Member Info for Edgein

Morning Luke,

Well said, there won't be a company in Angola that knows more about Angolan oil and gas than Sonangol. The facts are all there in the drilling results for TO-13 and TO-14. If some don't want to wait for the results of the flow testing of these wells its each to their own. Sonangol didn't rush the drilling of these wells, so no surprise they're taking their time over testing too. Exciting times.

Regards,

Ed.

Here is a good place to start:

https://www.shalexp.com/wyoming/companies

From the brief look another that should be on the list is Apache Corp or APA. It has to be those with deep pockets.

Regards,

Ed.

TNM,

You're welcome. I guess that will depend on the ultimate flow rates of these two wells. I'd imagine they'll drill as many wells as required to get to their Q4 production target. So yeah we may see another 1 or 2 wells drilled during that appraisal period. From my contact with the company the FFD is likely to require quite a few more wells as per previous RNS' perhaps sidetracks and horizontals. I guess as production naturally declines they'll infill across the field.

Regards,

Ed.

TNM,

Forgot to reply to your last point. Yes pumps could also be used as could laterals for longer completions, both would aid the amount of recoverable oil per well. I think the most likely will be the return of pressure support at some time (water flood). So yeah I agree ESPs are also an option.

PS. not sure why none of the capital letters showed on my last post, bit twilight zone on here today. :)

Regards,

Ed.

tnm,

that's understandable, i've been tempted to add more at this level too. we'll just have to find out what is causing that pressure down there and the return to original pressure. there is a possibility that the solution gas has recharged too as well as the oil. could there also be water drive, no water was logged in the wells so the water is currently a mystery. even on to-13 it was just oil shows and the most down dip well to date. could there be water on down the flanks close to the two injection wells, perhaps, we may find that out at a later date. because the reservoir is very over pressure there could be both drive mechanisms ongoing, both solution gas and water drive. hopefully we'll get more info from the testing and the ffd drilling. there's plenty of infill and stepout space left yet, south eastern flank of the field looks pretty sp****. i'd like to see if they mention the gor with the flow test results. something down there has recharged the pressure.

nige,

the company has already suggested to-13 and to-14 are connected, therefore likely to be on a similar pressure regime. also 120m of oil shows in to-13 and 80m of oil shows in t-14. we don't yet know the downhole or flowing pressure of these wells. to-14 closest offset well to to-4 (12580bopd), so hopefully that one will flow quite well even if it doesn't meet to-4 rates (it may do but not counting on it). to-13 is around 1.4km away so reservoir quality may change even if its still highly fractured. my guess at the moment would be that to-14 on the crest is likely to flow better than to-13, even though to-13 was first described as a cornerstone well and has a larger oil column. reason being, production history of the field, to-14 positioning. could to-13 still outperform the other wells, it may do, its the most down dip well on the field. increased depth normally means increased pressure. my current view is with modern logging and completion these wells should outperform the 1960's well given the information from the drilling to date. we'll know either way very soon. the company now describing themselves as an exploration and production company is the most telling statement yet.

regards,

ed.

Luke,

Good man, fingers crossed. This one sure has the potential to make folks a lot of money for sure given the contents of that presentation and our low starting point. I do check in every day too even though I'm planning on staying for at least FFD of Tobias and Galinda. That would likely cover at least the next acquisition too. When we're awaiting a potentially game changing RNS its only natural folks will check in at least several times a day.

Regards,

Ed.

Hi Nige,

Yeah likely some twitchy fingers from some. Yup given the presentation details we're still on course for news very soon from both wells. Then CPR, seismic, Tobias appraisal etc etc still all to come this year. CPR will make for interesting reading as will forward plan for Tobias.

Regards,

Ed.

Nige,

The presentation I take as the current info as it was released since that testing RNS came out. I'm taking my timing from that. That puts us at late Q1 for TO-14 testing and very early Q2 for TO-13 testing to complete.

Regards,

Ed.

Sienna,

The way I see it at the moment, the lower the launch pad the further it'll launch. We're not valued at much higher than BCE right now and they flowed at around 40bopd! So market not pricing much in here at present at circa £15m cap. If the recent presentation is anything to go by this is due a dramatic re-rate long before year end. I'm fully loaded and ready to go. Any time you're ready Sonangol. :)

Regards,

Ed.

If some can't be bothered to use a calculator, that would have put the value of the 2P reserves at $628m (July 2022). That didn't include the fall off chair big discovery at CCU or BFFDU, the infrastructure, the injected gas etc etc. Its still largely down there too thanks to not enough injectant. PS faulty coiled tubing units can be replaced or hired in the USA, they're commonplace over there for well treatments and completions. I'm sure they wouldn't even have to go to Alberta again to get one of those.

Regards,

Ed.

The increased reserves and value RNS also makes interesting reading for the reserves at the Cole Creek Unit and the Barren Flats Unit.

Here it is from the horses mouth:

Arthur Millholland, President & CEO, commented:

"The updated reserves of the Company and the significant increase in COPL's 2P NPV 10% to $492 million illustrate the benefit of the timing of our acquisition of the Cuda assets in a high oil price environment. We purchased these assets for $19.15 million with the incremental reserves acquired at a cost of $2.20 per barrel. This is a remarkable metric to the comparative valuation of the 2P Reserves of $15.70 per barrel as at July 31, 2022. We will continue to release updates to the market as we work through our plan as presented earlier this year."

"This is a remarkable metric to the comparative valuation of the 2P Reserves of $15.70 per barrel as at July 31, 2022." $15.70/bbl then, worthless now apparently! :)

Regards,

Ed.

I should have said a couple of months later*

Regards,

Ed.

As for the two oil producing units, they are the unitized lands at CCU (I think it was the narrow Frontier 2 sands for production) and BFU (shannons).

Regards,

Ed.

MrE,

One day the truth will come out about those. They did raise $13.8m and one of the reasons for that was for drilling, that was right before the "bond deal".

"The oversubscribed accelerated bookbuild process announced on April 19, 2022 has raised gross proceeds of USD13 million."

"The net proceeds of the Placing, in conjunction with COPL's other financial resources, are intended to be used for facility upgrades and drilling activities, and for general working capital."

The "bond deal" arrived just one month later in July 2022. So where did this $13m net financing go? Drilling was mentioned.

Regards,

Ed.

Eddy,

Totally unpredictable at the moment. If there are competing bids they have a lot of infrastructure in place. That gas processing plant and the steel pipes in the new GGS could also be used on the deep discovery, not just BFU. That and the 40mmbbls of gross 2P reserves have a large value as the company continuously highlighted over the years. So it all depends on the bidders, they did show there was live mobile oil in the Dakota and Frontier 2 (CCU) so that should be factored in too. In fact we were led to believe a JV company looked at that part for 15 months or so, an industry leader in fact, also signing an LOI. So there was something there for all that DD. Will that lead to a fair offer for the assets, we'll see.

My gut feeling is that this will still likely have to go through the court process. But looks like the CAG are not leaving any stone unturned so hopefully a very positive outcome for shareholders over the longer term. So to answer your question, yes I believe us shareholders will get something eventually after what has gone on here, but it will take time.

Regards,

Ed.

Had they tried that to buy Cuda they may not even have needed a "bond deal". They went to 60p per share eqv after completing Atomic.

Regards,

Ed.

Burrenboy,

Exactly, they never tried to raise money via shareholders. Take CHAR for example, they did an open offer before drilling Anchois-2 and the market wasn't that interested around 3.5p. Participants could get their full excess etc. They then did the same thing after the well was drilled at 10p+ and were oversubscribed. COPL on the other hand didn't try this route at all. They imo could easily have raised for completion of Cuda or after completion to at least finance some of their debt. They didn't try that even once so have no idea how successful it could have been. CHAR using the same mechanism did the same thing twice and were very successful on the second raise after good news (they had no reserves either just contingent resources).

Regards,

Ed.

Nige,

The site I mentioned is very useful to check a lot of releases all at once early, from 7am. Just in case anything catches your eye for later that day.

You're welcome, these boards are all about investors sharing info and opinions to help each other out, between copious amounts of slanging matches etc. :) I'm a boring old fart these days between family commitments and working out, I've been off the booze since a mates stag do in Prague back in 2012. But who knows, if Tuenza-2 comes in from their future exploration activities and Mr Karam makes us obscene money I might get a flight over to see you guys.

Regards,

Ed.

Morning guys,

Nige early bird catches the worm, I'm up early on weekdays to catch the 7am releases. I don't know if you use Investegate to check for news but its a useful site to get most of the early market releases from oil and gas or miners. After that I normally check the bbs. Definitely I'd like to see more videos like that, very professional as you say to introduce all the management in that way. I hope we start to see some LSE or proactive videos to discuss progress in the future as that would certainly get the message out to more private investors.

Luke,

That link is always an easy read for sure, especially as we get a firm mention for the strong return of production onshore Kwanza. There's plenty of media hints out there as we await these results. Hopefully Sonangol will approve a comprehensive update soon.

Regards,

Ed.

Any publicity is good publicity. I see it as positive that the company are getting the message out there through more and more sources. The higher the profile the higher the trading volumes will be and hopefully the share price too. Like him or not he does have a lot of people who read his blogs.

Regards,

Ed.