RE: The advantage to UJO3 May 2022 14:47
RNSTranslator describes Wressle as : '“wasting asset” is difficult as the production declines'
Wressle has a production licence which is viable for the next 15 years demonstrating the partners’ confidence in the long-term commerciality of the field for me.
There is further potential upside from the Penny stone Flags and Wingfield Flags reservoirs plus we have the sale of the gas to grid to bank yet. As Mark messaged me :
'....gas sales are targeted for this coming winter i.e. by end February 2023, although this of course does rely on all of the planning, permitting and equipment availability working to a tight schedule. The local low pressure gas grid has sufficient capacity and the processing equipment required is not extensive (we would only export at 7 bar pressure) and should be readily available in the time frames. We also continue to review other options which could provide an earlier route to monetise gas such as electricity generation and export although the local network capacity is the challenge here.
Once we have all information finalised we will of course provide a fuller update.'
The revenues generated from Wressle are transformational for all of the partners and this will only increase. Instantaneous flow rates of over 1,000 bopd have been achieved. Once the gas monetisation development is complete this production limitation will be eliminated and the production rate is expected to increase significantly. Independent pressure test analysis has indicated potential flow rates for Wressle-1 of between approximately 1,200 to 1,500 bopd.
With my belief that oil price is cheap and will rise substantially over the next few years Wressle will be an absolute gem and us shareholders will be rewarded substantially with dividends and share buy backs. I put my trust in David an his team to decide the best route here.
With money comes choices and I do wonder if David has plans in place to grow the company further as he knows what an earner Wressle is/going to be. Gaffney Cline have already input figures thus far and David knows the Pennystone numbers already. We all just have to be patient to see the extended CPR when it is RNSd and I am sure we will not be disaapointed.
West Newton, I am VERY confident will flow. Biscathorpe easy win at appeal, now that is the biggest unappraised well in the UK, so another fabulous asset in our portfolio.
Cut a long story short I will be holding every single share an refuse to sell any of my holding.
I see not reason why I can not achieve my £3 and some lovely dividends along the way.
GLA imo.
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