Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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It's my understanding that there were old wire logs and survey/ drilling records in the data room that led him to see the possibility. CC has been worked albeit in a small way since the 1930’s and records from those days are hard to decipher.
The first well was a tube hammered in that took over a year to bottom. So before Howard Hughes invented the oil drill that made him one of the wealthiest entrepreneurs in the world. Anyway enough said on the history but to say I can see why it's been bypassed.
The RNS quantifies part of the area and from that you can see it's massive.
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The new discovery, as huge as it is, may not be as big as Cole Creek in the analysis, which we're told has hitherto has been largely by-passed. So to my mind we could be looking at nearer 4bn boip if not more counting both areas.
The first indication the market had came via an RNS a year later in January 2023 when AM said it would be a “gamechanger” for COPL. But for AM I think the first indication he had that there could be something substantial there must have been when he was going through due diligence before buying Atomic.
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Having been involved in most of the discussions and briefings COPL has held, this is now how I see value being returned to COPL's shareholders over the next 12 months.
I see the ROI for us coming in two distinct and separate stages. Initially then from the JV being successfully completed and announced. So let's consider potential numbers for this phase.
There'll be several fundamentals under consideration but two of the main ones are sure to have been the OIP and the likely recovery rate.
From what I've read most shareholders believe there's around 2bn boip. I think that's a considerable under estimate to be honest. 2bn may only just about cover the new FD discovery on its own.
The best initial guide to the new discovery was RNS’d in January 2022 which put it optimistically at about 1.6bn brrls. It was made known at the time that Ryder Scott had it as more and the JV had it more than Ryder Scott.
I can tell you that further work has been done by both parties to the JV and the estimated boip has increased.
A repost of blackstout’s excellent post on Sunday…
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If we look at where we are in terms of value we know than in a simple analysis we have two areas:- viz
Amongst other things RNS Number : 8786G
dated 24 July 2023 as well as a Letter of Intent had been issued to COPL’s chosen partner it confirmed that “The Company operates two production Units: Cole Creek 100% WI, Barron Flats Shannon (Miscible) 85% WI.”
Further it went on to tell us “in addition to 85%-100% WI non-unitized lands between the production Unit boundaries.”
It went on to clarify “The contemplated JV does not include the Company's Barron Flats Shannon miscible flood EOR project.”
So to put it simply the JV will be covering all of COPL’s Wyoming assets except for the Barron Flats Shannon miscible flood EOR project.
We know the NAV of the BFSU is roughly $240m so on that basis it represents about 9p/ share and in my view this is what we should be seeing until such time as it's reasonably profitable. Then we can look at it using a different metric. When it's operating in an “optimised & steady” state it should run up to 4x that if not more. But I think we're looking at Q2 next year at least before that happens.
Trans trying to down play the potential here…Just sell the rest of your measly holding already lol
The ‘new’ CEO has also mentioned it multiple times because it is VERY REAL…
Last 2 major updates on the VERY REAL JV talks below…
RNS on 24th July…
“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.”
RNS on 15th November…
"The negotiations regarding a possible joint venture announced by the Company in July 2023 are ongoing and the parties are working to agree all outstanding matters."
Also very recent comments from COPLs broker…
“COPL remains in talks for a potential JV with a major oil company in Wyoming for developing its deep oil discovery and this financing gives it several months to try and conclude a deal.”
This board has been very active this weekend…
Friday’s volume was the highest volume day of the year for COPL…
Good things coming this week? Here’s to a VERY blue week :D
A repost of blackstouts post on Friday below…
“When I post on here it normally runs into several pages.
Today is very different.The opposite in fact. I only want to say two things:-
Firstly I think many will be reading there's about 2bn boip under the JV. I think they're about to be told that's wrong. I've been working on 4bn boip for some time now and I’m starting to believe even that may be conservative.
Secondly I believe H of T’s were agreed several weeks ago albeit in principle and perhaps with caveats. Work in “formalising” those terms and resolving the caveats has been going on since then. If you think it's going to take several weeks longer to conclude the agreement, I believe you're about to be proven wrong.
AIMHO as usual and good luck to all sincere investors. I think you're about to be rewarded and find it's been worth the wait!”
RNS on 24th July…
“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.”
RNS on 15th November…
"The negotiations regarding a possible joint venture announced by the Company in July 2023 are ongoing and the parties are working to agree all outstanding matters."
Very recent comments from COPLs broker…
“COPL remains in talks for a potential JV with a major oil company in Wyoming for developing its deep oil discovery and this financing gives it several months to try and conclude a deal.”
It seems some folks have memory loss…
We are fully funded until the end of March 2024 with production at 1,200 bopd and fully funded for the whole of 2024 with production at 2,000 bopd after the placing completed last month…
Or have some forgot that? lol
“Also I thought Easy was telling us about an update this week? And that COPL has updated the same time each year so it is 100% going to happen. I don't think so.”
It’s the 15th November tomorrow and COPL have released an RNS on that date for the last 2 years…
We’ll see who’s right tomorrow morning :)
For anyone that missed the tweet from COPL on Friday…
https://x.com/coplinvestor/status/1723056248684175756?s=46&t=OVzGJM4-LaH6nhPXzhnQyQ
And major shareholder James Goozee sharing his views…
“Still very excited by the opportunity here. Thanks for the update COPL”
https://x.com/jamesgoozee/status/1723289879457501290?s=46&t=OVzGJM4-LaH6nhPXzhnQyQ
Trans is trying to dampen any positivity…very amateurish in their attempts I must say lol
During November 2021 under peak gas injection into the field COPLs oil production jumped from 2,000 bopd to 2,700 bopd over a 7 day period…
Don’t underestimate the power of gas injection and the response of COPLs field ;D