The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Have to say the SP reaction today to a confirmed oil discovery is astounding. However, reasons to be happy;-
1. Cash to roll in from an extended well test following a 7 day shut in to assess bottom hole conditions.
2. More wells to come which will;
A) further appraise the intermediate sheet (~500bbls a day, 94% oil from worst quality rock in Royston 1).
B) delve deeper to explore the sub thrust which produces prolifically in off setting Penal Barackpore wells.
C) appraise the deep underlying Cretaceous prospect Kraken
D) optimise production from overthrust sheet
E) adds more reserves to the yearly reserves update improving lending capacity
This is in addition to Coho coming online (weeks not months), and Cascadara afterwards in ‘summer’.
Whilst I too had to assess the bottom hole conditions in my underpants when seeing the market reaction to today’s RNS, I shall be topping up.
Deemule, I have to say that is some seriously rose tinted evaluation of the reabold portfolio.
“California was a resounding success and we were hit with Covid”
High decline rates on the wells and generating insignificant sums in revenue. Most worryingly the biggest prospect Grizzly just vanished from all forward plans without any explanation. Talking about a few hundred barrels a day with high royalties. Waste of money.
“WN again theye were only after gas and have found a sea of oil, so a nice problem to have IMHO.”
The not so nice problem is that neither gas nor oil flows in any meaningful quantities at west newton and is therefore effectively useless. Sank over £35m into this project - waste of money.
“Parta again gas discovered but ADX are in control.”
Parta well apparently exceeded expectation when drilled, yet didn’t flow and was unsuccessfully acid washed. Brushed under the carpet. ADX expanding into green energy and Parta will be shelved permanently. Waste of money.
“Corallian we are selling it off lock stock and barrel for many times the money invested.”
Flogging a dead horse springs to mind. Following other ‘successful’ discoveries such as Colter. The only RBD asset now worth more than the paper it is written on is Victory which won’t see anything happen until at least 2024. Hence the drop from 1.00p to 0.14p - or am I missing something?
Hydrocarbon exploration in North Yorkshire began in 1937, targeting Triassic and Permian reservoirs below the surface expression of the Cleveland Anticline. D’Arcy drilled the successful well Eskdale-2, marking the first gas discovery in the Zechstein carbonates in the UK. Since then approximately 100 wells have been drilled in the basin with exploration success relatively high. Out of the 25 pure exploration wells in the region, 13 have found hydrocarbon accumulations (flowed gas) and eight of the discoveries have been developed to date. The primary reservoir is the Permian-aged Zechstein carbonate sequence and, more specifically, the Z2, Kirkham Abbey Formation (KAF), which is a tight carbonate reservoir overprinted by a high permeability fracture system. Despite considerable investment and effort over the years, the historical development story of these fields has been very much one of repeated technical and investment failure, with approximately 39 Bcf (billion cubic feet) of the mapped gas initial in-place (GIIP) of c. 326 Bcf produced to date, an estimated recovery factor of 12%.
Go on twitter and search #kist you will see it
Regulator website updated that the Q10-A-04 sidetrack has hit gas!
I think it’s pretty much nailed on that an asset is about to land given the current cash flow and appointment of a new broker.
Any ideas what it may be??
Agreed if the WD4 well has been completed then they should update on the pay encountered etc as they would do with Royston or any of the larger wells. At the end of the day it is material as it affects company cash flow whether it is a duster or 200bopd. Especially as we are none the wiser regarding first gas which has now been swept under the carpet with no actual reasoning for further delay via rns - last We heard it could be online as early as august?