Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
It’s the 1P you need to focus on as the 2P always involves further development.
Either way the tank is draining with no plan to increase so be it 5 years or 15 the trajectory is towards zero. If you want dividends invest in Exxon as they will still be around in 5 years
They have already announced that they are loosing cash
So how on earth are they going to do remedial work and drill another well with £2mm in the kitty, and Would anyone want them to bankrupt themselves taking the risk?
Raise some money and then have a think, farmout if possible.
Maqsood what on earth makes you think a loss making company with only $2.7 mm left in the bank is worth more than £9mm? Production is declining rapidly and they are out of cash and ideas.
It doesn’t work. They had a shot and it’s done.
Clearly this is why so many other companies have tried and failed in these crappy reservoirs.
Best to stick to Shell.
Gas prices are virtually irrelevant to BLOE as they hardly produce any, look at the 1st half results.
Just get on with the announcement BLOE, all that matters is the oil rate from this latest well. Surely they must have a rate by now it’s been testing for weeks.
80 mmscf per day is what ? 30 bcf a year production?
So 3 years to drain the 90 bcf tank? Obviously the production will start to taper off long before the tank is drained. As I say what’s the 3-5 year plan?
They have to get an RNS out showing latest monthly production including latest well, revenue estimate and today’s cash position following the recent drilling spend.
Clarity is now needed or this slides.
Steadily draining the gas on the tank with seemingly no ambition to grow and replace it. Surely at some point it needs to replace what it’s produced.
How much did they spend on the drilling, salaries and OPEX in the summer? Not to mention legal costs etc.
Anyhow Q2 cash will at least give a guide.
I bet they wish they had gone slower on this though, given where oil and gas prices are now. Rushing the drilling in 2019 before waiting for the 3D was a big mistake…huge.
A valid well test is the only thing that will prove a gas accumulation in MOU and even then they need a positive appraisal well and probably a 3D before any development revenues. Lots of -$$ required. There are gas shows all over Morocco but not much cash flow.
What does ‘part ownership of a service contract’ mean?
Who pays the millions for the development costs?
If there’s no oil production there’s no revenue and no way to pay for services..
Makes no sense.
Let’s see if we can get unambiguous information on:
- present cash position
- total production (oil, not water) per day
- test information on new well bopd
- gas production rate
It would be nice to have a break even production rate. 200 employees will be taking a chunk of revenue no doubt.
Here’s hoping.
Cash position is most important. If it’s down it shows production is not profit making. That’s curtains.
The results from the latest well won’t be known until they have 3 months production to show a decent average.
Let’s see