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High EU/UK gas price(and international LPG gas prices) , and the security of gas from Russia may finally swing the balance for Corrib., for the next 10 yr transition period. Whether EOG do take advantage, is hopeful but not certain on their track record, and will need the goodwill of Ryan and Co. From Irish offhore Oil Gas Assoc. on recent article 14 July :
"The Sunday Business Post's article on Irelands need for gas while transitioning to a low carbon economy - Members of the CRU highlighted the essential underpinning% role of gas in a system that was going to integrate more renewable sources of energy over time"..see https://twitter.com/OffshoreIreland/status/1415229739250462726
Thanks for your comments..it starts to make a bit of sense.if tender is successful.then should give a bit of much needed confidence and a lift to share price..one can only hope..with POX being better utilised in second half of year we must have good news coming at some point.
Rusty B, I woud like to get this right, and I admit not to fully understnd how this works. POG are trying to raise cash/sell at least $200m of the $500m notes due Nov 2022. As its a tender we wont know the result for a while, -after 8 August ,-- the way I see it, is an indicative return is 5.5% including early payment , or an investor could buy the bonds on the open market and wait a year and get around 8.15% . If this tender is successful, they may raise more than $200m this time,
The $500m bonds are due Nov. 2022, carry 8.35 % nominal interest, and tradeable on Irish stock exchange. POG raised $125m, to pay of £100m of debt due 2020 at 8% but there were extras to pay the outstanding debt, not sure if that was because the debt was overdue.
If they can raise new debt at 7% or less, then fine, it has to be a worthwhile exercise, ...just get 2022 debt paid on time.
Geo thermal idea seems like an admission oil has limited future, so Morrocco seems less likely. Reminder that Firsby and probably Crosby are running down. Still think there is a good opportunity for Corrib, subect irish energy review- hopefully we will know more in a month or so. This is from ESRI paper published in April this year
"The extension of the current arrangements for cross-country co-operation in the event of a shortage of oil to the gas market is important for Ireland. It is to be welcomed that the EU is also developing clear rules on gas transmission through member states. Domestic security of energy supply requires that the Corrib gas field is brought to production as rapidly as possible."
So keep the faith for end of July, I know its been a long trying road to hold here.
squeeze by end of June then with results mid july. OK. Hope all goes to plan
RNS T--- is the squeeze result expected in mid july, or mid june ?? do you know when the squeeze
is taking place.
Sorry, had to see again what Egdon said on may 18...The operation is expected to be completed and optimum oil production achieved during June 2021.
The Wressle-1 well has been on 24 hour test production since late January with produced oil transported by road tanker to the Phillips 66 Humber refinery and sold under Egdon’s existing oil sales contract.
Production rates have continued to increase and have exceeded our expectations with high quality free flowing oil being produced and no water present. All data confirms the independent prediction that over 500 bopd will be achievable following the proppant squeeze. The well will continue operating on test production until the proppant squeeze operation is undertaken.
The statement from EDR said we should have results of squeeze mid july, but with proviso that if not successful a sidetrack may be required. ( thats a concern) Anyone know when the squeeze is taking place?
It really is a POO day with oil up and eog down. With oil up, the 120-130 bopd net eog must be producing must at least pay for costs and salary rises, Wressle thankfully is being managed by EDR, although they havn't been fully honest either, but we should be back to 1.8p next week,after squeeze, at least surely. EOG twitter page is saying yet again( yet again) 500 bopd is going to happen at wressle . I will see what other words of wit or wisdom S.O can utter .. Come on squeeze do your stuff soon.
Wressle was going to be sorted last November delayed to January 31st- misleading RNS then, only later admitting proppant squeeze still needed, now finally can we have good news,mabe before 17th.
As to Corrib, I note wholesale gas price in uk /europe is up to round 63 p therm, higher than last peak 2 years ago, -strange how demand seems to go up in hot weather, so there may become a greater commercial case for Corrib, they just need to convince on Mr Ryan on carbon capture.
I dont think Morrocco will have good news but hopefully I'm wrong on that.
Equinor may get $400m for 36.5 % interset in existing Corrib. Minister E Ryan stated Eire Energy review still ongoing when he announced temporary ban on LNG gas terminals., in mid May. So without any decision yet on Edge or Inniskea survey approval, EOG does not "own " Edge yet and so current value is zero. However if we finally get to end of Energy review , and they take into account Corrib will produce half peak output in 2025 and continue ro decline thereafter, so if Eire wants continuity of supply without continued import of gas, we may get the green light. It would be nice to see EOG retain at least 3.65% interest in Corrib( inniskea edge), after any farm out, so does that equate to $40m assuming it gives similar life ( extended life) to existing field.
Jefferies target 130p
From Video- wressle 100% oil -no water that's good, Pennistone is jewel in crown but well development need to start with ashover grit. No timesacle for pennistone, but at least its there. Just hope the I.E.A plan for no new wells after this year ( if UK accepts IEA plan, at Glasgow meeting -is that next year? ) does not apply to developing a differant formation in the same well... will a side track drill be required.? IEA plan same applies to Corrib, hence my point that EOG concentrate on that with carbon capture technology which to be fair has already been proposed in principle by Irish Offshore Association, and develop a plan to convince Mr. Ryan. Thats where the emphasis should be now rather than Morocco.
Thanks Rubey, perhaps i'll calm down and wait till early June to feel better about this share. I've seen numerous comments on "constrained production" which may be in the planning approval, but i've never seen it myself as a planning condition, and i've read the planning inspectors report a few times. If there is clear wording on this ?, Rubey or anyone please advise.... I believe Ashover grit has around 5 years life.
I am hoping for at least a temporary boost in share price by mid June with wressle, and some clear decision on going for the pennistone flags later this year, rather than just saying in the future - it will need some new permissioms and plan to utilise the expected gas . Until yesterday I still thought Moroccco might come good, but if IEA plan is agreed that probably wouldn't happen. So its back to Inniskea , Corrib and Mr Ryan. The only way that will proceed is with carbon capture of power sation gas, and we need emphasis on that, not wooly comments from Simon Oddie on a next to uselss You tube video. Forget North Sea, or sale of Morrocco, start thinking carbon capture and quickly.