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Any progress on NASDAQ?

https://oilprice.com/Energy/Crude-Oil/Shell-Ventures-Into-Chinas-Shale-Oil.amp.html?__twitter_impression=true

Hands up if you were explaining to people that China wanted to develop in N China! Now why would Petroteq be tweeting about that? Oh yes they have a tech solution but are useless managing the engineering.

DYOR

Read the RNSs. Break even is about 40 bopd. They were on 57bopd a week ago with production improving. Look at the spreadsheet they did, that has changed.

They are going to bring the 7th well online at a cost of about $60k.

I could be wrong but I reckon somewhere between 70 bopd net and 100 bopd net at the next update.

This is a constant process to improve the production and they will be constantly looking at what can be done to improve production.

I think maybe 15bopd without much work but after that it comes to what they decide to do and what, if any permitting is required.

An example, supposedly we have Behind The Pipe resources at ZR: do we perforate now to test an interval or do we wait for the sub-surface survey?

We are now at the stage of having gotten some production going we need to make decisions about what next.

It is more important to get the next steps right than rush it and make a poor decision.

IMHO DYOR

Well obviously this can't be true, because.... Andrew Bell

https://seekingalpha.com/news/3458511

Maybe but all the money is going in the ground.

It is quite different to have a placing to pay salaries and one to do further work.

I am very hopeful here.

DYOR

It is getting a bit iffy in Benin. It could be that it delays UOG's decision as to whether to participate in Elephant Oil.

In personalising it they can't see that Musonoi is huge. The other licenses are worth having but Musonoi dwarfs them.

As AB says himself, Musonoi is a better asset than RRR has ever had or ever likely to have again. I am surprised there hasn't been more comment about it but maybe they can't match the two things up. RRR and a huge asset?

Whatever happens now, AB has to make sure he gets top dollar for Musonoi when it is sold. In meantime he has to do whatever is required to prove it up as far as possible. If RRR is seen as a weak holder the exit price will be lower.

Fingers crossed

DYOR

Nothing to see here, just move along please

https://www.ivanhoemines.com/news/2019/drilling-extends-strike-length-of-the-new-shallow-thick-kamoa-north-bonanza-zone-to-at-least-350-metres-with-an-implied-strike/

https://twitter.com/BGPTRADING/status/1123985653740576770?s=19

https://youtu.be/8g_GeQR8fJo

How big is big? My pants are a bit tight, big or no way am I getting those pants on, big?

https://twitter.com/ParaResources/status/1123938756187303936?s=19

The price of heavier oil is likely heading higher.

https://twitter.com/PetroteqEnergy/status/1123716726686920709

Yep very much calmer.

Company has production, it is probably a fair bit better than breakeven, without capex it would probably be profitable, it has in-house operations and engineering expertise and has assets that can be worked up and the capital value increased.

As long as the oil price stays around this level we should be okay. By the end of May we should have a better idea about ZR and Austin plus improved production levels.

That is a million miles away from where it was at the start of the year.

DYOR

Yep.

I think that we will see a much more active Mayan/Attis going forward. Bringing Attis in-house gives us much more flexibility with regards to acquiring assets, working them over and disposing of them.

I have said it a couple of times but worth repeating:

The five Austin wells cost $500k and we might in the end have spent $130k on working them over for the first stage (excluding Montsanko and Morris 1).

Stage 2 (after the sub-surface survey) might be to frack/refrack them or do a side track or drill a new horizontal to prove up the assets.

Stage 3 would be to sell them into private investor market that values these assets on a producting barrel basis.

Lets suppose that they can get the production to 150bopd then the typical valuation would be 150 * $25k =$3.75mil.

Then repeat, find some older wells that have been neglected, buy them fairly cheaply, work them over, prove up the production and sell them. It won't take many iterations of this to generate a serious balance sheet. There are tens of thousands of wells in Texas that this can be done with.

The ones to keep, would be the better wells which have access to SWD because that means the SW doesn't have to be trucked and the marginal costs are much lower.

Ideally, having worked them over and sold them, the new owner would keep us on as the operator; we would get operator fees out of it.

DYOR

The benefit of 20/20 hindsight. Any time up to the last six weeks or so it looked an ok ish decision.

Thank the idiots who were trying to nick the company on the cheap and systematically undermine the BOD and the company. Only now is the BOD getting to the stage where they can properly manage the business and we are starting to make progress.

As an aide memoire, just some of the rumours being put about at the time:

The company didn't own the assets
The assets were duff
The BOD had connived in buying duff assets to enrich themselves and parties close to them
The assets would not produce oil
Reports about production were fraudulent
The company was about to go bust

Certain conniving individuals made constant complaints to the NOMAD, AIM and the FCA.

If the BOD had been allowed to get on with the job, we would have been in a much better position sometime around around the middle of last year and as a result still had Block. What has happened at Austin could and should have happened June/July last year.

Certain individuals were trying to steal produced oil off us and others were trying to steal assets and leases.

Imagine being in the middle of that S-storm and trying to remain sane and run the company.

There are unscrupulous individuals out there and we need to navigate our way carefully. In my view PA and CW and righted the ship and now we need to see how much progress can be made over the next 3 months.

DYOR

https://www.blade-energy.com/service-item/subsurface-services/

It depends, as always. In our case maybe 4/6 weeks.

Well the company will have the money from the fund raise next Tuesday and it can get on with its plans,

The thing I will be really interested in is the subsurface studies. In particular, I want to understand just how big the Prue is at ZR.

DYOR

https://www.youtube.com/watch?time_continue=8&v=8TnDp9CSiHA

Passive seismic costing $175k
"Highly unlikely we would walk away"
New oil code

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/UOG/13996455.html

"Under the farm in option agreement, United have agreed to fund passive seismic and field studies up to a value of $175k. The completion of the passive seismic programme is being targeted for April"

So a decision on the farm-in is due any time now.UOG pride themselves on being able to make quick decisions. RRR has a stake in Elephan Oil in the books at zero.

Allada supposedly has 117 mil barrels in it. Presumably we will know a bit more when UOG make an annoucement.

DYOR

PS as I said a while back, there was a second buyer in the market bidding 0.515p: I don't know if they got filled.