Member Info for indi123

Correction:

Read your post three times BBG, but I still can't get my head round it :-)

Read your post three times BBG, but I still get my head round it :-)

Just why is the Solgold CEO talking about testing the Warintza target, if this is owned by Solaris Resources? Or is there a Warintza target within Cascabel? Or has the MJ got things mixed up?

Looking promising for a blue finish. Seems the A trades are designed to keep the price in a targeted range for a larger trade - otherwise how does one make money on such small trades?

It'll be interesting to see if we get some large after-hours trades going through today. The share price activity so far today suggests we won't - imo.

Reposting email to company last week with some rough calculations:

"Hi there
I am a shareholder and investor in Zephyr Energy.
If you don't mind my asking, I have a question relating to today's RNS about the proposed Crypto Facility. The RNS suggests the cost of $2m for the facility will have a ROI of 2 years. My back of an envelope calculations indicate an income of $2,739 per day would be required to cover the $2m cost over 2 years. In turn this ,means around 60boepd, with a natural gas price at $9 per mcf, would give sufficient income to generate around $3000 per day to cover the cost of the Crypto Facility in 2 years.
My question is relating to the production rate of the 16-2 well. Is the well anticipated to produce just 60boepd (approx)? If not what is the expected flow rate for the well estimated at?
Thank you in advance.
Best regards"

Note, the estimate is based on 1boepd = 6000 cu ft of gas (6 mcf). So 6mcf x $9 x 60boepd = $3240 per day.

One barrel of crude oil generally has approximately the same energy content as 6,000 cubic feet of natural gas, so this quantity of natural gas is "equivalent" to one barrel of oil.

In contradiction to what I posted a couple of days ago, I sent the email below to the company but have had no reply. (Perhaps because my estimates are way off the mark and it's not worth replying to such a novice). Anyway posting on here to see what people on here think of the numbers:

"Hi there
I am a shareholder and investor in Zephyr Energy.
If you don't mind my asking, I have a question relating to today's RNS about the proposed Crypto Facility. The RNS suggests the cost of $2m for the facility will have a ROI of 2 years. My back of an envelope calculations indicate an income of $2,739 per day would be required to cover the $2m cost over 2 years. In turn this ,means around 60boepd, with a natural gas price at $9 per mcf, would give sufficient income to generate around $3000 per day to cover the cost of the Crypto Facility in 2 years.
My question is relating to the production rate of the 16-2 well. Is the well anticipated to produce just 60boepd (approx)? If not what is the expected flow rate for the well estimated at?
Thank you in advance.
Best regards"

Note, the estimate is based on 1boepd = 6000 cu ft of gas (6 mcf). So 6mcf x $9 x 60boepd = $3240 per day.

We're gonna enjoy the next three weeks, and cross that bridge when we get to it :-)

Extract from yesterday's RNS:

Paradox Basin three well drilling programme update
Zephyr remains firmly on track to commence its planned three well drilling programme in the second half of 2022. Recent development milestones include:
o All well design work has been finalised
o All permit applications have been filed
o Stimulation optimisation is well advanced
o The vendor selection process continues, with the rig contract award a key short-term objective
o Partner outreach, both with potential upstream and midstream counterparties, is well underway.

From:
https://thelawreviews.co.uk/title/the-energy-mergers-and-acquisitions-review/usa
The oil and gas industry is composed of four separate but related sectors:
a) upstream (companies engaged in the business of extracting hydrocarbons);
b) midstream (companies engaged in the business of transporting hydrocarbons);
c) services (companies engaged in the business of assisting upstream and midstream companies with the extraction and transportation of hydrocarbons); and
d) downstream (companies engaged in the business of refining petroleum after extraction).

From:
https://www.share-talk.com/malcys-blog-oil-price-zephyr-energy-challenger-energy-group-savannah-energy-predator-oil-gas/#gs.2g172g

"This looks like another very smart move by Zephyr management who continue to exhibit a strong lead in all aspects of portfolio management. In this case it is in order to maximise the income from the Paradox Basin in the short and longer term and in ways that most companies have previously thought of. 

Zephyr is another stock that I look at that has recently significantly underperformed without any particular reason, indeed with $120 oil and an exciting drilling programme in H2 the shares are unbelievably cheap. On any timescale I think that Zephyr are as attractive as any in the sector and like others recently mentioned here will considerably reward investment."

Trader Tom - you have shortterm opinions based on your current position with a stock....your opinion cannot be trusted for a longterm appraisal of any company.

It'll be good to get production started on 16-2., then see where we get to.
All these conjecture-based calculations are pretty pointless IMHO. Let's get producing, see what's delivered and how much it's worth.

This is a very comprehensive update from the company.

The Paradox is still a high risk play, as can be gleaned from the detail of this RNS, however the rewards could be huge.

The fact well 16-2 testing back in December produced 700bopd is very encouraging. Also, the company obviously believe a $2m spend for the crypto infrastructure with a ROI of 2 years is worth it.

The three well drilling plans are on schedule and rig contracts to be awarded soon.

We'll soon know how much Paradox will give.

Wonder if we'll be getting a monthly sales update for the non-operated wells some time this week.

Agree with the last couple of posts. In the meantime, hope the revenues from the non-op portfolio keep ramping up, especially as there are wells remaining to be activated.

Have you emailed the company for clarification?

....but as there has been no new update to the market regarding State 16-2 or Paradox, I'm not expecting anything of any great significance from today's webinar. It will probably be a rehash of information already in the public domain.

From the 8 December 2021 RNS :
"... We aim to have a path forward by the end of the first quarter 2022 and look forward to providing updates as progress is made and the well is equipped."

Should be close to getting an update.

I feel we are overdue an update on the State 16-2 well. When is the long-awaited production going to start.

No typing problems for me and I'm on a rubbish phone.