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Chesh - I think you actually get it but you won't admit it.
PH promised continuous back to back drilling this year and you yourself were forecasting 1000 boepd by year end - It has not happened
The lack of progress on Project 1 is totally unrelated to CPR's, etc on long term Projects 3 and 4.
The only logical explanation for lack of progress, as I have said many times, is cash flow or lack of resources, or both.
Block had very good production figures in Q2 off the back of WRB01
Q3 production figures were also quite good but were boosted by WRBO1 and an initial surge on WR34Z
However, come the tail end of Q3 production from both previous wells and WR34Z had fallen back.
I suspect that resources and cash flow has been diverted to prop up production from one or more of the existing wells, possibly introducing a pump in WR34Z to boost production, all guess work I know but I believe it has to something on those lines.
But the problem is, all the time this is going on production and hence cash flow is slipping.
Piscator1 - You say "Unless the market cap increases significantly by then Block will be extremely vulnerable to a buy out"
And who do you think will do that, how about "Georgian Oil and Gas Ltd" - Think about it.
(By the way, they are registered in the British Virgin Islands)
I don't actually think there has been a change in strategy as such although they may very well have been told to get a move on with Project 111.
Highly unlikely they have abandoned the Project 1 drilling campaign, that would be a total waste of money spent so far on infrastructure and knowledge + they need the revenue ASAP.
Also highly unlikely that they have spudded WR45-ST without an RNS, we know the location of the well and there was no signs of any activity at the site when the last satellite pictures were posted here a couple of weeks ago.
So the question is why, I have made a few suggestions previously but one way or another I can't help thinking the problem is cash flow.
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.