Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The NORD 2 pipeline to North Germany is completed but regulatory and EU concerns likley to put of use till May 2022. Concerns continue that Russia would then be able to cut or at least reduce supplies through Ukraine, Ukraine losing revenue, and increased political Moscow pressure. Russia has promised both Europe and China increased supplies from 2022, so there will continue to be uncertainty in the market as to whether Gazprom will be able to deliver both. UK/ Eire are you looking at this situation again.
A flow rate over a time period that meters can handle...we have been given 884 in bopd and "in september"..so it is unclear whether this was just one or two days or the whole of september.I remain optimistic that it was most of September.Await positive CPR...funny day today with Cop 26..does make you consider if oil shares are investible at the moment..but oil gas still very much needed next decade or more..So lets see what russian pipeline issues have on gas price next few days.My heating is on today at least.
Much lower IRC debt. Does this mean if the sale of IRC can be delayed , then maybe next year there will be no IRC debt to Gazprom bank, so POG guarantee no longer required, and maybe sale of IRC can be cancelled. Actually hoping UGC shareholder pressure can force that, but no indication of that so far.
Wressle 950 bopd September excellent.we could do with an update from EDR and ideally a revised CPR on wressle.Otherwise same old.cost of sales and overheads still high..but should have good profits soon and maybe Morocco will come good.
Has anyone else tried to interrogate the OGA website for onshore well production data - its a difficult proicess, and I cant see anything yet for Wressle. EOGs existing wells at crosby warren and West firsby were slightly down in production in last published monthly figure for June 2021, but Whisby which is operated by Blackland is up , (I dont know why), -that leaves total net daily production to EOG of 88.9 bopd which is only slightly below previous reported figures, so with BOPD brent today at$84 that must be significant revenue now to more than cover overhead costs plus very good income from Wressle. Do we know when next EOG report is expected to be? or do we need to push SO.
Ok. Mr ryan said Ireland needs to develop own power supply and export any surplus.but that was in context of gas supply security..Ryan states ireland has own sources and storage capability...i think it still leaves open developing edge which is very close to existing infrastructure.coal fire station closing 2025 same as start of run down existing corrib.so don't think the extending corrib life option has totally gone..await result of formal energy review maybe spring or summer 2022 depending how cold winter is.I don't think this is the temporary energy problem mr ryan believes..same issues next winter. In meantime I hold for more wressle news.
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Agree cost base covered from existing Crosby etc., but costs for Wressle were $17.60 bopd , incl capex which needs paying for. Cap-ex may have been even higher than anticipated; but yes results in 2022 will be very good. What would really lift share price, following higher than expected production is a revised well reservoir OIP /well recovery rate update. I dont know if that is possible. For the moment lets enjoy the Wressle good news, and also Mr. Ryan comments- mindful of exporting suplus irish gas. Worth holding a bit longer.
US gas are up 6.5% today, although market is a bit volatile, the upward trend continues , and europe prices tend to follow these uplifts, we'll see in a few weeks,.the price at amsterdam hub. Although news for Corrib unlikely until 2022, I do wonder if UK gets caught up in any winter gas supply issues, can the future of ther gas inter connector to ireland be seen as a future import route, if supply could be reversed and pumped from Corrib to UK later this decade. Perhaps the Scottish greens will now have a say on this. I think the immediate future for EOG and partners , and why I hold is that Wressle Pennistone could be developed, and ouput increased for a number of years. Hope we can get some update on that later this year. Si, in meantime can we have news on Wressle 500 bopd as promised or plus++, soon please.
GP the problem is lack of clarity from Eire government:
From Irish times- 20 July 21, "fears are growing about energy security next winter as two electricity generators remain out of action while demand surges as data centres and other facilities seek extra power.
Responding to a Dáil question from Independent TD Catherine Connolly, Mr Ryan said that a security of supply review of the electricity and natural gas systems, begun in late 2019, would be completed in the first half of next year."
Even then Mr Ryan will probably want to delay publication, so depends on whether there are any power shortages this winter , to force the greens to change policy. I note that gas wholesale prices continue to climb, so there is certainly now a commercial case to invest in inniskea / or edge , and one that should give a cheaper option and better securiity than importing gas. Some proven success on trials of power station carbon storage technology might swing the balance. -I'm not sure how far that is progessing for scottish trials.
I agree some comments from S.I. or their broker may be helpful, but on the downside they dont want to upset Mr. Ryan.
It may be another week before we get established flow rates - "The well flow is continuing to clean-up and has not yet reached its full potential. The measured flow rates have exceeded 500 barrels of oil per day over a 24 hour period, which was the forecast rate following the proppant squeeze operation."
Simon refers to reaching the wressle ashover target of 500 bopd, and maybe production will be a bit more, we'll see soon. I understood the 500 bopd was an operators target and not a planning condition as often referred on these pages. ( correct me if im wrong). If ashover production is higher , then better cash flow in short term, but shorter lifespan. Will be interesting to see what is said on the larger Pennistone formation , when they can bring into production, and technical and regulatory consents required. I guess we are still 18 months away from any pennistone production.. simon says talks proceeding on inniskea and morocco...? I do have doubts on morocco coming good, with all gulf oil currently swilling around., although there is some doubt on future production of saudi fields.
Welcome news today albeit 6months later than anticipated.. .total EOG production around 235 bopd....Prospect of increase at Wressle to more than offset any decline at W Firsby .I look forward to next report,and that's something not been able to say for a while..