Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I do not know if the links below show swellable packers that are similar in any way to the types of packers referred to in the Operations Update,
“WR-38Z's completion design minimises the risk of water incursion from formations outside the Middle Eocene, with the zones to be isolated by cost effective and reliable techniques, including the deployment of specially engineered packers that swell upon contact with water.”
https://www.youtube.com/watch?v=gseTzuI34Lg
https://www.tendeka.com/wp-content/uploads/The-benefits-of-utilising-Tendeka-water-swells-in-injector-wells-2017.pdf
But, I found these links to be informative and, in all honesty, a welcome distraction after reading the disappointing Operations Update published teh other day. Hopefully, some may also find these links informative as well. Should anyone know waht packers are referred to in the Update report, then I would be very greatful to know what they are.
I know these packers do not change the situation at 16aZ but at least now we know that as well as Well WR-38Z being drilled on the updip that the use of packers, and the knowledge gained form 16aZ should mean that there is a lot less chance of similar water ingress problems occurring at WR-38Z and once this Well is flowing, hopefully we should see a dramatic rise in the SP.
GLA
Cautious – You are very welcome. I agree that we do not have enough info to calculate the average ourselves, nor do we know what type of average was used!
All I know is that the16aZ did flow and the flow rate increased substantially from what was predicted, before being shut in. Then when resumption began at 16aZ the Well experienced water ingress which necessitated that it needed to be cleaned-up before it would be able to get back to flowing to its full potential again. We were alos told that BLOCK had sought help from some experts to address the problem at Well 16aZ. I do not know, as yet, what the current flow rates are at the Well, but I do know from Justin’s recent comments that 16aZ is still flowing – So contrary to what some would have us believe, 16Az cannot be a duster. I also now believe that 16aZ continues to be in the clean-up mode, and despite this I have been given to understand that the flow rates are gradually increasing. How much there increasing by is anyones guess.
We also have been given to understand that BLOCK are fully funded for the foreseeable future and are about to spud another well. In addition to this we also know that BLOCK have increased the percentages in their holdings at their key sites in Georgia, and that they have also secured adequate storage facilities for their current expected off-take, and have to a very large extent agreed a deal in principle with BAGO to provide the infrastructure and to buy BLOCK's gas ( Which we ahve been told is expected to be huge). I have also been reassured by Justin that a Q&A web page will be published – Sadly not here as yet but I believe it is coming soon. Justin has also advised me that BLOCK will also be providing overviews of the various kinds of operations they and other oil and gas companies do from day-to-day. I do not know what these overviews will be, but that is what he has advised me. I alos know that an update from BLOCK is expected any day.
I also believe, that I like many others invested in BLOCK are looking at substantial paper losses, but despite this many PIs like myself believe that some positive news from BLOCK would see a rapid increase in the SP and a reduction in our paper losses - I certainly hope so.
I do not know any more than what I have stated. What I know has been gleamed from my own research, RNs's, Block's responses to my emails and from other' s comments on this BB.
As I do not feel I have anything further worthwhile to contribute, I will wait until Block release further news before making any more comments here.
GLA
I take your point about how long the flow rate is increasing over, but that still does not change the implication of the word 'increasing' whcih I would respectively suggest means that 16aZ is not a duster, which is waht I believe you suggetsed in an earlier post.
GLA
FWIW - My understanding about 16aZ is as I stated in my post 10/09/2019 “…that the average flow rate stated by Block in the 26 July 2019 RNS referred to the average rate since the well was first tested earlier this year and says little about where we are now.” I would also mention that Justin responded to an enquiry I sent very early this morning to him in which I said,
“Further to our last communication, please would you kindly confirm if the statement quoted below (which appears in the RNS of the 26th July 2019) is still accurate today, in so much that today you are still establishing a sustainable flow rate as the Well cleans up.”
"The Company is adopting a prudent approach, gradually increasing production to establish a sustainable flow rate as the Well cleans up"
“I appreciate that you cannot give any additional information about how the clean-up is going or how much oil is flowing from 16aZ now, but hopefully advising if the above statement continues to be accurate for now is not breaking any rules, as I assume that had there been a significant change to the accuracy of the statement since it was published BLOCK would have published an RNS to update shareholders of this fact.”
Justin’s response was as follows:
“In regard to your specific query –“
"The Company is adopting a prudent approach, gradually increasing production to establish a sustainable flow rate as the Well cleans up"
“Yes, we absolutely continue to do that.”
IAH I do not know how much oil has flowed from 16aZ since the RNS of the 26th July, or if the average boepd has now increased since then, but I assume from Justin’s comments today that the clean-up operation is still on going and that oil is still flowing - This reassures me 16aZ is not a duster. Of course this is just my opinion.
However despite this, I do agree to a large extent with Cautious’ comments when he says, “As the Rns states. 295bopd. Average daily rate since testing. So not the actual daily rate but an average rate from TESTING So on the basis the initial testing rates were FAR HIGHER so it must be a lot less than 295bopd to be able to get to that figure as an average.”
I was intimating the same thing in my post on the 10th September. However, IMO although some flow rates were definitely higher then, we do not know how long those rates were higher for, or what type of average was used, so it does not necessarily follow IMO that the average flow rate today must be below 295bopd, as by now things might have improved. I choose to assume from Justin’s comments and the phrase “gradually increasing” which was stated in the above statement, that the amount of oil now flowing from the continued clean-up operation has been and will continue to be increasing from whatever it was on the 26th July.
Hopefully, an RNS will clarify this soon and we will also have some positive news about 38Z and the seismic survey that is being planned.
GLA
Wenglishboy – Investopedia states, "Single shareholders with as little as 5% to 10% ownership can push for seats on the board or enact changes at shareholder meetings by publicly lobbying for them, giving them control."
https://www.investopedia.com/terms/c/controllinginterest.asp
Hello Interesting,
I take your point about SP being in a small range. I decided to buy before the publication of the report so as to avoid any mad rush to buy shares that might ensue from the publication of the company’s interim report, which I am hoping and expecting to be good. PHC will be a LTH for me, as the potential here appears to be very positive and this company adds some very needed diversification to my portfolio.
GLA
Hello. Just bought in at 6.42p but buy was shown as a sale.
IMO there seems to be a lot of potential here even when taking into account the possible cash raise that has been alluded:
The interim results published today are looking back from 30th June, so will not show any benefits of any recent Licensing agreements or discussions with other companies e.g. Ransom’s (RNS 6/09/2019) or the recent agreement with WashCo (RNS 10/09/2019).
The comment sin today’s Interim results are also very encouraging:
"The commercialisation of our products is now accelerating with a number of contracts in execution and in development in a number of countries including the two most populous.”
“Furthermore, Xeros expects the cash burn rate to fall further as it completes its migration to a licensing business.”
GLA
Not sure petition will do any good but signed anyway in hope for others.
GLA
I for one, am very grateful for AjW’s informative contributions on this BB. His comments although often optimistic are backed-up and in my view have been a welcome balance to some of the unwarranted negativity about Block that many of us on this BB have witnessed since July.
Thank you Ajw for your contributions.
RE Buys today: – I had a top-up @ 12:33:07 with 37,993 shares at 6.58 and this trade was shown as a BUY.
GLA
Cautious11 - Re "...but were the hell has he [PH] been for weeks..."
I don't know if this helps but Malcy says, “My meeting with him [PH] was postponed a couple of weeks ago because he had to go to Georgia…”
https://total-market-solutions.com/2019/09/10/malcy-talks-oil-gas-xiv/
(17:15)
I am happy to believe Macy is correct in stating that PH was recently in Georgia for a few weeks.
GLA
I agree TonyF. IMO PH is unlikely to give an interview and be overly negative. But I do think Malcy will be keen to press PH about 16aZ and current flow rates, espescially as the average flow rate stated by Block in the 26 July 2019 RNS referred to the average rate since the well was first tested earlier this year and says little baout where we are now.
Hopefully, we will also be provided with positive news about Well 38 and an encouraging gas update.
GLA
Hello Simon T, can I ask when you say, “Bad news from 16az could have a 50% downside…“ what in your opinion would now constitute ‘Bad news’ 9short of being a duster) that you suggest would see a further 50% drop in SP? I ask as imo we have already seen a dramatic drop in Block’s SP following the shutdown of 16aZ; its later resumption and notification of the water ingress, and also reduced flow rates – As such I would have thought that to a very large extent we have already seen much of the downside to the current SP and that this has to a large extend been factored into the current SP. Do you think a further 50% downside would reflect a fair value for given the potential upside over the next 12 months, esp. given Block’s current funding, storage facilities and their future Well ambitions and imminent spudding of their next well?
So if it was all bad news tomorrow I would be grateful for others views as to what they think fair vale should be?
P.S Justin replied to one of my recent questions and I inlcude his reply below in case others might find it informative:
"I'm also not able to reveal details of our communications calendar, or exactly what the directors will say in their forthcoming interviews. Suffice to say we will absolutely honour our commitment to provide an operations Q&A, and to provide updates on well 16aZ as well as our other wells. "
GLA
I agree Nicodemus. that in light of Justin’s response to my enquiry it would seem that the Georgian Government is prepared to be extremely flexible with Block esp. as the word ‘testing’ written by Justin is in inverted commas and could suggest that the Georgian government’s interpretation of the term ‘testing’ is being more broadly interpreted; and therefore the Government maybe more likely to extend the permit if required. This would also perhaps confirm some of PH’s remarks about the strong support he feels that the Georgian government are affording Block. Which if correct is encouraging. Of course, this is just my opinion and I might be reading far too much into the term ‘’testing’, but hopefully other might feel like me that Justin’s response is encouraging going forward.
RE Q&As - Like everyone else I am disappointed that we have not seen the Q&A webpage that was promised. However, IMO the delay in producing the promised Q&A web page is because BLOCK are still in the process of creating, updating and checking the web page and they might also still considering when it would best to upload the page. I appreciate that some people doubt we will see a Q&A webpage anytime soon if ever, but I think we will see the promises Q&A webpage before the end of the month if not sooner. This is just my opinion, but we shall see if I am wrong by the end of the month.
GLA
I have just received a reply from Justin in response to one of my questions I asked a while ago, which others might find informative.
To Justin:
“The other question I asked in my earlier email has in part been answered on the BB, but it would be helpful to know what basis the Georgian license was applied for to be extended for the flaring –
i.e. Section 2a or 2b and if it was 2a, was it for drilling, testing or repairing the well.
Article 18
1. Open-air burning of the extracted natural gas without the presence of particular conditions and a proper justification shall be considered as wasting of natural resources and shall be prohibited.
2. The Agency shall have the right to lift the prohibition of an investor determined under paragraph one of this article in case of:
a) drilling, testing or repairing a well;
b) damage to pipelines or other equipment;
Justin’s reply, “Still waiting for clarification about one of your questions, but operations have confirmed that the gas permit extension was granted on a standard 'testing' basis.”
IMO the fact that the permit was granted on a standard 'testing' basis and not on a repairing basis is very encouraging. Others’ views would be very much appreciated.
GLA
(SP more than doubled in March 2019) - Hoping for 4.4p in March 2020
GLA
I have just noticed I stated the percentage calculated was based on 98M, it should have read 980M, which is what I actually calculated it on, so the percentage amount should be correct anyway.
GLA
Yes Stoater, it was completely voluntary if anyone wanted to share information - And i am sure everyone would agree that no-one should feel pressurised in any way to share their positions if they don’t want to. For those who did share info today thank you. So now adding frank07's shares (thanks for sharing farnk07) we have:
AidanOwens 1,200,000
Atalatal 300,000
Broko19 3,200,000
Crusty 3,500,000
Cwmaman 2,500,000
Frank07 800,000
Hartlepoolbob 350,000
Gidget 780,000
Glebwhite 1,366,688
Oilbethere 5,000,000
MullaneyJ13 3,000,000
Papillon1 605,000
Rxconnol 700,000
Shandypants2 980,000
Sieveco 500,000
Stoater 1,350,000
Total 26,131,688
So, sticking with - Gleebwhite’s calcs's suggesting that total shares in circulation = circa 98M we get:
16 PIs combined shares = circa 2.67 %.
Sadly, we did not quite make it to 3% for the issue of a 'RNS ' suggeted by Crusty25, but I hope like me, others found the information kindly provided by others informative and that it lightened the day a bit.
GLA