Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Www.lse.co.uk/rns/COPL/operations-and-production-update-higd81j59mnihh2.html
Operations, production, and JV all moving along nicely. A little more patience will hopefully be rewarded. GLA
Operations Update
· Three conversions of BFSU flowing wells to pumping-flowing wells have been completed;
o Production from the first converted well in the program is up 110% from pre-conversion levels. The well was converted in mid-April, with stable production averaging 190 Bbl./d in the month of May, up from an average of 90 Bbl./d flowing excluding downtime periods pre-conversion.
o The second well is producing oil above pre-conversion levels but is not yet stable. Paraffin treatment schedules are being evaluated which are intended to bring stability along with enhanced production levels.
§ Both of the first two wells in the program experienced significant downtime in flowing configuration from Q3-2022 to Q2-2023 due to paraffin plugging. The conversions accompanied with scheduled paraffin treatment programs are intended to maximize production from these wells and eliminate production interruptions.
o Conversion operations on the third well were completed just days ago, with the well returning to production on May 31.
· Oil production is increasing from the well conversions and the resumption of the Company's production optimization program after weather-related disruptions in Q1-2023.
o April 2023 average gross production: 1,170 Bbl./d
o May 2023 average gross production:1,330 Bbl./d
o April and May production includes production downtime as COPL America undertakes well conversions to pumping-flowing, wellhead upgrades and paraffin remediation treatments. Production is expected to increase from these wells following these conversions and proactive paraffin treatments.
· The initial phase of the second Cole Creek Unit ("CCU") recompletion for Frontier 1 oil production has been completed;
o The well has been perforated with oil inflow observed on perforation. The Company is evaluating options for stimulation of the perforations, and the timing of these, in conjunction with its JV discussions.
Arthur Millholland, President and CEO commented:
"The Company is progressing on all fronts outlined in our last Operations Update. We are pleased with the progress on the construction of our Gas Gathering System Upgrades and are fortunate to have been able to acquire the necessary high-pressure production equipment we require here in Alberta, avoiding supply chain and long lead times in the United States. The results from our first well conversion have so far exceeded our expectations. Production from the converted wells takes time to settle down to design and implement a well specific paraffin treatment regime. We are active on all fronts and will continue to update the market."
(A message from a fellow investor)
Hypothesising over those bonds being issued (at 50% premium to current SP) and I’m the bondholder:
1) I’m happy to give up copious interest, potential SP upside and conversion premium in the future and sell these shares now at a 33% discount to the conversion price because I don’t think the company is going to JV and fail and my debt recovery is at risk.
Or
2) I’m happy to convert here because I’m concerned the company will do a JV with a cash component large enough to redeem on me and I can’t convert fast enough to benefit from a large move in the SP.
Either way the BH would not be selling these at a profit down here so it’s not a solely profit taking trade - it has motive one way or the other.
If it was September and no news on JV and production hadn’t improved and we were 3 months from another winter I could see 1).
Given Art probably talks to BH’s and updates them, production and installation are on track and we are barely into June, then I can only see 2).
A large Oil Company approached COPL in September 2022 inquiring if we were interested in a partner to appraise and develop our Cole Creek Frontier oil resource.
This group has done substantial technical due diligence to date.
COPL has also done extensive additional technical work on the project.
Discussions/Negotiations are in progress on the terms and structure of a Joint Venture.
The objective of the concept is to end at an early stage EOR project similar in nature to the BFSU Shannon miscible flood.
COPL’s understanding of the BFSU early stage EOR project through its ongoing reservoir simulations provides substantial local knowledge to the JV.
Miscible solvent’s evaluated are CO2 and LPG enriched gas used at the BFSU.
The Company more than stands by its initial assessment of the resource.
And JV news hopefully soon. GLA
"The GGS Phase 1a project is designed to connect our top producing wells in the Shannon (Miscible) flood and other wells proximate to the main GGS trunkline, alleviating pressure related issues, reducing flaring requirements and allowing our facilities to return produced gas back to the BFSU gas plant. We are pleased with the progress to date which is on time and on budget."
COPL reveals strong cash position
https://www.proactiveinvestors.co.uk/companies/news/1015112/copl-reveals-strong-cash-position-at-end-of-first-quarter-2023-1015112.html
FingersCrossed "That or he just consolidate the shares to increase the look of the SP !!!"
Consolidating the qty of shares does not increase the market cap, but increased production, JV and/or RBL will, so for Art to have his eye on listing on Nasdaq, I suspect that he is expecting some very good news.
"Currently traded companies qualifying solely under the Market Value Standard must meet the $75 million market value of listed securities and the $4 bid price requirement for 90 consecutive trading days before applying."
Min MC to join Nasdaq is approximately 3 x our current SP, so Art must be expecting good news. GLA