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Piscator1 - You are changing the subject, I do give PH credit for acquiring Schlumberger and if you check my postings you will see that I am not one of those who has been calling for his head, I was also very optimistic earlier in the year with the much improved production figures and anticipated that that would continue an upward trend, however the SP really is now at an all time low and I believe that is because Block are not delivering what PH promised on Project 1 in the summer with no explanation whatsoever forthcoming as to why the drilling campaign has stalled.
I agree Gary, it is NOT going in the right direction. Project 111 is progressing as planned and nothing is going to happen overnight but the plan was also to step up production on the relatively low risk wells of Project 1, but nothing is happening and the production and revenue figures will be stagnating or even worse declining - WHAT EXACTLY IS THE PROBLEM?
While we are on the subject of Significant Shareholder what about Georgian Oil and Gas Ltd who bailed out early on when the price was lot higher.
What did they know? Quite a lot I would imagine as they were also providing the Drilling Rig and PH was an ex employee.
In fact, thinking about it they have probably done quite well out of Block Energy.
While we are on the subject of Significant Shareholder what about Georgian Oil and Gas Ltd who bailed out early on when the price was lot higher.
What did they know? Quite a lot I would imagine as they were also providing the Drilling Rig and PH was an ex employee.
In fact, thinking about it they have probably done quite well out of Block Energy.
We already know from the half year statement that the "revenue" for YE June,23 will exceed that of YE June, 22 primarily due to the IGS contract, so they will presumably talk that up.
The interesting bit will be reading between the lines together with any forward statement regarding the current half year.
Hi Rlightor - "are we absolutely sure the drill has stopped turning?"
Well, as earlier post, it is possible they are doing some remedial works somewhere but there have been no announcements regarding spudding of a new well.
Anyway, I think I have exhausted the subject now, I will shut up and wait for news.
GLA
Hi Staypositive
"Hep has covered some likely possibilities why the drilling seems to have stopped. I'm hoping they want to retain the cash they have from the recent sales for something positive. Questions are what and why......."
IMO if they don't keep drilling they won't have any cash, see below:
Cash Balance 31st December was $450,000
Loan of $2m during H2 for the purpose of drilling additional Project 1 wells starting with well WR34Z,
Cash balance 30th June was $882,000
So according to my calculations Block had already spent $1,568,000 of the loan before they even started drilling WR34Z
As PH said, they have got to keep he drill bit turning to keep the revenue coming in, I agree with him, but it is not happening and when you look at the above figures I can't help thinking cash flow is the reason. Please DYOR.
And this is what PH said in the RNS dated 26 July:
"We're looking forward to the results from our next Project I development well, WR-34Z, which
aims to build on the back-to-back drilling success that has already materially improved the
Company's cash flow this year. More broadly, we have set out an aggressive drilling plan for the
remainder of this year and next, which, on success, will allow us to further increase our rate of
drilling across Project I, whilst also prioritising the appraisal of the high-impact gas and oil targets
across Project III and II respectively."
Spud, with respect, I think talk about a deal is a bit premature, below is an extract from the Q3 report RNS on the 12th October:
"Post period, the Company completed the evaluation of bids for a Competent Persons Report on
its Lower Eocene and Upper Cretaceous gas reservoirs (Project III) and has now awarded the
contract to RISC Advisory. The CPR will be shared with potential Project III farm-in partners, in due
course."
Chesh - Simple answer, I don't know, however below is a few possibilities that I listed before:
Possible shortage of funds but would have thought recent oil sales should have covered that unless funds needed for unexpected remedial works elsewhere.
Labour force working on unexpected remedial works elsewhere.
Drilling Rig not available or needing repair.
Reappraisal of which well to drill next based upon up to date results and performance, but they were still saying KRT-45 very recently.
All the best.
Piscator, if the negotiations regarding a farm in agreement are as advanced as you seem to think I would be delighted, as would everybody else here, but you are speculating based on a media item where PH speaks in Georgian (joke) and they show a 2 year old video of a side track that no longer exists.
Even if there was an RNS announcement next week regarding a Farm in. which I doubt, it would probably be a least a years before there was any revenue generated.
So in the meantime I will continue to "WHINGE"about the lack of progress on Project 1 and hope they generate enough money in the coming year to pay there 120 strong workforce and to pay back the $2m loan.
So what you are saying Piscator is that they raised $2m in February /May this year in order to advance the Project ! drilling campaign as it was essential to "keep the drill bit turning" but they have now put Project 1 on the back burner!!
I don't believe they have changed the strategy, they just have not carried it out.
The Q3 update which you refer to below also states:
"Focus now shifts to the spud of our fourth well under this programme, KRT-45Z whilst we continue to advance our high impact strategy across Project III."
Only problem is they have not yet started on KRT-45Z -
WRBO1 came on production in March, 2023 so Block have only drilled one additional well in the last 8 months.