Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I would have thought that they would have placed the order as soon as they confirmed the water was isolated successfully as this would have been de-risked from a water issue perspective. Alternatively, it would also make sense for this to occur once the new completion has been run in hole IMO
"Following the re-perforation, the tubing-deployed hydraulically-set bridge plug has now been installed successfully, and the well will now be re completed to prepare the borehole for the next operational stage. The workover rig will be demobilised once the new completion has been run in hole and this is expected to take place early next week, on time and according to schedule, at which point we will begin evaluating the results of the work before proceeding to the next stages"
https://beta.lse.co.uk/rns/ANGS/angus-energy-plc-brockham-operations-update-41w7b15miacibaj.html
E_AL - Semantics... The company refer to the Isolation of water, reperforation and recompletion as a 'Stage'... My intention was not to mislead anyone
"The work programme at Brockham is proceeding as per the schedule described in our 3 April 2019 announcement which allocated 19 working days for this stage of the programme. Work is still expected to complete, as scheduled on Tuesday 7th May."
https://beta.lse.co.uk/rns/ANGS/angus-energy-plc-brockham-operations-update--ix3wdd8z3bhdxyt.html
Stage 1: Rig Acceptance and Mobilisation - 3 Days - COMPLETED
Stage 2: Isolation of water, reperforation and recompletion - 19 Days - COMPLETED
Stage 3: Rig Demobilisation - 6 Days - COMPLETED
Stage 4: Lead Time for Arrival of Well Test Kit - 14 Days - Most likely initiated
Stage 5: Installation, Testing & Commission of Equipment - 10 Days
Stage 6: Flow Test & Production Results - 11-16 Days
To my point exactly... "It is also important to remember that the 'Potential Acquisition' has not been finalised and is still subject to a number of variables 'amongst other things, to due diligence, regulatory consents, legal opinion and execution of legally binding agreements'..."
All I am saying is timing could have been better and I am interested in learning more about the proposal...
Acquisition of business for £1 indicates that the business is either failing or has failed. The initial purchase cost is not going to break the bank, the funding required to rejuvenate the company however, that's the part I am slightly concerned about. I fully understand the requirements of fund raising and placing and welcome them when they are justified, not so much when they are not...
Its all eyes on Brockham for now but I would be interested to learn more about the proposed Acquisition sooner rather than later. Then hopefully Balcombe to follow immediately after. Should be fully funded for both with flow test in under a month! exciting times...
baits - agreed... Although the timing inst great I would like to believe the only reason it came when it did is because they wanted to take the opportunity while it was available. It is also important to remember that the 'Potential Acquisition' has not been finalised and is still subject to a number of variables 'amongst other things, to due diligence, regulatory consents, legal opinion and execution of legally binding agreements'...
"Potential Acquisition
The principal acquisition over which the Company is currently performing due diligence and for which outline commercial terms have been agreed, is the acquisition of a 51% interest in a licence and operatorship of an existing UK onshore gas field (the "Proposed Acquisition"). Whilst there can be no guarantee that the Proposed Acquisition will complete, and it is still subject, amongst other things, to due diligence, regulatory consents, legal opinion and execution of legally binding agreements, the Proposed Acquisition cost under discussion is £1.00"
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=ANGS&ArticleCode=4cevjz4v&ArticleHeadline=Proposed_Placing_and_Open_Offer
Based on the most recent operations update received last week...
"The workover rig will be demobilised once the new completion has been run in hole and this is expected to take place early next week, on time and according to schedule".
My interpretation of this is that stage 2 was completed on Tuesday 7th May 2019 (yesterday) as forecasted and they are due to initiate rig demobilisation (stage 3) shortly afterwards (potentially today)
Pboo - Thanks for sharing
I believe rig demobilisation will mark a key milestone and indicates that stage 2 has been successful and the next stage has been initiated. 'Lead Time for Arrival of Well Test Kit' has been given a generous 14 days, however, there is no reason why the well test kit cant be ordered in parallel to the rig demobilastion IMO.
BigTen4 - Agree, all it would not have taken much to write something in the lines of... 'We are pleased to announce that Stage 1 has now been completed in line with our operations timetable and the water has been isolated successfully. We look forward to progressing with stage 2 this week and providing the market with an update in due course.'
Given that this issue has delayed Brockham by about 5 months and resulted in further funding being raised, a bit more emphasis around the resolution of the issue would have been more than justified.
That being said, we are on track to receiving the long anticipated flow results in the coming weeks and as mentioned, if they are as expected or exceed expectations, nothing will hold the SP down. In the meantime, it would be nice to see a return to 5p+ in anticipation...
YinYang - you are referring to the following tweet:
https://twitter.com/wealdoilers?lang=en
Not entirely sure about the validity of the source but it looks applicable in this case. Most relevant sections IMO:
"Used both in onshore and offshore situations, applications for nitrogen include well stimulation, injection and pressure testing, Enhanced Oil Recovery (EOR), reservoir pressure maintenance, nitrogen floods and inert gas lift. Additionally, nitrogen can be used to help prevent flammable gases from igniting and protect tubulars from downhole corrosion."
"In workover and completion operations, nitrogen is an optimal choice to displace well fluids in order to initiate flow and clean wells because of its low density and high pressure characteristics. The high-pressure gas is also used for production stimulation through hydraulic fracturing. Also, nitrogen is used for cementing operations and controlling cement slurry weights."
Source: https://www.rigzone.com/training/insight.asp?insight_id=329&c_id=
BigBear2 - Agreed, just need confirmation that the water has been isolated successfully and we are moving to the next phase highlighted in the operations update. Once that variable is ticked off the list we should hopefully see some movement in the right direction. From a strategic perspective they may want to release that news prior to the 10th in order to try and boost the SP over 4.25p IMO. Just another couple of days to go, hoping to see over 5p by the end of this week!