Member Info for Bamps21

Hi LGO fan
What does the proof of concept mean?
I'm taking the meaning to be proving up the models produced by EPI from the 3D,2D seismic and the aero surveys.
This is where the 12 targets of 20m+ barrels has come from.
By drilling, testing and finalising the reserves in place at Saffron will prove whether the other targets will be a success. This should increase the chance of success (COS) for each target.
Should also prove up the process of drilling in these difficult geological strata.

If the reserves are higher than predicted then a Reserve Based Loan from a bank would be made a lot easier.
The market cap of the company should also increase with confirmed reserve report and moving the reserves from an estimated P50 to P3 or P2 proven category.
A bank would probably take some time looking through the figures.
The loans they would be interested in could be in the £20m + bracket but a smaller figure might be achievable if they could see future requirements a lot higher.
The capex sums required for Saffron in 2020 are around the £15m mark, this would be too much for the way they are borrowing at the moment in my opinion.
ATB:))

Hi mossma
He's probably been busy getting his new position at Lek Oil :((

There's no comparison between these 2 companies, that project was far too ambitious for SXX the funds were never going to be there that's why I sold out when they gained the permissions to go ahead.
Cerp have done the hard work and now for the results

Is there any evidence it is Schroder selling, 200,000 shares is a small amount in the scheme of things for a firm their size

Let's step back a bit, what do we have.
In the last financial report in September we had around £16m in oil and gas assets, proven reserves have not increased.
Working from the net assets of £22m then and the shares in issue now, I make the share price around 2.7p

We have no proven reserves at Saffron or Suriname, and still to be confirmed at Innis.
A proven reserve at Saffron of only recoverable barrels say 15m x $3 with no more liabilities would give a share price of 6.7p. Not reflecting the $50 sells price or any contingent value on the reserves in the ground.
(NB the $3 is from Harel not mine) so it's a low conservative figure

What do we have at the moment then:-
A share price that's probably close to the NAV value but doesn't reflect any potential, any contingent values, no Suriname and nothing for CO2 EOR

For me the flow rates will have an immediate effect on the price , what effect I've no idea but the proven reserve figures will dramatically change the base share price , the market makers will not be able to ignore these facts.
All I can say about today's board has been panic but what a fantastic time to top up, where else can you see a share that's going to rerate At what point I wouldn't like to guess

ATB:))

Rns stated 2 weeks till results of the drilling logs. If I was in to shorting what a perfect present that was

Definitely!
Hedge fund attacks are quite common:-
Centrica, Debenhams, Kier, Carillion to name a few

I think you will find the planned depth would be the top of the Lower Cruse. They would have kept drilling until the bottom of the oil pay

4 out of the 5 companies that have gone bust on me have come from the Ftse 250.
Please don't think that coming off Aim is any better it certainly isn't.
The reason we're down is mainly down to issuing shares in payment for services, they need the cash to pay for their daily needs.

The information would have come from the 3D seismic surveys, they would have stopped drilling when oil shows stopped
ATB:))

I hadn't realised that TH has been made non-exec at Lek Oil in Lagos.
Seeing as we've not heard from him, where's the commitment to the new position of CEO, hope he's going to explain why

Hi Peter
Nice to meet you again, sorry we we're all more excited by ITM than Cerp at the moment but the pounds looming and our bet with farmer David looks like losing us £700 but I've made a load .
If only Cerp would get to a pound - dreams but it could happen
ATB:))

Hi oilAnalyst
I'm still pondering over the use of different logging tools, the second being the Schlumberger more expensive one and I can understand them not wanting to chance it down at lower levels after NR got his stuck and nearly collapsed the company.
The second tool has sonar, so far more information can be sourced
ATB:))

Hi Peter
Will be in the Bluebell lunchtime from 12.30ish
As Serrells auction is on today
ATB:))

Hi Daz
I think it showed they know how to handle the complex geology and gained a lot of knowledge from it, even though it took sometime to complete.
Bodes well for future prospects.

Must admit I've never liked institutions buying into small stocks, it's ok when their buying, disastrous when they sell out quickly, like Standard Life did to NR, but it looks like their only selling small chunks if it's them. Another reason for not issuing shares to contractors they will always sell, I rather they paid them from Lind money and have some control
ATB:))

Hi dr.koi
They encountered sandstones and sand layers, it's the gas pressures that would destabilise the sand layers.
As stated in the Rns they had to use a heavier drilling mud where it's mass counters the gas pressures whilst drilling.
Obtaining this mud may have set them back a lot.
With the casing in place the 2" wide grouting should fill all the voids created while drilling.
Before testing the explosive string will be set at the required depth and blasted through the casing and cement grout forming holes for the oil to enter, whether they will blast into the sand or the stone that's for the experts to work out
ATB:))

Well I'm elated that the drill is a success but astonished it's taken so long. It just goes to show how unstable the sides of the core must be and why they had to case it.
I'm glad they didn't get the expensive schlumberger testing tool stuck like NR did.
The slide section on the SWP does show the multiple zones.
Evaluating the results is going to take 2 weeks, sounds very complex oil zones to me.
Two phrases to look for when the results come out - gross and net pays
Gross is where the formation has oil but not deemed productive
Net is where the concentrations are greater and will be the producing zones.
Once the net pays are known they will decide which zones to test.

The 4,000' to 4634' could all be gross pay zone but only a percentage of that will be net pay.
I'm only expecting gross pay in the multiple zones with 2 producing net pays in the Upper and Middle Cruse but I hope I'm wrong on that.
ATB:))

Hi Nige
That was some money then. I started as a trainee land surveyor in September 1970, paid monthly plus overtime I took home £18 10s 6d. Oh woe is me.
Check out the Inspirit Energy Boiler runs on a Sterling engine but they've patented a device and it can run on a number of fuels and produces 30% electricity as well.
ATB:))

Hi LLL
Last thing I think I am is a ramper or deramper, I am foremost a long term holder and I post things as I see it, which ever way it comes.
I never mentioned the consideration as it seems to me irrelevant, 17m shares is a small price to pay considering we will be losing 89m in reserves if this deal goes ahead. There is a big but, we can't do the CO2 EOR injection without PRD they have the market for CO2 in T&T sewn up.

If I was a deramper I would and could do a far better job than some idiots that frequent this board
ATB:))

Hi Nige
At the moment 20% hydrogen mixture with Natural gas is safe and can be used without alteration to any equipment.
If you can remember the big fuss made when natural gas took over from coal gas and every home had to have alterations done on everything.
Well the same is going to happen when hydrogen takes over.
At the moment the Netherlands are doing 12% trials, Germany 15% and now 20% here
Big factory in Sheffield opened to cope with accelerating demand
ATB:))