Member Info for GreyPanther

Hi Brabs70. I don't see my comments as negative, so may I suggest you read them again. As I think I implied, I support the board's fund raising decision as it should gives us enough dosh to complete the well. And I'm still invested in Beacon because I think the well will ultimately produce at a decent rate and, also, I'm not a "day trader". As I recall it the SP reached a high of 0.27p on Friday 8 Sept and he first disappointing RNS came out on the next working day, Monday 11 Sept. So until then I didn't then have any info to change my optimistic opinion. In fact I still don't, if I'm honest, although it will be a while before we see a cleaned up and stabilised flow rate.

I don't agree with the comment "What else can Larry and the board mess up on till the end of 2023?" and I don't really think the idea of litigation, as has been suggested on this board, has a cat's chance in hell of success. Looking back to the April '23 placing (when I wasn't invested here, but am now) I can see that it raised £6.04 million gross but only £4.77 million net after various commissions are deducted. So Beacon probably had about £5 million working capital at that point. I assume the budgeted cost of the Schwarzbach-2 well was rather less than this. Let's say it was £4.0 to £4.5 million for a 37 day tested production well, which is what you might expect for an onshore 2,250 metre highly deviated well. In the event the well took more than twice as long than expected due to a variety of mechanical and drilling issues. We don't know all the details of these problems but IMO the revised cost of the completed well is likely to be nearly twice what they budgeted. Let's say it could come to £6.5 to 8.0 million. Further funding was obviously going to be needed, so what would we have done in the board's position? I don't think suspending the well early and then releasing the rig would have made much sense, and it certainly wouldn't have helped in their efforts to raise extra money. This may perhaps may explain the rather unsatisfactory RNS on 11 Sept and the 14 Sept fund raise. Years ago I worked in a fairly senor capacity in oil and gas, so please believe me when I say that, sadly, most investors have little idea about what really goes on.

Hi Hms687. I don't think we should assume 100% operating up-time for this well for 7 days per week. So, until we know the actual flow rate and the final well cost too, I'm taking a slightly more conservative view for the time being. Here's my arithmetic: Current oil price $93 less $18 opex per barrel = $75 / bbl operating profit at $1.25 to £1.00. So that's about£60 per barrel profit x 600 bopd (IMO I realise). This could give us £36,000 operating profit per day which is still pretty good.

Good points Hms687. However, I think we need to make our own minds up wrt "Once oil starts gushing up, even albeit in a trickle at the start". Is it going to be a gusher or a trickle over the long term? My money's on a gusher, but I'd really like to know what this 84+ day well has cost us. It was planned to last only 37 days including testing, so there must be quite a large cost over-run IMO.

My hat is ready at all times VernetLes. At the moment, though, my money is on Inishkea. But whether it will be Vermillion or another company who farms in remains to be seen. All IMO, of course.

I'll eat my hat if Heyco really do launch a bid for us as soon as the Egdon takeover is completed. In Egdon's case Heyco already owned more than 50% of their shares, whereas with us I would be surprised if they currently own any shares.

Halifax should receive 4.5p in cash for each of your shares on Friday 29th September, so you should get it soon after that, all being well. The timetable:

Scheme Record Time

6.00pm on 14 September 2023

Last day of dealings and transfers of Shares

14 September 2023

Effective Date of the Scheme

15 September 2023

Suspension of Dealings

7:30am on 15 September 2023

Last Date for Payment of Consideration to Scheme Shareholders

29 September 2023

Also, there's evidence from the NSTA's monthly data that the gas / oil ratio has been falling slightly the last three months, as mentioned in my 11 Sept posting.

Hi Serif. The use of a jet pump shouldn't have an impact on either the gas / oil ratio or the water cut. IMO it will, all being well, increase the oil, gas and water production in approximately the same proportions as before the pump was installed. However the well's ability to lift increasing amounts of water, which must happen over the life of the field, should be improved. Whereas, without the jet pump, increasing water content would slow the oil flow and, ultimately, the well would die prematurely.

Further to the announcement made by Egdon on 29 August 2023 in relation to the satisfaction of the NSTA Condition, Egdon is pleased to announce that at the Court Sanction Hearing held earlier today the High Court of Justice of England & Wales issued the Court Order sanctioning the Scheme.

Egdon hereby confirms that the Scheme Record Time for the Scheme will be 6.00 p.m. (London time) on 13 September 2023.

Subject to the Court Order being duly delivered to the Registrar of Companies, it is anticipated that the Scheme will become Effective on 14 September 2023. The last day of dealings in, and for the registration of transfers of, and disablement in CREST of, Egdon Shares, is expected to be tomorrow, 13 September 2023 and it is intended that dealings in Egdon Shares will be suspended with effect from 7.30 a.m. on 14 September 2023. It is intended that cancellation of the admission to trading of Egdon Shares on AIM will take effect from 7.00 a.m. on 15 September 2023.

If the Scheme becomes Effective on 14 September 2023, the last date for payment of the Consideration to Scheme Shareholders will be 28 September 2023.

Latest RNS from Egdon:

"Further to the announcement made by Egdon on 29 August 2023 in relation to the satisfaction of the NSTA Condition, Egdon is pleased to announce that at the Court Sanction Hearing held earlier today the High Court of Justice of England & Wales issued the Court Order sanctioning the Scheme.

Egdon hereby confirms that the Scheme Record Time for the Scheme will be 6.00 p.m. (London time) on 13 September 2023.

Subject to the Court Order being duly delivered to the Registrar of Companies, it is anticipated that the Scheme will become Effective on 14 September 2023. The last day of dealings in, and for the registration of transfers of, and disablement in CREST of, Egdon Shares, is expected to be tomorrow, 13 September 2023 and it is intended that dealings in Egdon Shares will be suspended with effect from 7.30 a.m. on 14 September 2023. It is intended that cancellation of the admission to trading of Egdon Shares on AIM will take effect from 7.00 a.m. on 15 September 2023.

If the Scheme becomes Effective on 14 September 2023, the last date for payment of the Consideration to Scheme Shareholders will be 28 September 2023"

VernetLes. I agree with you about Heyco and Egdon. But we've not heard a peep - yet - about anyone else showing a serious interest in acquiring EOG or UJO. I'd have thought that their share prices would have jumped on (or even slightly before) Heyco's Egdon bid. Even if EOG is acquired next, particularly as it's cheaper then UJO on a "market cap per 1% of Wressle" basis, then why would this make UJO "stranded"? They will still look attractive on mkt cap per 1%, IMO of course.

|Hi VernetLes. What makes you so sure that Heyco definitely wants more than Egdon's 30% of Wressle? They had a significant stakerin Egdon before they initiated their bid, whereas with EOG they would have to start from scratch, and the bidding would probably push the price up to a level at which they were uncomfortasble going any further.

Hi Serif. You may well be right. On further digging I see that it's been nearly 40 years since Bow Valley drilled the Cloughton discovery well (1986) so we can probably assume that completion techniques have improved quite a lot in the meantime.

Before any of us is carried away by Cloughton's 184 Bcf of GIP (P50 Case) and the possibility of our drilling an appraisal well soon, I reckon about £2.5 to £3.0 million gross would be needed for a well, of which our 40% share would be £1.0 to £1.2 million. Unfortunately the Carboniferous sandstone reservoir here is, quite frankly, pretty horrendous as it flowed at only 40,000 cu. ft per day from an overall section more than 4,000 feet thick. So IMO it would need to be fracked to get a commercial flow rate, which is no longer on the cards. Perhaps it needs a whole series of proppant squeezes!

Hi itsawarap. New lIcence awards are usually based on the quality of the work programme offered by each applicant. If there's competition for a particular licence area, I suppose it's an auction of sorts, in that if you offer to drill a firm well you are more likely to be awarded a licence than if you've only offered a well which is conditional on, say, some seismic data looking good once it's been interpreted. I think the process used to be called "Discretionary Awards".

Because of the water cut issue at Wressle I’ve looked back at the NSTA's production figures since they were first published for July 2022. A couple of quite interesting things have emerged: 1. The average Gas / Oil Ratio (GOR) from July '22 to Feb '23 was fairly consistent at about 650 cu. ft / barrel for each month. The GOR then seems to have jumped in March '23 to 716 cu. ft / barrel and declined fairly steadily since then. The later average GORs are: March '23: 716, April: 695; May: 687 and June '23: 675. I assume the March GOR increase had nothing to do with the water coming in as: 2. According to the NSTA, water production started in late June ‘23, when a total of 92.5 bbl of water was produced. So perhaps a little water may have been produced in the last few days of the month. The GOR changes made me wonder if there may have been a small gas cap within the Ashover reservoir situated above the Wressle-1 reservoir penetration point. The 2015 Ashover DST doesn't really support this idea since it produced no gas at all, which seems very odd to me, but we have always produced a lot of gas since the field came on stream. I suppose it’s possible that gas is getting into the wellbore from either of the shallower and much gassier Pen*stone or Wingfield reservoirs but, in any event, a small gas cap or gas flow from another reservoir could have helped with oil production. As the gas depletes, the reservoir pressure will reduce, with resultant lower oil flow rates, and perhaps allowing the water to come in. Whether the GOR is now much lower than it was originally, or the imminent development of a much higher water cut is on the cards, are moot points. But I think both of these events should be easily be overcome by a satisfactorily working jet pump. Sorry to rabbit on; this may all be a load of tosh!

While I'm very happy with our announced potential to produce about 900 bopd in due course, I note that the drilling rig is expected be de-mobilised after about 84 days on location for what was originally planned to be a 37 day well including testing. Does anyone know what the original well budget was, and what all the delays may have cost? I sincerely hope we have enough cash in the bank to avoid a further fund raising before the well starts pumping oil commercially.

If Rhein's tea lady is right, and why wouldn't she be, then we might hear results as soon as Monday or maybe up to a week later. That's so long as they don't intend to do any hook up work before releasing what we all hope will be excellent news.

Hi Landicaamans. Good old teal lady, and thanks for the update. Three zones is a pleasant surprise but I wonder how long it will take to hear the test results as it's now been 3 weeks since the logging results were announced.