We would love to hear your thoughts about our site and services, please take our survey here.
Thanks for posting. Question is do S & P global have a contact within Tullow, as this prospect was not mentioned in the pre-Christmas eco investors meeting. I think this is the only channel infill in the cretecous block, so maybe tullow are trying something differnt, as there are bigger targets within the block to go for.
Thanks. So TLW either need to
1) commit to drilling a well (although this could be at the back end of a new drilling period, given TLW's foot dragging)
2) farm out to another company, but all has to be tied up with well identified by mid Jan
3) just walk away, but would need to let JV partners know, with hopefully remaining JV taking over.
6 weeks until we find out either way....
Having gone to the investor presentation I found it to be useful. It was recorded and used a new slide pack, so I would expect this to be available online at some near point in the future. For the me the main points were:
*2 wells in 3B / 4B, will have to wait until the official announcement for who it is with and the detail. Drilling at end of 2023 & start of 2024.
*Updated CPR will be tied into the 3B / 4B target review. The potential is that block 3B/ 4B could be as big as Exxon’s Stabroek block.
*Guyana – For me it is still not really clear as to what will happen until there is an official announcement. They are now saying end of Q4 22 for drilling target decision. Gil talked on a slide about how in the new biding round for licenses that the terms were far less favourable (signature payments & royalties), which in turn increases the value of our block which is on better terms. He noted that many bidders would not be able to get in Guyana for blocks and that no operator could have more than three blocks. For me, who knows what TLW really thinks, we know they are prepared to sell their stake, but we don’t know at what price.
*Namibia – increased interest, not allowed to say anymore according to NOMAD (this bit is recorded on video).
*Keith Hill buy / sell ECO comments – AO cannot own more than 20%, unless they intend to buy the company. Gil didn’t say that ECO wouldn’t be sold, just comments that the offer would have to make people happy (see video when uploaded). If we have 2 drills with a super major on a block that could be as big as Stabroek, would you sell and at what price? If people were offered 60p they might sell, bird in the hand and all that, as we do not know what is in the minds of the major holders of ECO. Gil showed and talked about who owns the company on the day.
*Eco continues to look out for other ‘corporate opportunities’, e.g. deals like Azinam.
My overall take away is that if you want immediate drilling it's not going to happened, and the odds on individual drills are stacked against us, however, we have several more throws of the dice, and if one comes in that is fantastic. If one of those is in 3B / 4B it will be potentially life changing.
I agree that TLW will most likely exit our block given the last well next door, beebei, was a flop. TLW were also exiting blocks in suriname in 2021. I am going along on Tuesday and will ask ECO staff why they think our 3 shortlisted targets (as noted in the corporate presentation), are still worth exploring given beebei. If they do not announce any new news on Mon or Tue at 7:00, i may not bother attending, as no point listening to talk of target selection in guyana given the last 2+ years, and we know they are currently considering bids in S Africa. Fingers crossed for news.
Totals block is next to ours.They have some potential prospects that are on trend to ours. It would be nice if they are drilled, with a positive outcome. we need to wait until next week as to whether anything solid is announced. One hopes info on the farm out will be released, otherwise not really worth attending. As saying they hope to drill in Guyana next year will be meaningless without an announcement from tullow.
Interesting reasons given about the delay… weather and longer to drill than anticipated. Nov off the coast of S.Africa is not exactly the North Sea in Feb (its been in the 20C’s). On the 12th Oct, Gil also stated the drill would last 25 days, 30 days max. 20 days late would indicate major problems drilling (which may have happened). Longer to drill than expected could cover the sidetrack, as he would be unable to say they are sidetracking otherwise this indicates they found oil on the main drill. Maybe he should have just said ‘no comment’. Will know within 2 weeks.
Either they have had lots of drilling issues or they have are side tracking. Gil said the drill was 25 days, max 30 in his interview on the 12th oct. I have no idea how long it would take to side track but surely some time, it wouldn't be quick, as would need to get all the extra gear in place and then off you go again. I wouldn't have thought they would have space on the rig, but what do I know.
To be honest, I doubt Gil would reply 'no'. Even if it was a duster you could say 'yes', its under control. If indeed the reply from Gil was even real, as I doubt a ceo would be giving single word commentary on a well which has the chance to change the fortunes of the company. Fingers crossed and lets hope we all get a positive RNS in next few days.
When they talk about progress, I think they are referring to what's going on with 3b and guyana, if the couple of sentences before that are also read in the rns. I think they are within their rights to only RNS once the full drilling results are known.
Gil stated that it would be a couple of weeks until bids were submitted. I think what happens at 2b will impact on what they choose for 3b, if its a duster then will probably go for a bid that offers free carry on 1 or 2 wells. if we strike commercial oil, the share price will rocket and they may go for a bid that offers more drills but we pay a share of the cost or give away a lower % of 3b. Time will tell...