The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I don't think it matters who it belongs to, HUR will have amassed so many losses getting to this point it will be years before they pay any tax.
My only extra take on the RNS is that I don't think they would have alerted us early to "preparing" for the DST unless they were pretty sure everything is ok and optimistic.
Cebo
Yes, that was my take on it.
We still await significant news on the water cut from HUR themselves and I would like to think it is far too soon to know anything.
'scuse me because I'm not remotely an oilie but are people not mixing up "water cut" as in ingress from the aquifer with perched water, ie pools trapped in the rocks and not connected to anything and the more that gets out in the oil the less there will be left?
Happy to be shown to be wrong.
Cheers, Tavers.
Does a 720m horizontal seem a bit on the short side?
Would you only do a DST is there was evidence of oil?
Pt 2
Further operational commentary on Lancaster EPS performance will be made in Hurricane's 2019 interim results, scheduled for release on 20 September 2019.
Hurricane maintains its production guidance for the second half of 2019 at the aggregate level (Approximately 11,000 bopd based on previously advised expected system availabilities of 45% in Q3 and 65% in Q4).
Lincoln Crestal Update
Lincoln Crestal is the second well in a three-well programme on Lincoln and Warwick (the "Greater Warwick Area") being drilled in partnership with Spirit Energy following their farm-in to 50% of the Greater Warwick Area in September 2018. The wells are being drilled using the Transocean Leader semi-submersible drilling rig.
Lincoln Crestal was spudded on 12 July 2019 and has now reached total depth of 1,780 m TVDSS, including a 720 m horizontal section of fractured basement reservoir. Lincoln Crestal operations have now moved onto preparation for drill stem testing. A further update will be made following the completion of this stage.
Dr Robert Trice, Chief Executive of Hurricane, commented:
"We are delighted to provide an update on Lancaster EPS progress and to communicate that our production levels have been above expectations for this early phase of operations. However, despite these promising results, we remain cognisant that it will take up to a year to acquire and interpret sufficient performance information to test our reservoir model of the field.
"Now that we are back to flowing the Lancaster wells through separate flowlines, we look forward to gathering data on individual well performance to help optimise well delivery as well as improve the Company's understanding of the reservoir's performance.
"On the Greater Warwick Area, Lincoln Crestal well operations are now progressing to drill stem testing. We look forward to reporting the result shortly."
Hurricane Energy plc, the UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, is pleased to provide an operational update in relation to the Lancaster Early Production System ("Lancaster EPS") and the 205/26b-14 well ("Lincoln Crestal").
路 Lancaster EPS system availability and production since First Oil above guidance
路 Average production rate of c. 14,400 barrels of oil per day ("bopd") from First Oil to latest lifting on 17 August
路 1.2 million barrels of crude oil sold to date
路 Lincoln Crestal well now being prepared for drill stem testing.
Lancaster EPS:
The start-up phase of the Lancaster EPS commenced with introduction of hydrocarbons on 11 May 2019. The first oil milestone ("First Oil") was achieved on 4 June 2019. For a significant portion of the period from First Oil to date, production has been constrained by the use of only one of two subsea flowlines, as a result of operational necessity. This has limited maximum production capacity and Hurricane's ability to carry out activities planned to increase the Company's understanding of the reservoir's performance. Notwithstanding this constraint, since First Oil, Lancaster EPS system availability, production and cash flow generation have been above Company guidance.
Operations have now recommenced with two flowlines. As operations move into the next phase of commissioning over the coming months, production and availability are likely to be constrained as certain planned works and delayed data gathering activities will require periods of production shut-in. Hurricane therefore expects system availability to revert towards prior guidance, being 45% for Q3 and 65% for Q4.
Lancaster EPS performance to date:
路 Average production rate: c. 14,400 bopd from First Oil to latest lifting on 17 August 2019
路 Total crude oil liftings: 1.2 million barrels over three cargos
路 Overall system availability: currently in excess of 85% long term guidance
路 Most recent aggregate stabilised water cut: 7.5%
Hurricane's analysis of water production continues to indicate the presence within expected ranges of stranded or perched water, with no indications of aquifer water. Production over the last month has been through a single flowline and therefore water cut cannot be attributed between the two wells. Further data will be available now that production through both flowlines has recommenced. This will facilitate better understanding of individual well performance and water cut. It will also allow planned flow rate variation to be undertaken, in order to optimise well performance.
Forward commissioning for the Lancaster EPS over the coming months will include:
路 Fuel gas compressor commissioning to reduce long-term flaring levels and operational expenditure
路 Produced water system commissioning activities
路 Return to dual flowline operations
Ado
"But in my earlier post, I only mentioned the (hypothetical) big shareholder 'walking the price down' in anticipation of good news, and thus making a profit on the rise. It's what (as we know) CA does, it makes people like me grind our teeth, but we have to live with it. "
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I just wish they did that in a share I wasn't invested in and it really did go wrong and they got their fingers badly burned.
Ado
I only have a faint recollection of asking my broker something years ago about either buying and selling stages and they said it might be misconstrued as market manipulation.
Huge companies could earn a fortune doing it, especially if they got in cheap in the first place.
Ado
The lots of sellers comment was quoting someone else.
Your theory is hard to argue with, the MMs aren't bothered, they make their money on both buys and sells.
However, what you suggest would be classed as market manipulation and hence illegal.
Whether anyone has the will to anything about that is another question.
Certainly seem to be a lot of sellers this am, no idea why.
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Down a relatively quick 5% :(
Ok, thanks Biffa.
Also don't forget to take off the amount per barrel we pay for the FPSO and offloads.
I wish I was the Obama aide who must have kicked him on the shins and told him to shut up as half the BOD was American and a huge amount of US pensions were invested in it.
I assume that Barack "British Petroleum" Obama carefully chose the judges.
Or maybe Halliburton with their massive political clout chose them.
Anyone and everyone from anywhere in the USA could sue BP and the judge would award them $millions.
Adoubleuk
I've never trusted Transocean since the Gulf of Mexico when they missed/ignored obvious warning signs that something was very wrong.
They never really suffered in court because they are US, like Cameron International and Halliburton.
Sippn00b
If you are in Bangkok check out the Bharani restaurant.
It looks basic.
Because it is basic.
But the flavours of the food are as good as anything I've had in a Michelin starred restaurant.
"If rumours are correct (and I underline I have NO 'inside info' right now), that's three fishing jobs on two wells. Not good."
Am I right in thinking it is Petrofac that is doing the drilling?
For a company of that stature 3 fishes in 2 wells is pretty damn awful.
And this is on top of the hook-up fiasco which came after the AM running into power problems soon after leaving Dubai.
Thank God we've got one well up and running.