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I have not heard to many positives about this share recently but at least that gave me a little laugh.
For me it is pretty obvious and clear why they had to issue todays RNS.
From the December 18th RNS –
While no firm decisions have been taken, the Company has focused on the location, operations planning and execution in 2021 of a new production well in the central "attic" high of the Lancaster field, by re-entering and side-tracking the existing 205/21a-7z well. This could add meaningfully to the production capacity from the existing 205/21a-6 well, accelerate production of existing reserves, and, depending on oil price, materially improve near-term cashflow generation. Development costs are currently estimated at c.$60 million. Subject to a sanction decision early in the first quarter of 2021 and securing a suitable rig and equipment, first production from this well should be possible by late 2021.
As per above 2021 work program was subject to sanction decision early in the first quarter of 2021. Result of stakeholder engagement has resulted in this not being sanctioned due to unacceptable operational and cost risk. If anything I would have expected the RNS to land earlier as we are well past the early part of Q1, but regardless they had a duty to issue this RNS to confirm 2021 work program.
My personnel view is that this is a good move and should lead to reasonable cash accumulation if Oil price stays at current levels or even better continues with its recent gains.
I don’t really post much but I would agree the minimum we need to see is 100 and 40 to show minimum improvement. I am hoping to see a total of 170 dmt after the positivity in the last two updates. We will certainly know soon enough, probably tomorrow morning.
Q3 2020 Overview
In Q3, the plant improvement programme included modifications to the cyclones and hydroclassifier to improve feed distribution in spirals and shaking tables, repairs to improve jig efficiency, modifications to the shaking tables, and installation of cleaning scrapers in conveyor belts to reduce cleaning time and improve efficiency.
From July 2020, the Company has been able to access Spanish Government initiatives to support the reduction of labour costs. La Parrilla has been working to a 24 hour / three day per week continuous production schedule, to provide the operational and maintenance teams the much needed access to plant and machinery to implement the plant improvements on existing equipment. Importantly this has provided the opportunity for additional Geometallurgical and Process studies to better understand and to resolve the low tungsten metal recovery.
Don't pretend to be an experienced investor but I do know quite a bit about the North Sea having worked in the sector for over 25 years. As for comparing serica with apache, well that is like comparing..... sorry can't even think of such in outrageous comparison to make. Personally as someone who travels offshore it scares me that a company with no actual Duty Holder experience will be in charge of an ageing offshore platform, albeit they may handover this responsibility to a 3rd party. I am not negative towards this as an investment, I only commented in defence of the original post as it was informative and accurate and not just the £1 plus tomorrow that the rampers use to fleece the more naive investors out there.
Silly Billy, personally I think you may be the Silly Billy! The post from conkclo is pretty informative and in all honesty one of the better posts I have seen on LSE in recent days, as unlike most posts, it does actually contain some factual information.