Member Info for Bamps21

What would be the fair value on the 5% option
As Newcrest are spending $65m for 70% does that mean the next 5% is worth $4.5m
I'm hoping this will be at the low end

Hi Faz
For the sp to get to that figure a 20m + target will need to be tested and reserves confirmed
Only way we will do that if we farm it out or Prd find the $4.2m which the more I look at it is doubtful
If Prd paid Cerp from revenues it would take 400 days at 350bopd and leave nothing for them

Hi Garnheim
I doubt if any estimated figures would be added to the assets last September
ATB:))

September financial report shows the current assets and liabilities and those figures used to work a Nav figure out since then more shares have been issued reducing the Nav.
Innis reserve figures are inconclusive and once the pilot is underway Prd are down to get new reserve figures when the repressurisation has occurred .
The total assets on Innis will not make that much difference to the total as of last September
A 50/50 jv will still leave the reserves with Cerp
The full EOR with a successful CO2 should increase the reserves from 8.9-15m barrels recoverable according to Prd including the pilot

Prd have started pumping CO2 down the 4 injector wells on the AT4 block and the first tranche has been injected. What tranche means I can only assume to be a wagon load.
They are paying for all surface installations needed for the CO2 injection and the CO2. Upto a max of $800,000.
As far as I know this didn't include the well workovers completed last year.
Cerp would have still been receiving the revenues from the 150 bopd from the whole field ( not Prd ) and are still receiving them from the rest of the field and paying the costs and taxes.
Prd costs are capped at $10 per barrel. Does that mean Cerp are liable if anymore???

Prd have budgeted for $800,000 for the pilot and their costs have come in at $200,000 less due the experts saying that less CO2 is required to get the required pressures. They are intending to use those savings on the full EOR.
Will they still be taking revenues from the production to cover this cost ????

Cerp Nav is around 2.7p without any prospects . From Sep figures
Prd Nav is around 0.1p according to their Dec figures
Prd had £987,000 in cash in Dec
To get to $4.2m to buy Innis that would be 3.8p per share. I can only see a huge dilution coming there.

Cerp need the CO2 EOR and therefore Prd.
Prd will be spending their funds in Morocco.

I can't see this payment happening, the best thing in my opinion is a 50/50 split and Cerp still having ownership of the reserves
The pilot could be producing 350bopd for the next few years and the full EOR even more
As they're working well together why not get together and sort Snowcap out.

Just my thoughts on a complex deal

Well that was a good ramp by Malcy
A cost free option to buy it ( have I missed something)
A high recoverable reserves of 8.9m( P50 is 8.9)
He's missed the point this is only a small trial with 0.9m recoverable reserves

There are 2 things I agree with that Prd and Cerp are working well together and the cost for buying it is far too cheap

CO2 will be no good at Goudron

Hi troubles
Viewed a good auction at Chorleys. Auction tomorrow classy stuff

The economics of this CO2 pilot project are a very fine line and is only economic because Fram can claim previous years losses against spt
If PRD don't pay the $4.2m then I've worked out there is only a $17m pot to go for on this pilot over a 7 year life divide x 2.
The main field is much better economically but the spt is a barrier

Hi willec
Sense has gone out the window today.
What's logging got to do with today's Rns zilch.
If their talking about Saffron then the news was hurried to get the ministerial approval application in as quickly as possible.

The chancers
How can 900,000 barrels be bigger than 11,000,000 barrels
How does $50 revenue compare to $30
Talk sense please

Hi Obadhia
I hope the Lind tranches aren't used up yet as some was reserved for Suriname.

Bonasse is Cerp's best fiscal asset at $60 Wti price Cerp retain $50 revenue so reworking your figures a little makes 108 bopd to finance the loan which sounds a bit better
ATB:))

I can't see the cost of Clove staying around $500,000
Now they know what to expect I think it will be cased with a larger dia drill but that's only my opinion.

After the successful completion of the well a farm in or joint venture is the preferred option. This has been stated a few times by Cerp
Other options for finance can also be used including forward selling, corporate debt to continue operations

Hi Nige, Tom
Sell what is this word.
Jan 31 may be the day I've always wanted to happen (no not Brexit rubbish ) 15m+ ounces could be 20p per share :))

There are a few scenarios for the Lower Cruse
1 - the horizons are the only stable strata where oil will flow and the sands below are too unstable to perforate , giving a net pay of around 25'

2 - oil is found in the horizons and the sands are commercial to flow, with water at the base driving the oil upwards
Gross pay of up to 850' and net pay ?

3 - the horizons are full of gas and gas/oil forming 3 gas caps. This can be then reinjected to reinvigorate the oil enabling the recovery factor to be greater

4 - water could be sat on top of the horizons and at the base

Hi Razorman
The Upper and Middle Cruse at Saffron should be a better prospect than at the Clove position.
A P50 mean of only 170,000 barrels oil in place at 10% recovery = 17,000 barrels.

I would preferably see additional wells happen around Saffron as it's in the centre of the P90 contour and Clove is outside
ATB:))

Hi LGO
That is top of horizon 1 to bottom of horizon 3
Total depth is 4634
Multiple oil shows to total depth
Gross pay could be around 850'

ATB:))

Hi Peter
You didn't come over impatient, I know your situation and must be hard.
The oil investing is a high risk investment and takes a lot of time I'm afraid. I've been in this for 10 years and we're always just about to make our fortune. For some newish posters who want an instant profit frustrates me.
If you want to meet up sometime and go through options let me know.
My friend has just bought his first shares at 72 and made a little profit in a couple of weeks with my help

I read the South Erin deal in an old Rns , trying to find it again

The Upper and Middle Cruse layers have had downhole logging tools using the Schlumberger Quad Combo and Express.
These 2 tools should be able to provide Cerp with the knowledge of the reservoirs and the gross and net pay zones. Also where to perforate the casing.
Permissions from the Ministry will be required I believe.

These tools couldn't be used in the Lower Cruse because of the unstable geology.
The Lower Cruse casing logs didn't provide that kind of information but did give Cerp the confidence that their previous announcement that there are multiple oil shows down to Total depth was correct.

To some impatient posters it was poor RNS but for me it was interesting news, Leo's kept us informed and they are progressing as quickly as deemed fit.

From the bar chart plan on the presentation it shows a well to be drilled in Q4 2020. Under the terms of the agreement Cerp have to drill at least 7 wells by end of 2021.

Updip wells are normally gas oil reservoirs and wells are drilled as deep as possible for re-injection of gas to allow the gas and oil to mix making the oil pressures greater.

I am hoping this is the case rather than solution driven,
ATB:))