Member Info for GreyPanther

Hi Serif. I think the short (600 metre) gas pipeline is the best current option, although burning the gas on site to generate electricity, most of which would presumably be exported, is another option. It probably depend on where Egdon and the partners think that further development wells should best be drilled to maximise gas and oil recovery from the P'stone reservoir. Further wells might be needed at the Wressle site, or perhaps they already are considering additional sites., maybe such as Broughton guess no-one knows until they tell us about their next steps.

Hi maytheforcework. IMO gas won't provide any short term cash for us. That's because before they can even start building the pipeline - if that's what they decide to do in the end - they must have all the planning consents / permits (such as from the NSTA, EA and North Lincs Council) all in place. I reckon this could take six months in total from when Egdon apply for them. So I don't personally expect any gas sales until late 2022 if we're lucky, or more like early 2023.

I meant to add that if we'd not repaid UJO's loan on time, we could have been obliged to hand over 25% of our 30% Wressle interest to them, so I was very pleased to see today's RNS.

It's a good thing that we have been able to repay UJO's £1 million loan on time

Hi Selfish. I wasn't saying, or even suggesting I hope, that Wressle should be shut in as that could result in many months of lost income before the gas pipeline is in place. As you suggest, I was highlighting the fact that a lot of value is being lost. With oil currently at $114 per bbl and UK gas at 160p per therm, the oil is worth about £68,400 per day on a gross basis, and the flared gas could be worth maybe £6,560. So around 9% of their combined value is being lost. This is regrettable when the UK could do with the gas, small though it is.

If Wressle's GOR (gas / oil ratio) is still about 550 cu. ft per barrel and Egdon is currently flowing the well at about 750 bopd, then we are flaring / wasting over 410,000 cu. ft of gas per day. This is about 4,100 therms and, at the current UK gas price of 160p / therm, that's about £6,560 per day (gross) going up in smoke. I wonder how long it will take to get this matter resolved. Our share is about £2,000 / day, which is enough to pay a few salaries!

Hi Serif. The Wingfield should definitely be a much easier "add-on" than the P'stone but I think there might possibly be a gas issue here too. The Wingfield GOR was about 2,460 cu ft. / bbl during the 2015 DST programme, whereas it's quite a lot lower for the Ashover. I reckon it's about 550 cu ft. / bbl based on two Egdon RNSs earlier during the EWT. I'm sorry to be such a wet blanket .... or worse!

Hi Tovoc. I don't want to be too pessimistic but IMO the Wressle gas issue won't be resolved until late '22 or even early '23 even if Egdon get their skates on. This is because of all the planning and environmental consents required to install even a very short pipeline of 600 metres. Until then, and even with the - I hope - imminent Field Development Plan approval by the NSTA, we'll still be limited by the 10 metric tonne / day flaring limit. IMO this means we won't do much better than 750 bopd for a while. Regarding the P'stone Flags, which I agree flowed slightly better then the Ashover during the initial testing, please bear in mind that this reservoir is mainly gas-bearing. A further 1,200 to 1,500 bopd is only a pipe dream in the short term as it will require a further development well. This could lengthen the planning process even further.

So G.P. (Jersey) have sold their entire (12.08%) holding in Angus. Perhaps they've become disenchanted with onshore UK oil and gas but the timing certainly looks a bit odd when one considers what's going on at SFB, and now at Brockham. I vaguely recall that the people behind G.P. (Jersey) and / or Forest Nominees were previously involved with Union Jack and had an involvement in West Newton and Biscathorpe. They withdrew from those assets too some time ago.

UJO's Wressle income to date translates to $4.5 miilion (US Dollars) for Europa's 30%, but, sadly, not £4.5 miilion (Pounds). However, it's still about £3.6 million for us before paying Field Opex, etc.

Thanks Mirasol. According to the Companies House website, Egdon has also moved its registered office. This happened on 28 Apr '22 to an address in Stroud, Glos, so perhaps both changes happened around the same time. The new address looked familiar to me, so I did a bit of digging, and found that this is also the registered office for Corallian Energy, which is ca. 50% owned by Reabold. Maybe "wheels within wheels" here, or is it just fortuitous?

Hi Mirasol. That's interesting. Where did you see it, if not on the Companies House website? Thanks, GP

Hi AB2332. Thank you for that. Let's hope the Wressle pipeline is installed before the 2022-23 winter is over and we get the benefit of the higher gas price.

Who has this info come from, and is it reliable? Thanks, GP

Hi there HerbertDT. Shell's withdrawal from Resolution / Endeavour was a real blow and it must be this, rather than Egdon's financial position, that knocked the SP last week. Unless we're told otherwise, we can probably assume that Shell's 70 % of the project will now revert to Egdon, giving them 100%. There's also a strong possibility (IMO) that Egdon will have to relinquish the licence(s) back to the NSTA as they probably won't be able to afford to conduct the the nearshore 3D seismic survey on their own. There are some time constraints too, I believe, in getting the survey done. Maybe the NSTA will them some time to see if it can be farmed out again, but I can difficulties here. It took Egdon ages to find Shell, who have deep pockets, for their farm in partner. Maybe with current high gas price they'll be able to find another partner but I don't see Europa or UJO using their Wressle cash flow to farm in to what's likely to be a very expensive offshore project. And that's just the 3D seismic survey, let alone any appraisal wells.

Hi Tovoc. While I agree with much that you say, it's worth bearing in mind that one of the as yet un-tapped prospective reservoir is the Pen'stone Flags, which is predominantly a gas-bearing reservoir. So I don't think a proppant squeeze of that reservoir could possibly give you an additional 1,200 bopd. Mind you, the Pen'stone gas is extremely valuable. A barrel of oil (worth about $105 currently) has the energy equivalent of 6,000 cu. ft of gas,or about 60 therms. Since one therm currently costs about £1.60 / $2.00 in the UK, that's about $120 per boe .You could therefore say that it's worth more than the oil.

Gwynwin. Could you please expand / clarify your 12.53 post as it doesn't make much sense. Well, not to me, I'm afraid.

The production figures in Egdon's interim results released earlier today didn't make much sense to me, so I'm glad they've now corrected a rather silly error. Apparently they mistakenly included in their earlier numbers the production data for Feb '22. The difference is 6,706 barrels (43,420 - 36,714 bbl), or about 240 boepd for a 28 day month. Presumably some of this is from their other producing assets including the gas from Ceres but. if most of it was from Wressle, it would be the equivalent of 800 bopd. On the other hand the Shell's withdrawal from Endeavour / Resolution is a huge disappointment.

Thanks itsawrap. GP

Egdon's Interims to 31 Jan '22 are imminent. They ought to be good as they'll include the income from almost six months of Wressle test production since the proppant squeeze.
Does anyone know when we can expect them? I was hoping they'd be released this week, but I suppose we could have another week to wait. Thanks.