The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Yare - there is a difference between commercial viability and a dry well drilled during exploration (definition of a duster)
The process of water isolation is not uncommon and completely achievable. The oil is there, we just do not know whether its accessible/commercially viable at this stage. Positive news on water isolation next week Tuesday/Wednesday will remove a layer of risk.. Then its down to the real business, how much oil will flow. I do not expect a huge spike on water isolation (if successful) personally, however, I would expect to see a gradual rise in anticipation for for flow test results in the coming week. GLA
Extract from: Annual Financial Report - Wed, 6th Mar 2019 07:00 -
Following a £2m placing on 5 November 2018 and £1.5m draw down on 10 January 2019 the Group has a strong cash position. A further £2.2m was raised on 15 February 2019 to repay the £1.5m drawn down from our loan facility. This is after accounting for all costs associated with the testing of Brockham X4Z (completed after the reporting period).
Extract from: Proposed Placing and Open Offer - Tue, 30th Apr 2019 07:00
Reasons for the Placing and Open Offer
The funds raised are to be applied, after provision for general working capital, approximately equally to support ongoing works at the Company's Brockham asset, forthcoming works at the Company's Balcombe asset, a seismic overview of the Company's Lidsey asset and to fund the exploration of potential acquisition opportunities.
Its not just about patience and waiting... Its also about concise communication investor confidence. I have no issue with waiting as I understand the timelines, what I do have an issue with is poor management when confidence in the BOD is already on thin ice. I'm fairly confident the SP will recover on the news but not to the potential it would have done without this placing. Either way, holding for now and hoping Tuesdays news is positive. GLA
Significant amount of buys over the past hour, they will need to let it go soon... Today has been disappointing to say the least, however, eyes on the prize for now. Under a week before confirmation of stage 2 completion. Hopefully no more unpleasant surprises.
Although I agree regarding patience required... It would be a lot easier to be patient if the SP didn't continue to slide as time passes... Just saying. I'm in for the lang haul and am reasonably confident that we will be in double figures in the coming weeks if all goes to plan, however, I can also see where the long termers frustrations come from...
Doesn't really matter to who he/she is to be honest... Some of Alan's posts have been highly informative (after also following up with research) so I welcome them here.
@Barn doors - That's always going to be the case, as long as you can evidence your posts with fact then you will have to filter through the rest... Admittedly I have been corrected on a number of occasions here and that has helped me build a more definitive case study on the company.
I can't guess what the rates will be buy what I do know is that we are currently on schedule with Brockham with no issues reported to date. There are 5 more trading days before what appears to be one of the most important tasks is completed (water isolation). Once we receive confirmation of successful isolation then bring in the flow rates!
Currently fully funded for Brockham and Balcombe and the company is starting to restore sentiment and faith with a good flow of comms... All looks good on the short term so far from where I am standing. GLA
Looks like the SP is recovering slightly, some big buys coming in now... Although the recent turn of events has not helped, the end goal remains to be the same as is within reach for Brockham. Just have to endure another 2 weeks and hope there aren't any other nasty surprises along the way...
Unfortunately they show as buys but some are actually sells. The trade type is determined by the 'Share' price displayed which is ultimately the average of the 'Bid' and 'Ask' price. If the trade price is closer to the 'Bid' then it is automatically marked as a sell, if the trade price is closer to the 'Ask' then it is marked as a buy.
As the trade prices have been higher than the 'Share Price', they are appearing as buys, however, not all of them are. For example,
Apr 24 2019, 10:40 5.78 65,435 5.50 5.90 Buy £3,778.87 - This is an actual sell
Apr 24 2019, 10:42 5.88 8,324 5.50 5.90 Buy £489.00 - This is a buy
Quick 'back of the envelope' calculations...
Lidsey - 80% with 40 bpod (32 bopd to ANGS)
Brockham - 65% conservative estimate of 280 bopd (182 bopd to ANGS)
Potential total of 232 bopd for ANGS
232 bopd x $70 = $16,240 > Approx. £12,500 per day
£12,500 x 365 days = £4.56m revenue per year
Not entirely sure of production cost price so please let me know if anyone has an idea of what this is.
Considerations: Brockham bopd based on previous rates reported and could be significantly higher if all goes to plan with isolation. Price of oil at lower end anticipating slight fluctuation between now and production.
Factoring in the the above numbers for Brockham are at the lower end, if all goes to plan, we should have a decent steady flow of revenue from Brockham and Lidsey combined.