The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
adding some reality to the figures, despite there being other and larger storage opportunities (deccan traps india), this is a good carbon storage option. there is a large formation full of zeolite minerals which will transform into carbonate minerals within months via co2.
as i commented previously, 1yrs worth co2 is 160x 250m tonnes (anthropogenic emissions). 8.7gt accounts for just 20% of these anthropogenic emissions, but still a sizeable amount; more than adequate for the region. assuming that is the final confirmed figure.
8.7gt estimate is dependent on the presence of zeolites in the rock. potential storage appears to have good permeability and porosity, but needs confirming. how ****geneous the mineralogy is, is an unknown but determined as system is developed over time. this will require further drilling to confirm.
at least this is a start and will lead to confirmation of estimated (8.7gt) figures, but really does begin to underpin a far greater share price, without including the other opportunities.
£1.00 per share seems far too cheap.
Thank you Chesh.
I missed the part about Rustavi Azot ,subsidiary of Indorama Corporation, Singapore, as it came up in a different feed. At $60/ton and estimated at 256 mmt thats a lot of noughts ($15,360,000,000).
"Well played sir ;)". 🤣🤣🤣
At least you haven't lost your sense of humour!
well said kilgeever ‘wise not to run too soon.’, but good to see the price steadily increasing towards 2p. iirc, tennyson proposed a fair valuation at 4p, with a total nav of 18.4p/share not including contingent resources, or exploration in oct 23. would be good to see recovery and stabilisation to 4p or even 18p.
in response to my questions grower69, thank you for the links, but the top 10 companies listed mainly refer to airborne carbon capture which, i understand, is not what is proposed as block mention water injection. typically water 20 tonnes of water is required to dissolve 1 tonne of co2, which will require some form of energy & associated cost to operate.
block have confirmed 256mt (patardzeuli reservoir) ccs which is good, the company mention world class, which it is, but to put into context, at 256mt that is just over 6% of the worlds (anthropogenic) current annual co2 emissions. there are larger opportunities elsewhere.
the 8.7gt (block xib/f estimate) storage is based on the basin-sink. to understand that requires understanding “basin-sink”, ie, how permeable, stable and similar (****geneous) the mineralogy is. block does not know this, hence the estimated figure and can only be confirmed by drilling (over 1km) and developing the reservoir. how many drills will be required? who will drill? what cost? importantly, what value does this estimate provide? after all, it’s an educated estimate but even at 10% equates to 870mt.
an example, talos energy sold its ccs subsidiary to totalenergies in a deal valued at $148m, included in the transaction one of the largest ccs portfolios in the usa, with an estimated total potential storage capacity of 1.7gt. block has 5 times greater estimated assuming the basin-sink can accommodate 8.7gt.
a good/great opportunity, obviously until associated costs are understood it’s difficult to determine an accurate valuation. the use of prof oelkers helps, an outstanding geologist (h-index 90; 60 index is exceptional) so his involvement and any report will underpin the narrative.
not forgetting the oil, with nav $500m which can easily be connected to the scp as i mentioned previously. i note cnpc are involved in azerbaijan where the scp originates, would be an easy decision to acquire, particularly given their increasing presence in georgia.
given tennyson’s 18p based on not including contingent resources, or exploration, it must be safe to assume this price will be surpassed with news, but i still think mid-may based on farm-out announcement.
There are some wild figures being thrown around and I am not convinced people really understand what they are talking about, despite claiming research. Anyone challenging these are shouted down with petulant name calling and being accused of de-ramping. Pathetic, and says more about the respondent than those asking sensible questions.
I would like to know a couple of things, and while I don't deny things look very promising at last, but:
1. Why is there such a difference between 256M tonnes and 8.6G tonnes storage?
2. What does basin-sink mean?
3. How does 256M tonnes compare to other CCS facilities across the planet?
4. What are annual anthropogenic emissions?
5. What sort of costs are involved in pumping CO2 into the basin?
Perhaps this is the sort of research we should be doing to understand the bigger picture rather than saying numbers are mind-blowing. There is simply no evidence to support that. Maybe then we can determine a realistic price, which I do agree is quite north of the current.
g.a.y.lord98, I've never been negative, merely objective, though you cannot seem to work out the difference and just attack people based on your ignorance.
A good and solid set of results. The ME issue will not have that much of an impact, the route network is strong enough to take any disruptions from that region. Company will still maintain circa 3k flights per day and with the introduction of alternative fuels (SAF/hydrogen) combined with modern, efficient fleet the successful holiday division the future is good.
easyJet are good at the core business fundamentals.
jeff bezos net worth: $203.8 billion usd. convert to gbp: 63,956,081,000
at your valuation of £570/share means you hold (63,956,081,000/570 )287,642,247 shares or more, as you will be worth more than him.
not bad given 724,680,000 shares in circulation, means you own 40% of block by your calculation. maybe you want to check your figures before m.***lord.96 bursts with excrement…
"Massive demonstrations in Georgia's capital Tbilisi against Putin's puppets in the country":
https://twitter.com/ForeignpolicyWB/status/1779915276751868161?ref_url=
Check Cenovus energy (CAN) Ultimately 20 million tons of CO2 are expected to be stored @ cost $20/Ton of CO2, with over 30 Million tons injected since the project started. Figures are old, and suspect prices now cheaper following technology improvements, CCS has been around for a while. What has been overlooked here is that CO2 is used to assist extraction, its not a matter of filling a void.
Block states 'reservoir scale storage is estimated at 256 million metric tonnes', and 'basin scale at up to 8.7 gigatonnes'. The 256 mmt is clearly more objective, however basin-scale is rather more complicated hydrology and less defined.
Some wild figures being thrown around here, lets not get too excited
I've just returned from a trip to the UK, first in a long while and what a depressing place its becoming. Prices going up and generally miserable. Whats going on???
Despite all the cheerleading over the weekend regurgitating much of whats been covered, still don't anticipate news until mid-May, based on research. The clues are there, so the price will drift until then.
If it does come in before then, happy days, but its clear no one has a clue what price or when. Until then, sit back and be patient.
I doubt very much it will drop. People are still travelling, the world still turns and TUI still operating. The only difference is a diversion around affected areas, which will not affect TUI as the furthest east they operate is Egypt, west of the problem area.
Thailand routes may be affected, but thats operated by TUI Nordic if memory serves me correctly.
Nothing to worry about.
Has anyone attempted to deny him that privilege then?
Not expecting any farm-out news until mid May at the earliest.
Georgian government has announced development of a new airport near Tbilisi expected to cost £1bn with an increased projected GDP. More carriers are operating to Georgia, with others adding the route, however tourism is not the only income, work expected to commence 2025, following tender process. Of course, more aircraft means more fuel. Anyone cognisant with average aircraft uptake or related economies might see this as a benefit.
On frontera resources? I thought this was the place to find out...
The only walk round inspection of engines is that of the inlet fan and nacelle heaters. It is the responsibility of maintenance crews to secure panels, there are no indications on the flight-deck for loose or missing panels. Only unlatched doors.
Obviously if a panel is unlatched they can be secured, which is spotted by looking under the engine nacelle, so not that easy, but good crew will look, as should maintenance and handlers looking for anything unordinary.
Edited:
* Depending on demand, Block could well be in a position to deliver gas for 20 years, based on the details from Shah Deniz. Farm-out partner will be a critical choice/decision, irrespective though, the figures will be way north of todays price. As previously commented, the farm-out process commenced mid February and realistically don't think we will hear much before May.