RE: Feeling good for once7 Feb 2023 18:26
Corpus sellers will be buying back, be concerned about them as they can buy in again, it’s just protocol so their just following proceedings. When A1 starts they’ll be buying back again. Blythe is a cash generator so that priority also. Cal energy are part of a massive oil and gas company in the US, cash is not a problem here.
H2 will come on after Southwark A1.
A lot going on this year. Don’t be to disheartened as we will come good.
Blythe H2 well plan
- H2 is planned to be drilled directly after Southwark A1 and targeted onstream by early Q3 2023 (with the two-well appraisal campaign to follow directly after)
- Final extension option in IOG's 2020 Shelf Perseverance rig contract is to be exercised for H2
- Detailed well design is already well advanced, building off earlier successful development work on the Blythe H1 well
- Integrating learnings from H1, the intention is to target the field's central high, which has no observed faults and potentially better reservoir quality
- H2 has been approved internally and is subject to joint venture partner and regulatory approval processes
Blythe H2 rationale
- Achieve high returns and rapid payback, based on a gross budget of approximately £26 million including hook up and commissioning costs, plus potential for significant tax shelter
- Accelerate and maximise recovery of the management estimated Blythe gross 1P / 2P / 3P reserves of 25.4 / 42.5 / 55.8 billion cubic feet (BCF), at a time of high expected gas prices
- Allow flexibility to reduce water production from Blythe H1 into the SBPS, improving operating efficiency and reducing water disposal costs
- Existing spare well slot and riser on Blythe platform minimises need for brownfield modifications
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