Member Info for highlandmatt

SDX? Not big enough.

Coho will happen, but remember PB was quoting $40k a day for the Royston test (assuming 1,000bopd). More than twice as valuable. With WTI at $83, now is a good time to be developing a massive oil discovery.

Hmm, yes, that is an interesting retweet...

Thanks Wacky. That's what I thought, and the comparison PG has made. But where do the figures for gas saturations come in? I'm assuming that's a different measure, but I fear the market is used to seeing gas saturation numbers of 40-70% (e.g. GRF), and saw 1.7% published and thought that was terrible.

Makes you wonder what's happening in T&T...

Sorry, rereading. GRF was 'prospective' 393Bcf, Mou1 has converted that to 'contingent'.
Also net pay in Mou1 was 10m. Apologies, looked at an awful lot of presentations, RNS's and 2xCPRs (I have far too many browser tabs open!), after a week at work.
Conclusion is the same. I wonder if CHAR were allowed to trumpet their discovery as Anchois was already declared a discovery 12 years ago? I note PRD didn't have the DG of ONHYM making a speech...

Oh, and there are 16 mentions of 'Anchois' in the PRD CPR.

I thought I would map the journeys and resources of CHAR and PRD in Morocco, from what I can find in RNS and company websites. Please correct me if I've got anything wrong. I accept some of the CHAR raises will have gone to other projects.

CHAR acquired its licence Apr 2019, which included the Dana drilled Anchois 1 (55m pay, 25% porosity, 0.23% gas, not tested, ascribed 361Bcf 2c). Since 2014, has raised $67m in placings/offers, incl 1 at 30% discount, $32m since licence award. Just drilled Anchois-2, 100m net pay, but no details and not tested. Mcap now £89m.

PRD acquired licence Mar 2019, which included the Elf drilled GRF-1 (40m pay, 16-20% porosity, 0.21% gas, 40-50% gas saturation, not tested, ascribed 393Bcf 2c). Has raised £6.7m in placings/offers. Drilled Mou-1, 34m net pay, 17% porosity, 1.67% gas, not tested. Mcap now £16m.

It is remarkable how similar the stories (and geologies) are, but the PR approach is very different. CHAR broad brush, PRD very technical. CHAR credited with a 'significant discovery' without flow testing, but PRD not. This is even more peculiar when comparing the GRF-1 well and Anchois-1, and the fact that Mou1 encountered high pressures and stopped in TGB2 sands not reaching the deep targets (TGB-2a) hit by GRF-1 and Anchois-1. What is puzzling me is the relationship between gas shows and gas saturations. GRF and Anchois have shows at 0.2%, below the 1.7% for Mou1. Any volunteers to explain?

What is clear is that PRD has spent a lot less to arrive at 300+BcF of 2c resources, and has cheaper development costs going forward. When you join all the dots, you realise why PG is so frustrated. He's putting all this info out there, and no-one is believing that PRD has a significant resource on its hands and can bring it to market. Maybe that is the reason for the plan to test (when remember that apparently neither of the Anchois wells have been flow tested). Maybe PG thinks that is the only way to convince.

Nic - I'm intrigued to learn what you consider to be 'a good thong'! ;P

https://www.naturalgasintel.com/morocco-exploring-natural-gas-supply-alternatives-after-losing-algerian-contract/

Good comparison BRV. However, to balance, CHAR has just done 2 placings, has declared lender interest, and signed offtake agreements. PRD does not. CHAR has cash at bank, PRD, not so much. CHAR has other business arms, as does PRD.

What is really remarkable, is that the Anchois 2 well RNS, just giving depths of pay, has resulted in a 50% rise, whereas PRD Mou1 RNS with the same info (i.e. without flow testing) resulted in a 66% drop! Go figure.

Indeed Dissipline. I wonder how many discussions PG has had where the potential JV partner just cannot join the geo clues like PG can? Micro seeps, pressures, mud clogging, seismic etc, but a captain of industry might only know gas as an input and a dependency, so without flow rates or a CPR, is not yet convinced to invest. The importance of the CPR is independent validation. A successful flow test is the next key to unlock potential funding. PG is just ahead of everyone else in his understanding of this basin. I wonder how many conversations are only just beginning in earnest?

I see He1 is up today, no news. Might give a lift here. Hopefully He1 can repeat the 20p plus hype and the BOD can cash the last chunk for the Ruvuma seismic costs.

Asset rich, cash poor. Morocco is bigger than we can fund at the moment. Farm out?

You need a buy to close a short?

All quiet, apart from those big sells reported after close. Reckon they've been dripping those in throughout the day?

Given the change of plan re testing/drilling, I'm guessing that nothing has been signed that gives the funding up front. Possibly might have something that is conditional on flow from Mou1.

Sell. Look at the Bid/Ask at the time.

Nigel - that position appears to have been reversed following govt intervention. There is an existing relationship with Lease Operators and recent news of discussions with multiple parties.

Sale of T&T EOR business.