The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Manny, the link didn't get pasted fully.
Can you re-post.
Coop
Drill Stem Test.
This is taking a long time.....too long!!
Coop
1st May 2014, PMO = £3.52
Coop
Nice post Bottmzup.
Coop
Where are you getting that information from?
Net to Gross: This is the amount of good reservoir versus bad / non reservoir in the reservoir interval drilled. Bad reservoir will either be shale sections or sandstone below the reservoir cut-off permeability.
Encountering the OWC helps them to better define the amount of oil volume in place. i.e. a lower OWC than prognosed provides upside as there is more oil in place.
The sidetrack and DST result should be with us in a couple of weeks (+/-). They'll need to abandon the current bore, sidetrack to TD, run casing and cement and then run the DST string. All that should be around 10-12 days, the well test can last for 2-4 days typically.
Hope that helps.
Coop
Thanks Mullins
Coop
Wow, what an amazing man and great interview if you're a Bacanora holder.
Thanks Mullins, I've actually bookmarked it to watch again.
Coop
At that water depth it's likely to be a midwater semi, not sure why you think drill ship although it could do it but would be costly.
Not sure why you think the 3rd party audit suggests they're going it alone - I personally wouldn't go down that road as it's a very big risk for a company the size of EME.
Best get a farm-in who takes all the upfront commercial risk - all you give up is some equity in the asset.
We also still need to wait and see what they're going to do with the Indo asset.
I was wondering when the negativity was going to start and there it was in your last post.
You're obviously a smart guy but you're also an idiot if you think we all can't see you for what you really are....son.
I'm now blocking you as I'm not going to waste any more of my precious time with you.
Have a happy life.
Coop
Rathole, the terms of the PSC is to drill to 2500m or the basement which essentially makes this a relatively shallow well.
I'm not sure what water depth is (<300ft would make it accessible for a jack-up) but the rig market is very good at the moment - we're certainly not seeing anything like the $4-500k/d we were seeing prior to 2015 - more likely in the region of $150-200k/d - that's true for the UK - probably cheaper in China as they'll be using older less regulated rigs. You'll be looking at a total spread of around $300-$450k/d at any point through the operation. Mob / demob costs can be significant but it will depend if the rig is coming off a contract prior to our operation and is going to a contract afterwards.
The times are typical of a UK 10,000ft exploration well (I'm assuming they'll core from above and through the reservoir). We'll likely be at the lower end of the times (i.e. 20 days).
If they find reservoir, then there will be a comprehensive logging programme as well as the potential for a well test . At that point they'll make a decision to potentially sidetrack to do more appraisal. All this will add significantly more cost - as you know, however, If we get to that point, we'll all be very very happy.
Coop
I'm impressed Rathole, an objective post. I expect a farm-in with a full carry for Empyream for an equity share (the upside is considerable). Because of the subsurface work already done I have to assume that they already have target (s) in mind. I would imagine a vertical well with the option to multi sidetrack.
Planning is typically around 6 months prior to spud with a dry hole cost of $8-10MM (I've done a little more checking). That's essentially what the farm-in is betting. If they find anything and test / sidetrack then it's all upside.
Once they announce who the farm-in is and what the terms are then I think the SP will significantly shift upwards.
I expect initial timing of around 20-25 days (dry hole). I would also expect EME (cnce they announce a farm-in) to act relatively quickly (especially with a full carry). The design work can be done (in the main) at any time but the programming will need be done nearer the time once they know what rig they're using.
I'd be interested to hear your thoughts on cost / timings.
Coop
From the same email reply PS stated. "It is not anticipated that prices will firm until increasing demand from the cathode manufacturers picks up in Q1, 2019......He also further stated, "In terms of timing, we will continue to monitor the equity markets and wait for commodity prices to strengthen".
As I said in today's earlier post, "this is my opinion" but sometimes it's just a case of putting the pieces together.
Coop
Addicknt, from our posts on the 10th Sept, you indicated that you received exactly the same email response as I did. He stated, "In Mexico, we are continuing to finalise the Front End Engineering Design and commence preliminary site works".
Coop
In my reply from PS he did say that they were commencing preliminary site works which in my book is commencement of construction.
There may be a deferment until we achieve our capitol requirements however, they do have $25MM which can clear / create a lot of infrastructure.
PS stated in the article, "The construction of the mine will begin in an environment in which the demand for lithium is on the rise and the global market develops strongly" and from my reply from PS, BCN are expecting things to turn Q1 2019 and it's here I think we'll finalise our financing deals to allow purchase of the long leads.
The high dollar items are the long leads but we still need the infrastructure to be in place.
Just my opinion.
Coop
Simple answer Addicknt, no he didn't.
Coop
Actually bluegrass, it's certainly not a negative reply but it's a very long reply with quite a lot of charts and a commentary from Benchmart Minerals. It would also be very selfish of me to share with a few and not all.
The link to the article PS sent me is below and he also provided a couple of charts pointing out the general downtrend of the market as a whole and also a chart showing the impact of China / USA trade discussions on the major miners (both charts show downward trends)..
The Benchmark report summarises their view of the market and timing (which I believe PS shares also).
http://www.benchmarkminerals.com/chinas-lithium-price-decline-is-not-the-full-picture-to-an-industry-surging/
Coop
Actually, I hounded him a bit and did get a reply. Give me your email and I'll forward it to you.
Coop