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Interesting comments on the n slope from a Conoco Phillips VP
https://www.kcaw.org/2018/09/07/despite-challenges-oil-exec-says-alaskas-prospects-are-looking-up/
Seems to be loads of north slope interest at the moment....exciting times
http://www.kallanishenergy.com/2018/08/30/eni-acquires-350000-acres-onshore-alaska/
ok thanks Mike, I've done much less research on RMP than 88E which probably shows. I was mostly responding to smiffy's point though that their SP is higher than ours, which is meaningless when you look at mcap and therefore how investors are valuing the businesses.
RMP have a market cap of £11m, 88E are £65m. With RMP it looks binary, if the next drill succeeds the mcap increases, if not it sinks. With 88E we have 4 chances of seeing value retained or enhanced and potentially combined assets of billions of barrels.
I think DW communicates well compared to other CEO's, so far everything as far as I can see has proceeded on time and on budget, he got the deal done on the western blocks and has just got the drill rig confirmed. We've needed to fund the company and the work to date, CR's have been the main way and now we're looking for farm outs, if we can't farm out we'll need another CR, if we can we won't, that's how I see it and my confidence holds.
Apologies if you've seen this or it's in the wiki but I missed it at the beginning of the month so perhaps others did......
https://www.epmag.com/alaska-north-slope-next-frontier-unconventionals-1710696#p=1
Some comment from Forbes on the super basin research......
https://www.forbes.com/sites/michaellynch/2018/08/23/north-to-alaska-the-next-oil-boom/#3440700666fd
also gives brief mention to our unconventional resource
No problem I like this quote... We anticipate increased bidding activity and farm-ins as established operators expand their presence, and new entrants seek to gain early mover advantage by leveraging low acreage prices to enter newly opened areas."
Here it is.... https://news.ihsmarkit.com/press-release/energy/alaska-north-slope-super-basin-ready-oil-resurgence-oil-production-expected-gro
It gives me confidence that the deal done on the horseshoe blocks was complex, with four companies involved in negotiations, yet seems to have been accomplished quickly and successfully. DW needs to apply the same skills to the farmout of the western blocks. Track record says a lot.
Anyone else feel maybe the upgrade to the conventional estimates would have been best done in a separate RNS and then followed by the presentation? I wonder if it's got a bit lost on the market that the upgrade alone, if proven, would vastly increase our m'cap.
Either way it's great news and with only 25% of the acreage so far assessed with modern 3D you can't help thinking more upside could be waiting.
It's a good update as far as I can see. Prior to the well re-opening (with a 50% COS) sentiment seemed to be hopeful, but realistic that if it didn't flow it was an early stage, still experimental and all would not be lost. Understandably when we didn't get a flow rate there was initial disappointment and we all saw paper money burn. This RNS can remind us that the oil is there, we have more projects now to go at, we can work with those with deeper pockets to get at Ice Wine oil (conv' and unconv') and we're still in the game. DW communicates more regularly through RNS's than many others I've seen and he appears to do that with integrity. Good luck all, patience may well be rewarded.
Good luck
Interesting article, I assume it would be a paid for equity share. However local support for oil exploration is important and perhaps marks us out from other areas, the UK for example.
http://nunatsiaq.com/stories/article/65674at_inuit_assembly_alaska_leader_promotes_oil_developmenton_inupiat_ter/
Looks possible.....
http://petrowiki.org/Hydrate_problems_in_production
Billions of barrels of oil sitting in frackable, over-pressured geology. But this is still a first and they're learning as they go. Whether this takes two wells or twenty to get right, I'm staying in for the kind of payday we'll get at the end of it.
Gumball (or Garry or any of the industry guys), can you tell me if there's any relation to flowback rate at cleanup vs oil flow rates. I don't know how to extrapolate any conclusions as AL is being used. Would you still expect the oil flows to be higher as they're lighter than the frac fluid?
Just a reminder of how far the company’s come already...... http://todayspaper.smedia.com.au/afr/shared/ShowArticle.aspx?doc=AFR%2F2018%2F02%2F13&entity=Ar04202&sk=D030AF86&mode=text Could be an amazing week, GLA