Member Info for Edgein

Moma,

Too right fella! I tell you something real crazy, it we 2 bagged from here the company would be worth around the same value as the gas and butane that has been injected into the BFU field. If you add in the gas gathering plant, well stock and pipes it comes to around 22.5p per share (700m shares). That still doesn't count our 40.5mmbbls or gross 2P reserves nor the very large discovery. So yeah undervalued is one way of looking at it, plain nuts is another.

Regards,

Ed.

FR,

Lets hope so!

BB,

There's certainly two transformational pieces of news that we are expecting. Firstly the GGS upgrade, that could potentially put us to multiples of the production that we started the year on. We saw last time just how quickly the production responded to the MF, this time no restrictions or bottlenecks, each of our best producers will have their own high pressure separators as well as the new pipe. COPL could continuously inject 8.5mmcfd if they choose to do so. That's transformational both short term and longer term, as production increases so do netbacks.

Clearly as you point out the JV being more material of the two given the scale of CCU and the fact that they would be farming into reserves as well as contingent resources. But hopefully by then we can have a good idea of the scope of production increases from the BFU.

Regards,

Ed.

OM,

What's occurring is that the bargain hunters are around this morning given our large assets and tiny cap. You could be right that happy days are returning to COPL with the imminent de-bottleneck of the BFU production. Goodbye grey sky hello blue 'Cause nothing can hold me when I hold you, Feel so right can't be wrong A-rockin' and rollin' all week long.

Regards,

Ed.

Bob,

We sure have been through the wringer on this one, hopefully about to get to the good stuff very soon. GGS upgrade to de-bottleneck our production was due last month. So everyday its a case of keeping eyes peeled.

Regards,

Ed.

Bob,

Perhaps after the production constraints and bottlenecks have been removed:

"Our recent Bond issue has allowed the Company to embark on long planned projects to remove the constraints and bottlenecks to our oil production from our Barron Flats miscible flood."

Regards,

Ed.

Good morning Tiburn,

That's an impossible question to answer right now. All we know is that CNOOC opted out of the Fed Deeps discovery well, so COPL have 100% of that well. The Fed Deeps is potentially on the scale to attract and keep the big guys interested. So if the discovery is as big as many of us think it is I can see CNOOC wanting to maintain its 15%, as you suggest there may be a future carbon capture element to this large discovery on CCU and BFFDU. There is nothing currently hindering CNOOC from participating in the BFU or BFFDU, in fact they should currently be paying 15% of all costs on BFU. As you point out these majors work together globally so nothing to stop similar happening on our assets.

So to answer your question we don't know if CNOOC has participated in any tech evaluation of the Fed Deeps, only COPL could answer that. We can see why they might want to participate.

Regards,

Ed.

No mention of switching priorities, but something happened prior to 20th April to increase their confindence in the resource and the JVP to make "recent" progress in the discussions. Now it turns out we have two Frontier wells with confidential status.

"Joint Venture Discussions

Discussions with a large oil company who approached the Company regarding the exploitation of its Frontier oil resources are continuing with current focus on commercial terms. These discussions, as well as the identity of the party involved, will remain confidential until their disclosure is appropriate by agreement. Substantial additional technical evaluation has been undertaken during this period, which has led to a better understanding, and increased confidence, of this resource.

Arthur Millholland, President and CEO commented: "Our recent Bond issue has allowed the Company to embark on long planned projects to remove the constraints and bottlenecks to our oil production from our Barron Flats miscible flood. We are embarking on these projects after a very difficult winter in Wyoming with near record snowfall and low temperatures experienced in multiple severe winter storms. Spring though has come, and with it the issues of warmer weather which will be temporary. The Joint Venture discussions continue to move forward and we are encouraged by their recent progress."

Regards,

Ed.

Tiburn,

It would seem pretty pointless to keep a well confidential if it were a P&A, because who would want to compete for non-commercial acreage.

Regards,

Ed.

Tiburn,

Just as Shouston posted with regard to the production status:

"If a well is marked “confidential”, all records concerning the well, including production, will be withheld from public view except for the Form 1, Permit to Drill and the survey plat until the well is released from confidential status."

These wells can remain confidential until the JVP decides otherwise.

Regards,

Ed.

Tiburn,

Well done on that info! Goodness me it looks like they were in a position to drill a couple of BFFDU horizontals after all! I wonder will we get the hear about the results of those in due course. As others have said the company has stated they more than stand by their original assessment of the large find. Their original comments were up to 1.9bn bbls in place. Be interesting to see what happens next with the JV. Could be CCU first and hard ball on the BFFDU.

Regards,

Ed.

Shaa,

Very true, sun starting to peak out again. The GGS will hopefully prove to be a big part of the jigsaw and it'll be interesting to see what happens with the wells unrestricted and the injection rates increasing. Could solve those bond and SL issues. This time next year could look like a completely different company. Just imagine if they were in the position to service those bond payments and drill a couple of BFFDU wells (85% wi).

Regards,

Ed.

Shaa,

The old system couldn't cope with anything more than 3mmcfd injection rates. When they tried 8.5mmcfd they didn't do it for very long! Yes the wells have been restricted, a recent RNS suggested that there's greater than 350bopd currently restricted (that's under the low injection rates). We've yet to see what continuous 8.5mmcfd (let alone 12mmcfd) can achieve. So yeah I'd expect some pretty instantaneous wins with wells no longer needing shut in or flaring after commissioning. Wells shouldn't need restricting either. The high pressure gas can return along the 5km steel pipe. I'd expect a decent rise in production if the system is ready to go from early August, hopefully hear any day now from the man himself. Fingers crossed by the end of this year we'll be doing several times the production we started the year on.

Going completely off tangent and off topic its interesting today we're not hearing the bragging about IOG and PRD that we had recently. Traders are only as good as their last punt.

Regards,

Ed.

Shaa,

Absolutely, the wells were restricted because the GGS couldn't handle the pressure from our best producing wells. Those upgrades and commissioning were scheduled for July. So once upgraded the wells shouldn't need restricting, but rather be gradually opened up to full potential, the gas injection rates can at last reach continuous 8.5mmcfd and the MF should be working properly from then on. Production profile inclining as the company previously suggested etc.

I'm sure the new partner, after all that technical due diligence so far will have a good idea of the potential of CCU. I don't think Art would want to sell at this stage, but I guess everyone would have a price. I'd like to see the company over the next 12 months get the BFU up to peak, go hammer and tongs at CCU with their preferred partner and start delineation of the BFFDU (85% wi).

Regards,

Ed.

Shaa,

Absolutely, Exxon isn't the only show in town in the PRB. There's a lot of companies having a lot of success in the PRB and the very fact that COPL have selected their preferred partner suggests there's other sniffing for sure. Even back to those Cuda broker reports suggested there's a lot of oil at Cole Creek, long before the RS report came out. So the fact that there's a lot of oil in place at CCU isn't a well kept secret. Just back then we thought it was only possibly several hundreds of millions of OIP on part of the licence area rather than 993mmbbls at CCU and Western BFFDU.

So the asset is off the chart for a tiddler like COPL to get in on. With the GGS almost upgraded and a potentially willing partner we look like we're finally on the cusp of a long journey to fair value. I'd be surprised if there weren't some building positions here as we're barely valued on the fumes let alone any of the oil. Some might get off the train before the first stop but others will stay for many. Next Station is GGS central.

Regards,

Ed.

18 wells in the Frontiers of Cole Creek including a horizontal and the new well drilled by COPL thought to extend that across to BFFDU. Also oil recently flowed from the Frontier 1 for the first time, no wonder the large established company wanted exclusivity.

Regards,

Ed.

art123,

don't forget that large established company wasn't also on a 9 month ****** in benidorm, they were spending the last 10 months doing substantial technical due diligence on cole creek and have been in commercial discussions with the company since april. they haven't been knitting or thumb twiddling. don't worry about the bonds there's plenty of time for the production to go materially higher between now and 2027/2028, especially with the jv at an advanced stage and the ggs upgrade about to complete any day now. your prolific posting won't stop that. :)

regards,

ed.

SirJames,

We had two large holders Spreadex and Anavio who block sold from 4p creating a disorderly market and a collapse in share price from around 4p to around 1.5p. They have now cleared and the share price is going back up again. On top of that we are due the completion and commissioning of the GGS upgrades that the company has stated will see production return to past peaks and an incline curve, expected to be completed in July.

If that wasn't enough for you we're valued at about £16m and our small field is $490m NPV10, the wells and gas plant and injected gas/butane on our smaller field is worth about x10 our current cap. Lets not mention the large discovery that an established company signed an LOI on as that gets even more ridiculous then.

Regards,

Ed.

Latino,

No big surprises that folks are loading up ahead of the imminently expected GGS news. This week's news on the exclusivity and letter of intent from our partner of choice will eventually sink in too. It looks as if we may go back up as quickly as we went down. Looks like those Anavio and spreadex shares are now in firmer hands. A bit of excitment returning for us LTHs. Long way for this price to go yet to reflect the BFU.

Regards,

Ed.

Tiburn,

Just to correct a few parts of your post:

"Its pure unfounded speculation to assume its a smaller scale of JV as its not FD first or excludes it - why would they ignore1.5 Billion barrels and leave it on the table for a competitor?"

This is where a lot of people seem to go wrong and have a misunderstanding of the deep discovery. The deep discovery includes CCU as that's effectively where the deep discovery starts in the Frontiers and Dakota in Cole Creek. The theory is from the company and RS report suggests that this anticline goes straigraphic and continues under the BFU in the Frontiers and Dakota. You are talking as if these are two discoveries/fields and apparently they're not.

RS report and COPL presentation at the time suggested that Cole Creek and the continuation of that into the western BFU (BFFDU) contains 993mmbbls in place. That 993mmbbls is part of the 1.5bn that you refer to. The total mapped area that COPL used in their resource evaluation also included areas to the north of Cole Creek and areas east of the discovery well, a much larger area than the RS report covered. Its not Cole Creek and 1.5bn bbls in place, its 1.5-1.9bn bbls including cole creek area plus others. RS report was much more conservative as it only included areas that had previously been drilled, including cole creek and the new discovery well. COPL likely mapped the extent of the formations from seismic and delineation may prove them correct.

What the JV is doing is taking the areas of known oil into the deal and leaving the unexplored but potentially extension areas to COPL, they're taking the pie and leaving COPL to look at the cherry. In time the cherry could turn out to be as big as the pie. So as others have suggested COPL may in fact be drilling 85% horizontal BFFDU wells, if successful the potential JV partner could then move in on the BFFDU too. We'll have to see what happens to a potential RBL/JV cash component first and of course the production profile of BFU.

Regards,

Ed.

P.S. old Ed here doesn't work in oil and gas but has a background in research which has been applied to the mining and oil and gas sectors for around 30 years so far.

Just to clarify that a little further for you most of the wells in the CCU have been drilled to at least the the Frontiers, it was mainly a F2 development by Mobil. No modern completions have been done on these wells and you just have to look back at the oil price back in the 1980's to see how economics have changed. Without horizontals, stimulation and EOR these fields wouldn't have been as attractive as they are today, now PRB acreage changes hands for big $. So no real wonder those familiar with the assets may want another look. :)

But have no doubt the real evidence for the deep discovery lies at CCU. A JV partner could easily extend the JV to cover the BFFDU at a later date for full delineation of that area too (way beyond the boundary of the RS report).

Regards,

Ed.