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Just been re reading the June 29th trading update where they quote revenues of $2.3 M " O/P Ave = $42" & $3.3 M " O/P Ave = $ 55 over two 5 month periods at present the O/P = approx $70 this would equate to $4.1 over 5 mths or $9.8 M over 12 months. Now if S2 comes in at anything like 200/300 bopd CEG could well see revenues more than double due to the far superior revenue returns IMO.

The Eastern Venezuela Basin is a major sedimentary basin in northeastern Venezuela that contains copious petroleum reserves. The basin lies between several geological structures. To the south it bounds Guiana Shield, to the north metamorphic rocks of the easternmost Andes, to the west the Espino Graben, to the northeast the Barbados accretionary complex and to the east it bounds to the oceanic crust of the Atlantic Ocean.[1]

CERPS most exciting opportunity is its onshore position in Trinidad’s South West Peninsula (SWP). The SWP is close to, and geologically part of, the East Venezuelan Basin. This is the largest hydrocarbon basin in the world. Koot says the opportunity to access the Basin’s offshore-scale potential from an onshore location drew him to Columbus:
‘Trinidad has been producing for a long time. However, the SWP has not. This is because landowners rather than the state own its mineral rights. Oil companies have overlooked these resources .

Cerps first well that they drilled in the SWP Saffron 1 was never planned as a production well always an exploration well until they found oil at only 450'.
3 zones in the Middle Cruse with one having a gross pay of 1,000' interval 4 with minor sand migration ( a big plus) and 60 wells planned.
The MC is over pressured at 0.6psi and at those depths is very high.
Pressures increase the deeper the layers at about 1lb per foot in rock and less with water e.g. undersea.
The Lower Cruse had the issues with moving shales and a heavy mud was used which had the effect of hampering the flow of the oil and was abandoned and only 2 x 8' zones were perforated but had an API of 40, that's fantastic, over 300' still to perforate of "open" flowing sands.
The 2 zones 5&6 had pressures of 0.7 & 0.9 psi. As i understand it a pressure at that depth is very high and should flow unaided for a long time.
This well has given Cerp so much potential although as I understand it only a minimal amount of oil has been produced from the middle cruse due to 90% water cut although for future growth the economics make it potentially far better than sub sea plays.

Now we are flow testing S2 on which a synthetic mud was employed along with a different casing method so hopefully a better outcome will be achieved.

I agree cperkins just where would Cerp have been now without kooties disastrous sell out.

Hi Bohemia
Regarding getting equipment in its just off the St Mary's Road which leads on to the Southern Highway, so there's no problem getting in or out.
There are 4x 400 barrel tanks on site that they are using for the Middle Cruse to store and separate the water oil mix.
Heritage will buy the oil and be sent by road.
Plans are afoot to export the oil by sea paid for by an oil trader. although they have said a water separation tank may be required.
Of course there will be large spending on new wells but also large revenues.

S1 was never planned as a production well always an exploration well until they found oil at only 450'.
3 zones in the Middle Cruse with one having a gross pay of 1,000' interval 4 with minor sand migration ( a big plus) and 60 wells planned.
The MC is over pressured at 0.6psi and at those depths is very high.
Pressures increase the deeper the layers at about 1lb per foot in rock and less with water e.g. undersea.
The Lower Cruse had the issues with moving shales only 2 x 8' zones perforated but had an API of 40, that's fantastic, over 300' still to perforate of "open" flowing sands.
The 2 zones 5&6 had pressures of 0.7 & 0.9 psi. As i understand it a pressure at that depth is very high and should flow unaided for a long time.
This well has given Cerp so much potential for future growth and the economics make it potentially far better than sub sea plays.
Just a shame about the dilution but that should change fairly soon

Costs at Saffron
Rent
$70,000 per annum but varies with WTI

Royalties
Free for the first 2 years of production then 10% for years 3-8 then 12.5% onwards

Drilling bonus
$15k payments on the first 3 deep wells

Development bonus
$30k on each of the first 3 FDP plans

Bolt royalties
No royalties on Bonasse field
3% royalties on a field not in Bonasse
NB I haven't been able to find which fields these refer to and whether it includes Icacos

We have borrowed 3m from Lind on a monthly payback in shares or cash. Cerp can borrow another $1.5m if the market cap is above $25m . That's all the borrowings

At the time WTI was $60 and they are showing $50 revenue for Saffron, at Goudron it is only $30, a huge difference.
The mineral rights are held by the Singh estates who we pay rent to, the government does not get royalties only corporation taxes and the infrastructure costs will go against that.
On fields outside of Bonasse in the SWP we have to pay Bolt royalty fees

Hi Bohemia Cerp estimated that Saffron would produce $50 per barrel gross revenue after tax and royalties on a $60 price

I agree cperkins the return from 200 bpd should double the company's revenues

Isn't it strange how some people with no interest in the company who have also written the company off have this stocks posts on notification alert so they can respond.

Derampers & Shorters getting a tiny bit worried.

Hi Burren boy when a fellow poster replies to question have a look at their posting history it may give you an indication of what their motive could be.

If pressures similar to S1 and Oil prices continuing to rise this could double revenues @ $10 lifting costs

Sounds promising " But we've been here before"

Think you had better do some more research.

Full depth Wednesday no wonder trolls getting worried

Thanks for that Bohemia

Are CEG using the same team/ company to drill Saffron 2 that were willing to drill for free albeit a share of the oil.

Our main pre-drill goal of establishing the existence of hydrocarbons in the Lower Cruse has been achieved, significantly de-risking what we expect will be an imminent Saffron field development. We achieved light, high quality oil flow to surface (circa 40° API) from two test intervals in the Lower Cruse. For operational reasons (including prudent cost management), our testing was deliberately limited to a combined perforation of 16' even though the logging of the Lower Cruse showed over 300 feet of high-quality sands. As such, we believe that the appraisal of the Lower Cruse, expected in Q3 2020, will be stage 1 of a Lower Cruse development that we now calculate has an NPV of circa US$90m.

Saffron 1 was never planned as a production well always an exploration well until they found oil at only 450'.
3 zones in the Middle Cruse with one having a gross pay of 1,000' interval 4 with minor sand migration ( a big plus) and 60 wells planned.
The MC is over pressured at 0.6psi and at those depths is very high.
Pressures increase the deeper the layers at about 1lb per foot in rock and less with water e.g. undersea.
The Lower Cruse had the issues with moving shales only 2 x 8' zones perforated but had an API of 40, that's fantastic, over 300' still to perforate of "open" flowing sands.
The 2 zones 5&6 had pressures of 0.7 & 0.9 psi. As i understand it a pressure at that depth is very high and should flow unaided for a long time.
This well has given Cerp so much potential for future growth and the economics make it potentially far better than sub sea plays.

Every Dog has its day on Aim the only virtue you need is Patience and lots of it.

It's all happening not long now

Hi cerp I wouldn't read to much into the use of appraisal just as you can't term a well a production well until you've actually drilled it and found commercial quantities.