Produced water is being trucked at low cost with the oil to a nearby storage facility owned by the Georgian Oil and Gas Corporation ("GOGC") . The storage leasing agreement with GOGC provides for the disposal of the water into a state-approved injection well. No treatment is necessary prior to disposal. The Company continues to make regular oil sales to a local refinery.
Friday 24.01.20 Brent crude closed at $60.56 on Friday, its biggest weekly decline in more than a year as concerns that the coronavirus will spread farther in China
They have the capacity to store 96,000 barrels locally combined. If they are just pulling 240 that's 400 days. Pretty sure they rather have wells producing once gas is hooked and keep the sticky stuff on store till price has recovered. I'd of thought initially it'll be at least double the 240 but that's still half a years cover.
For sure BB. If ground operations are still in swing there's ample local storage, close intermediate storage if trucked and sales to local refinery when price recovers. All that's impacted is short term cash flow and there's enough in the bank to coast for a sustained period. Gas once infrastructure is in place at double plus current market rates.
Yes we can survive this. Although there are only 40 confirmed cases in Georgia, crises managing this situation remotely must be exceedingly difficult but I have no doubts the management will be bleeding to keep everything on an even kilter. We just have to accept what's happening could not of been foreseen and to let them get on with keeping their heads above water. As they say it'll all come out in the wash, and I for one am grateful that the driving force at the top with all the contacts is young and fit.
As to who sells at this price Bobby, it’s your ordinary Jo. I said muppets earlier in the week which was unfair and born out of frustration. Most of us frequent posters have the luxury of time. Life gets in the way though and things can change quickly. If my mam gets ill I’ll cash out instantly to take her private. Such is life.