The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
And one more from me JK to your industry standard metric. I bet these metrics refer to production wells, not test wells. HH isn't in production yet. I qualify machines in the plant I work in. We measure efficiency, utilization, call it what you will, but only when the machine is handed over to production. Efficiency metrics are not applicable when I'm testing the kit and trying to get it optimized. GL.
JK, sometimes you come across as knowing your onions, and other times you talk coswallop. Tonight is the latter. I'm sure that the well test experts are gathering all the data needed and I'm quite sure that total barrels brought to the surface divided by the total days that the ewt has been conducted is not one of the key bits of info they are looking for. GL.
Penguins I didn't refer to the perforations being inadequate, I said limited. Limited in the context that it's only about 200ft worth if I recall split between 3 and 4, compared to a potentially longer horizontal of 3000ft. Neither you nor I have a clue about the fluid dynamics going on in the Kim but flowing from 3000ft will help smooth out your erratic flow concerns. SS is quoted in an rns that the Kim is beating their technical expectations and flow from the shale is an unexpected learning. I'll take that ahead of your perpetual doom and gloom outlooks.
Kim flows erratic? Depends on your definition of erratic I suppose. It a blinking test well FFS with limited perforations and so limited reach into the Kim. I have not seen anything from SS other than he expects the Kim to flow comparable to the Portland. What do you expect penguins? A tight standard deviation around the mean flow rate? I'm guessing that a 1000m horizontal will smooth all that variation for you. You are not invested and you are only trying to sow seeds of doubt. For balance, I do expect ukog to raise again.
Jk, in terms on forward earnings, what text can you reference that backs up the length of time of time a company needs to demonstrate said earnings? As for proven reserves, 1P is coming, you know that. YA, yup ukog will need more cash. Having said all that , I really don't know why you frequent this board. Perhaps you could shed light on this?
JK, 15000bopd at say $40 profit per barrel is in the region of £175m per year. So you're working on less than 3 times earnings? Not including the reserves that will be declared by then, with no debt. A tad pessimistic do you not think? I try not to get into sp guessing games, mainly because like everyone on here I haven't a clue how to work fair value out. I'll see where we are when we're generating free cash and no longer need tap the market. GL.
I'd be wrong not to mention that well pressure needs to be maintained (water injector) to keep flow rates up but the difference in surface area between 112ft of prefed casing Vs 3200ft of slotted pipe is very very big. GL.
It's a fair bet that the second horizontal will be into the Portland as well. This doesn't tell me that the Kim is poor, but that the Portland is less risky. 1000bopd from HH2 and say 350 from hh1 is $80k revenue per day at $60 barrel oil, nearly $2.5m per month .
The transport statement in the planning docs is full descriptions such as estimated, envisaged, expected and projected. Make of that what you will. The 3500bpd max daily output is clearly pitched to stay under the 500 tonnes ceiling, above which requires additional documentation and red tape.
(39205-36559)/11= 240 bpd over the reported period. Could be inaccurate as we do not have exact flow periods. I do not expect the Kim to give up its oil as freely as the Portland. It's the potential extent of the Kim that is the key here. Also proven that KL3/4 are linked and oil flows from the connecting shales. KL2 mentioned a few updates ago. Be interesting to see what the pilot hole sees.