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The SPT was revised some time ago to raise the price at which it kicks in from 50 to 75 usd per barrel. I also believe there was a clause that it was produced with under 2.000 bopd. Not sure if this was per field or per operator? Anyways, we ar under 2.000 bopd currently anyhow.
What was the mechanism where the SPT starts? Was is quarterly average price, or was it something else? Is it market price, or is it actual price obtained (which would be influenced by hedging, etc.).
We are making bank on whatever we have of production that is not hedged at the moment anyways, and so if we are still under the SPT threshold in this environment, the cash on hand is growing every day.
Helps a bit while waiting for COHO, which some say is right around the corner. Let’s hope we see a picture of a trench being dug very very soon.
It would be up to the board recommending something and then a shareholder vote I suppose. Good thing there are not a few holders that sit on a lot, have been squeezed out before from a management with high holdings that robbed us by tipping the scales, and probably took nicely paid jobs with bonuses in the new company.
Of course one can never know what is held in nominee accounts.
Any bid would of course have to have a premium on it to get the short term term holders and traders on board, so it’s gonna be interesting to see how it unfolds.
Paul did have an interesting comment earlier though about the end customers on the island would also be a force to be dealt with if a bid was on the table. They would certainly like to have control of the upstream gas production if they got the chance.
So if we get taken out, it will certainly be profitable from these levels, but I would like to hold TXP for the next 20 years, and retire nicely on the dividends.
Think Danawinner is doing something in the background to try to take us out. Has eluded to to trying to get a group together to do just that. Might be involved in orchestrating the decline and depression in share price over a longer period with the idea to come with a bid for everything, probably after Royston flow test results. The best defense against such hostilities is to get the stock price higher and hold it there.
Think he has friends in low places, but not in the lowest of places, so one should never forget how the world works.
Nothing like jumping in there on the bandwagon for a bit of pat yourself on the back. Heritage is probably full of a bunch of freeloaders who take credit for anything subcontractors and partners do, and use meetings to plan meetings and create red tape so they can lean back in nicely paid positions for a long time.
What Heritage should be doing is kicking people into action, and clearing obstacles out of the way. Much easier to just lean back and steal 20% of our production for no good reason though instead, like an extra tax.
Heritage also hasn’t paid a dime for anything we have done on the block so far.
I have a different metric I use in life, but it’s similar to your Coho metric.
I convert things to liters of home brewed beer. Like if I change the tires (winter / summer) on the 3 vehicles myself, vs. getting the garage to do it (176 USD), I can buy the ingredients to brew 100 liters of beer. That’s beer that the equivalent of in the store would cost around 1,050 USD here, and in the bar would cost a whopping 4,235 USD. So it helps me to put things in perspective and do things I don’t necessarily want to do. Put a banana in front of the monkey.
Ok. I was just thinking you spend a lot of time on TXP for 3000 shares. Good that you have increased that significantly.
I wasn’t far away from a million shares pre Coho, and then thought I should maybe not be going so hard at it in case something happened and reduced. I think about this almost every day, and yet here we stand so close to being 5 for 5 (I count Chinook as a hit until otherwise proven wrong on up dip drilling). On the flip side, we were maybe closer to something going wrong than most realize, and so it was the proper thing to do. I look forward to the day when we have major cash flow to take care of any issues that might arise without getting killed, and are drilling a bunch of production wells into known formations which are less prone to surprises.
Scott, so you have like a few thousand shares of TXP?
TXP 80%
Heritage 20%
But those numbers are so big anyways, it doesn’t really matter. I can accept some rounding errors.
Thanks for the insight Druid, excellent post. You’ve obviously done your homework.
Stupid iPad touch keyboard.
Paul had a deal lined up
get the gas from Coho
The person that made that comment doesn’t know what they are talking about, doesn’t understand physics, or is deliberately trying to create som doubt.
The way things went on this well is how it’s supposed to go, and normally does go.
Porosity - it is lower than Cacadura, but like normal other wells. Some people are trying to make this an issue too. It’s just like other commercial producing wells in the area FFS ……. It’s not a problem, it’s normal.
Paul have a deal lined up with Shell for Coho, TXP purchased the pipe, and was going to install the pipeline themselves.
Then the NGC thing came along and suddenly NGC was going to get he has from Coho, and maybe purchase the pipeline from TXP.
So, Shell probably feels a bit stepped on by both Paul and NGC. Why in world he didn’t tell NGC whole block minus Coho …… you were too late to the party ….. is beyond me. But here we sit today losing cash flow everyday because the pipe we bought is piled up rusting at the Coho well site.
A major F up with no info and no explanation. Paperwork not signed by the stakeholders. Why?
I know you know I was making a point that geological twins can be quite far away, and not actually tying to say that an offset well referred to in the RNS is in Africa.
Carapace Ridge obviously, but other than that, I have no idea how wide they cast the net concerning that statement. You could draw experience and knowledge from any Turbidite in the world, it all goes towards the general understanding, not limited to neighboring fields.
I did say in theory ….. but you can read this to increase your knowledge
https://www.google.no/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjRz5ushZjzAhW4SPEDHQEsASkQFnoECAIQAQ&url=https%3A%2F%2Foxfordbusinessgroup.com%2Fanalysis%2Fshared-geological-structures-across-atlantic-are-leading-interesting-prospects&usg=AOvVaw06PNOeej3VFk6UWSWi8txK
He said a couple months to test, so this is probably a couple zones on flow and pressure shut in period, plus rigging.
The best sample for porosity and permeability is a sidewall core. There are wireline tools that do this. Not the cheapest service in wireline.
In theory you can have offsetting wells on different continents. So offshore or on another island, whatever. Is the depth similar, is the geology similar, are the other properties similar? There is no strict condition that offsetting has be within 20 km or anything ……. Geology is far and wide.
Royston IS the 7.1 km x 1.8 km structure, it’s not a part of it, it is it.
Other wells would depend on how far off your offset is …….
Anyone worried about the porosity comment shouldn’t be. What he’s actually saying here is that Cascadura has unusually high porosity (fantastic to know that), and that Royston is similar to other wells in the area / formation / depth.