All the focus is on the JV at the moment but many are forgetting we have major news potentially landing next week in regards to the new $4.5m high-pressure gas gathering system that’s been under construction since the end of April…
The new system is expected to come online end of July…COPL have had a leash on them restricting them from getting more oil out of the Barron Flats Shannon unit(50 million barrels of recoverable oil under this unit out the Shannon formation) due to unmanageable pressures and inadequate gas piping but once the new system is commissioned COPL are free to spread their wings so to speak…
Between now and the end of this year gas injection rates on the field will be boosted again which will result in what I expect to be a minimum 100% rise in production…Currently production is 1263 bopd(June) and any increase from here is completely un-hedged(Crude currently $80) so very favourable for COPL…
COPL has many ducks and they’re all lining up perfectly :)
Gas gathering system completion approaching fast, trolls appear to be suffering from exhaustion and I smell a bit of blue in the air…
The tide is slowly changing and next week COPL will hopefully be announcing another milestone being hit…
GLA and increase the peace :)
Increased flow rates will be observed within weeks…
As I said in earlier some wells have been heavily restricted to deal with gas intake and once the new system is online they will be opened up resulting in increased flow rates…
One example…
22-27v based at the gas plant…due to no flaring being done on this well it has been limited to deal with gas pressures…
Peak monthly output: 6448 barrels of oil
Last months output: 280 barrels of oil
What happens when new system is online?
The above is one of many…August should provide a good stepping stone for COPL on the march to previous highs.
Very close indeed…
Art will be delivering something of real substance very soon :)
“Construction of the BFSU's $4.5 million high-pressure gas gathering system upgrade is on target for completion this month…”
31st July is next Monday with news is most likely to land next week.
Just to add Tiburn…
The second re-completed well 12-23 done in May was lower than the ‘oil down to’ level so I’m sure the OIP was revised up by the JVP after COPL confirmed oil flow from this location :)
“One of these wells, 12-23-35n-77w had oil flow observed at surface due to reduced mud returns during drilling of the Frontier 1 at an elevation below the "Oil Down To". We will get to it in time."”
COPL stated in the RNS: “The contemplated JV does not include the Company's Barron Flats Shannon miscible flood EOR project.”
That then means talks have been for a JV with COPL on the Cole Creek and Barron Flats Federal Deep Unit…
JV with COPL for Cole Creek initially as it’s 100% owned whilst they buyout or sort a deal out for CNOOCs 15% WI in the FD then bosh! Move onto the second stage of the JV for Federal deep…
We can see exactly what’s going on here…it’s going to be Exxolent ;D
Fastfood stop flapping your chicken wings… The answer to your question is in multiple RNS’s and presentations🥱
From the most recent RNS from Monday…
“The LOI is subject to confidentiality provisions in a Confidentiality Agreement entered into by COPLA and JVCo in October 2022.”
Yes it is.
Now breathe…and don’t forget to have your £500 ready to donate when the SP hits 5p☺️
One thing to remember is the wells are currently restricted and flaring is being done to control the pressures in the piping…once the new high-pressure gas gathering system is online with the new steel piping things will change…
The wells will be unrestricted and flaring will be stopped so instead of releasing pressure from the field it will be held allowing the pressure to rise resulting in a higher oil flow rate…
On that basis I’m expecting oil flow rates to be at 1750+ bopd by end of august which is nearly a 40% increase compared to what it is currently :)
The new gas gathering system is scheduled to be brought online next week :D
The RNS ruled out the Shannon unit for a JV…which has 100m barrels of oil and 50m barrels of recoverable oil if anyone forgot lol
It didn’t rule out the Barron Flats Federal Deep Unit…
Cole Creek and FD are apart of the JV meal…Cole Creek is the starters :)
Exactly my thinking Tiburn…
COPL stated in the RNS: “The contemplated JV does not include the Company's Barron Flats Shannon miscible flood EOR project.”
That then means talks have been for a JV with COPL on the Cole Creek and Barron Flats Federal Deep Unit…
JV with COPL for Cole Creek initially as it’s 100% owned whilst they buyout or sort a deal out for CNOOCs 15% WI in the FD then bosh! Move onto the second stage of the JV for Federal deep…
We can see exactly what’s going on here ;D
Great post blackstout…
May I add your figures might be a little to the conservative side as the price per tonne is a little higher than what you’ve stated ;)
“The 2022 changes to 45Q provide up to USD 85 per tonne of CO2 permanently stored and USD 60 per tonne of CO2 used for enhanced oil recovery (EOR)”
https://www.iea.org/policies/4986-section-45q-credit-for-carbon-oxide-sequestration
AlbertaOil thanks for pointing that out…it’s very positive that COPL are having quick turnaround on their sundry and well permit submissions…
One thing not to forget is the Wyoming Governor is very fond of COPL so this could be the reason we have the support…he’s very excited about the large oil discovery :)