RE: Serious Buying on L28 Apr 2019 14:57
Courtesy of AJamesW post over the weekend
The February presentation has laid out the board plan for this years.
Phase 1 fully funded with reworks in Norio and two side tracks in West R.
2 Norio reworks completed taking 60 BoOpD
2 Norio reworks under flow test awaiting ops report on Norio
4 more Norio wells to microbore and rework, Target for Norio 250 BoOpD target
West R 16s completed tested at 1100 BoOpD production after stabilisation initial flow of 1500 BoO and drilling fluids.
West R 38 awaiting agreement to drill from BoD target 325 BoOpD, market expectation similar flow rate to 16a.
With the J40 rig cost Block money kick-off to drill must very soon.
West R target was 650 BoOpD for both wells.
Stage two of the West R purchase then needs to complete before 3D survey or a third West R side track
Phase II may well use much of the cash which was to go on buying the infrastructure in West R from GOG and released by the purchase deal via shares and Cash.
The other point is revenue from exceeding production targets is significant at the end of May Block may well be producing 2400 BoOpd over and above the breakeven level of 100 BoOpD.
Revenue per month 2400 @$60 is $4,320,00
Revenue per Qtr 2400 @$60 is $12,960,00
Revenue for H2 2400 @$60 is $25,920,000
Then a forth WR side track and two gas drills.
Returning to Norio to drill the proposed Norio side track by late H2
Additional H2 revenue would be in addition to above suggested revenue forecast.