Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I cannot recall GKP previously saying that there was 3 Km of pay at Shaikan with a bit of anhydride (salt) in the middle. The Jurassic, alone, is ‘three Shards’. So, one third of it from Burlington House to Heathrow.
Shaikan is clearly colossal.
Last Thursday GKP said that production was not being affected by reservoir pressure decline. Kathy Kelly had said a year earlier, in the same lecture theatre, that the pressure was showing signs of leveling off and that GKP did not understand the reason. Is it that the matrix is releasing oil? Trevanian referred to this the other week, I believe, after examining the released production data for 2018.
It was stated that the current cash position exceeds $300 million! On the 15 January was shown in the presentation as $294 million. So there was a significant increase in the net cash of at least $7 million despite the construction of the PF1 to PF2 pipe, the drill pads, the ordering and purchase of equipment and the tubular workovers at SH1 and SH2. Good job!
For all those who try and scare PIs by inferring future placings and dillution, Mr Ferrier last Thursday night stated that GKP can pay for the full work programme increasing Shaikan production to over 100k bopd without the need to return to the capital markets. He was therefore confirming what MOL had previously said on 8 November, that the development of Shaikan to 110k bopd was entirely self-funding.
I believe that the Bloomberg story regarding Sinopec released the Monday following the Dublin 2016 AGM was correct, the Chinese did indeed approach GKP. It had been previously reported that HSBC were working on a deal for Sinopec, the rumoured target being Anadarko. BTW, who's 5 minutes walk from the Hongkong and Shanghai Banking Corporation Building?
Mr Ferrier comments last night about the Chinese I find a little odd. He did, at least, confirm that the 2018 Chinese report related to Shaikan but said that it was nothing to do with his time at the Company, that it was dated from years ago, that the Chinese used old studies and that it was old work. As pointed out by the questioner, however, the Chinese report was recent, published April 2018, and had been presented the previous month at an industry event in Bahrain. Furthermore, the Chinese referred to ERCE as their ‘predecessors’, quoted from the CPR and funding for the work was seemingly granted in 2017/18. I think Mr Ferrier also said that there had been no Chinese people on site. This, of course, may be factually correct because the report explicitly stated that they did the work in their research laboratory in China, it even gave the model of the Poremaster used, and the test at Shaikan 4, which tested the previously untested Triassic zone, could have done by anyone, not necessarily the Chinese. But why did Ferrier say that the data was old? The Chinese did laboratory studies, themselves, of 29 core samples from SH1 & 6. These are slices of rock and I don’t think rock goes out of date! LOL
Certainly, Mr Ferrier seemed uncomfortable addressing the issue and, I suspect, a little irritated that he was having to. Perhaps he felt he shouldn’t be there but that is the price you pay when you’re a highly paid CEO of a publicly listed company.
So Surreyscot is correct when he says 'who forced Ferrier to present and why'. Don't forget he copped out of the January 2018 Finding Petroleum event handing the presentation to Kathy Kelly. He even said last night that he wasn't there! Which I don't believe.
Cockeye. That did cross my mind. Why is the presentation not yet up. Are they changing it? We shall see.
BTW, Mr Ferrier did say that 25% of the oil was in the fractures. So that got me thinking about the 'connected volume'!
Unlike Opulentia I did not consider that there was anything said by Ferrier that made for a better understanding of GKP management. That's just nonesense. And what better way to avoid anything technical than make a history presentation. Indeed when he was asked probing questions he just waffled. He claimed, for eaxample, not to be sure of the size of the Atrush pipeline. And one slide just referred to Shaikan as a 'large oilfield'. LOL.
I came away with the impression he really didn't want to be there last night and also, strangely, that he didn't go to Kurdistan that often. Had he been forced into doing somekind of presentation because GKP were aware PI anger? No, that cant be true as GKP always tell us they never read the blogs even though Ferrier told his audience that at one point GKP was the most blogged company in the world. LOL.
Maybe Ferrier's just the Caretaker ensuring safe and continued operations.