Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I agree with mbev�s post at 15:28 on Monday. I don�t think people are reading the information from PVR closely enough. The appraisal well (K ???) and the multiwell are separate entities so why would any farminee bother investing in the multiwell work before the appraisal is drilled?? The multiwell program is in reality THE field appraisal I would expect especially as the 10z well was drilled so close to the original discovery that it rendered it almost useless as an appraisal well. It flowed hydrocarbons but �so what� - it couldn�t fail. Is the K appraisal well reality or just a taster? Dunno. I fail to understand the logic here.
I’ve been meaning to reply to this for ages. I thought it was a great post especially in comparison to many others. I too have many many LOGP shares (and zero PVR) and agree that if by some miracle Barryroe happens then there will be an increase in price beyond what PVR’s shares increase by proportionately. Your synopsis is good but I struggle with the seismic image processing results and the PVR presentation as PVR paid for the work and therefore it’s not truly independent. Also how can you claim that they’ve solved the compartmentalisation issue - there’s nothing to show that. In simple terms LOGP have to raise $5m to take part in the next well which I expect PVR have enough cash to drill at present. To me this $5m is a paultry sum in oilfield terms and small change for almost anyone in the game - except LOGP of course. Looking back the data room has been open for ages and all interested parties have had the opportunity to look at the data and make their own minds up. Don’t forget that these interested parties will also have access to the sort of data produced by seismic image processing as well. The publication of the PVR presentation seems to have done nothing to change the lack of enthusiasm so how will LOGP raise this small amount of cash. (To me they’ll come to the shareholders and dilute). It’s not just the compartmentalisation problem that drives this; it’s also the fact that certain people in PVR are, shall we say, not exactly trusted or liked and have lost a lot of punters a lot of money over time. Just look at the comments on ii and here. I still think the latest well was the biggest waste of time ever but, boy, did it get some fantastic and fantastical comments from both this board and the ii one. Unless PVR can persuade others that this next updip well is the crux of an FID then I think it’s all history and LOGP will go to the wall with our shares. You have to remember that the 10z well was drilled only 500 metres from the original discovery so how could it fail. I’m not sure it actually proved anything. A real shame but let’s have a great Christmas and worry about it later.
Depends on how you define 'discovery' and 'field'. I have always thought a discovery was from exploration drilling. The Providence Barryroe (48/24-10) well was apparently an appraisal of the old 48/24 well drilled by Marathon ages ago which is also classed as an appraisal well. I got this info from the DCCAE (Irish Department of Comms and Energy etc) and their IPAS system. Also looking at the co-ordinates of the the two wells it's clear they are pretty close to each other (500 metres) so maybe oil was expected anyway. A Field is normally defined by the results of exploration and then further appraisal drilling in terms of areal extent. I don't think that these two wells could truly define a Field and maybe potential partners or investors need more evidence which can also only be gathered by more drilling. Then there's the problem of compartmentalism which seems to have a lot of discussion on the iii site. There's a lot of info on the web about this and how it's cratered various Operators in the UK and elsewhere. I'd imagine that this is very difficult for Providence but any upside on Barryroe will pay dividends via the Lansdowne share price.
Hi Suzy2. Didn't realise it was such a long time!! I've been around in 'wells' for 42 years and am still at it. That's anything - drilling, testing, fracking, completions, workover all the way through to abandonment. Plus legislation which they have oodles of in Ireland. I've been involved in many of the wells drilled and tested there since the KInsale field and the original west coast exploration wells with Philips and Marathon etc. Sean says he was around on ekofisk with Halliburton doing a frack job back in probably 1979 or maybe as late as 1982. He and I must know each other as I was also there. I'm happy to comment on stuff, as Sean would be, but don't want to get into slanging matches. PVR etc have fantastic equipment to work with nowadays, especially the Icemax, and LWD will get you most of the way in terms of hydrocarbon shows. If there's good indications you'd run electric line (with Schlumberger funnily enough who told you there was oil in the first place) to prove or otherwise what's there. What gets on my nerves is the BS that comes from certain corporate individuals who blindly believe that there's 5bn bbl (barrels) in the various targets because a certain blue-coloured service company said so. Now there's nothing and everyone thinks badly of them again. That's enough for now.
Sean of Ekofisk you're a genius. Only problem is that you don't provide units (psi/ft, psi, ft etc) for your standard oilfield equation for the uninformed. You also berated 'experts' on PVR for talking rubbish and having never been on a rig floor. You did take a swipe at people having said that Icemax was a twin derrick drilling rig. Well it is a twin-mast unit but in oily talk it's twin derrick. One for drilling etc and one for preparing BHA's, or logging suites and the rest. Both have high capacity in terms of pulling power and save time dramatically. Also you talked about DST's only being performed in cased hole. Unfortunately DST's were run for years in open hole, and still are, using an open hole packer and testing assembly although offshore it's been the practice for some years to test in cased hole. I used to be the fracking lead for a certain service company offshore in days gone by and was on Ekofisk many times. There is a load of extremely funny discussion on this site, the LSE PVR one, and the iii PVR one due to the general lack of knowledge as to how wells are drilled and seismic interpreted, and most other subjects, but it just serves to lighten up my day. Finally! I don't understand how anyone would believe anything that PVR say about possible oil in place. 5bn barrels was / is laughable especially as 30 experts sat around and believed what Sclum had to say. Ramping big time and now people are still buying when anything found deeper is a pointless exercise and, as someone with a brain said, Total won't buy in - it'll be too small and too complex to develop. It makes good reading though.