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Hi Gordon
In an idle moment just re reading your post from 7.56am . I assume you mean our present well which gives an annual gross of approx 4 million . Adjust your figures to 4 mcf it becomes approx 13 million annual gross per well and for 6 mcf it becomes approx 20 million annual gross per well. More than enough to be self funding after two wells. Allowing for the 30% reduction 10 wells over 10 years is between 910 million and 1.4 billion gross at the lower rate per mcf. Then by the time you reach the thirty well target its between approx 2.7 billion and approx4.2 billion no wonder we have at least 2 parties interested in a JV. My extending of your figures from this morning should be taken as just a broad outline of what could be possible but before you take me to task they are not an accurate forecast as I don't have the data to do one.
Page 12 of the new presentation says self funding after first two wells thus are we misreading the finance projections.
It also says full field development to start early 2024 - have we now got a JV partner lined up with new wells been drilled early 2024.
Hi Gordon
Been back to website twice first time it was there second time it had disappeared again. The second time was to re read it. From memory it gives costs per single well for drilling etc and then gives income which for the life time of 10 wells is I think too low so my guess is its the income per well over its economic life not for all ten wells.
Yes I do think we will quickly move forward once Scirocco situation is resolved. I feel that ARA are very good at management and like each part of the plan completed before they move onto the next part hence nothing moves until Scirocco situation is brought to a satisfactory conclusion
HI Gordon
If we get to .4 with good flow results (which is what i seem to remember was your target some time ago) then JV will take us way above .5 and I think 1.5p or above. Very surprised how in the last few weeks shares with good news are recovering to prices 3 or 4 times previous price. Normally I have only seen these multiple price rises so quickly when a new well strikes oil or gas
By accident or design Roland could have timed this to perfection Results September when there is usually renewed interest in the stock market and shares tend to go up followed by JV news. We have orcadion energy (ORCA) virtually treble in price today and upland resources(upl) virtually 4 times higher at one point in the last few weeks. As i have said before investors are slowly returning. Using upland as a guide if flow rates are good we get to approx.4 and JV takes us up to over 1.5p . A few weeks ago I would have said not possible now I have changed my mind and maybe it could be possible
Looks like interest may be slowly returning to oil and gas and we still have the st ledger day to come. upland resource UPL have gone from .4 to 1.27 in the last couple of weeks then there is PRD that's more than trebled and even matd that had a good run before falling back. I think this bodes well for SYN having a good run with good jet pump results JV and the right promotion.
By doing the raise now and stating it is for jet pump etc JV funds can be clearly shown to be for the new wells and thus avoids any tax problems arising with government. Our management team are very much on the ball.
Consolidation is not an option now for any sensible oil and gas company after the recent Deltic consolidation disaster. The oil and gas industry has taken note of the what has happened to deltic share price and would not want it to happen to them. The problem is the lack of funds flowing into the London stock exchange AIM and until this improves which will be later this year or next year any share consolidations are very unlikely