Member Info for noelpbz

OPEX is probably running mid $30s, as production is falling - so just do the sums

The Big question for HE is what is the next step (FWP) - canvassing various contributors to this and the other board it seems there are various options viz :

1.Drill back at Lincoln - rework P7z - or new well, Lancaster P8.

2. consider acquisitions - Angus Energy - Foinhaven ( although condemned by experienced oiler as umbilicals and flow lines are at end of life as is FPSO). - probably more suited to Enquest.

3.Find a buyer for the whole shebang.

Extrader - thank you - absolutely correct.

Forecast SP

Are days of old returning ? - those days when David Jenkins was the Chairman, Neil Platt was COO, and somebody called Robert Trice was CEO - oh, and the in-house Broker - was it investment bank JP Morgan ?? was forecasting an SP of £3.60.

We had dreams then of early retirements to sunnier climes.

I apologise for starting a new thread, which seems to annoy, but unfortunately none of my devices (iphone/ipad/macbook - all Apple) no longer feature the “reply/recommend/report” icons.

Thanks all - unfortunately my ipad does NOT have the "reply/recommend/report' function available when viewed - this reply is from laptop.

Kamakiriad - sorry I understand - having received criticism over the overuse of the Anthony Maris Header I decided to start another.
Incidentally as a correction to CAT5 - Total OPEX will remain the same but OPEX/barrel will increase as production falls.

Cat5 - correct - $27/barrel OPEX was given when production was circa 11kbopd/day. Unfortunately production is falling so OPEX goes up.

RG27 - I know - as in life generally - I have NO influence whatsoever. Thank you for reminding me.

Dickbat - I have been In since 2017 and bought mainly at 60ps 50ps and 40ps.

Rainbowchaser - we are talking revenue expenditure NOT CAPITAL expenditure.

Sorry Mt Wilks - correction to my typo :
Sharefall - no matter whether he is Uncle Tony the facts speak for themselves - look through presentations from 2019 and extrapolate the Opex/barrel quoted against production levels at the time and you will see Total OPEX drop from $400k/day to $300K/day. The man is a genius.

RodneyTrotter69 - yes, but miniscule in the scheme of things - predominantly payments to Bluewater.

Sharefall - no matter whether he is Uncle Tony the facts speak for themselves - look through presentations from 2019 and extrapolate the Opex/barrel quoted against production levels at the time and you will see Total OPEX drop from $400k/month to $300K/month. The man is a genius.

Whilst CEO of HE Anthony Maris has presided over savings of $100K/day of operating expenses, the equivalent of circa $40m per annum - yes $40m/annum - think about it - equal to a further uplift of oil in a year.

Anthony Maris CAN walk on water !

This man obviously has exceptional, incredible in depth knowledge of oil industry production efficiencies and is vital for the survival of HE.

Anthony Maris needs to remain at the helm to continue holding a tight rein over operating expenses and should NOT be disregarded over some misguided loyalty by him to those people who appointed onto the HE payroll.

Any voting - extremely unlikely - and he will receive all my 200Ks worth.

Correction (I've added a K to the $300/day viz:
Regarding all the criticism of Anthony Maris let us not forget that during his tenure the daily operating costs have DECREASED from circa $400k/day - I do not forget the previous CFO who stated (CMD in 2019) that they needed 10K bopd to stand still - oil was $40 per barrel at the time.

During his tenure the daily costs have REDUCED to circa $300K/day - which on current production around 9K bopd equates to OPEX of $33/barrel.

Regarding all the criticism of Anthony Maris let us not forget that during his tenure the daily operating costs have DECREASED from circa $400k/day - I do not forget the previous CFO who stated (CMD in 2019) that they needed 10K bopd to stand still - oil was $40 per barrel at the time.

During his tenure the daily costs have REDUCED to circa $300/day - which on current production around 9K bopd equates to OPEX of $33/barrel.

With an available pot of circa $45M (before 29th uplift at end of May) surely further drilling in the Lancaster area will be a more economically option, and possibly more productive, than further exploration in GWA coupled with linking back to the Lancaster manifold.

RNS 18th Dec 2020 viz: “While several development options continue to be evaluated, a side-track of the existing 205/21a-7z well to an up-dip oil producer location could increase oil production from late 2021”

There has also been mention of a Lancaster P8 Well - or was that the re-working P7z ?

PETRONORDIC on its way to Lancaster.

“The 27th cargo of Lancaster oil, totalling approximately 530 Mbbls, was lifted on 25 January 2022.” As of today (18th March) there have been 52 days of production at say average of 9500bpod. — Total 494,000 barrels - getting near to next uplift !!

Regarding Well P 7z OWC - From RNS April 2020 the OWC at P 7z was in the order of 42%, before shut down in May 2020.
Not that much adrift from current Well P 6 performance. So maybe they could consider re-starting production on well P 7z. Can AM cope with that volume??