Member Info for Analysister

I think the reason that neither BOIL or the other listed partners/investors in the Colter well didn’t respond with a share price jump is that 15million barrels of recoverable oil in Colter “South” is probably in itself not a clearly commercial development? (Guessing tbh). If the sidetrack hits a good reservoir and proves up a decent structure in Colter “north” and the whole is interpreted as the best part of 40million barrels of recoverable oil, then hopefully some value will be recognised.
Who knows in these markets, but fingers crossed.

I think Perenco will be watching the Colter well results with great interest. Wytch Farm desperately needs additional oil volumes and to be able to extract the Colter oil reservoir from onshore wells into an existing field system with an export pipeline in place etc is about as good as it gets in the oil world!!!

Premier Oil sold their Wytch Farm 15% interest in a lower oil price environment for over $18 per barrel. So your figure would be quite conservative. Oil prices are significantly higher today and WF needs more barrels to push back decommissioning....

If the sidetrack they are drilling now is successful then yes I would agree with you. Not long to wait...

8% of potentially 38million undeveloped barrels? Net 3 million barrels next to Wytch Farm must be worth £20-25million at current oil prices and exchange rates. But as I said the only way to get a share price anywhere near reflecting this value is to sell the Colter interest to someone like Perrenco and distribute any cash to shareholders.

I agree with you. Lots of big sellers who have been in here since the Gold Oil days. I would have thought the best strategy for BOIL is to use all available cash to maximise the Colter asset value and then announce they are auctioning their 8% of Colter and any capital gain generated would be more than covered by the £20million plus of tax losses. This seems to me the only way that shareholders can exit in size in an orderly fashion.

So how would you value 8% of 15 million barrels right next to Wytch Farm? Would you a) look at their net assets on the balance sheet or b) carry out an NPV on 8% of their Colter asset? Duh. What’s UJO got to do with BOIL or Colter?

Are we meant to read into his comments today on their RNS that greater Colter could be "significantly" larger than the pre-drill estimates of 23 million barrels of oil? Any ideas?

We have now 8% of a proven approx 15m barrels of oil next to Wytch Farm, with the main prospect still to drill. Share price sitting at approx 25% of current net asset value of BOIL. All partners today saying this discovery is an “added bonus” and hopefully the sidetrack proves up the main Colter feature. Some punters may be trying to ramp the sp, but in reality all that has happened here today is the bid:offer spread has fallen from 50% to 16.66%. Still way too high.

Just read RNS again. The “main prospect” is in the northern fault block!!! With the words “unexpectedly” and “encouraging” in the RNS then it looks like Malcolm has been proven right in this prospect! Fingers crossed it’s a decent sidetrack result and we could have a valuable asset here for all the partners.

Southern fault block 15 million barrels now in the bag, good news. That’s enough to tie-back to Wytch Farm.
How big could the northern fault block be I wonder? Same again? Bigger or smaller? Won’t have long to find out.

In my opinion, IF this well is a really good well (higher structure , more pay, good quality sand etc) I think Reabold would be in a great postiton to increase their equity ownership in the operator Corallion. This could expose Reabold to net 10-16 million barrels of oil reserves in a very high value location. A lot riding on the next few days drilling at Colter. Fingers crossed. GLAH.

Mid Atlantic is where you’ll find Tim :))

In a couple of weeks we will know if they can collect their cash or not! Hopefully the strong oil price will help the Middle East countries in which they operate to actually pay them for the services they provide. I’m less convinced about sub-Saharan Africa as a growth & cash generative area. As NMC becomes a more sprawling business it becomes much more difficult to manage effectively. Let’s hope they’ve got the skills to cope and collect the all important cash!

Someone need to tap Sir Adrian firmly on the shoulder and utter the words in his ear “ego is not your amigo”.
Please get on with the job of appointing a financial services executive who can take this business forward and get off the executive stage as soon as possible.

Some of the existing Wytch Farm horizontal wells stretch 4 to 5 kilometres out into the English Channel to drain some pockets of oil to the east of the main field. World record horizontal sections in producing wells in Russia and Qatar are around 10 kilometres in length. Producing Colter oil from the main Wytch Farm drilling pad won’t be a problem. Finding a quality oil reservoir is the only problem to worry about tonight!

Sadly have to agree. Even if we found the next Wytch Farm oil field with this current well and all other partners share prices explode upwards we would drop like a stone as the tide of BOIL holders selling would knock everybody over in the rush to salvage something. Only way to stop that is for the Board to announce they will sell the Colter interest/company to the highest bidder immediately after a successful well. At least then you would have a firm price for each share. I’m not holding my breath.

The real upside valuation in Colter is if the Wytch Farm owners want to buy the Colter reserves. Imo they would pay a lot to get these barrels thru their existing system. Only need to drill a couple of horizontal wells and plug them in to the existing WF kit. Must be worth $20 per barrel at current Brent oil prices of $66!

Agree. If Colter comes in as they expect it will give ADL a share of approx 2 million barrels of oil reserves right next to existing producing infrastructure and an oil refinery!!! Nowhere better to find an oil field. Value if this is anyone’s guess, mine is that it is worth more than the current market cap :))

Maybe they can use Tim Steiner’s new £25m yacht for some island deliveries?