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8. Don’t forget the wider Caribbean was also included in previous presentations.
LGO, May 2017. “GEPL has awarded a drilling contract to Trinidad specialist drilling contractor Sadhna Petroleum Services Company Limited ("Sadhna") for the drilling for two firm and a number of optional wells on a turnkey drilling basis using a small footprint conventional (rotary table) drilling rig. Site preparation will be conducted by Sadhna and will commence as soon as practical,“ “Plans are in place for the first 10 locations and the Company already holds existing regulatory approval for 45 further wells. The average Mayaro Sandstone well will be drilled to a depth between 1,000 and 1,750 feet at an estimated cost of less than US$500,000 per well.”
1. December 2017. http://www.lse.co.uk/regulatory-news-article.asp?ArticleCode=4h0gkezt&ArticleHeadline=Holdings_in_Company October 2018. http://www.lse.co.uk/regulatory-news-article.asp?ArticleCode=b8fr4o68&ArticleHeadline=Holdings_in_Company 2. High case 1600ish bopd, low case 900bopd targets for end of December 2018. https://columbus-erp.com/wp-content/uploads/2017/06/End-of-Year-Update-December-2017.pdf 3. Via media? 4.Q4 update:” Following the Steeldrum acquisition, the focus of the Company in Trinidad is to optimise cashflow and profits from our six assets. This is possible given the differing commercial/licencing structures associated with each asset. Greater cashflow returns and profits can be achieved by producing more barrels in certain fields, when compared to others, due to higher netbacks from sales. The Company will target profit over "production per se". http://www.lse.co.uk/regulatory-news-article.asp?ArticleCode=u2sai1vz&ArticleHeadline=Business_Operational_and_Financial_Update_Q4_2018 5. Middle Cruse in the SWP found at depths of 2500ft(Icacos) - 3500ft (Habanero #1/Bonasse), shallow? Costs via media. 6. Q1 2019 update: “The water injection Pilot A implementation in the Goudron field that commenced in July 2018 through injection into GY-667, continues to show evidence of direct pressure communication with target offset production well GY-665 but without any sustained increases in oil production. Plans are in place to commence water injection into GY-209 in Q2 2019 to test support to offset well GY-664 as a continuation of Pilot A.“ http://www.lse.co.uk/regulatory-news-article.asp?ArticleCode=0g5sre6v&ArticleHeadline=Business_Operational_and_Financial_Update__Q1 7. ?? The clue is probably in the field name.. Tar!
Hopefully we should see the SWP plans come the next Quarterly update.
Ritson was ousted with the exact same strategy... If oil prices and the share price was much higher I may agree with you.. but then again, with how finances are handled by Gordon I don’t think we would see the need to.
If they did that.. the old stigma from LGO would continue... I don’t think the market conditions are in favour for such a strategy. You could say it’s a lessons learnt from the previous regime (which many expressed their discontent).
Could be worse, CERP could have a CFO and a CEO that would take the easy option in a share fund raise or a loan for in-house development.. like we have previously seen under LGO. But they’ve taken the route to be self sustainable. We have Gordon keeping a close eye on all expenditures and revenues and we have a CEO listening to his CFO.. Having forward looking plans such as the following.. “Following the completion of the first well, the Company may seek third parties to farm-in to the SWP when justified by cost and/or risk sharing.”
“An inventory of incremental stimulation workovers was generated for future implementation based on rig availability and hurdle economic returns being met. Peak instantaneous rates continue to demonstrate the upside potential of all the producing fields.” Oh.. and, · The operational management of the Icacos Field was taken over by the Company on 1 January 2019.
Q1 2019: Peak production of 1,000 bopd achieved in late January, production exceeding 860 bopd on three occasions during quarter confirming the combined field potential when economic and commercial conditions allow a more aggressive well work programme. Lower production was due to significantly reduced well work activity. A single workover rig was utilised continuously in Q1 2019 compared to up to 4 units simultaneously in Q4 2018. Oil prices in the quarter remained in the $50-60/bbl zone where the step change in SPT adversely impacts short term incremental well work returns. · To progress discussions for renewing the Company's Incremental Production Service Contracts, in particular for the Inniss-Trinity field and Goudron field. The Company is keen to ensure that the IPSC terms motivate operators to invest funds to grow production including at times of lower oil prices and notwithstanding the effect of SPT on cashflows. Q4 2019: Year-end target of peak production of 1,000 barrels of oil per day ("bopd") achieved with production peaking at 1,021 bopd in late December 2018. Greater cashflow returns and profits can be achieved by producing more barrels in certain fields, when compared to others, due to higher netbacks from sales. The Company will target profit over "production per se".
Or would you anticipate well workover costs to be US$770k or somewhere in the middle?
Soup.. if the company maintains production at 600 bopd at anticipated well work over costs?? What’s sort of financial gain would you expect to see inline with the current oil price? Q3 well workovers cost US$770k Q4 well workovers cost US$720k (4 rigs). Q1 well workovers cost US$???k (1 rig).
Goudron is a French word, translates to Tar.. :)
“Optimise profits from operations and manage costs from the Company's producing assets, in a lower oil price environment where the impact of Special Petroleum Tax ("SPT") on cashflows is very real, not necessarily through continual production growth but through a programme of maximising commercial returns on each asset, through implementing cost reductions, where necessary, and managing well work activities. Focus has been not to simply grow production (for growth's sake) but to improve commercial returns on the assets through more effective well work and operational activities.” Q3 2018- Avg 735bopd-WTI,US$60.90-cfp US$0.54. Q4 2018- Avg 670bopd -WTI, US$57.58 - cfp-US$0.37. Q1 2019 - Avg 602bopd - WTI,US$55.67 - cfp- US$0.40. WTI currently at US$64.(beginning of Q2 US$60).
The Middle Cruse appears to cover/connected from Icacos to Bonasse to FRM1 to ACD4.. the whole of the SWP. “Icacos on the mirror side of Pedernales on a large anticline structure. Oil is found in the Icacos and Constance fields at shallow depths of less than 1,000m in fault and stratigraphically trapped Pliocene age deltaic sands of the Middle and Lower Cruse Formation. Historically, medium quality oil of around 28 degrees API has been produced at both fields.” “The block includes the Icacos field, which has produced more than 500,000 bbl of 26-28? gravity oil from Mio-Pliocene lenticular prodelta sands of the Cruse formation at 2,000-2,500 ft.”
$500k from current cash in the bank to prove the existence of the mid cruse in the SWP and could allow for greater profits while the other state licenses cover the costs of running the company.. even if the drill is a failure it’s not going to put the company in a detrimental position.. by the time it’s drilled LIND would have been cleared.
1000bopd would have been far more favourable, but with the current licensing agreements, SPT and the current oil price environment. There doesn’t appear to be financial incentive to do so. It appears any state owned license is deviating away from primary production and Secondary recovery projects pursued as they provide a tax break but from memory the larger the project the better the incentive. Leo’s/Gordon’s comments at the beginning of the year with focus moving towards the SWP as the barrels received is almost double what they would get from Goudron alone.
Depending on how they plan to drill it.. if the plan to re-enter a well.. say well B8 on the Bonasse field, it’ll depend how deep that well is at present.
I’m not getting drawn into your BS games.. Wait until mid Q2 or the Q3 update for the SWP drill plans. If you don’t like the information I’m providing on CERP assets.
Did you read my copy and paste on Habanero #1 :) the lower Cruse was never reached :) drill limitations too 8000ft. Something I have discovered is that this $500k is to prove the reservoir formation in the SWP. What we do know from elsewhere in Trinidad is that it’ll be very likely that it’ll be charged by Gas.. hence his comments in the media about news flow in regards to production figures.
I'd rather share research.. then get drawn into a bitching match.