RE: Orcadian Energy9 Mar 2022 12:42
Yes, Dick - saw those in the update.
Listening to some of the ORCA videos and presentations, it's pretty clear that unluss Companies are talking Net Zero, they aren't getting through the door of the OGA.
When JOG first started talking emissions etc, I thought it was just box ticking and buzz words. now, not so.
Orca RNS refers to a White Paper, so I think Net Zero targets and with that electrification (amongst other things) will play a big part in Field Development Plans.
White Papers = legislation.
I can see more punitive tax regimes for Companies based on their emissions ( a bit like car road tax bands) coming into force.
Fortunately for JOG holders, we look to be well down the road with this side of the business and the OGA seem to be working hand in hand with our Team.
Don't know much about the "technicals" regarding electrification but I thought JOG were initially looking at running a cable from the mainland to the rig - about 150 miles. Certainly will be costly (anything in the Oil business seems to be), but I hadn't considered the problem of intermittent supplies/ drop offs due to the distance covered.
The localised wind farms with much shorter cable lengths sounds like a good idea to my non technical mind, and hopefully this Report for the OGA due by end March greatly helps, rather than hinders our way forward.
Our success or failure rests on the terms of any farm out, but I can't see anything negative in this development of electrification (other than time to implement, which I think has already slowed the farm out process - the delay being a pain, but ultimately or hopefully value adding for any farm in/ purchase price).
As for ORCA, each to their own.
In my view it is just a punt.
Heavy oil (which if you were involved in Xcite instantly brings you out in a cold sweat) is a bit of a negative.
They also have very little cash and will need to raise funds soon.
On the plus side, they do have decent reserves, and IF they can attract a partner, the share price should increase substantially.
As for their Directors, I have no idea. They seem highly industry experienced, but whether that can translate into running a successful business, who knows. I wish them well and prosperity.
Fortunately, at JOG, I think we have a really good Management Team, so hopefully success follows from that.
The warning signs are there for Companies with poor management, and Xcite are a reminder for all.
Xcite Directors just weren't up to the job and were ultimately complete failures. The problem being, their failure cost a lot of us a lot of money.
Lingered to long on Xcite and ultimately, the financial loss incurred was just as much my fault for being taken in by the Boards guff.
Hopefully, not this time with JOG.
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