Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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There was a $4.5m rework cost in Tunisia that has eaten into that cash.
The 400boe/d+ they are hoping to get from N-2 should replenish that. Although the acidizing cost will need to be offset in the short term.
At least the oil and gas prices have increased slightly lately.
Cash as at End of 2022 was $4.9m
Cash as at End of June 2023 was $2.5m =
Cash burn $2.4m in the last 6 months. So at that rate of Cash burn they have around 6 months Cash left !
And then what ? Fund raise ?
Something needs to change, either ramp up production or cut costs. Maybe directors should be paid in shares rather than draw high salaries for what is a relatively small company!
Let's see on the call if can give a straight answer to the question. I doubt it though.
Also a problem, IMHO.
ANYONE done the calculation of ;
How long will the cash last at the current production/revenue level ?
I'm not happy.
The Sabria N-2 well is currently flowing to surface and is dewatering in line with behaviour the Company has observed in other wells on the Sabria field. Subject to the progress during the dewatering phase the company is considering acidizing the N-2 well to enhance the flow performance of the well. The Company's engineering analysis estimates that a successful workover and recompletion will initially increase gross production from the Sabria field by approximately 420 boe/d.
No it doesn't cta
Confirms further down that no hydrocarbons to surface.
It says dewatering, that does not necessarily mean it is producing only water
The latest workout isn't flowing oil, just water. Theoretically it could have produced about 400bpd but isn't.
I think well was supposed to produce several hundred a day and that was net to SENX. They have a 45% working interest. They may not have included it as not part of the lift that happened and only been online for a bit.
Adon,
Romania - 163boe/d Q1 and 139boe/H1 so Q2 must have been around 115boe/d.
Tunisia - 516boe/d H1 (plus gas) so happy with that.
Two numbers strike me as wholly unacceptable:
1. Romania $63.62 production expense - largely due to falling volumes - but the point is while SENX speak of $100m revenue yielded from Romania the profitability is simply not there. Be rid of it. Be rid of the expense. Be rid of the risk.
2. G&A costs per BOE over $22. By comparison the industry typically is somewhere $2.50/BOE to $2.00/BOE, with the range from $0.69 – $5.97/BOE. $22!!!! There needs to be some cuts to make the business viable.
https://btuanalytics.com/crude-oil-pricing/margins-are-good-in-the-oil-patch-despite-investor-indifference
For example I previously pointed out that the accountancy bill was about 6 times greater than much larger peers (I think I compared SENX vs i3 energy)
I expect today's open will be down; here's 8am....
Any take on the results Acton? Looks like work in progress still to me. N2 we still don't know - acidizing I gather can be expensive. My googling shows me there are 2 types, matrix and fracture with the latter being quite a bit more expensive
If the well has been producing for less than a month and the year average has gone up by 12, does that mean current (end of june) approx 150bbl/d to us?
No change in production other than reduction in commodity prices means they are getting less.
AF no longer listed on the RNS. Has he finally gone?
Still talking about the same stuff as six months ago. Do they have any clear forward strategy? Or are they going to run out of money?
Knowing these guys this delays means nothing good. when you are producing and exploring oil & gas company operating in two different geographies and your own web site does list any operations director or some kind of VP exploration etc. it looks that they are a bankers unit trying so far unsuccessfully to run operating oil&gas company.
so what will happen next..raise more money to sell us a new 'growth programme' in Romania? or are we going to hear about dreaded 'strategic review'? These options look bad BUT they need something to get out of this circle of operational failures. Their teams in Romania and especially Tunisia seem completely inept of doing their job. They need a complete overhaul of personnel and strategy. Strategy that has 3 bullet points on their web site?! I hope for the best but with their track record....
The production is supposed to be stabilised with the compressors in Romania. We will see...
In Tunisia they only have a 45% working interest so maybe their partner has told them to hold off with results whilst everything stabilises at N-2. It does look as though a pump is installed.
They were also supposed to be coming back with a plan on W-1 after the mess up there. So hopefully they can update on that. Or provide a better option for increased revenue.
Also going to be interesting to see what both of them have cost and how much cash is left. Can't explore or drill if the money isn't coming in.
Not sure when/if next oil lift due in Tunisia but oil has averaged around $60-65 during the last quarter. Hopefully they sold it at a high point!
What has been odd is the resignation of the CFO just prior to the AGM results (Which weren't that complimentary of the board). What does he know to make him jump ship from his highly paid salary? And why is he still there and taking that salary? Surely he should be gone by now as it was 3 months ago.
Well there is the workover that was "completed" 67 days ago.. Still waiting on testing results, which seem to be taking longer than the workover itself. So I get the feeling and this is also based on past history, they have managed to ***k something up.. hope i am wrong but we shall hear Monday
Why should there be an Rns today? They always schedule the presentation to be on the day they release the quarterly results which will be Monday.
Still no RNS ahead of Monday, will be interesting to hear what they have managed to ***k up this time
I'm fairly sure N-2 has a pump on it. Equipment for rework left a long time ago.
Just hope that someone turned it on before hitting the fairway.
Dread to think what Romania production has dropped to now... Q1 was: Romania - 163 boe/d
No mention of AF disappearing into the distance with all the other ongoing controversies. Are they still paying his inflated wages while income drops?
Q1 Tunisia - 528 boe/d... will this be more? less? the same?
1/ The interim results. Last year they were 15th August.
2/ Hopefully, too, the well test results. On 5th June "the workover operations on the Sabria N-2 well in Tunisia have been completed. Having successfully removed wellbore restrictions and recompleted the well, the Company has mobilised surface testing equipment to the well site to evaluate well production. Upon completion of the testing program the Company will make a further announcement with the testing results."
Quite what takes over 2 months to test I do not know. Test 1 does it squirt oil? Test 2 how much? Test 3... round of golf anyone?
What's the point, what are they going to present?
I think we can just hope the delay is down to equipment etc.. Does this CEO spend any time around the wells or just sit around his office?
Why doesn't someone take us out for 20mill,there's 5mill in the bank after lifting and cash from last year.
Surely something is been done behind doors to get things moving in Romania?
I fking hate this company.
Same Syste. Drags my overall portfolio down. I should have taken the relatively small hit a long time ago but held on.