Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I don't know why HITs or Bobrad post we all know they are trolls and it very obvious their agenda. They want the company to fail.
Gas is needed now more than ever. Winter is coming and Shells boss says Europe maybe in trouble.
Lol
https://twitter.com/davethedrill1/status/1547265750896975884?t=UfSwxPIc-ZfzhZag3jIcDQ&s=19
https://twitter.com/Share_Talk/status/1547181091894820864?t=mpOwaaWUQ3J41V60HVsPsg&s=19
Investors questions and answers Angus website.
Will the SFB sidetrack be drilled with continuous Gas production or will the gas production plant be turned off for the duration of the drill? Asked on 5 May 2022
Subject to final satisfaction of internal risk assessment SIMOPS are planned – i.e. simultaneous drilling and production. These is not an abnormal choice and indeed is common in far more restrictive areas such as offshore rigs. The plant when fully up and running benefits from a state of the art fire and gas leak detection, rapid blowdown and full set of monitoring and control instrumentation connected to a PLC as well as a full complement of alert operators.
"Progress is good and we expect to complete these tests and verifications before MONDAY 18th July at which time live gas can be introduced to the plant, if not before. Anticipated production during Q3 comfortably exceeds the hedge amount."
Progress is good and we expect to complete these tests and verifications before Monday 18 July 2022 at which time live gas can be introduced to the plant, if not before. First Gas Export into the grid (commercial sales) will be made under the offtake with Shell shortly thereafter. Anticipated production during Q3 comfortably exceeds the hedge amount as advised on 28 June 2022.
From investors questions and answers on the companies website.
Since the publication of the CPR yesterday there has been much discussion on the forums about the amount of gas that has been hedged each month. This figures show that the hedged sum is up to almost 5.4mmscfd in November 2022 and because the Jan 2015 July 2017 production averaged 4.7mmscfd it has been claimed that Angus has to drill the sidetrack just to cover the volumes required for the hedge. However, further details in the CPR show that 2022 production is predicted to be 2.8 BCF 7.7mmscfd in 2022 and 3.6 BCF 9.8mmscfd in 2023.
So my questions are:
A What is the predicted output of Saltfleetby without the sidetrack being drilled? Will it be enough to cover the 5.4mmscfd of the hedge in November 2022?
B If the sidetrack is successfully drilled, what would you hope would be the total gas output of Saltfleetby mmscfd in a worst, probable and best case scenario?
C Will it be possible to continue producing gas at Saltfleetby while the sidetrack is being drilled or does all production have to stop during this time period? Asked on 27 October 2021
A.The lenders technical advisers and Angus evaluated the deliverability of the existing two wells as being likely to be greater than 5 mmscfd. The reasoning was twofold. In the last years of delivery to the old Conoco refinery, average production was constrained by persistent issues with the main compressor at Theddlethorpe. Secondly it was the view of technical experts that, following a prolonged shut-in, the two wells should have improved deliverability in the first 18 months or so of operations. This is because prior to shut in there was an area of reduced pressure around the producing wells. Since then the pressure has equilibrated across the field resulting in significantly higher pressure around the producers. So it is our view that the hedged production should be able to be covered by these two wells in the event of failure of the sidetrack
B. Finger in the air: Worst 7mmscfd, Probable 10mmscfd, Best 10mmscfd (but extended for a longer period of time) Note, the combined deliverability of the three wells will exceed the production rate during the plateau period which is limited to 10mmscfd by virtue of the process equipment.
C. We believe that simultaneous operations are feasible on this site but we do need to do much more work on how such operations would be conducted.
Look in the quedtions and answers to investors. I quote.
B. Finger in the air: Worst 7mmscfd, Probable 10mmscfd, Best 10mmscfd (but extended for a longer period of time) Note, the combined deliverability of the three wells will exceed the production rate during the plateau period which is limited to 10mmscfd by virtue of the process equipment.
Bottom its in the investor question and answers. The investors and board believe a flow rate of 5mmscfd to 7 mmscfd without the side track. This is incase it fails. Even if they are 2 days late they will confortably beat the hedge.
A.The lenders technical advisers and Angus evaluated the deliverability of the existing two wells as being likely to be greater than 5 mmscfd. The reasoning was twofold. In the last years of delivery to the old Conoco refinery, average production was constrained by persistent issues with the main compressor at Theddlethorpe. Secondly it was the view of technical experts that, following a prolonged shut-in, the two wells should have improved deliverability in the first 18 months or so of operations. This is because prior to shut in there was an area of reduced pressure around the producing wells. Since then the pressure has equilibrated across the field resulting in significantly higher pressure around the producers. So it is our view that the hedged production should be able to be covered by these two wells in the event of failure of the sidetrack
B. Finger in the air: Worst 7mmscfd, Probable 10mmscfd, Best 10mmscfd (but extended for a longer period of time) Note, the combined deliverability of the three wells will exceed the production rate during the plateau period which is limited to 10mmscfd by virtue of the process equipment.
C. We believe that simultaneous operations are feasible on this site but we do need to do much more work on how such operations would be conducted.
Thats your opinion. This is fact with out a side track. Compressor issues led to lower figures before the field shut down. Even if delayed 2 days we still beat the hedge.
Production began in 1999 at rates exceeding 50 MMScf per day and produced gas, water, and condesnate was piped via a 10” pipeline to the nearby Theddlethorpe Gas Terminal (TGT) where it was processed and sent into the National Grid. Eight wells and several sidetracks have been drilled on the site.
The Hedge on gas production/sale of gas, is fixed for 36 months. a member on LSE chat board has stated that even if the loan is paid of early, The Hedge remains in place for the remainder of 36 months. Is this true? Asked on 20 December 2021
Yes, the hedge is for a fixed term on a declining balance which roughly aims to decline wiith the scheduled loan repayments. It would be very likely (asusuming we succeed in obtaining target production from the side track, itself 100% unhedged, and representing windfall gains at present forward gas prices) that the loan would repay earlier, but the hedge would be fixed on that scheduled loan amortisation profile.
However it would be open to the company to break or reset the hedge once the loan was repaid – although this would incur a normal mark to market charge – allowing for more dynamic hedging – i.e. picking particular moments to reset the hedge. The amount of hedged production after, say, two years would be less than c 25% of total production (including production from the sidetrack).