We would love to hear your thoughts about our site and services, please take our survey here.
Nothing of worry here. My interpretation is: working capital already covered by current production, therefore Wressle revenue is pure profit.
Four things this year I'm looking forward to hearing, which should each boost the SP:
1. Appointment of new CEO
2. Inishkea farm out
3. Sell off 10% of Wressle to put cash in the bank and cover Wressle field development costs.
4. 10p+ SP
Expecting at last that 2020 will be a good year for EOG shareholders.
My summary of recent CEO interview
Financial perspective healthy
- £1.7M sales, £2.9M cash
- Wressle to increase sales to c. £4M
- Wressle all profit, current sales cover operating costs.
- Wressle capable of producing more than the 500 bopd stated, constrained only by surface equipment.
- Inishkea, renewed interest following recently stated Irish Gov position that gas will be part of energy transition
- The major plus another showing genuine interest in farmout (competitive tension)
- Drill ready
Morocco
- First phase costs covered
- Early interest in farmout
CEO expectation is double digit SP on granting of Wressle planning permission and Inishkea farmout
Primary focus is Wressle and Inishkea farmout, each will add substantial value to the SP.
At c. £8M market cap, EOG amongst it's partners, represents the best entry point to Wressle and a potential multi-bag from current SP.
In addition to the Ashover Grit, substantial resources were confirmed in the P e n istone Flags - gross 2C Resources of 1.53 million stb of oil and 2.0 billion standard cubic feet (‘Bscf’) of gas
Previously EOG reported; Plans to produce from the *****tone Flags to be progressed following commencement of production from Ashover Grit - to include monetisation of gas resource by pipeline export or electricity generation and export
For those unaware, the Wressle-1 well flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the *****tone Flags.
Following approval, production is anticipated at 500bopd from the Ashover Grit reservoir.
EOG's 30% will more than double current production
Chris Oil is putting out cryptic tweets about diving into the next multi-bagger. EOG was one of the contenders circulating through the Twitterati. Love him or hate him, his PR machine will certainly lift the price if comes to fruition.