Reasons to be Cheerful10 Dec 2023 11:24
Good afternoon everyone,
as you can tell from the title of this post I am as positive as I have ever been.
If you believe the naysayers you would have many reasons to be depressed.
But let me give you a few good reasons to be more hopeful than ever.
If , as the negative amongst us would like you to believe,
There will be no JV and production will not increase as we expect there would be good reasons to be depressed.
Now let me give you the reasons why this cannot be the case.
Those that would have you believe that production is not increasing and as yet has not been announced are at best disingenuous and at worst are just trying to deceive everyone.
The only reason production declined in the first place was not that we could NOT
( stimulate increases ), but the topside kit was NOT capable of controlling and handling that stimulation,(hence the new GGS system ).
The 2021 /22 data predicts that not only will we reach the best 2700 bopd but will in the not too distant future exceed it on a permanent basis , moving into profit and stabilising the companies finances forever.
JV.
Firstly, if the JV talks had failed the company would be required to inform us by RNA at their earliest possible convenience.
Therefore the talks are still ongoing and I will outline my reasonings for this below.
Some would have you believe there is no JV, if that were the case why bother to sign an LOI.
Others would have you believe that it is only a small JV, if this was the case it would have been signed, sealed and delivered long ago.
I will now outline the reasons why I think the opposite is the case, and the things a Major would want to be sure of before the final deal could be announced.
1) If EOR with Co2 is the preferred option after de-lineation, planning permission's , landowner agreements for access for a pipeline would be necessary ( so a deal would not be signed prior to securing these upfront ).
2) Making sure there will be no inhibitions to the drill permitting at either state or federal levels.
3) Provisions have been made for supplies of all equipment and plant required for each stage of the project.
4) That logistics are all secured.
5) That all financial stakeholders are suitably aligned or if necessary bought out or removed from the project.
These are just some of the things a Major company would want to be sure of before entering a comprehensive agreement they will NOT leave anything to chance, stumbling blocks after signing will be avoided no matter how much time it takes.
This is why I still have reasons to be cheerful, the longer it takes to deal with the above and other issues the MORE likely the result we want ultimately may occur.
Keep the faith,
GLA.
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