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I don’t think they have to put in every rns that they are targeting 2-3-4 times the vertical flow rate on the horizontal. This is industry standard convention supported by third party. What else would they be targeting with the horizontal?
Not sure what you are getting st penguins? That it’s all a scam? They can only get 200bopd from Portland and horizontal won’t improve that so they are gradually letting us know by excluding little bits of info from each subsequent rns? Sounds a bit far fetched to me.
I think we can safely say horizontal flow will exceed vertical flow. We also know that vertical flow is commercial. So horizontal will be $$$$ to HHDL & UKOG. No arguing with that I think?
We are waiting on the transfer of the working interest. For me this means everyone has signed the FO agreement which comes into effect once the WI is transferred. I assume the fo partner insisted everything be completed before details are released to the market.
I know objectively that one day soon I will wake up the news with the details of the farm, im just having trouble imagining it actually happening.
Desmond you are making out like this is a wildcat acreage in the middle of nowhere. Huge finds have been make a few miles away, in the same geological sequences, where we have identified multiple world class leads next to production facilities, using 3D which is supported by historic drill data.
Also you can’t just easily dismiss a lot of demand from multiple parties as irrelevant. Taking your flawed analogy, the used car would have significant interest due to the good quality after being fully accessed by highly qualified mechanics, and would go to the highest bidder with the seller able to set the terms of the deal.
I think we can safely say that the vertical EWT on Kim is a success - Portland commercial at 200bopd and we certainly seem to be able to get that from Kim. The big question is how to address the horizontal.
"The test data confirmed that the Kimmeridge oil pool produces from one single vertically-connected 600ft (200m) or more naturally fractured zone, extending from the deeper KL2 to at least the top of the KL4 zone. Oil production is interpreted to come from both naturally fractured limestones and calcareous shales, which is an unexpected learning."
It is not as straight forward as previously thought with the KL3 & KL4 zones, and I believe we could see a significant increase in the prognosis for the horizontal well(s) if we can get it right. We really need to get the first KL horizontal right and once we do there will be a massive upgrade in the whole acreage. I expect that we will be isolating different zones on the vertical - we still dont know were are the upper and lower zones are, or how do the fractured limestones and calcareous shales behave when isolated.
We are currently undergoing "sim-ops" to see how we can best flow from two well bores. On HH1 I don't believe we are waiting on a rig or on site preparation, I think that recent data also caused a rethink in how the horizontal there should be approached for best flow and we are carrying out further testing and analysis - "Recent pressure build-up data also indicate that the HH-1 well likely "sees" a larger connected oil volume than the 7 to 11 million barrels Xodus reported last year."
I am now having a rethink as to whether we have switched flow to Kimmeridge or if we will stay on Portland until the rig arrives for additional data, but either way we have had very positive developments for both the plays but this has caused slight delays to the drilling schedule.
Its a huge a market, there is a whole world outside of 88e and there will always be buyers if there is value. New investors wont have the same hangups about historic SP action. If i was coming in to 88e as a new investor the long term SP graph would be quite attractive, especially with material news due or just announced. Also if a great Conv FO drops and we go up by 50%, along with news of imminent HRZ / Yukon deals, drilling plans.. I'm sure people will be happy to stay in, or partially derisk, especially if they are in profit.
Drewky is spot on. Far too much negative talk on this for it to be anything but a concerted effort to bring down the share price as drilling approaches. To be fair the BOD are making it easy for them. Once this gets as low as it will go they will all pile in shouting about what a great opportunity it is at such a low price.
Objectively its a good strategy
This is the work you have to do to get a farm out. Costs millions to stick a pipe in the ground. We've pulled all the data we can from the work we have done. Helpfully someone now thinks it is worthwhile to invest significant sums into the acreages.
But yeh, understand that this is a real ball ache for LTH. I've been in an out, haven't managed to make much money in that time, still a bit twichy with recent delays. Hopefully this gets a good boost and you can get out soon, nice and happy. I think I will be in here a bit longer to see through HRZ farm out and Yukon.
This was gradually rising all last week, very under the radar, a tick a day, now we have moved to the top of the trading range and a spate of buys coming in. If we can break out of the range might finally see a bit of SP action - anticipation of quarterly report with FO news.
Come on guys, we dont have billions of barrels of oil. Maybe if the oil was at $150/b and we have state of the art equipment, loads of cash to invest and could drill/frac where-ever and whenever we wanted then we could get it out. Realistically a solid find of commercially extractable oil in the tens of millions on our current sites is more than enough for us to see 10p+
Makes sense to hold up the quarterly report until the finalisation of the final FO details on the final document assuming it will happen this month. I assume they have the Quarterly report locked in and ready to go.
25th Jul 2019 'Quarterly report and Conventional Farm Out Completion'
- HH Confirmation of switch to Kim and flow rates
- HH Portland drill prep/final Oil and Gas Authority ("OGA") drilling approval
- £3.5m investment
- IOW Arreton Main oil discovery planning application for drills and EWT
- BB Loxley-1/Godley Bridge/PEDL 234 - planning application for drilling and testing of the Loxley-1 gas appraisal well and sidetrack & applications for a further BB-1y sidetrack
- PEDL143 A24 Portland and KL - drill location
Is this up to date? Have I missed anything?