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This is as bad as it gets. No discovery, lakebeds, sandstone, karoo all not holding gas. Funds almost certainly wiped out. It will all depend on Nobles well now if a discovery is made, otherwise Rukwa is looking bleak. The company will likely raise funds for this new Itumbula drill citing new location and extra civils work needed. Drill it early next year then move to a new basin and it starts again.
they chose to drill an open well 1100m without casing and it took weeks longer. they they chose to drill deeper by 500m with a rig that had experience faults. now they are right in the **** along with our investments
Lorna said they were looking at costs savings while site was shutdown, I hope they dont demobilize Baker Hughes staff or equipment for the sake of a few weeks. They need to update the market asap because the share price is nose diving
Talking of looking at options to reduce costs during the downtime says to me this wont be an easy fix. Well is in good condition " for now". Potentially the company are set to lose £5mil if the well can't be tested and they have to redrill it this year but with rainy season approaching and tbe rig broken can they even do that? . I think we are facing a call this week if they are going to demobilize and come back next year sadly. The cost implication to that will be another £10M fundraise. Its just an unfortuNate situation to be in.
Sorry to hear about the rig problems. This time it doesnt sound an easy fix as no timelines have been given and its concerning the pipe is still submerged at full depth. The situation has become pretty critical now as the well is at risk of degredation. Assuming no second drill now but will they have time to redrill Tai -C if the well becomes untestable? They should provide an update tomorrow, I feel the RNS was lacking on friday and the interview very late in the day to stop a sell off. I Feel a drop is inevitable tomorrow without news
Take a look over on telegram word is that nobles rig isnt actually fully onsite and only just released from customs along with He1's remaining items. Baker hughes personel have arrived at our site and are just waiting on the items from port to begin spud in the next couple of days.
*Rig contract due immintently 1- 2 weeks
*Just hired permanant head of operations ( previously just consultant). Does this indicate rig is signed? Bold move that is shows huge sign of confidence
*Drilling end of July - just 10 weeks away
*Share price should double from here very quickly, the days left to get in now are closing fast!
*20p+ on Spud
And down it goes until shareholders get some clarity on what is happening which is now overdue from timelines given. Wouldn't be surprising from this boards history that the RNS flurry last week was to pump the SP to offload a few themselves.
The answer to that is a resounding no. I think they could be in financial trouble quite soon, seems like they have been operating on a wing and a prayer cash flow hence the rush to test MOU1 without even finishing MOU2. They need cash and fast, especially with this new trinidad deal.
Drill-less testing of mou1 and delaying the forward planning of the next drill ( no mention of mou2) until after testing is done. Besides they have no more funds to drill another hole and the free period of keeping the rig is likely over now They simply cant afford to keep it on standby. If you are holding for anything other than mou1 results in the medium term then I would reconsider your position.