Member Info for Helpful

Stuck in the past.

As I said I will make more money in due course.

And why is Steve Staley involved? Listen to his recent interview: he isn't in it for the £50k pa NED fee.

DYOR

https://twitter.com/RRR_RedRock/status/1339167145582862336?s=19

Titan, I have heard you and I couldn't care less what happened last year, the year before or 11 years ago. I am only interested in now.

I have always made good money on NTOG and will continue to do so.

Goldman Sachs predicting $65 oil in 2021. NTOG will make decent money at that level.

DYOR

I own oilfields. I understand the risks and issues. Nonetheless, wells and fields are shut in all the time. Two big issues are asphaltenes and parafins falling out of solution and forming downhole.

There are potential upsides as well such as wells recharging and flush production.

Anyway, my point was and is that the recently reported 60+ bopd was after NTOG shut in some production.

Let's see.

DYOR

https://www.cnbc.com/video/2020/12/14/oil-and-commodities-markets-will-continue-to-go-higher-goldman-sachs-currie.html

$9,500 copper.

Why feign ignorance?

With all oil assets production goes up and down as wells are brought online or go offline. Cashflow positive is affected by your costs, fluctuating production and fluctuating prices.

At the margin you could be cashflow positive one day and not the next. By properly cashflow positive, I meant a decent buffer so regardless of the fluctuations the company stays cashflow positive.

DYOR

PS WTI currently knocking on the door of $48.

Titan, you miss the point.

1. They shut production in because of low prices.
2. They got paid out on the hedges whether they produced or not.
3. If you wait six months and you can sell the oil at $25/$30 more, why not wait?
4. Selling the oil at $30 reduces the total return on the company's assets.
5. They have now switched that shut-in production back on because WTI is at circa $46/$47.
6. There was an RNS that stated they added more storage to give them flexibility on oil sales.
7. He has said he will update on production in January.
8. Likely he will confirm that all production is switched back on plus the extra production from the Cypress well, the work at the Permian Basin well and Caballos Creek.

I expect it will look pretty good.

DYOR

https://twitter.com/proactive_UK/status/1338807023803240452?s=20

Work starts this week which means that the work has been done at Luanshimba.

The above ties in with what RRR said, "The schedule has then been revised to allow the results to be analysed while the contractor carries out a nearby job before returning to conduct a 12 KmL induced polarisation survey;"

It is the same team from Minex/Progess doing the work.

Note that the last ops update referred to the RRR asset as being Kinsinka, this is incorrect. The asset is Luanshimba.

DYOR

*sends us not sells us.

Under the hedge there is no need to produce. If the market price is below the hedge price, the hedge vendor (Barclays) simply sells us the difference. So if the hedge price was $55 and the market price was $30, they send us $25 for every barrel hedged. If we produced those barrels and the opex was $20 then we would be getting $10 barrel from production. If we don't produce those barrels and instead sell them for $45 a barrel at a later date then we get $25 a barrel net.

It costs money to create reserves, no point selling them unless you have to in a weak price environment. The company was cute in shutting in production. Remember he also put extra storage in place so that he would have flexibility on sales.

When all the trolls on here and on Twitter were going on about only 60 bopd being pathetic, that 60 was a result of shut ins. Those wells will have recharged whilst shut in and should produce at a better rate when initially switched back on.

Costs are way down in the current environment. I know from elsewhere that labour, kit hire and materials are way cheaper than they were a year ago.

I suspect that once the new Pine Mills well is online, NTOG will be properly cashflow positive. Once they sort themselves out on the new Permian Basin asset, NTOG should look pretty good. He did say in an interview a few weeks back that the Permian Basin work would be done during December.

DYOR

Says the man who sold at 0.4p thinking it was going down.

Didn't do it to help anyone else, it was the right decision given where we are. We should have some decent news imminently.

Nice update from JMS overnight.

DYOR

16 license applications.

https://twitter.com/proactive_UK/status/1338433566351515648?s=20

Molopo Farms looking pretty good.

Currently $47.30

Very, very helpful for NTOG and other smaller oilers.

Let cats out of the bag with that interview.

Nice but the interesting bit was Musonoi:

Been approached.... moving to a JORC resource quickly...

The two things appear to be linked: Musonoi dwarfs everything else. Supposedly circa 240k tons of copper there and 20k tons of cobalt. With copper heading north that is s lot of value in place. The Nzuri Copper deal was $79mil.

DYOR

I did say to someone this morning that the RNS read as though it was written in code. You might have just decrypted it.

He has been saying the same for ten years. He is not someone who is interested in buying RRR under any circumstances.