Member Info for Bamps21

Is the future deal between Cerp and Prd a good one?
Prd will pay Cerp $4.2m!
Extraction rates are forecasted to be 350bopd at $30 revenue on $60 wti price would give revenues of $3.8m per annum less costs of $10 per barrel .
At say 900,000 recoverable barrels it will take less than 7 years.
After buying and costs there's $20m to be gained
So far the deal looks ok
On the rest of Innis there's 8m recoverable reserves = $240,000,000 for about 50 years at 350pd
Now not looking so good.
$4.2m spent on another SWP Saffron like well with 20m recoverable at 350pd would yield $6.4m pa

My preference would be to keep half of Innis

There are 4 wells on block AT-4 :-
At-13, At-4 will be injected continuously with 24.5 tons of CO2
At-5x and At-12 will be initially be injection wells.
The idea is to get the CO2 to mix with the fluids oil and water and separate them into miscible and immiscible fluids and increase the pressures to their original state.
When the pressures required have been reached the wells 5x and 12 will be reversed and become producers.
The Reservoir Engineering Assessment has estimated the initial injection rates can be reduced to make the costs per barrel cheaper.
Production will be from 5 production Herrara sands 1 to 5, because of the continuous CO2 injection the forecasted rate of 350bopd should be maintained with little depletion as seen in these sands previously.
Following the initial trial a CPR is to be commissioned to address the wide historical estimates.
If the initial results are replicated throughout Innis the estimated recoverable reserves should be somewhere between 8-15m

Don't forget that offshore oil in Suriname is younger than the oil that Cerp will be looking for onshore. It's more sporadic in numerous traps and onshore is way underexplored so lot more risky plays

The economics of the Innis field CO2 EOR.
Production P50 forecast of 350bopd split 50-50 with Predator = $1.9m each pa revenue (based on $30 per barrel revenue).
In the agreement Prd are to fund all costs for the surface equipment and facilities for the pilot scheme on the At-4 block , which has 890,000 recoverable barrels from the CPR of 2018.
Prd will spend upto $800,000 on these facilities ( costs have come in at $600,000)

Heritage and govt royalties are 29.5% plus 18% spt tax between $50.01 and $90
Also if the oil is sold to Heritage they take another 5% discount.
Prd costs per barrel are capped at $10

Fram's historical losses of up to 50% will be deducted from the spt tax which should make the economics of the project viable
If the pilot scheme is viable work on further blocks will commence with Prd funding a further $700,000 using funds from revenue and the $200,000 not used on the pilot
After all costs are recovered by Prd revenues will be split 50-50 with Fram(Cerp)

Hi Peter
On your question to me about news, I believe PRD news first before Saffron. They stated news flow on the CO2 early in the new year
ATB:))

Should have read 2.5m cars off the road.
My phones no good or it could be me :))

2 websites to look at
hydeploy.co.uk
powerengineeringint.com

Hi Peter
Keeping shareholders updated is not Leo's best traits in my opinion, we're way down the list, but it's holding the sp steady.
Look at it another way UKOG have informed their shareholders at every stage of their drill and the price has faltered on good flow rates but share placing
Firms can't win

Hi troubles,Nige
Sorry for bringing the weather up but it has a big part on building sites and it has rained a lot lately.
Great things are starting to happen technology wise with trials of putting 20% hydrogen into the gas grid around Keele university. On BBC Midlands Today yesterday.
When this is rolled out across the country it will have the same effect as removing 2.5m off the road
It's a start!
No good for the animals in Australia, huge disaster

Hi Daz
Cement plugs might be used, the one down hole tool I find fascinating is the "eel" used for the dreaded word fracking and does away with explosives
ATB:))

Morning Peter, Chesh
I've no idea how long testIng will take, too many factors involved .
The weather may have delayed finishing the drill before Xmas, there would have been tanker loads of waste products to dispose of. I'm not sure what facilities T&T have for this disposal, perhaps that delayed matters.

Bigger bores give the operator options whether to produce from diffferent zones simultaneously or not.
ATB:))

Silence is what I've been suspecting would happen, keeping the share price on hold and keeping the herd at bay.
Very unnerving to be honest, so what could be happening:-
Testing the Lower Cruse and shut down for pressure build up test which wouldn't require the rig.
Or testing of the 3 production zones individually which would require the rig

We could be looking at 4-6 weeks for this process and they hadn't got to total depth at the only update we've had. Also Xmas in the way.
Remember they didn't know about the top 2 levels so the 30-45 days is out the window
Time to batten down the hatches and wait for news!

Hi Nige
I believe the weather might be the issue this time probably for all builders,
I'm sure Ben will update us
ATB:))

Hi Bishand
I'm waiting for 1.86 but only cos I've made money before but it does look a good price to buy in. Tom is trading some between 1.93 and selling higher at mo.
Look at the graph for previous years there always seems to be a rise this time of year followed by a dip towards end of Feb.
ATB:))

I see the Parks fundraiser for the poor wildlife on that island has topped $523,000 in 2 days.
Rebuilding their habitat will take a long time
Such a sad time in Australia at the moment and is now effecting NZ with orange skies
Puts getting gold out the ground in context

Hi Bishand
Rns to look at
31 July 2019 trading update
A trading update is due around the 9th Jan and final results end of Feb
ATB:))

Hi Nige
Glad you're happy with your Investments and the way it's going
I wouldn't want anybody following mine, my friends can't keep up with me. My plan changes daily.
Not much in builders at mo only here but it is a quiet time and intend to get back in.
My foray into Town and Brw has been very lucrative earning more than Tw divi last year. I have enjoyed that but there's nothing like a big divi landing in your account.
Have a good day all :))

J99mes
Your post has tried to turn my post out of context
I was referring to Goudron the only way that field can produce more revenue is by the tax being altered or by the oil price rising. The only way the oil price will rise is from external forces i.e. Tensions.
I did not mention people getting hurt which you are inferring what I said

Hi Nige
I always seem to make money here when I buy at 186, lucky number sort of thing.
I bought Pennant at 13p sold in the 120s , went down to 55 when chairman left. Big contract was delayed, all hinges around that I believe.
ATB:))

Hi trucky
I never thought you had a go, sorry if I gave that impression. Myself and TomE have tried to persuade others but there is a wall between AIM stock investors and Ftse 100 investors they just won't look at penny shares
ATB:))

Hi trucky
No need to do that we're all here as well, it's only a small friendly board with not many posts.
If you post on here it's lost in a few hours
ATB:))