Member Info for Bamps21

Hi Tom
My relation (who ran a large mining company in Canada) has been e mailing me after saying it's too soon to invest in GGP he finally has now told me his business partner has now invested.
He just sent me this clip from the Bank of America conference 12 May by Jean-S Jacques CEO of RIO

Rio Tinto watching M&A opportunities with patience, not complacency, CEO says
Mining company Rio Tinto is maintaining an eye on the potential for merger and acquisition opportunities as a result of the Covid-19 pandemic and plans to stay "patient but not complacent," its chief executive officer said.

Jacques told the conference that mining developments of the future may start smaller and be embedded with optionality for growth over stages, yielding quick cashflows to shareholders, communities and governments.
One such example is the company’s Winu project in the Yeneena Basin of the Paterson Province in Western Australia, where Rio Tinto has discovered copper-gold mineralization. The exploration project is at an early stage, but initial results are encouraging and drilling is ongoing.
“In the post-Covid world, this type of development approach may become more viable,” Jacques said.

Hi Bully
I believe Leo explained the difficulties in drilling the well in the last 2 videos.
The fault/ trap has prevented previous drillers getting through it. The unstable movable shales and the very high pressures in the Lower Cruse meant that they had to use a drilling mud that was nearly rock.
If you have seen my other post regarding how they use the drilling mud with the logging tools, where the mud enters the pores of the rocks and logging is able to pick out oil layers because of it, but with a rock like mud it couldn't enter the pores so the logging became irrelevant.
The pressures of the 2 LC layers are 0.7&0.9 psi so are very high for these depths and as far as i am aware 0.8psi is very high.
i hope that helps a bit :))

I thought we we're after oil, never realised we we're after jam.
Per gallon it's far more lucrative. i mean sticky :))

Hi Nige, Tom
i miss read that too, thought it was not like our Nige.
My portfolio is about 50% ggp will never be another share like that one, although i have high hopes for ITM
ATB:))

Hi Hollybean
i couldn't work out if that was a negative or positive post.
Regarding getting equipment in its just off the St Mary's Road which leads on to the Southern Highway, so there's no problem getting in or out.
There are 4x 400 barrel tanks on site that they are using for the Middle Cruse to store and separate the water oil mix.
Heritage will buy the oil and be sent by road.
Plans are afoot to export the oil by sea paid for by an oil trader. The planned capex for pipes and tanks has been removed from the charts. although they have said a water separation tank will be required.
We also have a free carry on drilling S2.
Of course there will be large spending on new wells but also large revenues.

i suggest you do more research of your own try looking at the last 3 presentations and videos

Hi Holybean
They may have had trouble with the Lower Cruse but was definitely not a disaster and definitely worth far more than today's price.
It was never planned as a production well always an exploration well until they found oil at only 450'.
3 zones in the Middle Cruse with one having a gross pay of 1,000' interval 4 with minor sand migration ( a big plus) and 60 wells planned.
The MC is over pressured at 0.6psi and at those depths is very high.
Pressures increase the deeper the layers at about 1lb per foot in rock and less with water e.g. undersea.
The Lower Cruse had the issues with moving shales only 2 x 8' zones perforated but had an API of 40, that's fantastic, over 300' still to perforate of "open" flowing sands.
The 2 zones 5&6 had pressures of 0.7 & 0.9 psi. As i understand it a pressure at that depth is very high and should flow unaided for a long time.
This well has given Cerp so much potential for future growth and the economics make it potentially far better than sub sea plays.
Just a shame about the dilution but that should change fairly soon

Certainly needs some more upbeat news other than diluting share holders at every corner.
We need news on production, sales, progress with testing, the last fortnights news has whithered with more dilution.
Progress with CO2 has had no effect.

What news is likely in the coming weeks-
Goudron renegotiation:- it needs to have plans to kick start Cerps bread basket

Suriname:- An upgrade of oil in place figure / recoverable barrel figures

Saffron:- Middle Cruse zone 3 test results- recoverable barrels
An idea of zone 4 plans and the massive net pay
News on any more production from MC

A broker has upped my Australian miner's target price based on their Net Present Value, that's an uplift of 47%.
Why can't Finncap give Cerp a revised target based on the new NPV of 90.3 for the Lower Cruse
(Sorry but I think the House broker is a bit unrealistic and no calcs)

90.3 divided by number of today's shares = 9.9c or about 8p per share for the LC
There is a but , the NPV has not been confirmed yet but neither has the gold miners

Hi Mani
The Kempsey site is opposite the river to me, it's an extension to the one finished last year. It's getting very close to the flood plain. Hard to believe 2 months ago we were struggling with all that water and now every where is rock hard and my local at Severn Stoke is still shut but probably dried out :((

Hi Nige
That's a drastic move to sell all your builders never thought you would ever do that.
Good plan to stick with Ggp, my portfolio way above what it was before the crisis due to them and Itm mainly which went to £2 this week sold half and bought back yesterday:)) sold all my Ncyt to.
Still hanging on to the few TW I've got, went passed a site that hasn't been going long north of Worcester, houses looked good but too close together for my liking, will this virus change people's liking for close living.
ATB:))

Hi Tiburn
We still have costs for the 3 zones not tested yet at S1 but there is likely to be revenue from zone 2 already tested around Aug time
The plan for the Middle Cruse will cost $30k to Singh estates and another $15k on drilling S2
I'm hoping we won't need the 3rd tranche.
Some of the cash is ear marked for Suriname

Costs at Saffron
Rent
$70,000 per annum but varies with WTI

Royalties
Free for the first 2 years of production then 10% for years 3-8 then 12.5% onwards

Drilling bonus
$15k payments on the first 3 deep wells

Development bonus
$30k on each of the first 3 FDP plans

Bolt royalties
No royalties on Bonasse field
3% royalties on a field not in Bonasse
NB I haven't been able to find which fields these refer to and whether it includes Icacos

Hi Tiburn
We have borrowed 3m from Lind on a monthly payback in shares or cash. Cerp can borrow another $1.5m if the market cap is above $25m . That's all the borrowings

Hi Bully
Some weeks back PRD were still confident of making a profit at even lower levels.
As far as I know BP need $30

Hi Bully
You need to go back to the October presentation and go down to the bar chart where the fields revenues and costs are shown.
At the time WTI was $60 and they are showing $50 revenue for Saffron, at Goudron is only $30, a huge difference.
Last week I did a breakdown on the costs at Saffron
The mineral rights are held by the Singh estates who we pay rent to, the government does not get royalties only corporation taxes and the infrastructure costs will go against that.
On fields outside of Bonasse in the SWP we have to pay Bolt royalty fees

Hi Bully
Costs are very low at Saffron
In one of the latest videos Leo said revenue is 90%

Lower Cruse NAV value
11.5m recoverable barrels
WTI at $25 less $2.50 costs =$22.50
=$258m
Infrastructure costs over exaggerated $58m = $200m revenues
Divided by 1.1bn shares (assuming more dilution) = $0.1818
That's about 15p base value but the asset needs to be confirmed first

Hi Offerman
An independent CPR is the key at the moment we haven't an upto date one on any field.
Well they cost a lot to produce and they take into account everything including the ability to sell it.
At Saffron 1 we need the tests results to confirm the assets of the Middle Cruse, this in turn will determine a NAV value and a confirmed NPV but we also need adequate storage and means to separate the water and adequate wells to extract the recoverable barrels. The oil is taken away in road tankers and Heritage seem to be having it.
A CPR maybe done at that point or maybe left till the field is established

To my mind having a valid confirmed NAV is the one thing that establishes a base value of the sp.
ATB:))

Chesh is a gem, a bright spark:))

Hi Chesh
SSE when they listed were the first as far as I know to issue bonus shares

Yes I have but that's personal.