Member Info for davidblack

What is the target at 6,200m? If you can work it out?

Kind of a requirement, as you need distributable reserves.

A 1% Starting dividend and a stated intention to increase this towards a 3-4% dividend over time would nicely put this share on the map for income growth funds and investors who are obligated to only invest in income payers.

A very nice way of building financial credibility in parallel with building oil production.

The Baker Hughes technology is effective and used widely elsewhere apparently it works nicely to clean stubborn blockages by concentrating the acid corrosion in the target areas.

As to whether it does “The magic” for Caspian I think that misses the point, it’s just an improvement on the old acid solution. So no magic wands sadly!

Any it was mentioned at the AGM they would try to use an acid solution as an inexpensive route and if that didn’t work move on to the bigger explosive device solution as the next option, if required, but that requires a drill in position.

The real upside is the acid is a cheap solution that can be deployed much quicker.

Anyway we will see but hopefully the acid can clean up the well significantly.

More he could maybe look to do a deal with the Koreans who have an 8,000 bbl per day facility, upgradeable to 14,000 bbl of which they are using sub 3,000 bbl per day.

He mentioned this as a possible alternative solution at the AGM to coffee cups and myself in the Q&A post event.

Also the Koreans must be losing money hand over fist.

You just never know?

Which well?

They are probably waiting for a much higher price on he stock on any Alaska JV news to cut down on any dilution.

Also once a JV is done in Alaska they can take some of those funds and propose to drill in Texas. At that point Mrs Gray has to decide to match fund or be heavily diluted. That’s when the Texas holdings will be consolidated. Until then why bother? There is ongoing dilution so the deal gets cheaper each month marginally.

More than welcome and good to see that exactly what they were saying two years ago is what is now on the agenda.

That shallow prospect also sounded interesting, I wonder if they got a sniff of hydrocarbons. If they did it clearly wasn’t enough to make any noise about. But would be nice to get a confirmation that their geophysical analysis was working well.

Fingers crossed that they get to 5,300m it’s certainly not a given. But if not the results from 4,300m of 52m of oily rock in a 159m oil stained envelope is a big enough win.

Rick Rules did a presentation last year about where money was to be made in the resource sector.

He identified two key approaches:

Firstly go and explore in virgin territory with huge upside. The oil acreage off Guyana being explored by Exxon, Tullow and Eco in deep water north of the Brazilian Lulu field being an example off.

His second strategy was to go back to old acreage where discoveries had demonstrated its value and apply new technologies.

Pantheon in Alaska is doing the second approach and whilst Pantheon was very cheap at the time of the merger say 70% too cheap it acquired Great Bear for only 5c on the dollar. So there was an immediate huge increase in embedded value on the day of the merger and that has just gone up substantially since Alkaid and the upgrade to Talitha by splitting the acreage into separate appraisal and exploration ground.

The only trouble is the historic unhappiness that some shareholders felt then compounded by the disappointment at Winx and then the PR mishandling on the two non core Alkaid zones has clouded the picture.

So all we need to do is wait for the market to catch up. A nice JV on Alkaid, followed by one on Talitha and then the final clean up of the Texas interests might speed that process along.

Apparently there are more deep targets within the BNG asset dating back to the Roxi float days. The issue being that $10m wells aren’t cheap but if one of the Deeps comes in its away to the races. If the Devonian comes in rebook the races for Ascot in the Queens enclosure.

Interesting times!

Hi CC

This is possibly more user friendly:
Well was drilled in 2016 with report in Jan 2017. First Devonian well outside Tengiz but on the northert side of the Caspian Sea. Rock is not the same as Tengiz which is excellent news as it means there is Devonian oil in two very separate geological structures. The Caspian MJF structure is yet again a different geological setting from either Tengiz or this new one in Atyrau.

Anyway it seems to suggest that where there is oil there may be more oil! With the situation at MJF now that the company is looking at a triple stack of shallow, 4,300m and maybe if we are very lucky 5,300 Devonian.

HTTPS://astanatimes.com/2017/01/light-oil-and-gas-deposits-found-in-atyrau-region/

Can you explain a bit more?

What is ADA in particular?

Well good luck on 88, as to Pantheon I think they have sorted themselves out but it’s just that the market will take a good while to come around. The over hyping of Visions prowess and potential speed of delivery of wells left a stale taste in the mouth.

But it’s now a completely different ball game and one with a 150m barrel discovery sitting beside the pipeline.
So fingers crossed for both!

Winx was the worst piece of the Great Bear acreage and required an immediate drill hole to preserve its status.
So Great Bear simply sold the lemon to 88e etc to get cash to keep the lights on whilst they were negotiating to do the merger with Pantheon. In yesterday’s podcast Jay didn’t even acknowledge the existence of the acreage with is all our ground is held between 90 and 100%

All complete nonsense on this “Profits” red herring.

Until the sales license is approved on MJF any revenue received re oil produced is treated as a negative cost against exploration costs and to make it crystal clear it is tax free revenue up to the point where the exploration costs are net nil.

Anyway this whole exploration business is about creating saleable assets not pretending to be an oil production company looking to make money and pay dividends.

Water based mud and over balanced drilling were the methods used.
All decided by 88 Energy.

Hi GG
I spoke to a London based US boutique fund manager post the AGM over the remenants of the coffee.

I asked him the question of why a London Aim listing made sense?

His response was that in Pantheons case Aim was after the Alaska deal merely a “Nursery period” and assuming Pantheon reaches $1bn market cap the next step would be moving the listing to the US, followed by cancelling London. This would apparently result in a much better valuation and would be advantageous to IS holders who are now the majority of shareholders.

Just a cup of coffee conversation obviously but this chap participated in the $20m placing so perhaps he was much better informed than most of us who went to the AGM? Who knows?

Balance owned by Halliburton.

http://www.oilandgasinnovation.co.uk/exploration-production/713-otto-acquires-onshore-alaskan-interest

Hi GG

I was at the AGM too and you were clearly unhappy then from your questions.

You said post meeting you would be selling all your holdings.

So what tempted you to buy back or stay?

And following the 24% drop why is this not a reason navel investment ahead of the Alkaid appraisal?

Sorry you do seem very agitated but I cannot work out why.

Winx was a free carry 30% SoC after all.
DB

No 569m including the non voting shares.

They are non voting to avoid a takeover panel referral but are likely to be converted once the share cap rises with any new issues or if the control block is broken up.