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Why the share price is going down despite positivity been discussed about this share, such as, low risk development well, immediate production and cash flows… what could be the possible reason?
I think, IOG was 40p few months ago (not few years ago). It was around 40p last August
Drill resumed, and in the reservoir section. Drill and test result shortly
First gas next month.
Time to celebrate
On way to Blyth, and ETA 2:00am UTC. Things are seem to be progressing …
Better and strong update than many were expecting both in terms of finance and operational.
1. Strong cash balance of nearly GBP 32m
2. Steady gas production from H1
3. H2 problem resolved and drill has resumed, currently at the top of reservoir section
4. Gas production of 30-40 mmfcd from H2 next month onwards
5. Appraisal well is planned after H2 well
H2 test result is expected in next 2-3 weeks…
Short squeeze is coming ….
Vos Paradise vessel is back to Blyth last night (From Great Yarmouth)
“IOG intends to appoint an additional independent Non-Executive Director once the Blythe H2 production well is onstream.”
Sign of good news…
This was from last year AGM (25 April RNS)
“The Company's AGM will be held at 10.00am on 3 May 2022 at the offices of Fieldfisher, Riverbank House, 2 Swan Lane, London EC4R 3TT. The 2021 Annual Report and Accounts and the Notice of the Company's AGM was posted to shareholders on 22 March 2022.
IOG is required to confirm all attendees ahead of the meeting. Shareholders wishing to join the AGM are therefore kindly requested to confirm their attendance by email to info@iog.co.uk by 5.00pm on Friday 29 April. In line with the Company's office policy, all attendees will need to confirm a negative Covid-19 test in the preceding 24 hours (lateral flow test kits will be available on request).”
Yea Del, but 4 weeks is the worst case scenario.
Initial expectations for drill result was late April/early May. But, now due to delay by max 4 weeks, results is likely mid to late May.
Just a matter of few weeks only
Mole,
Thanks for the input. I am not a technical person, but the point of the post was, the problem with drill is common practice and it can be rectified.
Like IOG problem with H1 drill & then manage to flow at commercial rate. ANGS has some technical issues, and finally managed to drill & flow the well.
It’s just a matter of time…
There seems to be correlation between H1 & H2 well. H1 also experienced loss of drilling mud & have used LCM to deal with the issue. (Known problem in the area, and has been tackled promptly last time)
https://twitter.com/mkkhan95122509/status/1648442255521484801?s=46&t=hEeOOn1eZnLdMXHOch7wjw
Exactly, it’s just delay of up to 4 weeks due to gas pressure from other reservoirs. Primary target zone is yet to reach.
Result likely end of May rather than end of April
Company also advised 3 months for H1 but it was completed in less than 2 months
If wire line logging results is positive and it warrants flow test, it would indicate that perspective resource (2U) will be converted into contingent resources (2C). And if flow rates confirm commercial discovery then 2C converted into 2P reserve (proven).
Now the question is, how much 2C resource is value? I would think, $0.5 to $1 per barrel, while the ground value of 2P reserve is $2-3 per barrel (base on Oil Search deal, at $3.3 per barrel, when WTI was $55 per barrel).
Let’s say, the wireline logging results are positive and all zones including upper SFS have enough thickness, porosity, permeability & reservoir quality, then I would think, ~600 mbbls perspective resources will be converted into 2C resource, and at $0.5 per barrel value, this May worth $300m or GBP 250m or 1.30p per share.