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Yes I was trying to say we have billions of egg ups produced.
cups even! :@)
"The reason for this is that current oil production is only allowed to cover EWT costs under OGA rules."
https://www.ogauthority.co.uk/media/5476/oga_extended_well_test_guidance.pdf
Under the model clauses of a licence, the consent of the OGA is required to undertake extended well tests - extended periods of test production from exploration or appraisal wells prior to development plan authorisation. It should be noted that EWTs are not an alternative to production under a consented Field Development Plan; the Exploration Operator (or Field Operator if one has been appointed) needs to demonstrate to the OGA that the primary objective of the EWT is to
obtain essential field information to improve technical understanding or confidence in the performance of the field to progress towards a development, and to demonstrate that the EWT would not be prejudicial to ultimate recovery. There is, however, no obligation to proceed with a development following an EWT if the EWT demonstrates there is no MERUK opportunity. The OGA notes the issue of an EWT Consent does not of itself constitute the development and production
consent required for a licence to enter its final (usually third) term.
Argus
412 tankers, I do believe.
Ibug
Do you think that is why Alba are taking on a new debt facility?
Wizard
You might very well think that; I couldn't possibly comment.
The EWT has already been issued so pron not related..
Penguins
A exert from your post. 200 bopd from the Kimmeridge (despite assertions the 'taps' would be opened up this seems to be about what the Kimmeridge is actually capable of.
If you read the RNS of 18 Janurary. UKOG can not post any revenue from EWT only net off oil sales against costs.
On your assertion where else will this extra money be allocated?
Wizard
That is an assumption yoj have made. I asked fpr the rule not your interpretation of a bit from an RNS about internal accounting. Mirasol posted a fair bit of the rules and it isn't in therr.
and the excerpt from that post looks very selective and certainly doesnt say I don't think HH-1 won't producr more than 200bopd. When was the post you have 'quoted' from
Wizard125
The significance of the RNS statement you quoted is that, unfortunately the oil sales is not Revenue but a negative cost. If it was Revenue then UKOG would be entitled to the Telluran 35% bit. As it is set off against costs we are not. The costs are also historic costs not just current. The whole purpose of the restriction is to stop Companies having a production licence via the back door (EWT)
Revenue also aids lending again t
This is madness.
The oil sales are , in reality cash in. It doesn't really matter where you put it in the accounts that cash can be used to offset current and past costs and thus reduce the costs going forward. Double the income form sales and you double the amount you reduce or offset.
Income cannot be a negative cost
Thorpedo
The other restriction that prevents excessive oil being produced under EWT by the the OGA is how many tonnes can be produced.
New allowances need to be applied for & may be granted based on costs submitted.
We are all aware that the OGA only granted a 2000 barrels oil allowance when HH1 was drilled & UKOG had to wait until 2018 for a EWT permit. They will have restrictions for the increased allowances as they progress.
"Mirasol posted a fair bit of the rules and it isn't in therr"
It is well known that OGA won 't allow you to state "we're running this EWT at rate X to make money" - if , on the other hand, you can make a good technical case for the information you will glean at production rate X then hey may allow it. This applies just as much to HUR as HHDL. If they think you are taking the p*** they will reduce the limits on what you can produce.
AS HH is one of the few bright lights in their onshore universe, and because SS spends a lot of money on science and doing things properly he's had a pretty easy ride.
Mirasol
Look at the HHDL accounts note 7 showing that the oil sales from the EWT as negative costs.
Seadoc
I do see the irony of me asking someone to look at a document I give no worth to.