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Wrong link. Hopefully this one will work: https://fb.watch/qj2uokp1Cr/?
On the other issue you raised as to why the balance of Block XII has not been put out to tender this post on Facebook confirms that blocks don’t have to be tendered any more: https://fb.watch/qj1Qbp0x1G/? so maybe the balance of Block XII is already earmarked for a coalition of FRR and Exxon to explore and develop once all the dust has settled….
Monti there’s only one reason why Schlumberger pulled out of Georgia. It was (and still is) essentially an oilfield services company which made a brief entry into the much more risky activity of direct exploration and production. That did not go down well with its major shareholders and they quickly withdrew from all such activity and hence the sale of of their interests in Georgia to Block Energy.
So my conclusion is that Exxon were right to walk away from this block with all its problems, but the recent diplomatic activity referred to in one of my earlier posts suggests that they might well be interested in partnering the development of block XII, which is very rural by comparison. Their presence at the recent meeting with the Georgian Ambassador in Houston suggests to me that they could well be involved in acquiring the vacated parts of Block XII in partnership with FRR Mk 2 aka FRR US. I’m with Monti on how things might pan out with the liquidators of FRC, that 1% of the original PSC being critical to any arrangement with Exxon imo.
OK here’s the translation:
Signing a 100-million-yuan engineering service contract to open a new market for Western Drilling in Georgia
China Petroleum News Center
Publication date: 2023-04-25 10:47
News from China Petroleum Network (Special Correspondent Niu Yun, Correspondent Wu Rongrong) On April 17, after more than a year of follow-up research and promotion, Western Drilling officially signed a RMB 100 million contract for drilling, logging, and cementing engineering services in Georgia. This is the first time that Western Drilling has entered the Georgian market in West Asia.
Georgia has a stable social environment, broad prospects for the oil and gas market, and promising economic benefits from the project. This project is located in Block V in the Kutaisi area. Western Drilling is responsible for drilling, logging, directional, cementing, coring, simple pressure control, mid-course testing and other services. The first well E-CH-FN1 is designed as a three-split directional well. , the design well depth is 4580 meters.
In April 2022, Western Drilling received a bidding invitation letter from Georgia's Western Gulf Petroleum Engineering Co., Ltd. and was invited to participate in the bidding for engineering and technical services in Block V in the Kutaisi region. Western Drilling attaches great importance to this, and has traveled to and from Beijing many times, organized specialists to conduct on-site inspections of oil fields in Georgia, and repeatedly communicated and negotiated with the senior management of Western Gulf Company to promote business progress and cooperation at multiple levels. For more than a year, multiple parties have repeatedly discussed and communicated, and finally achieved the expected goals and successfully signed the contract, creating new profit growth points for the high-quality development of PetroChina's overseas business.
There is little well geology and actual drilling data in Block V in the Kutaisi area, and the project is adjacent to a nature reserve. There are residential areas, high-voltage lines, railways, etc. around the well site, making it an environmentally sensitive area. The designed trajectory of the first well is a bypass well. The upper strata are loose and trajectory control is difficult. In view of the construction difficulties, the specialized units of Western Drilling cooperated efficiently, participated in technical management with a highly responsible attitude, implemented the concept of green and environmentally friendly drilling, and studied countermeasures for various difficulties and risks in advance. On the premise of ensuring safety, we continued to provide high-quality services. Shape the brand image of Western Drilling.
On April 19, Western Drilling held a kick-off meeting for the Georgia project. With drilling as the leader, it linked integrated technical service units such as logging, orientation, cementing, and oil testing, and mobil
It seems that Exxon were offered Block V in western Georgia but presumably walked away because of the environmental issues now being faced by the Chinese company that has taken it on. These issues would seem to prevent any large scale Texas style field development with nodding donkeys at 100m intervals: http://news.cnpc.com.cn/system/2023/04/25/030099945.shtml
Translation will be provided in my next post.
Avi8or, thanks for the tip but this iPad is practically up to its storage limit so I’m not downloading any more apps or programmes to it. When I’ve thrown of this lurgy I’ll get back on my pc and post from there but in the meantime here’s a link to Exxon’s visit to Georgia in 2018: https://www.facebook.com/1416847798539016/posts/pfbid0QKskJSKcbeQKA56nkSt3LdTQhfcStUNbLTPoXqgh1xncUFUcTTyBUpdvWmg2Baogl/? In order to avoid the timing out issue I’ll say more about this in my next post.
Lifeishard, the book was my inspiration for a lifetime love of angling and hence my two fishy avatars, but it’s been about 40 years since I last saw the film so I must revisit it on Netflix when time allows.
Monti makes a very good point about SN’s likely place in the hierarchy of creditors and I have some more to contribute re Exxon, but I have a technical problem posting here at the moment as the page keeps refreshing on my iPad and everything I have typed disappears. So if anyone can offer any advice on that I’m all eyes and ears, but it might be down to the fact that for research purposes I currently have about 40 web pages open using two different browsers.
This article also indicates some diplomatic activity between the US and Georgia, which might possibly be paving the way for a significant investment by Exxon: https://agenda.ge/en/news/2024/381?fbclid=IwAR2aBsRyb-jyFsuzn1k9QWRqwV8t41FUcc4t0clEZrwCVsxaAGfaEQUrUsc_aem_ARbnMWlcUL_XE3nGG3ZuMjUNdt1j7TSrd2C9mBGGG-XxkRLx20WLZYZhHo-iPHNgq6U
It’s worth noting that CNPC the second largest E&P company in the world by volume of hydrocarbons produced is now present in Western Georgia through a subsidiary. That might just be the wake up call that Uncle Sam needed to take a closer interest in Georgia, a delegation of Georgian Ministers and their civil servants having recently spent a week in Beijing hammering out a strategic agreement.
That’s me done for now as I’ve got the lurgy from hell and bed is beckoning.
Tot.
Here’s the link to the meeting in Houston that I referred to: https://www.facebook.com/100064752634592/posts/pfbid033giFd7Uj76prxXmBD2ZMKh4nfRP9NiBkj2hS3XAWPqsYXZGcGURizoReygg2PhBrl/?
Note that SN was hosting the meeting and I think that Exxon’s presence is certainly telling a story.
Soss, you should recall that when I reported back from Georgia in 2017 my report could not be described as ‘glowing’. In fact I had to report that they had yet to start testing the UD 2 well, and Zaza explained the problems they experienced with cavings in the uncased Soviet era well bores.
Having said that I was impressed with the pristine condition of the gas processing plant at MK and the metering plant where the pipeline joined the regional gas transmission network. I can but hope that area and the compound and producing wells at Taribani form part of the 1% retained following the arbitration and that the PSC for that area has been transferred to FRR US.
The recent meeting with the Georgian Ambassador and Exxon in Houston
does suggest to me that there is still plenty to fight for though, and if Exxon were to pick up the balance of Block XII and go into a JV with FRR based on the IP they had built up over many years it gives me some hope that I might yet see some return on my investment.
Well I’m definitely in the ‘old’ category now Lifeishard, but I was so much younger when I first registered the old trout avatar. The thing which gives me some hope is that on this site: https://opencorporates.com/companies/us_tx/0802558654 it would seem that Frontera Resources US LLC is an independent entity, but one would need to pay quite a bit of dosh to get an API key to dig a bit deeper.
Of course this all assumes that the 1% which was retained was successfully transferred to FRR US and lies beyond the reach of the liquidators.
Life is hard - Tot here in another fishy guise. First up Looed is 100% genuine and shareholders owe him a massive debt for opening up a line of communication with the company. I am appalled at the treatment he has received by some on here and the general nonsense spouted by some.
What gives me hope that we will see some return on our investment is not the 1% retained by the company following the arbitration, but two other factors. First the fact that SN has been pictured hosting a meeting in Houston with at least two representatives of US oil majors around the table, and secondly the fact that license blocks can now be awarded in Georgia without going out to general tender. Add in the fact that the USA have recently been talking to Georgia about a strategic agreement following the latter’s recent strategic deal with the Chinese and it starts to get really interesting.
FRR have a wealth of knowledge on Block XII which is very valuable intellectual property so they are very well placed to partner with big oil in the development of Georgia’s massive oil and gas resources imho.
No spell in the army, just a good upbringing which provided some moral compass, which is clearly lacking in your character if you can’t apologise.
The loans are not an issue as they are provided by Directors and close associates, whilst numerous producing wells provide cash flow. Investors just need to bide their time and await the inevitable farmout imo, although a bid for the whole company cannot be discounted whilst it remains anywhere near its current market cap.
Sarah, in your post directed at mine yesterday in which I had predicted today’s RNS you stated:
“ And there you have it........
what a load of tripe.....
who have you spoken to who is in the know?
you wont and cant answer because you made it up!
fairly imminent?
its been that way since the 1st of january...wasnt it suggested that the cpr would possibly be presented ny the 7th?
just proves my point...
you just make it up....incredibly laughable and sad”
In the circumstances anyone with any sense of honour would offer a fullsome apology and quietly withdraw from this board, and some would be wise to pay attention next time I have something to share.
This is the CPR for project III Chesh. The RNS also mentions the resources in other project areas though.
Next up should be a chance to quiz the board with an Investor Meet session, although I guess that will have to await PH getting back from Beijing if old logger is telling the truth.
Well I did predict that it was coming today didn’t I ? Unfortunately Block is off the radar for many so it might take some time for the market to react properly but that is pretty irrelevant imo. What really matters is what Big Oil thinks of it, and with the starting gun for a farmout being fired at the Turkish conference in December interested parties can now move in for the kill.
Having spoken to people in the know I am advised that CPR providers have been snowed under with reserve audits for E&P companies at this time of year but publication of BLOE’s CPR is now fairly imminent. Block have form for putting out news on Thursdays so hopefully it will be as soon as that.
Getting closer now judging by the last sentence of this article: https://agenda.ge/en/news/2024/323?fbclid=IwAR1pTgUNOPlMIvwlbAqx_mHXugjlHGB4jwIMrWNSXc_Suad9G6LmSDDjTQY_aem_AfhJjSPlr0CGcsLGXJhg19uFgLF6DqOyQQs2BmZczKNNe2Q3n7Xtisz050COI_-GCh0