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Venezuela has enormous oil resources of its own but due to their totally corrupt and inept government are unable to exploit them.
It's not the oil they are jealous of, its the international companies coming to Guyana to explore and produce and the fact Guyana isn't sanctioned.
There are clearly hundreds of millions of barrels under there but Total et al cam afford to wait Eco out. The other question is cretaceous light and sweet - Gil says it is but who knows. Does it need to be from a different 'kitchen' to Joe/Jethro to be light sweet instead of heavy and sour.
The oil could be easily mixed and there are solutions to do this on FPSO - it would burn through Xmas trees and pipes quicker than a normal solution and thus higher CapEx/OpEx but from Hess deal it is clear longer term confidence in Guyana production costs is there.
Hess transformed by their fortunes in Guyana and has seen share price treble despite being worth 11 figures before the first drill.
Amazing what a big find can do
JohnHenry
I'd imagine many are now positioned how they want to be for testing results come good or bad.
Normally, there would be more of a run up with late entrants but without a definitive timeline there is perhaps less hot money coming in for a quick flip - that maybe is no bad thing.
On news imagine lots who are in have levels to top slice and de-risk on good news.
If Upland can do what it did this morning, then good news here on CNG being feasible and a sale at wellhead for more drilling to prove up other resource then there is potential for even bigger re-rate here.
All depends on the geology.
Interested in any developments being seem from the satellite imagery.
Depending how results go, PG and OHNYM don't need to speak. Their preference may be to negotiate quietly- if the tests are positive they don't need to be trumpeted at an arbitrary date because a conference is on. It is handy though (and good cover) that senior executives from O&G can be in town and potentially have discussions if results warrant them.
Hi Tom,
If taking the unit from SDX, they completed drilling around 27/9 and required a few days rigless testing. So should have relinquished around or before 10th October. With time required to ready site that would indicate a start last weekend(ish) and others have suggested around two weeks (for pressure to build and flow to be tested).
However, others have suggested activity not visible from satellite imagery so it may not yet have begun.
Picked peck
I think SH would prefer A1 to have gone live Anslow produce regardless of A2 if it avoided this kind of value destruction.
The company has a responsibility to SH and value protection/creation.
The destruction of value here in a major project is highly concerning
Maverick
The clue is in the up to 10.5m in cash for the farm out. The actual payment will idnimagine have specific milestones attached and as such not yet have crystallised as actual cash at hand.
Haven't gone back to look at the conditions/RNS but would imagine it is down to this rather than burning 10 million bucks in a month.
Have seen a couple of different potential rates posited here, ultimately the geology decides.
My curiosity though was more around the charge so if getting 25mmcfd at MOU-3 how would the pressure be having another well head in close(ish) proximity.
Think 250mmcfd was also mentioned and just wondering as don't have CNG case committed to memory if this listed any forecast.
We will know definitively soon.
Some of the posters around RNS make me laugh - I'm pretty sure no brain exists within their cranium but without a lobotomy to confirm it is hard to be certain.
Broadly similar to the cat paradox!
Not sure the company could have been much clearer, Testing will begin on or before 16 October once the wirleine unit is released from its current obligation by 10th October. We will advise if there is any change to these dates.
We believe the willing unit is from SDX and think others have noted SDX have moved.on from testing so the unit should be with PRD and testing progressing.
As an aside - some movement on dates potentially allows the company to continue CNG negs which appear advanced for offtake.
Note that ExxonMobil contacted the shale and did the seal quietly in two weeks. If the offtake is already advanced then it may be (relatively) easy to complete and advise when updating on outcomes.
See this running to the 25-30p range as the anticipation on testing results build. Should exceed the previous 20p ish highs seen previously.
Wealshspread - best of luck it's hard work but a blessing and great fun.
The current SP suggest probably 85-90% of equity would need to be ceded. That probably over eggs it but funding markets are not easy. Seems very likely Glencore will take a deeper, possibly controlling stake and see current SH perhaps being left with 25-35% of the mine.
Likely they will do this via convertible debt so they sit preferred to current shareholders in the capital structure. Can't come in above existing debt without permission/triggering an event of default.
I'm sending an email to IR team laying out concerns around:
- supply contractor that has failed to deliver on terms, what we're the liquidated damages in the contract and what contingencies were in place for non-performances of obligations
- progress report - what has been the frequency of these from the Technical Advisor and why is there such a sudden deterioration that management were oblivious too. What professional indemnity do those advisors (if in place) provide to HZM for maintaining a view on the project.
- design changes - why undertake design changes when the company is at its weakest. Conserve case and mitigate falling out this is Restructuring 101 and the minimum fiduciary duty to protect value for existing shareholders.
- information, the company is operating as if a Nuclear submarine on Cold War battle stayions and given the catastrophic impact of comms on the share price has fundamentally not shared sufficient info to exculpate the CEO/CFO from dereliction of duty.
Generally funding conditions are tightening as the effect of higher interest rates and rising input costs continue to bite various sectors. Hence, taking the funds and being in control of strategy/destiny is useful.
Until commerciality of gas is known then equity is more sensible than debt.
Fun and games in various sectors currently
KeithOz
If its only 500 not 700 p.a. that's it, I'm selling!!!!!
This is what GRH alluded too, Sandjet for thin sands explosives for thick intervals.
The EIA would need to covet the rationale and PRD aren't about to blow a hole in the dessert (deliberately anyway!!)
That being the case are we now in the run down to understanding if MOU3 holds the gas it was projected to or greater amounts given the increased layers found in drilling.
So potentially we either will or won't have 0.6 - 1.7 TCF plus by end of Oct/beginning Nov. If it proves up MOU3 what else then follows from it.
So one might say an interesting next 4-6 weeks.....
does anyone know if they hedged the debt package. that hedge is significantly in the money i'd imagine if so. would be really interested in the mark to market of that versus the supply issue (before the bod decided to **** around with the design and spunk more cash).
If its stranded in your gut Louis best try some Windeze or an equivalent.
Louis is full of nonsense, asking how long have they avoided testing and contending they keep doing do.
If so, why are they testing a prospect that is 0.6-1.4 TCF even before drilling identified larger than expected payzones. To enter in to a gas sale agreement.....that is in a weeks time so hardly running away.