The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
15 months ago Block Energy set out it's objectives. One project has kept us going but has done nothing to add value to the shareholders.
A question to PH. What happened to the other projects that were documented over a year ago ?
Q3 2022:
Operational Strategy
As recently explained in the Company's Annual Report, the Company's assets represent a material growth opportunity in terms of production, revenue and cash flow, particularly at current commodity prices. As with any development programme, single-well development risk remains, and the Company is seeking to mitigate it with a multi-well programme.
The Company's three-project strategy looks at the opportunity in totality. Projects I and II are aimed at generating additional cash in the short to medium term, while Project III seeks to add significant value from the deeper, extensive natural gas resources that lie beneath the portfolio of licences. The investment case for this strategy is supported by the improved understanding of the complexities of the Eocene reservoirs, which was a key objective in 2021.
Project I is the development of the Middle Eocene oil reservoir in the West Rustavi/Krtsanisi field, which straddles Blocks XIF and XIB, initially comprising of three sidetracks and two new wells. Preparations for the first sidetrack, of WR-B01, are now complete. These included the procurement of long-lead items and site preparation. Furthermore, construction of the gathering line from WR-B01 to the WR-38 wellsite has been completed on time and on budget, enabling offtake and rapid monetisation of the gas produced from the WR-B01 sidetrack. Project I is primed for non-dilutive debt funding and discussions with potential lenders are at an advanced stage.
Project II, the infill development of the Middle Eocene oil reservoir in the prolific Patardzeuli oil field (100 MMbbls produced) in Block XIB will be self-funded from the cash generated from operations and will commence shortly. More than 50 sidetrack holes could be drilled from the legacy well stock, six of which have already been defined for sidetracking.
Project III, the evaluation and development of the natural gas resources throughout the Eocene in blocks XIF and XIB, will commence later this year with the workover of legacy wells which discovered gas. This includes the potential sidetrack of the PAT-E1 discovery well, engineered for a 1000m horizontal section through the Lower Eocene and designed to evaluate over 300 Bcf of contingent gas resources.
Over to you Paul in your next PR statement to explain the delay.
I protected myself prior to well results as history had placed a nagging doubt. I'm sitting on a loss but only need 1.33p to break even. I'm happy to hold and will add, at what I see as a good entry point, if I consider this company is actually going to do something for it's shareholders.
I do believe this share can make me money.
The entry point is very attractive.
I personally can't see any changes in management happening. The Scottish duo were certainly not our saviour and that's why PH was not voted out. I have met him and do not trust him.
Looking at this share, with an neutral view, I see a company that has just drilled a successful well and have record production. Q3 results will be out soon. We are making a profit and have various projects that should, at some point in time, start.
I am confused as to why we had such a large drop in production. Only an additional 20bopd killed the share price. The message to the market is this well only made up for the shortfall in overall productivity. I'm hoping that Q3 will explain. Maybe a temporary shut down on a well? Who knows? Block energy do, but as usual the shareholders don't. Total lack of communication again.
We all feel that the various programs should be more than just talk. The PR is very hit and miss. With the last well results it would of helped if we were told, all long term items are available and the pad work is expected to start on well XYZ. But nothing.... just a vague, we will inform you soon.
I expect that the media 2 article will be published soon. I am sure it will sound very attractive to investors, full of promises. I will only be interested in firm dates. Talking about all the various projects is something bloe have been going on about for years......
Another single drill with results in 4 months time will not move the share value up.
We need news........
Sorry for the rant.
Good fortune everyone.
Beach party today ......
Life is good...
Talking about the good old days before the placement .....
On a serious note, we know what the potential is and we also know that every bit of sand that interests us will be tested ......
Until then .....
Bloe are proving that they can drill successful wells and the latest well has added to our overall productivity.
The problem has always been the fall off, over time, of the other wells and the slow rate of implementation of its various projects. PH talks a good talk but the market will judge on results.
I still have confidence that this share will make me money but this is still, for me, a long term hold.
Q3 is not far away and will confirm where we are.
I will be interested to read the media article when it is presented. But what is needed is actual dates, stating when the various projects will start. Talking about the 4 wonderful projects will not wash with the market. To date we are only carrying out one project. That is keeping us healthy but not enough production to please the market. The other projects have, to date, just been media hype.
Block Energy are in a healthy position.
Time to get going.......
A solid result. There is money to be made here if they can keep the moment going.
All that is needed is a continuation of the drilling program with no long gaps between drills.
Bloe say:
The team's focus will now shift to drilling KRT-45Z, our fourth Project I well and I look forward to providing further updates on this and wider project activity in due course.
Hopefully that will be soon.
Expecting part 2 of media article to be issued shortly.
Don't think we've reached a tipping point yet but this should boost the share price. We are getting there!
PG has told us testing will be finished by the end of September. If this is true then we are all happy.
If it has not then it will not help with the reputation of the company as regards to their ability to communication in an accurate and reliable way.
As shareholders I think we are untitled to complain when documented targets are missed.
It's all about research and DD. Part of that research includes the documented order and timing of events.
With no news and the placement shares being churned we have had a long period of stagnation. And no news .
We are all happy, to an extent, as we know the testing is going to be massive in the fortunes of this company.
The month is not over yet and we will soon find out where we are with the drilling program.
Frustrating as it is, I am still very happy to be invested here. I know that the management team are working their socks off.
Good fortune peeps ๐
Could the individual that is following me around the various BB and writing sarcastic comments, please stop.
I have you blocked but still see the comments from other posters about your strange behaviour.
Get a life.
Back on topic:
Very happy with the direction bloe are heading in. I think next Monday 7:00am could well be the time to release the flow tests and part 2 of the media article. If not then it will be very soon.
Good fortune peeps!
That chesh fellow is more than just a troll. He also is a stalker. When ever I write something he puts a reply up, saying weird things. He's not even invested here. Look at how many posts he sends.
Sad man with a sad life.
Since the placement we have has this churn, casting it's daily influence over the share price. It feels like it's been going on forever. But it will end soon.
What comes next, over the coming months, is going to be very exciting and potential life changing. Starting off with the testing.
Still a risk but the reward is massive๐ฆ ๐.......
A tune for those waiting.
https://music.youtube.com/watch?v=ulRXvH8VOl8&si=tkgUORrhxnWeu2nQ
A very low entry price. Guess MMs are trying to get a few stop losses out. For now, most people that want to buy in have already done so.
Churn is also just about over.
Although people know we are about to start testing, there are still a lot of investors waiting for an announcement that the testing has started. Once it does start the clock will be up and running.
Today's news confirms to me that we have massive potential here.
Due to the unexpected presence of over-pressured shallow gas a different well design would need to be considered and the MOU-3 well twinned to approximately 800 metres depth to safely conduct a rigless test in this interval.
That's in addition to the already high potential already found.
MOU-3 successfully satisfied several key pre-drill objectives.
ยท It de-risked gas charge to identify migration pathways for deep thermogenic gas to ascend to shallower potential reservoir sands, thereby creating the framework for re-evaluating other prospective structures adjacent to these migration pathways with potential Jurassic and Tertiary sandstone and carbonate reservoirs;
It verified the integrity of the MOU-3 hydrocarbon trap at multiple levels and enhanced the case for significant shallow gas potential;
ยท It de-risked, subject to the rigless testing results, the "Proof of Concept" for the minimum volume and likely gas flow rates required to initiate a CNG development;
ยท subject to rigless testing results, MOU-3 confirmed the scalability of an initial CNG development to meet the near-term demands of the Moroccan industrial market; and validated that the reservoir distribution over multiple levels is ideally suited to the scalable CNG development concept focussed on transporting gas by road and not relying on large-scale capital investment in fixed pipeline infrastructure.
That's just MOU-3.
The testing is going to a defining moment in profitability of this company.
MEM's posts adds value to this BB.
Simple as that.
Patience my friends........
"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." โ Paul Samuelson
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." โ George Soros.
The testing will happen and it's funded.
Enjoy the ride.......
๐๐ฆ๐๐ฆ๐๐ฆ๐๐ฆ๐๐ฆ
I have never seen any troll posts dismissing the various returns, nor putting their own valuations on Predator's potential value. I therefore take the values quoted as likely return figure.
If you look at how little gas we need, to make this commercial, then this looks very much like a share worth looking at.
The rewards is the gas figure are high. It's why I hold and take no nonsense of FUD.
Little men with little lives needing to find company by any means possible. Do not engage. Just post predator facts with new headings.
Churn is just about at its end. The price will rise on news. It will also rise on expectations.
Testing is just about to start . The signs are very encouraging. Funded as well.
Share value just about to rise.
More green flitters to follow this post. I will count the time from sending this post to the appearance of a green filter.
A day in the life of a Predator.
Exciting times for those invested and willing to hold.
Always a risk .
But, if there is a reward on this share, it's going to be high.
That's why we are all here.
Lots of smallish buys and very little selling. I can sell for 11:32.
Hoping that the placement shares are finally ending. If not it won't be much longer.
Testing of 151mts of potential gas bearing sands over 18 intervals plus an additional 4 that may be added.
The testing will look at ten individual horizons within the interval 1217 to 1300 metres TVD KB have been selected for perforating.
In the interval 769 to 912 metres TVD KB a further eight individual horizons have been selected for perforating.
Four additional data points between 1397 to 1400.5 and 967 to 991 metres and at 1035 metres TVD KB may be added to provide information that may be potentially useful for the finalisation of the MOU-3 rigless testing programme.
That is a massive amount of testing. My question is: is that just for MOU-1?
This work for all 3 wells is fully funded and will not take long to complete. Exact start date/confirmation of starting is still unsure. It is also unsure if the September date is for MOU-1 only? They say: potentially useful for the finalisation of the MOU-3 rigless testing programme. To me that reads the test is for one well only ?
PG did state that this testing will be completed by end of September (only MOU-1)? However the earth quake may have delayed this program. But it won't be for long.
Once the churn ends and we are sure testing has started this share will rocket ๐.
20p soon.
That's just for potential!
There is certainly gas there and the potential amount of gas will give management a strong hand to advance to the next stage of the end game.
Happy to hold!
If testing is finished then it's time to write the RNS and the second part of the artical.
Monday ?
PH write this:
We are encouraged by progress to date on well WR-34Z, with drilling operations having successfully gone to plan. The well will now be tested before being brought into production alongside the other two successful Project I wells. I would like to thank our in-house operations team and subsurface team for all their hard work, which has again ensured this programme achieved its pre-test objectives, delivering the plan safely, on time and within budget. We look forward to providing a further update on the testing of WR-34Z soon."
There is also a second part to the recent interview to look forward to. I'm very interested in what he has to say and hoping it is a ramp up on the drilling side. If this well is successful it will move up the share price but we will need the drilling program schedule to maintain the rise.
I'm think it will be released with the testing results.
If you believe that the testing will add value, then the time scale slipping, by a short period, is of no important.
The testing of 151 mts is fully funded and will go ahead.
The testing is the result of years of hard work. We have reached the time where deals can be done. The amount of gas will determine the deal and return.
Have a good day !