Member Info for djm1

2.8p one and only...... jog on, JS490 yes yawn indeed, the sound of the tills ringing is sooo dull. Cash flow and cash in the bank is exactly the type of boring most businesses dream of, hooray for boring!!!!!

great Rns ..congratulations to all LTHs. Sales not as soon but not faraway from 600bopd and I've 1000 Mcf per day , nearly $15,000,000 per annum revenue at $60 Brent. Fantastic!! Well done Block!

Thordon it's been Rnsd the gas connection would take 8 weeks from signing of contract. it was rnsd that 16az was going back in to production in January..
it can't go in to production without a gas connection. the gas can not be flared unless under testing ... we're well past that on 16az. it's been a year since 16az was first flowed so a gas connection was anticipated shall we say.

As AJW has said, the gas testing equipment is specialised and costly, and used in horizontal wells of high flow rates, Bago are set up to go based on 16az,the decision to go to 51 must have been taken on 38az and maybe info from the 3d, it's about generating immediate revenue. 1000mcf pervday was achieved as recently as 1988. 480 Mcf was seen at 16az...fingers crossed.

Thordon, another 3 months for the gas connections because of permissions... I would say not....things have been slow but there's been enough time to line all the ducks up, feed them, water them and pluck them. I'm expecting gas sales from 16az and 38az shortly thereafter if not now.

I thought we had completely run out of steam yesterday and then a big buy towards the end. A lot of the sells have been for very small amounts , probably because its the end of Jan and people are skint, rather than an exodus. I envy those buying in at these levels in big numbers, its been top ups only for me. Lets hope Monday brings an end to the purgatory for us all.

Hepseal I would hope that yes that would be a minimum. Initially it flowed 1500 barrels of fluid and that was choked back to 1100 because thsts all the production equipment could cope with. This was with nearly 500 Mcf per day as well.
1. Are we to infer that the production equipment upgrade is being undertaken because the company believes thst more than 1100 barrels of fluid is on its way again or is the upgrade just connecting works to Bagos infrastructure.Or a combination of
both?
2. what was the watercut of those early fluid volumes, as I understand it , the cement liner didn't fail immediately, so what was the early bopd number. or do I have that wrong.

AJW

We don't actually know if 16az is being remediated or not. If its not then its likely it never will be, that will be interesting to see, as its supposed to be being put back in to production this month after the production facility upgrade. Block advised they would get an expert in to look at it and advise accordingly. If there is no mention of it having been worked over then it will have gone the way of Norio which was meant to be producing 250bopd. Re reading the Bago deal, Bago wanted 1000m3 or 35.31MCf per day which is not a lot. 16az was said to have produced 494mcf per day, or 14,000m3 of gas initially. Well in excess of Bago's initial requirements. Either way something has to change because 51AZ cant take this long, the rig has to go back later in the year and if its going to take this long then we will only manage one well this year. If the Georgian authorities do want the gas out of the ground i cant see us getting more acreage at this pace of field development.

In context Block were given data that showed a Rustavi well producing 1,000MCF per day in 1988, so that may be a good context with which to judge 38az and 51az as gas plays. At $5.24 per MCF thats $1,900,000 approx revenue p.a.

Hi Maladoni,

well lets say its ok at 38az and 16az stays the same, 51 is next and it does similar to 38az, we will be monetising three wells plus the Norio and Satskaneshi wells. Its taken a year to get here, some cash on hand and a certain cash flow to come, we can't carry on at one well every 6 months and if the 3d seismic proves up 1 TCF or above, then what...performance needs to improve realistically, PH said the book build was to take advantage of the mega opportunity here, if the resource is there then its becoming time that the company stepped up a level in delivery because time frames do matter. Lets hope we start to see some of the promise turn to reality soon.

AJW, more acreage is a great idea but the problem is its taken block 1 year to not complete two wells. Tomorrow is the 1st anniversary of the commencement RNS of 16az, 38az is now 5 months from spudding and these are supposed to be low hanging quick to monetise wells. Something needs to change in that regard because beyond the immediate RNS/RNSs dealing with the expected issues ( we hope) then i can see this falling away again as people persue other opportunities. If the 3d seismic is positive and indeed proves up further resources, surely at that time its time to review operations and see where these can be improved. With cash on hand and to cash come as you pointed out for cost recovery from revenues, would a second rig be the way forward, and is there one that could be had?

Sieveco, its an interesting question, i don't know and would like to know as well, what was said by the company on 16az was that it flowed gas more than they were expecting, at that rate the well would produce nearly a million USD per year at the agreed price with bago of $5.24 mcf, maybe that could be x3 quite soon. Plus Oil to the tune of who knows, but the possibility is there....

JJ, its been a smidge over 5 weeks and it probably feels like longer because of the Christmas period, from what ive read on multi rate flow tests its pretty complicated stuff, but it is because of high flows of gas creating issues, rather than no flows of gas creating bigger ones!! The swabbing comment in the last RNS refers to oil flow, so hopefully its a biggie as you say. Hopefully it also draws a line under the trustworthiness of the company so that the share price reflects the assets rather than the furore over 16az.
A perfect world:
38Az fantastic gas flows and 100+ barrels of oil per day.
16az remediation with increased gas and oil
Bago sales announcement with 16az and 38az both being monetised imminently.
Announcement of 3d seismic results and big uplift in resources
WR51 spud
Share price re rate

Gog may well have seen sight of the 3d Seismic it was after all their condition. They may know that what's coming down the line will more than compensate for the short term gas requirements. they are investing heavily themselves and cash will be required short term

Maybe they expect more shares in payment for more acreage in the near future.

Hillybilly, you're being modest... 2,000,000 shares as a quick trade!!!

Terrier

That's the big question isn't it, what really is the underlying rate without water. We will know soon enough but anything half decent and its game on again.

Terrier after the length of time since 16az, doubling would disappointing... but i suspect any rise will be heavily sold in to unless there is great news from two wells.

buys still coming....

nearly 2,000,000 bought in the last hour or so.

Mal, yes it will be a financial decision, still it would be a great way to finally silence the detractors and restore faith in the board.