The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Reposting the broker note as the link I set up will expire soon…
The NAV given by Hannam&Partners is based off 954m shares in issue and only takes into account 5% recovery of COPLs 1 billion barrel plus oil discovery…
Risked NAV: US $154.1m(£118.3m)
Unrisked NAV: US $610m(£468.2m)
https://wetransfer.com/downloads/3276c949a2aa7010906fbe14fd08d65920230719071811/fa91ea
Tiburn I’ll leave the overall question you asked for Edgein but COPL do already have a horizontal in Cole Creek(44-22H) that can be re-completed to target the Frontier 1 formation and is not too far from the 11-27 or 12-23 wells…
I assume this will be Arts first target when all is signed off and the drilling program is given the green light :)
“Oil prices are set to rise to $86 per barrel at year-end, from $80 now, as record-high oil demand and lowered supply will lead to a large market deficit.”
"We expect pretty sizable deficits in the second half with deficits of almost 2 million barrels per day in the third quarter as demand reaches an all-time high," Daan Struyven, head of oil research at Goldman Sachs, told CNBC's "Squawk Box Asia" program on Monday.
While demand is set for a record high this summer, supply is shrinking. The production and export cuts from OPEC+ and the slowdown in U.S. oil production growth will also play a part in large deficits in the third quarter this year.
According to Goldman's Struyven, "We expect U.S. crude supply growth to slow down pretty significantly to a sequential pace of just 200 barrels per day from here."
https://oilprice.com/Latest-Energy-News/World-News/Goldman-Sachs-Sees-Oil-Prices-Rising-On-Record-Demand.amp.html
COPL are well positioned to capitalise on this with production expected to rise substantially throughout Q3 and Q4 :D
“most wouldn't trust him to deliver a bottle of milk”
Lol but he’ll deliver the completion and commission of the gas gathering system and will deliver the JV…much better than a bottle of milk :)
That’s unless the person who wants the milk is a baby…lol
Art has set this one up very good…
Today the Joint Venture Party signs LOI for a JV on our billion barrel oil discovery…
“COPL and an established energy company ("JVCo") have entered into an LOI for the negotiation of definitive agreement(s) for a Joint Venture (the "JV") to develop and exploit its oil reserves and resources at its Cole Creek project in Converse and Natrona Counties Wyoming.”
and shortly we’ll have news that the GGS system has been commissioned…lovely :)
The market would like everyone to think that after ‘letter of intent’ signing with the JVP we’ll be waiting a long time to sign a deal but we’ve been in these talks for a VERY LONG time and most of the leg work has already been done… It could come sooner than some think :)
End of May presentation…
Cole Creek Frontier Joint Venture
•A large Oil Company approached COPL in September 2022 inquiring if we were interested in a partner to appraise and develop our Cole Creek Frontier oil resource.
•This group has done substantial technical due diligence to date.
•COPL has also done extensive additional technical work on the project.
•Discussions/Negotiations are in progress on the terms and structure of a Joint Venture.
•The objective of the concept is to end at an early stage EOR project similar in nature to the BFSU Shannon miscible flood.
•COPL’s understanding of the BFSU early stage EOR project through its ongoing reservoir simulations provides substantial local knowledge to the JV.
•Miscible solvent’s evaluated are CO2 and LPG enriched gas used at the BFSU.
•The Company more than stands by its initial assessment of the resource.
Tick tock… ;)
COPL is now going into its news rich period :D
Whilst the JV letter of intent news is great don’t forget more major news coming very soon!
GLA this dog is still very hungry for some naysayers :)
I heard someone was asking for the broker report…lol
As stated in the heading the broker note from Hannam&Partners gives COPL a NAV of…
Risked NAV: US $154.1m(£118.3m)
Unrisked NAV: US $610m(£468.2m)
https://wetransfer.com/downloads/3276c949a2aa7010906fbe14fd08d65920230719071811/fa91ea
COPL Announces Cole Creek JV Letter of Intent
London, United Kingdom; Calgary, Canada: July 24, 2023 - Canadian Overseas Petroleum Limited and its affiliates ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona counties, Wyoming, USA, is pleased to announce its COPL America Inc. ("COPLA") affiliate has signed a Non-Binding Letter of Intent ("LOI") for a Joint Venture with an established energy company to develop and exploit its oil reserves and resources at its Cole Creek project in Converse and Natrona Counties Wyoming.
COPL and an established energy company ("JVCo") have entered into an LOI for the negotiation of definitive agreement(s) for a Joint Venture (the "JV") to develop and exploit its oil reserves and resources at its Cole Creek project in Converse and Natrona Counties Wyoming. The LOI grants exclusivity to JVCo for a period of time to allow for the negotiation of terms, and structure of the JV to be agreed, which include the consents required by COPLA. The LOI is subject to confidentiality provisions in a Confidentiality Agreement entered into by COPLA and JVCo in October 2022. These confidentiality provisions will terminate concurrently with the exclusivity termination, and other contractual conditions. The contemplated JV does not include the Company's Barron Flats Shannon miscible flood EOR project.
Arthur Millholland, President and CEO commented: "We have been working on this project for some time. We first identified the potential at Cole Creek before completion of our Atomic acquisition in March 2021. Our acquisition of the complimentary assets of Cuda in July 2022 gave our Company full control of the Cole Creek project. This LOI is the first step completed in a process initiated in October of last year after the Cuda acquisition. The company that has entered into the LOI with us is the best partner we could have of the ones we have considered. Our Company brings considerable experience and understanding of Cole Creek, including operating the early stage enriched gas miscible EOR project at the neighboring Barron Flats Shannon Unit. This EOR experience can be directly applied to Cole Creek as they have many similar reservoir characteristics. We look forward to updating our stakeholders when able as the process proceeds."
Let the show begin🤩💣📈
“First introduced in 2008, Section 45Q of the Unites States Internal Revenue Code provides a tax credit for CO2 storage. The policy is intended to incentivize deployment of carbon capture, utilisation and storage (CCUS), and a variety of project types are eligible.
In 2022, the US introduced a significant stimulus for CCUS investment with the passage of legislation (the Inflation Reduction Act) to expand and extend the 45Q tax credit.
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) or other industrial uses of CO2, provided emissions reductions can be clearly demonstrated. The credit amount significantly increases for direct air capture (DAC) projects to USD 180 per tonne of CO2 permanently stored and USD 130 per tonne for used CO2.
In addition, the 2022 changes reduce the capacity requirements for eligible projects: 18,750 tonnes per year for power plants (provided at least 75% of the CO2 is captured), 12,500 tonnes per year for other facilities, and 1,000 tonnes per year for DAC facilities.
Finally, the 2022 changes include a seven-year extension to qualify for the tax credit, meaning that projects have until January 2033 to begin construction.”
https://www.iea.org/policies/4986-section-45q-credit-for-carbon-oxide-sequestration
There’s is no limit on the amount of credits a company can earn…no wonder Exxon and others are going full steam ahead with carbon capture for EOR and storage in Wyoming :)
Fastfood I think it’s only right you match every person that accepts your wager…
E.g. If you challenge 5 people you pay £100 for each one if you lose
Do you accept those terms? Remember our personal wager is already £500 :)
Happy trolling :)
Read this broker note from the companies joint broker Hannam&Partners which takes into account all the companies debt, bonds and opportunities then make your mind up…Hope this helps😄
Risked NAV: US $154.1m(£118.3m)
Unrisked NAV: US $610m(£468.2m)
https://wetransfer.com/downloads/3276c949a2aa7010906fbe14fd08d65920230719071811/fa91ea
The next few weeks could be very entertaining here… Arts on the road to hitting another target with the gas gathering system scheduled to be commissioned within the next 9 days!
Trolls are also becoming more twitchy by the day as they should be ;)
GLA this dog is hungry for some naysayers :)