Exciting Times Ahead (part 1)11 Jan 2019 06:50
Excellent summation Johnnie - exactly my thoughts .. boards like this play a very important part in attracting new investors in the absence of news generated by the company. One of the problems on LSE is that there is only one board per company and there is no control over the content. Personally I would filter out most of the contributors here yesterday.
Right now EOG may be classed as a one trick pony - Inishkea - the gas prospect of up to 2TCF close to the existing Corrib field. They have a backstop - in fact several including sufficient funds as well as existing production and the possibility of Wressle coming on line in the future - but the main attraction for me is Inishkea.
You ask if they will get Ireland sorted? Well in my opinion they have and not entirely of their own making.
First let me define my personal target - the spud date for a drill on Inishkea - I am in here at a low enough average to benefit from an escalating SP - with all the associated newsflow and excitement and most of all the considerable public interest leading to the day of the spud when like all good AIM punts the investors who took a chance at this SP sell out and the SP 'unexpectedly' drops. Hanging on for more at that stage is pure greed and you can only sell to someone who sees future potential - when that potential dries up there is no-one to sell to.
Spud date will be next year and I am patient enough to wait for that.
External Factors - for the next 20 or 30 years as the world moves to renewable energy, Gas power generation is the easiest way to fill the gap both in replacing existing coal, oil and in Irelands case Peat power generation as well as the need to level the power load as renewable supplies waver under clouds and lack of wind.
An island without its own natural energy resource (with the exception of peat) is in a perilous position and totally dependent on other countries. WIth Brexit that will bring an intermediate country into the equation from the source which is additional unwelcome.
Corrib is in decline - with additional resources it can get back to full capacity - in fact from the research I have done, there is the possibility to increase the maximum capacity of that plant substantially without additional investment - it can and should be part of Ireland's energy strategy over the next 20 years but at the moment has only a 10 year life left.
There is no other option - environmentalists have shown that they will not let another such plant be built and E&P companies will not take the risk of trying to build another. The LNG terminal(s) planned in Cork have little prospect of being built while the demand for LNG is focused on China and the Far East and the prices are higher.
The investment into Corrib by a Pension Fund with billions at their disposal and a Canadian Oil company whose investment in Corrib is now being significantly rewarded will be keen to see additional exploration if not taking part them se
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