Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
6 weeks of testing
Be good to get the flow rates but more so the details of the FDP
With 7 historic producing wells, 2 new wells,the opportunity to quickly ramp up production is significant
I know Sonagol have stated a 3 year development to drain the reservoir across the Tobias field which we believe is c65mmbbls recoverable
CRCL have a golden opportunity to go from a business that was non cash generating to significant turnover and profit making in a very short space of time
Next week is 6 weeks of testing
T04 produced at peak flow 12580bopd from just 8m
T14 an offset well of T04 has 80m of reservoir potential to test in optimal position on the crest of the structure
The results will be used for FDP and to quickly move into production via an EPS
The FDP may also include the re entry of the historic 7 producing wells to quickly ramp up production as they believe the field has recharged since shut , horizontal drilling and sidetracks have been mentioned in all RNS updates
Depends on the number of zones
we know we have multiple zones each one requires testing
It's a big oil column and potentially very high flow rates
So it's potential v good news it's taken this long to date
Strange one this, never holds any gains
Something to think about...
Once T14 completed and as per July presentation, expectation is for horizontal drilling from the vertical wellbore.
Horizontal drilling will access more of the reservoir , we know the reservoir is upto 120m thick but the area of closure has been mapped to 3400 acres , so if Google is correct this is an area of 3709m x 3709m
https://www.propertycalcs.com/area/acres/3400
Please review the following link ,item C , increase the length of payzone
https://geology.com/articles/horizontal-drilling/#b
This will ramp up production, multiple times that of vertical well produces
As per timeframes , first oil is a quick turnaround expected in the next 6 months
Once into production, we will be cash generating !
No more dilution to shareholders
from the current mkt cap there is huge upside to the forecasted aggressive production numbers , the plan looks to quickly drain the reservoir by production from horizontal drilling...
Item B on the below link
https://geology.com/articles/horizontal-drilling/#b
Potentially could ramp production multiple times
Forecast for corcel to be producing net 000's bopd
Very cash generative
think they'll also re-enter the old producing wells, sidetrack from the vertical wellbores to drill horizontal wells, these to have multiple branches off to intersect the reservoir to create numerous production lines , 2 or 3 per well
to significantly ramp up production from the historic 7 producing wells as well as the 2 new wells just drilled
"Something to think about.... 8m vertical well,peak production 12,580bopd....
Horizontal drilling to access thousands of metres of reservoir....what flow rates ?
Something to think about ...
Something to think about
"The Tobias field constituted 12 historic vertical wells, and Corcel and the operator believe that a revised interpretation of the existing structures along with the application of modern drilling and completion technology, including potentially adding sidetracks or horizontal drilling to the Field Development Plan ("FDP") will lead to a higher Original Oil in Place ("OOIP") figure recognized in the reactivated field and subsequently more producible field resource potential."
We await the ITR on Guercif which will inclideMOU1,3,4
Interesting note previously relating to MOU1 & 2
"However MOU-2 and MOU-1 rigless testing could potentially confirm continuity of the Moulouya Fan over an area of 30km² to support a case for the higher end of the net contingent gas resources to the Company of 708 BCF, as defined in the independent SLR Consulting Ireland Ltd. ("SLR") Competent Persons Report ("CPR"), (February 2020 and January 2022 "MOU-4" updated). If this were the case the Company would not hesitate to initiate a corporate transaction to monetise shareholder value. In the current climate gas assets attract a significant premium as they can contribute to security of energy supply and the Energy Transition to help stabilise the near-term cost of energy."
hTTps://www.lse.co.uk/rns/PRD/mou-2-well-preparations-pmp0ttqce6p22hb.html
We know MOU3 exceeded all expectations
Whilst MOU4 extended the mou fan
ITR Guercif
Ph1 testing
T&T workovers
Ph2 testing
Jurassic drilling
Mou2 drilling
Mou3 NW drilling
Mou3 SW drilling
What an exciting period 💥💥
FD today provided an update to their research note on PRD and reiterated "35p target price"
lets look at the detail...
the basis of FD 35p target sp is based on Risked NAV 37.6p ....
MOU fan 294.8BCF /$146.3m
Middle sands 319.5BCF/$72.2m
Jurassic Nutech (2m) 36.3BCF/5.5m
Total 650.6BCF/$223.9m/37.6p "risked"
Now the interesting bit..... unrisked...
so testing, 2 phases...
Ph1 due to commence in approx weeks time, ph2 there after..
What is 650BCF worth once flow tested ????
a staggering $1242m/208.6p
you can buy today for 12p
on top of their unrisked upside on a succesful flow test FD commented on the potential upside to the Jurassic, which we have potential drilling to follow the 2phases of testing...
they estimate the following...
126skm structure
RF 80%
20m net sand
605BCF GIIP
484BCF recoverable
As they rightly state 20m could be low as we are
hunting for 200m, but even so they offer further upside of $590m or 99p, with 360BCF net to PRD
making a total price target unrisked of 307.6p
based on the info to date, one could argue there is more than 650BCF net to the company which offers further upside..
"The opportunity"
208.6p on successful flow test to prove up 650BCF net "fully funded" to commence in a week
307.6p on appraising the Jurassic and finding 20m net sand, 10% of the estimated gross reservoir.."fully funded" to commence after testing April/May
T&T
Ireland
in for free
Link to FD note via LinkedIn
https://www.linkedin.com/posts/danielf4_pedator-oil-gas-jusassic-gas-play-confirmed-activity-7085150928319729665-sbst?utm_source=share&utm_medium=member_android