Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Not sure how you’re getting your gross numbers Mick - I’m seeing 90 bcf net 2P from year old CPR and 55 bcf 1P.
Given they have a 1/3 rd of total, 2P for Field is therefore 270 bcf and 1P is 165 bcf???
Or it was before last years production sucked out 37 bcf.
So that’s 6-7 years production remaining at 2P and 4-5 years at 1P. 3P is always very optimistic and unlikely so forget that.
To infinity and beyond.? I don’t think so..
100 mmscf/d is 37 bcf produced each year.So 180 bcf cumulative produced in 5 years?Pros Production is good at the momentCon is it won’t last for ever. It’s not rocket science the Share price will slowly decline as reserves deplete towards zero
Given there will only be 4 or 5 months left on the permit once the well results are in will there be enough time to 1) complete a farm in and 2) mobilise and shoot a 3D before licence end date? Probably not. They will need to try for another year extension.
Jim all the Namibia drilling is 1000 miles away to the south
so no guarantee it’ll trigger interest in the far north.
Cameroon progress relies on cash being wired from Nigeria.. mmm..
However, I think Namibia is the main driver for now.
I agree this needs another asset
100 mmscf/d drains the 2P gas reserves in 7 /8 years
And drains the 1P ( the more reliable AIM number) in 5 years
Gas production will start to slide well before end of field date
Certainly not infinite.
What news do we need from drilling to move this up?
The K*-39 well they are redrilling has, they say produced a total of 450,000 bbls in 20 years..20 years? That’s a very low average rate. So the 8 mmbo they are ‘targeting’ will be drained in ? 2140 surely that’s nonsense? Nothing ever makes any sense here anymore. Or maybe they mean 8 mmbo in the ground and they’ll suck out 5-10 % of it? ?
An independent CPR is required to check their maths I think.
However, they don’t seem keen about producing one .
Either way it’s last chance saloon.
It’s obvious that the production will be lower now than earlier in the year as oil rates decline rapidly here. So oil production sales simply don’t cover operations cost. It doesn’t work.
Once this becomes obvious SP will slide again. They need a sale or farm out to a co with deep pockets capable of drilling multiple wells as the market is essentially closed to them at this minuscule level of mkt cap. Raising $5mm gets them nowhere they need 10 times that.
Downside risk here is that wells are dry and SP goes to cash in bank position ($2mm?) or 0.2 p. Big question is where does it go if one well finds some oil? 30-35 days drill so results by end year or early Jan imo.
Thorndon see RNS from early 2019.
RNS Number : 4117W
Block Energy PLC
17 April 2019
Block Energy Plc | Index: AIM | Epic: BLOE.L | Sector: Oil and Gas
Block Energy Plc ('the Company' or 'Block' ): West Rustavi 16aZ* well production at a stable rate consistent with 1,100 bbl/d test…
Oh yeah. For a few days then it collapsed to diddly…As I say we will need to give the new well a couple of months before loading up on any fake.. I mean, great, news.
If the 300 bopd is sustained over a few months to a year it will make a positive impact on the SP but given 16z flowed at 1000 bopd initially then collapsed to 50 or less we’ll need to wait and see. Another duffer and this is below 0.5p in a blink.
They shouldn’t wait for $100 oil before looking at new deals that’s for sure. Danger is they are priced out on M&A and the existing gas production starts to slide.