Member Info for Exploration

The BM Sidi Moktar commentsreported by n4apound is just typical. There is no money for seismic this year and no need to drill in 2019. Number 1 rule ifor small companies is never spend your own money on exploration. Next we will hear TE wells are delayed by failure of contractors to supply well heads and long lead items on time. Or maybe Sound just thought you could buy these things off the shelf on on eBay. Without an accountable COO who is actually running operations?

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This is "more of the same" and quite annoying for PIs with any knowledge of upstream operations. The work commitment on Sidi Moktar is 500km of 2D seismic in 2.5 years. Then 3 years to drill one well. That is minimum of say, 2 million dollars of seismic. Schlumberger is out of land seismic acquisition since January 2018. Without a farm out it is unlikely to happen unless Sound is raising more money. Sometimes I sense this team is out of their depth in land operations or they are taking us as fools. The so called delays in delivery of seismic may simply be bad estimates from lack of experience in knowing how land operations take more time.

Sorry Penny Pusher I must try harder! whosthedaddy Yes we'd all like to see some drilling but neighbours like Spirit are focussing on production and smaller companies like Third Energy are hanging on by their fingertips. Centrica is better off without Spirit and now they can concentrate on servicing old boilers instead. In my view it needs someone like CLNR to insert a new player to shake it all up. If there is a farminee in the wings I reckon they would 1 delaying a deal until 2248 and 2252 were extended AND having first option pre 30th Round awards to farm into new Q42 and Q43 acreage. Meanwhile the market tells us what it thinks.

wh0sthedaddy I agree with you. On other hand CNRL will want to position themselves to find and produce gas when local infrastructure such as pipelines and shore terminals can cope with it. So there is no hurry to drill for the sake of it and wait years for pipeline ullage to become available. CNRL is in it for the long term. CNRLs acreage and likely wet gas content is positioned to take space in the Breagh pipeline system to Teeside. The Teeside terminal was built years ago by Amoco to receive gas from the Central Area Transmission System or "CATS" for short. The gas from Teeside goes into the National Grid and the condensate supplies the local chemical plants. This is why INEOS bought into Breagh. However Breagh is a "peaky" project and ullage in the pipeline frees up soon. My guess is that CNRL is talking to interested parties about leading an integrated approach by a group of unaligned licencees. No single company can make a move in the Q42 Q43 area without cooperating with the neighbours. OGA know this and have powers to encourage cooperation. So this is why licences have been extended and new ones issued.

a1m1investor UK gas prices are doing well too. There were peaks during Beast from East 1, and another with Beast 2. But even today NBP spot is over 7 dollars per mcf. Price floor is set by LNG at around 7 dollars. No oil price volatility. http://www.ercequipoise.com/graph/uk-natural-gas-nbp-spot-price/

FSA17 Do not know. It is up to CNRL and their Nomad. See page 37 on link below. https://www.lseg.com/sites/default/files/content/documents/aim/2018/January/AIM_Rules_for_Companies_January_2018.pdf

Ducatti Yes. It is all rather "edge of the seat" stuff. CNRL was notified of the previous extension last year with only days to spare. OGA always delivers. It is their job and mistakes by them carry big consequences. This is one reason apart from the technical side that we can count on CNRL management. It is a small highly professional team which keeps on top of the systems and procedures needed to succeed in UKCS. Many small companies fail because they cannot cope with the bureaucracy but CNRL operates with military precision thanks to Algy Cluff oversight and influence in high places. Our money is in safe hands.

wh0sthedaddy You are right. But a new punter would have to wait for the 31st Round and face competition. OGA want activity and they will judge an extension based on the whole picture. Frustrating, but how it works.

Ducatti I think you will find a deal deadline is for tomorrow with Drill or Drop Commitment by end September. See below. Cluff Natural Resources Plc, the AIM quoted natural resources investing company, is pleased to announce that the UK's Oil & Gas Authority ("OGA") has confirmed that the Company's two 100% owned Southern North Sea Gas licences, P2248 and P2252, which are estimated to contain combined net P50 prospective resources of 2.4 Trillion Cubic Feet of gas, will be extended, subject to the achievement of certain milestones, for a further year. Accordingly, both the Promote Period and the Initial Term of each licence will run until 30 November 2018, subject to a farm-out being achieved by 31 May 2018 and a drill or drop decision being made by 30 September 2018. The technical milestones that are to be achieved pursuant to the extension of the licences are in accordance with the Company's planned work programme.

MadChatter The answer is yes. It would be a vote of confidence in CNRL work and approach. If OGA do not extend the licences OGA would have to revert to "Square One" and reliance those areas in 31st Round. That would involve a 2 year delay in drilling the CNRL Q42 and Q43 blocks. OGA makes these decisions at their Board of Director meetings which include experienced oil executives. There is an OGA Board meeting this week and because of the nature of the beast the results are only known at the last moment.

OGA awards licences based on a transparent scoring system. The results are published along with awards. https://www.ogauthority.co.uk/media/4892/highest-marks-by-block-list-round-30.pdf Succesful bidders do not wish to leave too much "on the table". In this case CNRL has cleverly won excellent blocks on low bids. Fantastic results. Apart from that CNRL has rewritten the geological rules for their core area while working on 29th Round blocks

a1m1nvestor I suspect those in the know in terms of geology are reaping early rewards of CLNR technical work and positioning over the last three years. If you simply draw a straight line between Cygnus and Breagh gas fields it defines a broad play fairway with discoveries and prospects. The fairway has been dominated by Centrica for years but they have now pulled back and rebranded themselves as Spirit Energy in the upstream. So now we are seeing innovative independents like CNRL reinventing the geology with high tech seismic and cutting edge petroleum geology. I am backing CNRL firstly on geology and also on prudent professional management. It is easy to see how their core area will soon become a hive of activity and news flow in next couple of years.

Hassi R�Mel supplies the Maghreb pipeline to Morocco and Spain A$4 billion deal to save the Hassi R�Mel field Sonatrach has kicked off a huge project to save Algeria�s biggest gas reserve, Hassi R�Mel, from irremediable decline. And the technical bids to do that are currently being assessed. According to our sources, Petrofac and Japan�s JGC figure among service companies with the best chances of winning the nod. The project is daunting because it involves boosting pressure on the field in order to stop the decline in output and thus boost its production. According to a source with knowledge of the project, the contract is worth an estimated $4 billion and forms part of a five year plan by Sonatrach to lay out $90 billion between 2016 and 2020.Hassi R�Mel is considered one of the world�s biggest gas fields. It was discovered by Total in 1956 and pumped as much as 80 billion cubic meters of gas per year in the 2000s before it started falling off sharply from 2010. It currently produce less than 50 billion cubic meters. per annum.

Billy You have to become counter cyclic to profit in this industry. For example. An Optimist Oil Trader mets a Pessimist Oil Trader. The Pessimist Oil Trader says �the oil price has collapsed, all my shares are worthless, I sold me car and house and I am facing financial ruin. Things just cannot get any worse.� The Optimist Oil Trader says, with enthusiasm, �oh yes yes, things can get much, much worse!�

Hallowed I bought my copy of L'economiste this morning in Rabat. One of the articles includes reports that during Ramadan there is a general increase in risk taking in Muslim countries stock markets which end with profit taking on the 27th day. There are other ups and downs depending on whether it is an odd or even numbered day. The appetite for risk during the holy month could be guided by the belief that the reward for worship and good deeds will be multiplied. Apparently, Ramadan tends to generate positive emotions and therefore encourage people to take more risks and buy more shares,This is self-fulfilling prophecy that is belief modifies behaviors so that predictions will actually occur. So what? Maybe we should all pray TE9. Every little bit helps. See link below http://www.leconomiste.com/article/1028764-bourse-ramadan-encourage-la-prise-de-risque

sorry - wrong link - truths one https://vimeo.com/271525843

Try this https://www.*************.net/interview-predator-oil-gas-plc-successful-ipo/ It is Paul Grifiths of Fastnet Oil and Gas fame. So there is life after Tendrara. He has rematerialised and raised 1.3 million pounds to fund a couple of new projects with Predator.

A1m1investor Good point. Centrica has controlled the Q42/43 Carboniferous trend east of Breagh but not followed up since Cygnus development and the Pegasus discovery. CNR is now well positioned to inspire Centrica to co-operate with others, explore the trend and develop any discoveries as a group. A bit like ETAP where individual fields were non commercial to geologists, but engineers figured out how to turn them into an exciting project. Really good news and all credit to the CLNR experts. It now has �critical mass� and will surely attract some drilling dollars.