Paul's Safety Net25 Oct 2024 09:26
Having suffered 12 years losing money in Trinidad ops run by LGO, Columbus and BPC was not too impressed when PRD advised of their make-up deal with CEG and a return to that island’s black stuff.
BUT, and in the belief of PG’s quoted netback figure of $40pb, cannot ignore that a starter production of an undemanding 50bopd ($720K pa) to a wax job, say 150bopd ($2.16m pa) then adding freebie neighbouring production (less agreed percentages), continuing workovers etc., an annual and respectable 500bopd ($7m+ pa) could be reached in relatively short order. An attractive sell-on thereafter if chosen, preferably after carried forward tax losses used up!
Of note, the average WTI price this year up to October is $77.29, highest price so far this year $87.85, lowest $64.78, ($40pb netback based on $70pb WTI)
After nearly 4 years I’m here, like most, for Morocco gas but any op. we’re engaged in that pulls in cash without intensive involvement must be viewed as a very useful plus.