Member Info for BaysilHope

There is still so much deal making happening behind the scenes - we all know Amer is NOT THE FINISHED BUSINESS article, there is so much more work and investment required to get more opportunities and MAX what we have - Quote Then GC responded, "Why are you afraid? You have so little faith!" Then he got up and rebuked the wind and waves, and suddenly there was a great calm.Ecuador government seeking oil sector recovery. Since Ecuador’s adoption of service contracts in 2010, the country has struggled to attract major new investment in its oil sector. To promote new investment in the sector, the government has reverted to the previously used production-sharing framework with the introduction of a new model Production Sharing Agreement (PSA) for crude oil. This new regime will first be tested through the XII Intracampos Licensing Round that opened in September 2018. In the medium-to-longer term, four additional rounds are planned in the country’s effort to find new resources.
In September 2018, the government published the new model PSA to accompany the launch of the XII Intracampos Licensing Round. The model does not include any cost recovery provisions or royalty payments by the contractor; instead, gross production is shared directly between the contractor and the state depending on the Oriente Crude oil price, and the volume and quality of crude produced from the asset. Contractor’s share of gross production ranges between 40 – 87.5% and is a biddable element under the new terms. Income from the PSA is subject to income taxes and a ‘sovereign adjustment’ mechanism will ensure that the contractor’s cumulative income from the project does not exceed that of the state. The new terms are more competitive than Ecuador’s previous service contract regime, yielding mid-range returns compared to neighbouring countries.
Ecuador is seeking to trial its more competitive terms and investor-friendly approach through the XII Ronda Petrolera Intracampos Licensing Round. The country is looking to secure investments of $1 billion from the round, which includes eight onshore blocks located within lower risk areas of the Oriente Basin. The final investor appetite remains to be seen with the licensing round results that are scheduled to be announced in January 2019 - soon!!!!. Following the Intracampos round, the government is planning a further four licensing rounds between Q4 2018 and 2020, these are: Intracampos 2, Subandino, Suroriente, and the Litoral. Large offshore areas will be included in the Litoral Licensing Round, which is considered to be frontier and higher risk. It is possible that further fiscal incentives may be required to balance the risk when these more frontier areas are offered. JAN 19

IMO DYOR - POOO tanked Nov from $85 as Fed started to hike US trade wars peaked and China growth stalled. So After OPEc cuts US smashed doen POO after 6th Dec to WTI $50 to kill off US Shale reduc inflation and help US China and Indian markets. That pearl has now done its task . KSa are cutting back further so the glut will soon be killed off. POO should gradually regain to say $70 and Amer will have a helping hand. But there are so many future deals to be made - its hard to forecast our 2019 business model which could be huge. There's more strategy to come yet - no one has mentioned Ecuador which is a key exit route for starters and +3 rigs on CPO 5 would be orgasmic HNY - expect POO to start and EIA should show US Shale calming. GLA GN

Last point and I'll shut it, Mexico super tax is another deceptacon, ifs a proper tax, allows contractors to make a IRR25% plus 125% uplift on MWP and then share 30% on Oil Profit contracts for a PSC which is not far off the norm, especially when its 2bn in shaloow water and high API. Chevron is a PR game we are losing sadly, we will probably bid for .005% of the Chevron game but get marked down to a $1.6bn RI at 40p a share - news will out, makes sense to grab $50m of NSea and get the tax break, but our biggest tax break - LEST WE FORGET is the CAT pumping +67kbopd in the N Sea and we get the whole Kibosh of tax breaks FFS GS take your stake and watch the Superbowl you US twesats FFS

This can't go on much longer, KSA OPEC Russia cuts will prevail, it seems to me they've kept POO low as long as to keep a short stimulus to world economy US China India , and cap US shale - we 've had extremely low POO for 3 months even when OPEC cut 6th Dec POO fell, and pushed toward $ 50WTI, its' too low now and we're all feed up with the over played game. KSa will cut further in Feb +200k US just short China trade deal and TD get closure on Chevron, even its a Post Office JV on the Isle of Skye FFS.

Look at Talos slide 78, the Mexico take regime is keeping with other countries it allows +25% IRR on the investment - +125% cost uplift on certain works, why would DEA and Private equity be diving in - quote,- similar to Colombia, m
Talos slide 76

PSC Profit Sharing Contract - makes allowance for contractor profits then Oil profit share- Talos PSC consist of three main components: Royalty paid to the government, Cost Recovery available to the contractor and the
amount of Profit Oil the consortium earns ? Royalty is calculated based on the entered effective price
compared to an escalated price of oil as set in 2015
? Royalty is deducted from the revenue prior to calculation of
Cost Recovery
? Cost Recovery is 60% of total revenue in a year and includes:
? Operating expenses (Opex) and Capital expenditures (Capex)
? Minimum Work Program (MWP) costs get a 125% uplift for
Cost Recovery
? Any additional exploration drilling, beyond the MWP, is cost
recoverable
? Profit Oil is Total Revenue less Royalty less Cost Recovery
? Contractor Entitlement to Profit Oil is based on a r-Factor that
is an adjustment based on Contractor’s Internal Rate of
Return (IRR) calculation.
? Below 25% IRR, Consortium r-Factor is 100%
? Between 25%-40% IRR a sliding scale is used to
calculate r-Factor
? Above 40% IRR, Consortium r-Factor is capped at 25%
? State’s Entitlement to Profit Oil is determined by lease:
? Block 2: 55.99%
? Block 7: 68.99%
? Block 31: 65.00%

These combined rates are comparable to other regions. And when you factor in we paid bladders for a share of 2bn and we complain, and the SP is 67p who is fecking kidding who. AbsoluTe no appreciation for a superb low cost entry - COUNTER CYCLICAL PLAY VOTED ONE OF THE TOP 20 FINDS LAST 25 YEARS - SAD AS FECK.!! IMO DYOR - COMPLAIN FECKING COMPLAIN. REMEMBER ZAMA IS ONE OF 6 LEADS IN THE BLOCK AND +5 MORE IN BLOCK 2 WHICH GETS DRILLED BY TALOS IN 6 WEEKS TIME. I'm mad we get taken down by lies 13th Jan, we have a great appraisal and the FSA should get a letter on this - its a rigged stack which in time will play out. Keep the faith and hate in silence. HNY GLA If the Mexico tax regime was that bad they would NOT be drilling - simple as - the low cost helps balance the investment.

IMO DYOR the CEO buys in mental, RI done B Sheet improved, BP Magnus Acq'n Done , Whole world kicking ass out of the RBC rubbish , and POO up next I' m up for that, I held back from Enq only lack of cash as I have Amer & PMO but this is coming good, I don't short but this Co is over done as with those downgrade short swipes. GL GN
MINERB Next years +20% output growth - how not explain.!!

MB Typical cut and run on 2012 and ignore +20% Output increase - Re Kufpec its revit an old system FFS 29 MAY 2012 ENQUEST TO FARM OUT APPROXIMATELY £300M OF THE ALMA/GALIA DEVELOPMENT
EnQuest PLC today announces an agreement with the Kuwait Foreign Petroleum Exploration Company (‘KUFPEC’), by which EnQuest will farm out a 35% interest in EnQuest’s Alma and Galia oil field developments (‘Alma/Galia’) to KUFPEC. Under the agreement, which is subject to regulatory approvals, KUFPEC is to invest a total of approximately US$500m in cash (around £300m), comprised of up to $182m in future contributions for past costs and a development carry for EnQuest, and of KUFPEC’s direct share of the development costs.
Amjad Bseisu, Chief Executive of EnQuest PLC, said
“EnQuest is pleased to be working with KUFPEC again and to have them as our partner in the Alma/Galia development. With start up planned for late next year, the project team is well advanced in the execution phase and our first Alma well has reached ‘TD’ (total depth) with good results.” Nizar M. Al-Adsani, Chairman & Managing Director of KUFPEC, said
“In keeping with KUFPEC’s strategic objective to acquire quality production and reserves, we are pleased to re-enter the North Sea through EnQuest’s Alma and Galia project. The North Sea transaction flow activity affords KUFPEC an opportunity to grow a material business through alignment with valued partners such as EnQuest.”
Chief Secretary to the Treasury, Danny Alexander, said “This is good news for North East Scotland and the whole of the UK. At the Budget, the Government set out ambitious measures to stimulate billions of pounds of new investment in the North Sea, increasing production and creating jobs. Today’s deal between EnQuest and KUFPEC, bringing up to £300m of foreign investment into the North Sea, proves that the UK continental shelf remains an attractive prospect. KUFPEC will pay its pro rata share of costs effective from 2012 and will also pay up to $182m in future contributions for past costs and development carry, in relation to EnQuest’s remaining interest in Alma/Galia. The capital cost of the project is being revised to include some additional costs relating to increased scope, intended to extend the life of the oil field. EnQuest anticipates costs of the development of approximately $1bn. If KUFPEC does not recover its costs by 1 January 2017, then it will receive 50% of revenue less operating costs until those costs have been recovered. EnQuest Alma/Galia net production post this transaction’s completion
EnQuest previously announced that it anticipated peak production of over 20k Boepd from Alma/Galia, following first oil, expected in Q4 2013; this was based on EnQuest having a 100% interest in Alma/Galia.

IMO DYOR Research with our disposlas we need a small bolt on N Sea to use Tax losses, and NOT A RJ FFS - BIG P useful profitable add on. News remier Oil Natuna Moves Ahead With BIGP Project
Subsea Engineering News Thursday, December 7, 2017 - 10:32am Premier Oil is developing the Bison, Iguana and Gajah Puteri (BIGP) oil and gas fields in the Natuna Sea offshore Indonesia to increase gas supplies to consumers in Indonesia and Singapore.
“The Indonesian government formally approved the project in October, and all major contracts have now been awarded. Premier is targeting first gas in 2019 to backfill our existing Singapore and domestic market contracts,” Premier Oil said in an operational update.
Operator Premier Oil Natuna Sea BV has launched preconstruction works to develop the three oil and gas fields located in Block A as subsea tiebacks to the producing Gajah Baru and Anoa fields. First gas is projected to be achieved in third-quarter 2019.
May 18 Pres BIG P circa 4kboepd – hence why 2019needs and elgin bolt on and Catcher upgrade to 66kbopd. Zama a monster in the making but look at Talos in our other block, Mexico is Mental for value. GLA

First post Enq , been watching a long time, Quotes form the Accounts H124 -26 - How could they achieve a RI with A $91 M Contingent Liab, this issue is all under control unlike your posts. GN Quote Cost recovery provision H1 18 As part of the KUFPEC farm-in agreement, a cost recovery protection mechanism was agreed with KUFPEC to enable KUFPEC to recoup its investment to the date of first production. If on 1 January 2017, KUFPEC’s costs to first production had not been recovered or deemed to have been recovered, EnQuest would pay KUFPEC an additional 20% share of net revenue. This additional revenue is to be paid until the capital costs to first production have been recovered. A provision has been made for the expected payments that the Group will make to KUFPEC. In establishing when KUFPEC has recovered its capital cost to first oil, the farm-in agreement requires the use of the higher of the actual oil price, or $90/bbl real, inflated at 2.0% per annum from 2012.

As part of the 2012 farm-out to the Kuwait Foreign Petroleum Exploration Company (‘KUFPEC’) of 35% of the Alma/Galia development, KUFPEC agreed to pay EnQuest a total of $23.3 million over a 36 month period after Alma/Galia is deemed to be fully operational. $3.9 million was received during the six months ended 30 June 2018 and the remaining receivable, discounted to present value, had a carrying value of $3.2 million at 30 June 2018 (31 December 2017: $7.1 million and $7.1 million respectively). Unwinding of discount of $0.04 million is included within finance expense for the six months ended 30 June 2018 (30 June 2017: $0.1 million). GLA GN

Sorry Owls, how can you perform proper FD role, in the Oil industry and DO not understand POO and Markets, strange, I was an FD in a few and so on and so forth, especially capex and expansion plans and grants, flexing cash flow etc . Any way US Shale to boot - ignore Rig understand lack of cash !! Quote - NB !!! Of course, for much of the past decade the US shale industry relied heavily on debt to finance its growth, with exploration and production companies raising about $300bn from bond issuance over the past 10 years. However, as crude prices started to slide last October, that source of capital was choked off, with just three bond sales by exploration companies that month, and none at all since November, according to the FT.
There’s an inability to exit,” said George McCormick, co-founder of Outfitter Energy Capital, speaking about private equity oil and gas holdings as a whole. “The engine on the train is really public companies buying assets from privately backed companies. But public companies aren’t buying today.”
And with private equity no longer looking to buy but merely focused on liquidating existing assets in an increasingly uncertain environment, the entire sector has suddenly found itself bidless as the "greater fools" have finally disappeared. . END GLA POO oversold, waiting on the first supply correction news within 2 months, as all demand related knock downs over played - once supply correction gets a foothold we recover, Shame about the fake news, many played the short game but the truth is out there, as I said I think we will take Elgin +3.9% and the tax breaks out of free cash and debt still down, so the LIE only has a few weeks to survive, what about Zama and Update - great we still carry =the dead wood Peeps understand when you are faced with a rigged stack, when record production does nothing, Zama 2 +1bn - an opportunity is created on the down wash, bril Gives us more time to build. POO will start next week a 100% news and long overdue march forward. upto $70POO. Demand -ves over played FFS.

Albeit disappointed, I can understand the retrace and not what - the RH dump for what had been going on for years. If these events give me a second chance after a little profit, I'm one happy man. As I said earlier, I think the disregard for Plat and Pinta 1 is a deal ploy, if IF IF IF Pinta 1 was a heavy producer then PUT 8 would command more $$ contiguous N sands , same GTE, when they lie down quite on a key block, the deal Ethernet is active. It's about a price I believe. The longer we hold out the better, Vetra don't want to spend capex, so JW has proved to be really fair to the man, he can wait, look at PUT 14 FFS, Pizarro did 1 D seismic in the 17th Century FFS, HNY I'm fecking Luzzin in this will buy as and when. I'm in now rush, I will paint my walls on future deals + add ons, All in good time my man. JW get your prize.

Vetra know they stand in the way of an Amer + GTE massive block integration, cost synergies and exit route for oil Eco want a slice and an OBA exit route , Vetra are holding out for a mega buck deal and have the balls. Look at the inconsistencies in the RNS output but we are doing 3d in North PUT 8. I think we are close, no point drilling PINTad1 when PUT 8 is available at 100% and operator. This is WIP and lower POO and great CPO 5 options will weaken Vetras grasp on high value exit. In other words we can grow out put ignoring Plat and I think that's the message to Vetra and it is true and will work, another 12 mths on this and they wither FFS. We are close. GTE just letting us do the hard yards whilst they hide in Sur Oriente, we will get our slice of this block for sure. GLA HNY

IMO DYOR, Plat drilling is on hold due to a result on PUT 8, see Eco - the largest holder of Sur Oriente where we intend to drill - r digging in, if we get control of Vetras PUT 8 we go forward, see RNS history - its a tough game being played here. RNS in date order - Jan 19 - PUT-8 The Company and operator Vetra continue to pursue the approval of Ecopetrol in order to drill the Mira-1 well from the Cohembi-2 pad. The well will target a light oil U and T sand structure defined by 3D seismic. This approval is expected in the first quarter. The environmental studies required to drill the Bienparado structure, to the west of Platanillo field are now underway. Additionally, it is planned to acquire a total of 112km2 of 3D seismic data over the Nyctybius prospect in the central part of the block.
Put-8 Miraparriba-1, Colombia A First Capex. The Company understands that the negotiations with Ecopetrol continue to proceed favourably and expects to be updated in the short term regarding the drilling of this well.

In the PUT-8 block, the operator Vetra has informed Amerisur that the well Miraparriba-1 is expected to spud in Q3 2018 as previously guided. The Mira 1 structure is a low risk U and T sand light oil structural target covered by 3D seismic with gross P50 recoverable resources estimated at 4.4 mmbo by the Operator. In the PUT-8 block, the operator Vetra informs that the well Mira-1 is expected to spud in Q3 2018 as previously guided.
Put-8 Drilling - Amerisur has been informed by the Operator of block Put-8, Vetra - that regulatory permission has been received to drill the Mira-1 well from the Cohembi-2 pad, an existing pad located in the adjacent Suroriente block (Vetra Exploration and Production 36.2% and Operator, Ecopetrol 48%, Gran Tierra 15.8%). The Suroriente block holds the Cohembi Field, which produces from the N Sand. Mira-1 will be drilled as a directional well to the Miraparriba structure within the Put-8 block.
This agreement removes the requirement to obtain an environmental licence for the drilling of the well, thus reducing the time before drilling can occur. The Miraparriba structure is a low risk U and T sand light oil structural target covered by 3D seismic with gross P50 recoverable resources estimated at 4.4 mmbo by the Operator. The well is expected to spud in early May 2018. Put-8 is a 102,799 acre block which lies adjacent to the west of the Platanillo field.
I think that's why AMer are playing down PLat publically to undermine the Vetra stand off and CPO 5 could n't come at a better time. GTE are silent I expect news on this next 6 weeks, we become operator. HNY Last point if I sell Amer I don't own at 20p and buy back at 16.5 p but keep my holding in tact - Am I doing anything wrong!?? Or is this the New Age of Trading !! > FFS Amer need to keep a lid on CPO 5 for other cheap deals FFS

Indico spudded 7th Nov and discovery 10th Dec - STT over Xmas was 21 days, we should spud using same pad next 7 days and hit 1st week of March,

Juxt - great post- I'm totally with you, get the leg up and develop the+1m acres. GLA GN

ONG are you listening,
A third drill rig, is it quickening?
Were four drills away,
From proving the Play,
Probing a Clastic Fairway Oilfield Plan.

Sorry, slipped out, but what a different place than a year ago. There's so many fronts this business can advance on. GLA GN

The SP collapsed last April when reserves fell, current drilling in PLat (post N Sands) is not going to fill that void quickly. Furthermore we could NOT drill PUT 9 12, the TT's and Mecaya as they were part of the OXY deal being negotiated over a long period and in limbo. Amers reserves were undermining the Corporate valuation as stated by NH. The reserves mentioned in the RNS are worst case and based upon individual - not combined fields. JW has to keep on to ONGC to get this block up the priority list IMO DYOR and his efforts of persuasion and drill planning must take a great deal of time and effort. If I was ONGC I would drill SOL1 next, then Aquila and blow the market wide open as they must be low risk now and go a great way to proving up the entire play. SO in the short term, I don't think AMer can get distracted away from CPO , if they can build this value at an accelerated pace, get a sale within 15 months, the company would have +$200m post tax to drill and acquire Ecuador blocks. This is a huge leg up here and treat it for what it is. Get three rigs drill 10=14 wells and it will be taken out at massive profit. By that time wells will be drilling PUT 9/12 & 8 so base line output will be bolstered and Amer will never look back. We are on the cusp here of a massive trading scale upgrade and the future benefits that +$200m cash could give are incalculable. GLA I'm glad they explained the output OBA, Amer is in a strong position to hold back sales for higher POO, not many can do that. Looking at the May presentation Aquila is huge in its own right. We have a tiger by the tail here, monetise it as fast as possible. IMO

SP 22nd Jan 18 - 95p, before 1st Feb CBH conversion. Allowing for the additional shares issued , increased from 545m to 817m fully diluted, 95p becomes 64p so at 73.5 we are 15% up on a year ago. Compare Mkt caps. GLA and if it wasn't for fake news we'd be 84p, listen to TD June 18 interview states clearly would like N Sea assets but CAN' T AFFORD THEM DEBT REPAYMENT FIRST FFS. Talos ar every busy in the area, including Block 2 with us and 31. Block 7 includes Zama and +7 other high impact low risk leads. GN News soon.

OPEC cuts will start to be felt next 2 weeks, given the 6-7 week tanker lead time from KSA to US. DAVOS next week and Russia should confirm with OPEC the determination to cut towards 1.5mbopd and rebalance the market at a quicker pace. US Shale should start to retrace somewhat from 11.9M as $60POO hits home. Hopefully $+65 POO next 2-4 weeks. Fingers crossed news next week. GLA

Listing to Commodities edge, the average tanker lead time to the US is 6-7 weeks deom the Middle East, so the real value of the cuts will be felt in the next 2 weeks. Jan 19 OPEC & NON OPEC partial meeting at Davos next week should firm up Russian action and move towards 1.2-1.5mbopd. US shale looks liking retracing slightly. GLA Market getting back into balance - fingers crossed.

Whilst PMO increased its 10% in Block 7 to 25%, it didn't exercise that for smaller Block 2, however further consolidation in that area by Talos, Hokchi ans Sierra accelerates E & P activity, PMO still hold 10% of Block 2. Current activity Quote-Targeting Sureste Basin Talos . Sureste “is now the hottest basin—I would argue—in the world as far as participation goes,” Long said. “When it comes to who’s who in the world, they’re here.”
Premier was originally awarded a non-operated 10% interest in Blocks 2 and 7 at no upfront cost, in partnership with Talos Energy (operator) and Sierra Oil and Gas. Large parts of the Sureste basin remain under-explored, particularly in comparison to the US Gulf of Mexico. One such area is the Salinas sub-basin where Blocks 2 and 7 are located and where light oil will be targeted in Tertiary clastic reservoirs. The company estimates Block 2 could hold up to 1.1 billion barrels of oil equivalent of potential gross unrisked recoverable resource
TALOS ENERGY ANNOUNCES A TRANSACTION WITH PAN AMERICAN ENERGY TO CROSS-ASSIGN INTERESTS IN BLOCK 2 AND BLOCK 31 OFFSHORE MEXICO Under the agreed conditions for the swap, Talos will assign a 25% participating interest in Block 2 to Hokchi. In exchange, the company will receive a 25% participating interest in Block 31, which is immediately to the south of Block 2.
Once the transaction is completed, subject to approval by Mexican regulators, Talos will own a 25% participating interest on blocks 2 and 31 and Hokchi will be the operator of both blocks.
Timothy S. Duncan, president and CEO of Talos, said the swap is an example of how the company is taking action to facilitate quicker, more robust investment and shorter cycle time to production.
“The swap with Hokchi is a great way to pool resources between two operators that have a proven track record in offshore Mexico,” Duncan said in a statement. “And this trade also allows us to aggregate our neighboring opportunities.”
The exploration campaign will begin on Block 2 in second-quarter 2019 with two wells targeting the Acan prospect, which is located in the central southern portion of the block and formerly known as Bacab. Soon thereafter, Talos plans to participate in two wells on Block 31. accelerate the investment in the various quality prospects existing in both blocks, specifically the Acan (formerly known as Bacab) prospect in Block 2, Beyond Acan, Blocks 2 and 31 contain a significant portfolio of compelling prospects with strong technical ties to offsetting discoveries. PMo could out this No Probs post drilling Q3.