Member Info for Lancygeo

For those who think our CO2 EOR opportunities in Trinidad will come to nothing….from RNS of 7th June 2022.

‘To this end we are delighted with the outcome of our first physical trip to Trinidad since the outbreak of the Covid pandemic. Secondary to moving the resolution of the dispute with Challenger forward, the Company was involved in discussions with our trusted stakeholders to roll out up to six new CO2 EOR projects onshore Trinidad including the potential for a miscible CO2 flood.

Important very preliminary discussions were held regarding expanding our operations to include green hydrogen, developing markets for our potential gas products in general and sourcing non-fracked LNG for the Mag Mell project in Ireland. These are exciting developments only made possible by a physical visit with our stakeholders and the "Proof of Concept" established at Inniss-Trinity for CO2 EOR operations. Our next step is to explore further the potential to develop a carbon credits trading platform.‘

The Conviction to Hold

https://microcapclub.com/2014/08/the-conviction-to-hold/

Goehring & Rozencwajg latest release.

https://blog.gorozen.com/blog/inflation-and-magazine-covers-part-iii

https://tradingeconomics.com/commodity/uk-natural-gas

UK natural gas futures broke above the 250-pence-a-therm mark, a level not seen in two months, following news that the damaged LNG export terminal in Texas could remain offline for longer than previously anticipated. The company said repair works would take months, and the facility would only be fully operational by late 2022. Roughly 68% of the LNG produced at Freeport LNG is shipped to the UK and the EU, and the facility accounts for nearly 17% of the US liquefaction capacity. On top of that, imports from top supplier Norway were curbed by outages, and Russia’s Gazprom warned of cutting as much as 60% of natural gas shipments to Germany through the key Nord Stream pipeline.

Tick Tock :)

https://twitter.com/TheWackmeister/status/1534390121620963329?s=20&t=xBFPg8oHvshCz7vP1SoGiQ

https://twitter.com/__the_cube__/status/1533947378339913731?s=21&t=ZEM5ie4EOQWHbTxb0ymI9g

https://tradingeconomics.com/commodity/natural-gas

Natural gas prices in the US jumped 9% to $9.3 per million British thermal units, the highest since August 2008, boosted by strong domestic and international demand coupled with falling output. Average US gas demand, including exports, is forecast to rise to 90.0 bcfd next week from 87.1 bcfd this week on the rising use of air conditioners, and above last week’s expectations. The Electric Reliability Council of Texas, which operates the grid for most of the state, projects power demand to climb to an all-time record by Tuesday, outstanding levels reached in August of 2019. Meanwhile, US inventories were around 15% below their five-year norm emptied by exports to Europe and Asia after Russia's war on Ukraine caused a global energy crunch.

https://tradingeconomics.com/commodity/crude-oil

After breaking above $120 per barrel earlier in the session, WTI crude futures steadied around $119 per barrel, after Saudi Arabia sharply raised prices for its crude sales in July, highlighting tight global supplies even after OPEC+ agreed to accelerate its output increases. Saudi raised the official selling price for its flagship Arab Light crude bound for its main Asian market and to northwest Europe while holding the premium steady for barrels going to the US. Last week, OPEC+ decided to increase output in July and August by 648,000 barrels per day or 50% more than previously planned. However, markets continued to doubt the group’s ability to meet demand as several member countries struggle to boost output, at a time demand is soaring in the US amid peak driving season and as China eases Covid lockdowns. Meanwhile, traders assessed reports that the US was considering allowing more sanctioned Iranian and Venezuelan oil onto global markets to make up for Russian crude.

https://www.moxicoresources.com/annualreport2021

https://static1.squarespace.com/static/51fb84dde4b08f2b5c212fbc/t/62972939d7bd743504a319b3/1654073705133/Moxico+Resources+Plc+Annual+Report+2021.pdf

Mag Mell’s White Paper was a master stroke in both its content and its timing :)

hasiba….. today’s rise will pale into insignificance when compared with what’s to come over the next 3/6 months imho :)
Holding strong here too.

https://www.lse.co.uk/rns/PRD/operations-update-and-directorate-changes-m4pn1ml6h9x10pl.html

Lease Operators Ltd. ("LOL") has applied for a Certificate of Environmental Clearance ("CEC") from the Environmental Management Authority in Trinidad for CO2 EOR operations using some data and an example template provided by the Company. Award of the CEC is expected shortly.

The Company has organised its first physical meetings in Trinidad since the COVID pandemic scheduled for 31st May 2022. Using the Company's "Proof of Concept" for CO2 EOR and CO2 sequestration in Trinidad, achieved by the encouraging results from the Phase 3 CO2 injection in the first half of 2021 in Inniss-Trinity, the Company is now in a position to develop its CO2 EOR services business with LOL.

The preferred business development strategy that is being pursued is for a sale of the business and its technology, know-how, CO2 EOR surface equipment and its exclusivity arrangements for CO2 supply into an in-country entity with producing assets that are suitable fields for the application of CO2 EOR.

https://tradingeconomics.com/commodity/crude-oil

WTI crude futures jumped more than 2% toward $118 per barrel on Tuesday, hitting its highest since March 9, after EU leaders reached an agreement to ban 90% of Russian crude by the end of 2022, fueling concerns of an even tighter global market. The agreement resolves a deadlock with Hungary over the bloc’s toughest sanction yet on Moscow and would clear the way for other elements of a sixth package, including cutting Russia’s biggest bank from the SWIFT messaging system. However, some analysts suggested that oil price gains may be muted as the move has already been priced in by the markets. Meanwhile, demand from China is expected to pick up after the cities of Beijing and Shanghai eased Covid restrictions, with some reservations about the effect of skyrocketing petrol prices on global consumption. On the production side, OPEC+ is set to stick to its policy of modest output increases at its meeting on Thursday, rejecting western calls for faster production to lower prices.

Thanks to GettingBy for posting on the JSE bb.

Goehring & Rozencwajg latest quarterly newsletter. Always worth a read.

https://4043042.fs1.hubspotusercontent-na1.net/hubfs/4043042/Content%20Offers/2022.Q1%20Commentary/2022.Q1%20GR%20Market%20Commentary.pdf

"The biggest risk for investors is selling too soon. From the bottom in 2020, the ratio of commodities to the Dow Jones Industrial Average has rallied by 40%. Using history, we can compare this move to past cycles. The ratio bottomed in December 1968 and by November 1970 had advanced by 40% -- commodities by 10% while the market fell by 16%. Many investors may have wanted to sell at that point; however the rally was just beginning. Over the next nine years, commodities rallied another 156% and commodity stocks rallied another 400%. Had you sold in 1970 after the index advanced 40%, you would have missed 90% of the rally. In 1999, the index bottomed in June and advanced 40% over the next 12 months – commodities advanced by 33% and the market fell by 4%. At that point, oil was $32 on its way to $145, gold was $289 on its way to over $1,000. Over the next 10 years, commodities rallied 150% and resource stocks rallied by 325%. Again, if you had sold in 2000 once the ratio advanced 40%, you would have missed 95% of the rally."

"We are now beginning to understand what a world looks like as it runs out of spare oil pumping capacity. Even with the huge releases of oil from Strategic Petroleum Reserve, oil prices have hardly pulled back. Global inventories, now at record lows, continue to draw counter-seasonally and are reaching dangerously low levels. Even with all the dislocations caused by the Ukrainian conflict and COVID problems in China, global oil demand in Q4 will approach global pumping capability according to our modelling. Strong demand, declining production, record low inventories, and now no spare pumping capacity—all these factors will push oil prices higher in the second half of 2022. Even in the face of all these factors, investor interest in energy markets remains incredibly subdued. The advances we have seen to date have basically been short covering and active managers buying on the margin. Once investors and institutions realize the energy market has fundamentally changed and the decade of cheap, abundant energy is over, the amount of capital that rushes into this sector could be huge. The global energy crisis has just started, and it will take many years to fix. For those that make investments today, the rewards could be immense."

….posted the following back in March.

‘ MUCH afoot! All that is left to say is hold the line and you will be rewarded richly here.

Curds and whey. I'll take both.

Will return end of May, 5th dimension calls! Keep the Champers on ice, Nancy Girls!

Over and out.

_CUB€_’

PrivateTesla…. your thoughts on the overall cost of wind turbines reminds me of the research carried by Goehring & Rozencwajg….. specifically the following extract from their Q4 2021 Market Commentary.

‘The Distortions of Cheap Energy’

‘We are making one of the largest mal-investments ever—possibly only rivaled by the one made by banks in mortgage-backed securities 15 years ago that ultimately produced the 2008 global banking crisis and financial panic.
Over the last decade billions of dollars have been diverted from traditional energy invest- ment to so-called “transition technologies,” notably wind, solar, and lithium-ion- powered electric vehicles. These technologies represent the worst of all possible worlds: not only do they generate inferior economic returns, but they are unable to address our carbon reduction needs.‘

https://tradingeconomics.com/commodity/natural-gas

US natural gas futures skyrocketed above the $9/MMBtu mark for the first time since August of 2008 and more than doubled in value since the beginning of 2022, with higher domestic and international demand being the primary driver. Russia's war on Ukraine has caused a global energy crunch, with demand for US LNG set to remain elevated partly due to Europe's calls for US exports to help cut reliance on Russian gas. On top of that, prospects of increasing demand for cooling as the weather turns hotter in the United States should drive prices higher and limit last week's inventory buildup. Meanwhile, analyst surveys point to an 87 bcf increase in stockpiles, less than the 5-year average build of 97 bcf, due to higher cooling demand in several parts of the US.

Germany certainly not dragging their feet :)

‘GERMANY leased four FSRU vessels and commissioned construction of a landing terminal at the Northern port of Wilhelmshaven. The first FSRU is expected to receive LNG in winter 2022 / 2023. Germany currently has no onshore LNG terminal capacity and this move forms part of its strategy to quickly resolve reliance on Russian gas - May 2022’

An excellent publication imho.

The Irish politicians will come to their senses eventually, or otherwise their hand will be forced based on public opinion alone. Pressure will build as time passes….. and time will pass very quickly. As summer becomes autumn and then winter, power shortages will become power cuts….. not exactly a rosy picture to paint for the Irish populous.