RE: Chat with SYN8 Mar 2023 21:47
Q - I noted from the production update in Q3 22 the rates agreed with the Indian government (regulated) were quite low, do the prices track gas and oil prices ? is there scope for improvement in the sales prices per bbl/mcf ?
A - The low pressure gas grid prices are government regulated and has been progressively increased from $2.40/MCF to the current $8.57/MCF over the last 18 months so it does track global prices but not directly. The high pressure grid is where we intend to export future gas from new wells after we achieve a plateau production of greater than 10 mmscfd. The high pressure grid tracks international LNG gas prices which are significantly higher.
Q - that's good to know ref the higher grid route (I note these have been $16 + mcf- recently) the next 2 wells C78/C79H make reference to being in the Optimal location next to C05 which tested at 4.1 mmcfd and 170 bcpd, assume this was un fracked ?
A - C-05 was indeed un-fracked.
Q - I noted in the recent RNS based on farm out discussions you are now planning ahead for 2 wells, how is the rig market there ?
A - There is rig availability for our planned new well program.
Q -on the latest presentation it states $750m NPV based on 10 well field development, It also states multi TCF upside, can you advise where this is from or targets ?
A - To exploit all of the resources will take in excess of 30 wells. Suffice to say the field development becomes self-funding after the first two new wells. We have a third party CPR from RISC which has classified the Cambay P50 gas reserves as 206 BCF We have confidence in the RISC contingent resources of up to 1 TCF. We have not undertaken further upside detailed analysis
Q - Following on from the last question and your comment - self financing after next 2 wells, obviously once brought online there would be a time delay i.e 60% IRR before the next wells can be financed and if the overall field development was 30 wells, is there a timeline to ramp up get to this ?
A - With respect to the full field development, we would not necessarily have a time delay to drill wells beyond the initial two planned wells.
Q - I had a look at the front statement on the farmout page which stated up to 6 wells planned which would obviously speed up the timeline to get to full field development, is the farm out open from 2 - 6 wells just dependent on each companies preferred option and % given to said farm out party proportioned accordingly ?
A - The statement on the Moyes & Co website is incorrect. There is no 6 well initial program – we want to drill a sufficient number of wells to exploit the 205 BCF of P50 reserves.
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