciated.
Xel dropped from �1.20 to 2p It then went from 2p to �4.20 'and then it went back to 2p. ........so timing is everything. Celtic heart can you imagine with your big holding buying into xel at around 2p. ..beggars belief the money you would have made and it was possible by jumping on board at the right time. In the end it's down to timing and bravery in buying in and crucially never fall in love with the company. ..the future is an open book. Good luck everybody
Comparing companies with peers is vital. So it is absolutely necessary to look at companies you don't invest in. Who is operating the most efficiently, are companies profitable across the sector, what is the expected margins in the sector. Otherwise how do you find the undervalued ones. I think in the interests of having a dig, you have not really thought through what you just said.
It is generally accepted that primary oil recovery from wells is approximately 30% of the total amount actually in the reservoir, secondary oil recovery increases that to around 50% so that means that at least an additional 20% oil production from the field. If you incorporate further Tertiary recovery techniques (Gas, Chemical, Thermal etc.) that can be increased to as much as 80% production. That is not something we are currently even looking at but not inconceivable for the future. [IMG]http://i63.tinypic.com/ou8pc5.jpg[/IMG] http://www.world-petroleum.org/docs/docs/publications/2010yearbook/P64-69_Kokal-Al_Kaabi.pdf We have the expertise and the capacity to achieve secondary recovery through RRDSL in Trinidad and the knowledge that we gain there will eventually be used to further enhance oil recovery in Indonesia. The capital outlay for water flooding is not only less than exploratory drilling but far less risk as we know the oil is already there.
Waterflood requires expert planning, large capital investment (pumps, compressors, pipes, tanks), ongoing maintenance and ongoing surveillance. Of course it is expensive. More to the point though, if you can't identify any other company profitably running a similar business model (brownfield with waterflood), then no point accusing me of not knowing what I'm talking about. At any time please do provide an example. regarding Columbus , formerly lgo, never been profitable in it's ,what ,11 years existence either.
Celtic, "Indonesia is a longer term play it is not the reason why we will become profitable in the shorter term" So yes you did quote that in March. It was at the time you were trying to shut down discussion about Indonesia at all. I don't understand your other bit about "quoting the same phrase" so can't comment on that
If you are going to quote me please get it right, I did not say Indonesia would not be profitable or give a timeframe only that the focus is currently on Trinidad with Indonesia being a longer term project. I see you still do the trick of quoting the same phrase over and over again, just as other posters did. Strange that.
murphy, Waterflood is a secondary recovery technique and expensive, thus reducing profits. CelticHeart also posted the opinion that indonesia is unlikely to be profitable anytime soon. So not just me saying that. Perhaps if you give me an example of another AIM company that you know of operating a very profitable brown field site, and we can examine the bbls-d and how much profit it makes from it. That would be helpful and help me understand what I have misunderstood.
"Strange how readers who never post on here can't resist getting involved, ah well back to what matters, Range." What matters? Nothing to do with range really matters anymore, even if you held a 3 million shareholding an RRL portfolio would be worth less than my dodgy Peugeot. The ordinary punters don't have a material holding anymore.
Rex, I don�t necessarily think the return to waterflood means that the assets are only suitable for waterflood, it COULD mean that but it is not the only thing that it could mean. They have sunk a lot of capital into the waterflood so maybe given the financial position it is better to have a couple of successful projects rather than lots that we can�t manage. We MAY be able to finance other drills but this MAY put constraints on other projects etc if something were to go wrong. Would you prefer they gamble and risk going bust or try and ensure a sure footing going forwards? I would actually like us to drill, go after the Herrera�s and either go big or go home. It would put a lot of people out of their misery and allow them to move on if we did go bump. I know this is not for everyone but I would be quite happy to see an aggressive drilling plan and see us at either 1p or gone. KRO
Rexco "Hopefully the Indonesian investment will reap rewards fairly quickly and become profitable" I very much doubt that, in fact these little brown field sites are unlikely to ever be very profitable imho.
Pedro ....I think if the bod show integrity and that they are trying to get shareholders out of this mess it will go along way to improving sentiment which is a key factor .........gl
I think your point about the producing fields applies to the shallow wells but our recent result in the deeper Gros Morne sands indicates that we should continue to target the deeper plays, including the long awaited Herreras.
That we're in a period of stasis until more positive news arrives, if of course it does, and that this share is not hot on people's agenda given it's previous history? I'll never get back the money I've lost and I hope PL gets what he deserves BUT even I feel that the BOD seems, small seems, to be doing things better so a glimmer of hope of getting some money back but there won't be fireworks ever again, hopefully, just small steady progress. KR
The company has changed strategy and returned to enhanced recovery for increasing production. This would indicate that the producing fields are no longer viable without water floods. Hopefully the Indonesian investment will reap rewards fairly quickly and become profitable. That leaves the oil field services of RRDSL which will be more successful with higher oil prices. The company is still in recovery mode and the share price will only recover when it becomes profitable.
Nice to see WTI making gains. Just hope they can hold for the next 6 months and with a hopeful increase in BOPD we should see some nice revenues through the door. The key as ever is getting the oil out, I still have concerns over the drop from Januarys average as Eva basically said wait for the update in the quarterlies. (Cant blame her but would be nice to be reassured over the reason). Would expect at this level we have to be pushing toward profitability. This will allow for successful refinance of the debt which is key over the next couple of years. Let's hope the quarterlies show a breakeven level, would be very nice to see some profit, then I think we are readg for an upturn in the SP. KRO
The 1 year forecast for WTI is now $78 a barrel which would bring it close to the $80 a barrel the saudis are suggesting. Currently the price is $68.34 and still inching towards that $70 a barrel mark. Lets not forget that less than a year ago we were sitting @ around $42 a barrel
And that's how big money is made ...help pennies to pounds and then massively overvalued ..the trick don't get too greedy .....meant usop pennies to pounds
should read USOP not UKOG lol
Hi Celtic, im a holder and have been for a very long time. read this board since days of that thief Landau and the poster dogpog.. when share went up to 24p .. and back down. not here to criticse anyone , i infact value yours and opposing views on this board . I remember the UKOG hype by dogpog /trading faces.. it went from pennies to 6 or 7 pounds if im not mistaken.. and then imploded. it just caught my eye as UKOG discussion disappeared from these boards when it got delisted . ive always followed the UKOG story since. no conspiracies here, keep up the good work, i hope we all recover some money here in due course
Trinity up 10% , Tullow up 4%, other big Oil players up 2%, in a strong Oil price bull run RRL up 0% What is the market telling you.
Strange how readers who never post on here can't resist getting involved, ah well back to what matters, Range.
At a guess Celtic - "Free will". You post when you want to, and so do other people, it's an open discussion board. Like ManAndWifi, I do considerably more reading than posting. How's that "let's keep it to discussing Range" initiative going?