Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Environment Agency Permit EPRAB3609.: ( as varied in 2019) The Waste managemnt plan is being varied to include extractive wastes from side track drilling, radial drilling and near well bore treatements:The near well bore treatments will include acide squeeze, hot oil wash, solvent treatment, nitrogen injection, and hydrualic fracturing for conventional oil which will be done only once .
That seems to cover all options.
Interesting that EDR have ruled out acid.
I think we have to brace ourselves for a low prodction figure perhps in line with initial 2015 free flow testing testing. That was 82 bopd Ashover (and if included )up to 180 bopd wingfield , plus gas. From recent RNS - they havent yet done the proppant squeeze or gone to pumped production as originally stated in 2015. For anmy newbies, you can see this information on EOG web site investors page- operations -PEDL 180. I hope we can all write- e mail, EOG investor relations and ask for a clear update soon in next RNS. The only positive comment I can make is if they do the proppant squeeeze later, and possibly add a pump to operations then we might get the 500 bopd. Just Maybe.
The issue of the new ordinary shares comprised in the Second Tranche and any Broker Option Shares issued are conditional upon, inter alia, shareholder approval at the General Meeting which is expected to be held on 4 March 2021.
More money?? What about Wresslenews first please.
Shareholder approval--Can P.I's carry much weight. ?
This will be like the £3m they raised 3 yrs ago, wasted on salaries, morrocco unlikely to attract drillers despite recent uplift in oil prices. Existing wells at Crosby-W Firsby will be seeing reduced output this year . Smoke from the gas,and Mirrors at Wressle- what is going on,?--- that leaves Mr Ryan to help EOG out. Feel like writing him a begging letter. Oh dear oh dear.
@Serif. Yes it seems more positive in Ireland -lets hope we have news in next few months. On Wressle, last years EOG July 20 report stated an expectation of an initial gross rate estimated at 500bopd . If you look at Wressle appeal decision there is no reference to production, expect that it refers to 15 year period. Ashover Grit is referred to in E.A. approval. Its the operators decision not to produce Pennistone yet -due to high gas content?, and the well being sub optimal- whatever that means. While I remain positive, what i don't like to see is smoke and mirrors as we had enough of that from Hugh.
The permit from Environment Agency is or a "once off frack" proppant squeeze if we like. What I dont understand is after all that planning history of refusals - and a lot of that was due to public concern on fracking, (and the official reason of the adequacy of the clay liner, to groundwater contamination) why they have not taken the opportunity to do the squeeze yet . Do they check the free flow first- that may run contrary to previous RNS for gross rate of production. Lets see. I hope the next RNS will explain better what is going on. I think we shareholders deserve that after such a long delay.
Slight worry that UJO have not said when proppant squeeze is to be carried out by operator. I'm also not convinced the 500 bopd is restrained by planning- there was no mention of production restriction in planning approval -I thought this was an engineers expectation. Anyway we should know in next few days, and at plus $58 it should still be good news.
If oil can stay above $58 for a while, and we get 500bopd gross at wressle then I reckon we could see a share price of 2.5p which would mean getting back to par for me and I guess for many L.T.H. That would be sort of satisfying after being stuck in the doldrums for over 2 years. GLA
The Environment Agency permit to Egdon is Ref EPR AB 3609.( as amended in 2019 ) This covers the propant squeeze( as one off fracking) and disposal of waste . Im not sure why this squeeze has not already been carried out. The 500 bopd is an engineeers estimate,( as previous free flow test was a lot lower) but this has been stated so many times that I will be dissapointed if not achieved . We should know in a week or so.
There is some glimmer of real hope that the Eire energy review this year will come out in favour of more gas, as Corrib is acknowledged to decline. There is the technology that Germany is investing in, and also UK that will mean a mix of hydrogen from electrolysis by green enlectricity will be fed into gas main system for home heating , ans well in the gas to electrity power stations . This will give gas a green credential. Secondly, Gas prices in Europe are up to $5.90 ( US hub price is still around $3.00 but has come off a low at least). Compared to the previous European gas price of $6.6. to 7.00 in winter 2018 ( higher in winter of 2019) at least gas prices have been rising back up and that may bring some commercial interest to Corrib again. Hold, keep an eye on prices and and Come back in 6 months for more news.
18/01/21The Department of the Environment, Climate and Communications (DECC) is carrying out a comprehensive review of the security of energy supply of Ireland’s natural gas and electricity systems. The focus of the review is the period to 2030 in the context of ensuring a sustainable pathway to 2050. The review will include a full updated technical analysis of the security of supply challenges which will help inform a public consultation.
Following the depletion of the Corrib gas field, Ireland is expected to be dependent on over 80% imports by the mid-2020s and over 90% by 2030.----
Lets see what comes of this- going to be a slow process Im sure, but there is some daylight to a decsion.
Brezhnef - Inniskea- lets hope we get some sense from Irish government after the energy review this year, and European gas prices increase a bit more. We might get some real intertest then.
Wressle- I think I finally understand that the propsed Ashover 500 bopd is after the extended well testing , well/field design with pumped production , that explains why is so much higher than 2015 test flow of 80 bopd. About half of that initial total test flow of 710 boe pd was gas( mainly from Pennistone), - we'll soon find out how the Ashover is producing, and perhaps we can expect details soon on how they will deal with future gas. Its never straight forward at EOG.
We should get an RNS thursday ( maybe friday) to coincide with AGM to at least say Wressle still on track. My own view on share price is slightly confused as trying to make sense of production from wressle which hopefully will be cleared up in next 10 days. OIL in place 2,15 mmboe , 500 bopd and net to EOG 150 bopd has been stated numerous times in last year by EOG and Finn Capp, so iI'm reasonably happy that will happen. Looking back on field survey data ( 2015-6) it looks like main part of oil is in Pennistone, so Ashover may only last first 3 years, then there would have to be work to bring Pennistone into play. The flow rates at that time were similar fror Ashover and Pennistone., although stated at that time as around 80 bopd (oil.) plus additional gas for each reservoir , so that confuses me., which is not good as an investor. I can hold till we at least get confirmed production rates. For inniskea we will have to see if there is any change in stance of "do nothing about Corrib," from Eire government later this year. I note more wind power projects are proceeding or planned in South of Eire sea ( ex Kinsale gas field) , whether that is good ( enough to make the Greens happy) or bad for Inniskea in overall energy supply equation we'll have to see. Overall I think 2.0 p share price is fair at present.
There is some confusion on geological layers..... From EOG July 2020 report, testing achieved 710 bpd from 3 reservoirs, Ashover Grit, Wingfield Flags and Pennistone Flags.
500 bpd expected on production, with Pennistone indictated for future development. So I don't expect more than 500 bpd initially., even if Wingfield is included. I also note that Enironment Agency 2017 permit as amended is for a once only use of Hydraulic fracking fluid at 1580 m vertical depth( descibed as Ashover grit and Chatsworth Grit) So any other field development which needs an "acid wash" treatment would need another EA consent, although maybe not a fresh planning approval, depending if existing well can be used for Pennistone. I would like to hear more on that in next 3 months or so to give added encouragement to hold on in here. Inniskea my still be a long wait.
Tacuma, agree with your comments, unfortunateley EOG has committed another years spend at Morocco to keep the licence open, but I think is 500k max. Hopefully that is the end of it. I think they are still interpreting the existing seismic data. If they could find gas then it would be worthwhile but no indication of that yet.What would be nice would be a political or technical hiccup to russian gas supplies, that would help iInniskea. Its a waiting game, but EOG could get more out of Wressle in near term subject another round of permissions, which would be easier to obtain this time.
getting all well head equipment in place, carrying out the acid wash 'frack"was going to take time and I did wonder if they could do that before xmas- Now we know. Its a bit dissapointing-they never seem to be honest until the last moment. Glad they mentioned Pennistone forrmation, which seems a better course of action to me than pursuing morocco , even inniskea at the moment.
There was some concern that there is not an appropriate mining waste licence for lquid waste . I have checked Environment Agency Mining permit May 2017, EPR AB3609. This permit covers storage and handling of oil production and all waste from hydraulic fracturing- for conventional oil. There is also a permit for gas flaring, but I think there will now be a gas powered electricity generator on site instead--but I dont see that on recent aerial photo- Has anyone have knowledge on that ?
Good oil price recovery last few days. Trusting that OPEC will keep the January production cuts to keep oil market in balance,and give us minnows a chance. Oil may get to $50 if OPEC and american shale cuts stay in place. Low cost production at Wressle = good profits. Surely they cant mess it up now. We must be close. Next week perhaps.
Like many here I wish I'd sold out two years ago when I first saw the Irish Green Energy /climate change bill, but always had hope that Wressle was imminent. !! Now two years later, !! finally we are close, but its nerves and my large holdng here that makes me post. I don't hold out much hope for morocco, and Iniskea will only happen when there is sufficent commercaial pressure from high gas prices,which isn't happening at at the momet but may come good next autumn/winter. So that leaves Wressle as the one certainty., and hope that they can continue to produce a fair amount from Crosby etc. I dont write Wressle off as a side show, as there are the other oil formations in pPennistone grit to bring into production at some point, - i'm not sure the technicalities or costs of bringing in the added production, but Finn Capp brokers who may well be company biased , reckon that is where EOG and partners should concentrate their efforts. Low cost production means it should be very profitable .Need to stop expenditure on Inniskea and Morocco as soon as its possible (after current committments) - and just wait and see on those "assets".