The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
What the score with FTSE100 entry?
Trading and operations update is 11th May
New slides from the AGM operational update are uploaded to the IOG investor page.
Clearly the period ahead is going to be very busy. Includes drilling two wells at Southwark, pipe-laying and trenching, FID for Nailsworth in Phase 2, appraisal drilling at Goddard and Kelham, and entering new UKCS licensing round.
As well as maintaining 100% uptime at Blythe and Elwood, optimising production, and permanently fixing the chemical injection fault.
How does the Blythe and Elggod production for March and April compare to finnCap broker research with figures provided by IOG?
Stable daily production in the range 55-65MMcf/d gross. The finnCap estimates were for 30MMcf/d at Blythe and 20Mmcf/d at Elwood as 2022 average production. The corresponding daily rates over the period of production from mid March are 37.2MMcf/d and 22.7MMcf/d which is a combined 60MMcf/d.
So exactly predicted. Meanwhile the condensate production is currently much higher than expected but likely to drop off over th reminder of the year.
So a sigh of relief that production is as exactly as expected and now supports the finnCap target price of 66p based on a 200p/therm average for 2022 and 100p/therm for 2021 and 45p over the longer term.
European Union will oppose Putin’s blackmail
https://twitter.com/javierblas/status/1519304097559683073?s=21&t=tZ3ox4tm64eGkUK-TGd1Xg
Sudden price move for gas.
Malcy's blog
"I attended the IOG presentation to private investors on Wednesday evening and it was most impressive. Having got to first production at Phase 1 in such a timeframe, especially given the bumps in the road is laudable. With its first cheque in the bank IOG can now move forward with its portfolio of assets in the Southern North Sea and it has many plans including short term wells to be drilled.
The company talked about hedging where the plan is only to do what is strictly needed and to pay down debt so that one day in the future a dividend or buy-back can be considered. With that exciting portfolio to get stuck into, the outlook for IOG looks good especially if you take into account that it is now a key supplier of low carbon domestic gas in a market which will be a huge net buyer for years to come. "
Well 49/21c-A2 at Southwark on licence P1915 was suspended in January. The well status has now changed from suspended back to drilling again.
https://itportal.ogauthority.co.uk/edufox5live/fox/edu/
Expect a market update on Southwark drilling.
On my way to to the event. I will update after presentation about the current status of Southwark drilling.
Not really interested in the front month or the day ahead price. The prices for this autumn and winter are still unmoved at 245p which seems a reasonable reflection of the risk that storage isn’t filled sufficiently. Also gives the opportunity to hedge a part of future production based on the 245p.
It would be insider dealing if LOG received information about Blythe so that’s not the reason for selling. However must be in dialogue with the board, and can ask questions, perhaps know by the reply that there will be an annoying delay to production, but not know yet the details. We will have to wait and see. IMO
Anything studies that are safety related require an approval of the processes before implementing and then an inspection before resumption of production. Or am I reading this wrongly?
This is exactly what the RNS said
"On further inspection, additional process and safety studies and procurement of materials are required before implementing the solution."
Any ideas what kind of process and safety studies please?
Ignore the post
This is exactly what the RNS said
"On further inspection, additional process and safety studies and procurement of materials are required before implementing the solution."
Any ideas what kind of process and safety studies please?
Russia to halt gas supplies from tomorrow!
https://twitter.com/sstapczynski/status/1509525316645310469?s=10&t=BsFzSf2yswuyzwKW3NVTKA
Crunch time for gas supplies and a Rouble payment decision is tomorrow
https://www.reuters.com/business/energy/germany-declares-early-warning-potential-gas-supply-disruptions-2022-03-30/
Gas price going to be higher for longer.
There's a disagreement between the Kremlin and Germany, as well as other "unfriendly" countries, about payment for gas being made in Roubles. Germany refuses to pay in Roubles and Gazprom says it can't supply Germany for free.
UK NBP April 2022 contract now 287p
https://twitter.com/javierblas/status/1509067381305397254?s=10&t=QTaFV485KHGKbxSSJ5e_gw