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We know Liberator phase II is too big for the Blenhoeim FPSO.
A dedicated FPSO is needed.
Liberator is in the same block as Serenity.
So why not share the FPSO between Liberator and Serenity?
What impact would that have on Tain?
If Serenity belonged to a company that had no other assets they would be valued more than I3E. Reason being the failure of Liberator Pilot 2. So, Liberator A2 success will unlock value. Not only the RBL and the consequent 15-20 kboepd revenue but also unlocking Serenity value because a. any farmin / unitisation deal will be done from a position of strength b. an appraisal programme can be implemented cost effectively and timely.
Further success will prove up the new seismic interpretation which in turn demonstrates RBL confidence.
By my reckoning, based on the previous two wells, TD will be around next Tuesday/Wednesday. No news by then is a good thing as there will be then about 4 days of testing.
More likely RNS Tuesday. The shareholders meeting earlier on the year has an RNS the same morning. A move up beyond 5p on Monday will give a better platform for the Tuesday announcement.
News on expected production flows from Heron-1 at the various levels, with and without stimulation, with and without pumping.
Geological report on Heron, from the data in the neighbouring block as well as block XX to see if the sweet spot Heron-1 has hit can be extended to Heron-2 etc...
Upgrade on Heron recoverable reserves.
Update on Gazelle well, especially on the down dip implications for block XX oil in place and recoverable potential.
Why is a CPR needed?
Heron-1 can be proved right now. Flow and pressure tests will have been concluded over the lst two weeks, the retained experts reported back to PM, proposals put to Petro China, plans feed to the government and cash flows projected.
No CPR needed.
I'd expect Mike knows, or has a good estimate that will be confirmed shortly, what the sustained flow rates at the various intervals are with or without stimulation or pumping and the costs involved to get the operation off the ground. That will feed into forward plans for cash generation and how quickly Heron-2, Heron-3... can be drilled.
I'm not sure the re-interpretation of the drilling results into the models will be complete yet. Perhaps from Red Deer and Gazelle and Heron drilling as they were complete a while ago but not all the flow data. Again, news on that may more time.
All of the above feeds into unitisation, possible farmin-in, synergies with other players etc. News on that will take a little more time.
OILER87,
DST2 was performed over a 12 metre interval from 2,834 metres in the upper portion of the Lower Tsagaantsav Formation. The zone flowed oil and some associated gas to surface without the need for any artificial lift. This is exceptional for the Tamsag Basin where only a few of the hundreds of wells drilled have had the capability to produce oil to surface on natural flow. The peak production recorded during the test was 821 barrels of oil per day ("bopd").
We know Heron-1 was choked back to 200 boepd for the pressure readings, Heron-1 had a peak outflow of 821 boepd. The outflow of 821 boepd was a natural flow, no stimulation was required, no artifical lift was needed. MATD are still testing and have retained experts to calculate, based on the well testing results, the sustainable deliverability of the well on natural flow, impact reservoir stimulation could be expected to have on production, what rate the reservoir could be expected to sustain if the well is pumped.
The inflow of the well from the oil field is not know and could be much higher than 821 bopd outflow. The higher the rate the quicker the cash can be generated to fund more production wells, MATD could use the result of testing to get a loan based off Heron-1 production to fund more wells quicker.
Do you have a link Pro?
Since MATD are expecting Heron to be much larger that 25 MMBO as no water cut found. Whats the asset value?
MATD have stated
- For 15MMBO NPV10 is $76Million.
- For 50MMBO NPV10 is $300Million.
Since Heron is to get an upgrade from the $25MMBO pre drill/test estimate will they come out and say NPV10 of more than $150Million?
Put it another way, US$2,207,321.02 is £1,718,576, current MCap is £33.4M hardly large.
But they won't need to raise funds, recall they only drilled 3 of the 4 wells. They have funds for at least Heron-2 and Heron-3, the production wells are cheaper than the exploration wells. Also recall "Company will incorporate all data from the 2019 drilling campaign into rapid reinterpretation of Block XX in order to apply for an Exploitation Licence from the Government of Mongolia"
CaptainStanley, "This amount represents approximately 33.3% of the total issued Ordinary Share capital of the Company as at the date of this notice." Date was 21 Oct share price previous close was 2.9p
https://www.proactiveinvestors.co.uk/companies/news/312942/petro-matad-limited---oil-capital-conference-march-2019-12942.html
The presentation has more information on the Economics of producing from development wells in block XX.
Mike clearly states each well will be below $2 Million to develop and each well can be brought on stream sequentially, revenue from the first wells can be used to fund subsequent wells.
MATD has much more than $2Million to fund the second well Heron well - They only drilled 3 of the 4 wells this year and they stated in the interims back in September "no new fund raises have been undertaken in 2019 as the Company's cash resources are sufficient to fully meet the costs of the planned 2019 drilling programme."