Member Info for Hepseal

Did anyone notice on Page 9 of the CPR:
WR-BO1a was drilled in 2021 based upon the Legacy Data and not the 2019 3D Seismic Survey.
WHY ???????????????????

I think what Barnyards is saying:
Buy when it is in the gutter.
Sell when reaches the top of the kerb
Repeat
Repeat

For months they let the market believe that spudding of WR-B1 was imminent whereas they have known for months that that was not going to be the case!!!!!!!!!!!

Agree City, EXCELLENT article!!!

rxdav - I would agree with you that this well is all that can be afforded at the moment but it is still a step in the right direction.

Good solid news - can't argue with that.

Only my opinion but I have a feeling that these self funded Project 2 wells are less expensive and less risky than the Project 1 wells.

Lets not forget that although WR-B1 is set up for go Project 1 also includes two brand new wells and the cost of these together with gas infrastructure will probably be quite significant, hence the need for funding.

IMO everything points to WR-B1 being the first well for Plan A or B.
The infrastructure is in and the gas connecting pipeline is in so if successful they can quickly monetise.

Roley - I am not sure exactly what we will get at this stage, could be one or both of the following:
1) Full years revenue ending 30th June
2) Quarterly revenue for Q4 ending 30th June
I am not going to guess what the revenue might be but if for arguments sake the yearly revenue was £1M it could be that £500k was earnt in Q4, and that will be the interesting bit.

Chesh - OK - Let's say WR-B1 is "Just About Funded", in the event that Block's Plan A (NDF) does not happen my Plan B would be to crack on with WR-B1 and hope for the best!!!! - In fact that would have my Plan A as well but what do I know??

Chesh
Project 1 - "(what makes you think Proj I isn't funded........? :()" - reasons:
1) RNS states - "Project I is primed for non-dilutive debt funding and discussions with potential lenders are at an advanced stage."
2) They only had $1.4M in the bank at the end of Q2 and I would guess that most of the monthly oil revenue appears to be spoken for paying wages for 120+ staff, running costs, general development, consultants, etc, etc

Project 2 - They say this is self funded, 6 infill side track holes to start with, I can only assume that these side track holes are cheaper to carry out than Project 1 sidetracks, 2 of which are new wells.

Project 3 - Funding ???

Note that Jeremy Asher, Block's Senior ID, is also CEO at Tower Resources and they have recently secured a financing deal, at a cost of course.

Also, Georgian Oil and Gas Ltd have recently done a farm out agreement with GOGC, but this would appear to be dilutive.

Morning Chesh.

"sol about trust Hepseal......!"
I think the jury is out on that one at the moment.

"Dya believe in projects I, II 'n III............?"
YES but the important question is do you believe Block Energy can deliver? - Hopefully the next RNS will go some way towards answering that question but at the end of the day it will be results that count.

"All the best (1000bopd was a scenario proposed by bigboffer........! :()"
Yep, realise it was a scenario but scenario's have a habit of becoming fake news!!

All the best

1000 bopd a day at $100 =$36.5m a year ?????????????????????????????????????????????
Firstly, Block only produced on average 360 bopd throughout Q2 from ALL wells across the whole of Blocks portfolio. Secondly, Block do not get to sell all that oil because State of Georgia have to take their share first.
Thirdly, the average production rate during Q3 will almost certainly have decreased.

Project 1 and 2 - all about the oil.
Project 3 - all about the gas

There may or may not be news but one thing is almost certain, there wont be any additional oil flowing until at least Q4 and that will mean that the Q3 production figures will almost certainly be less than Q2.

Yes Bobby - I noticed that about Project II and was thinking similar to yourself re self funding - they refer to sidetrack "holes" - possibly these sidetrack "holes" are relatively cheap and there is no gas to deal with??

I have long suspected that Block did not have an abundance of cash to carry out WR-BO1 however having read the Annual Report and the last RNS it would appear that another reason for not commencing may be to do with the possible risk of another failure. - If they only drilled WR-BO1 and it did not deliver they would be in big trouble cash wise, however by having funding up front for a five well programme at least they have another four throws of the dice up their sleeve.

I may be wrong but I suspect the next bit of significant news will relate to an agreement of Non Dilutive Debt Funding to enable the commencement of. Project 1.

Project 1.
"Preparations for a five-well development plan, including WR-B01 sidetrack, complete and ready for execution"

The Chairman stated in the Annual Report that Project 1 will commence later this year.

Tony - surely this was in the last RNS:

"Project III, the evaluation and development of the natural gas resources throughout the Eocene in blocks XIF and XIB, will commence later this year with the workover of legacy wells which discovered gas. This includes the potential sidetrack of the PAT-E1 discovery well, engineered for a 1000m horizontal section through the Lower Eocene and designed to evaluate over 300 Bcf of contingent gas resources."

0.25p / 0.0026p - that's the sort of deal I like!!
Yep, I do get it - I've read the posts.

Chesh - totally agree with everything you say in your last post re SCIR & GP.

Chesh - I don't "fink" there is any evidence to suggest GG wanted to get rid of PD.