RE: Extraction costs1 Apr 2021 17:38
Exactly - miscible flooding is going well. We will look to update the market in the coming weeks.
The current re-listing MC is based on PE (x) and 1,000 - 1,500 bopd.
The technical team are pleased with current flow rates which are a lot higher and we expect to achieve more flow than originally told the market. However, due to the stabilisation period we will look to inform the market in the next 14-21 days to validate what is in front of us.
This gives 4-6 weeks of miscible flooding. Allows a low bopd to be calculated. Profit takers to jump out and ii to buy in, stabilise the base price before it continues to build.
News flow RNSed about increased flow 2-3 weeks will add 100-200% but SP will have gained ground in anticipation.
End of the RNS will likely draw attention to achieving 10,500 before year end, if miscible flooding output continues to over exceed predictions with a new targeted output of 15,000-17,500 at 18 months.
Miscible flooding - as per original RNS miscible flooding was expected to achieve x3 output latest detail on this has now jumped to x5 that’s already a 66.6% increase.
I work as a consultant in the offshore game, I also work on onshore oil and gas projects all over the world.
My latest project in Iraq was on a recovery and re injection project. Similar to miscible flooding but they recover the sour gas then process through compressors and re inject. This was on heavy, heavy oil, stuff was like tar and those figures were phenomenal now given we are extracting WTI I’m expecting it to flow and flow a lot better than anyone has anticipated.
Arthur isn’t a stupid man. Everything is down played for a reason. He is carful what he tells the market especially during the RTO.
You would say to the ex owner yes it’s a good deal as prices have increased, we need to mitigate a lot of risk and hope to achieve the lower end of the scale.
You wouldn’t tell them that it’s going to gush out at a phenomenal rate !!
Aces up the sleeve under predict over deliver. Mark my words. I am personal expecting 10,500 by year end or close to with that target increased maybe double by 18 months, if my last project was anything to go by.
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