The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Https://twitter.com/KarlDHarrison/status/1746324106159726809?t=ugSCwFlfFUKFnXpncoif9A&s=19
Getting closer to the end of the biggest werewolf game I've ever played!
In addition to doing all that they do in running the company, PRD have found the time to respond to the recent FCA consultation on the listing rules.
https://www.fca.org.uk/publication/consultation/cp23-31.pdf (in the list of non-confidential respondents on page 192).
Others will not doubt take some cheap shots, but respect to Paul and the team from me for that! ATB PT
Lot's of people no longer posting here and why should they, given the current audience!
Fingers crossed, its not like your arguments, Nige, full of holes! If it lies better than some of posters on here, you should be alright though :o)
And/or the 4th Feb gets extended, it might do anyway, even if the testing starts in Jan (it's been done before).
I'll leave it to the usual suspects to either worry for us, or try and make us worry about that :o)
Also this is interesting news if confirmed https://www.upstreamonline.com/exploration/hopes-of-major-oil-discovery-offshore-morocco-look-to-have-been-dashed/2-1-1577336
Some interesting stats and info here https://www.trade.gov/country-commercial-guides/morocco-energy
Gas, alongside renewables should help them to move away from coal. I had no idea it was that high a contributor to electricity generation.
"Morocco’s energy sector depends heavily on imported hydrocarbons. Currently, the country imports approximately 90 percent of its energy needs. Total primary energy consumption has increased by about 5 percent per year since 2004, but Morocco plans to decrease energy consumption by 15 percent from 2016 levels by 2030 through energy efficiency measures. Per the ministry of energy transition and sustainable development, Morocco’s electricity production in 2022 came from coal (37.25 percent), hydroelectricity (16.70 percent), fuel oil (7.03 percent), natural gas (17.72 percent), wind (13.48 percent), solar (7.82 percent)."
From the annual report Year Ending 31/12/2022 (Part 2).
The Company recognised considerable upside in Cory Moruga. PAREX had indicated gross P50 recoverable oil resources for seven Herrera Sands not included in the FDP, but which tested oil in the Rochard-1 well in Cory Moruga Licence and in the adjoining Moruga West Field, of 18.5 million barrels (15.5 mm net to TRex).
The Company’s CO2 EOR experience in the Inniss-Trinity Field, which produces from the same Herrera reservoirs, suggests that well delivery rates and ultimately recoverable oil could be significantly increased through the application of CO2 EOR.
The Cory Moruga Licence has seen several wells drilled on it in the past by PAREX and then by TRex and is covered by 3D seismic. Unrelieved tax losses of at least USD45 million within PAREX and their acquirer TRex are available for offset against future Petroleum Profit Tax applicable to all production from the Cory Moruga.
In summary, for a Gross Consideration of USD9 million and a net Cash Consideration of USD3 million the Company is acquiring 1,523,449 barrels of P50 oil resources at the equivalent of USD1.969/barrel and a further 15.5 mm barrels of potential P50 oil resources that are subject to appraisal drilling at USD0.19/barrel.
Whilst the Acquisition is conditional on the consent of the MEEI the Company has a reasonable expectation that consent will be granted based on its ability to offer CO2 EOR as a development option. No other company in Trinidad can currently offer the MEEI this short-term option.
From the annual report Year Ending 31/12/2022 (Part 1).
....
To address the second commercial model in respect of direct participation in licences, the Company made a proposal to the Ministry of Energy and Energy Industries (“MEEI”) to develop a miscible CO2 EOR project for the Cory Moruga Production Licence (“Cory Moruga”). Cory Moruga hosts the undeveloped Snowcap Field and was the subject of an option to purchase through the Company’s original agreement with FRAM Exploration Trinidad Ltd. (“FRAM”) in relation to the Inniss-Trinity field and the option to acquire FRAM. Both options to purchase were later dropped whilst the Company focussed all its resources on CO2 EOR operations at Inniss-Trinity.
The Snowcap-1, drilled by PAREX, original flow test generated a rate of 1,200 bopd.
The Company’s management had made an unsuccessful bid for Massy’s Moruga West Field in 2017. The Moruga West Field (originally operated by BP) extends into Cory Moruga. The Company’s management has extensive subsurface understanding of the area covered by the Moruga West Field and Cory Moruga as the producing Moruga West reservoirs are represented in the Snowcap Field and in Rochard-1 drilled in the 1950’s west of the Snow Cap Field but within Cory Moruga.
Rochard-1 flowed 899 bopd on testing.
The Company will be well-placed to negotiate with the MEEI following the Company’s presentation to the Ministry of Energy and Energy Industries (“MEEI”) Carbon Capture and Carbon Dioxide (CO2) Enhanced Oil (“CO2 EOR”) Recovery Steering Committee on 17 August 2021 and the fact that the Government of Trinidad and Tobago is seeking consultation on its Draft Policy to Create Carbon Capture Utilisations and Storage Specific Legislation. POGT designed and executed the Inniss-Trinity CO2 EOR Pilot Project and retains exclusivity over surplus liquid CO2 supply with Massy. Together Massy and POGT are the only group that could implement CO2 EOR in the short-term to address the MEEI requirement for CO2 EOR to be part of all future work programmes for oil fields onshore Trinidad.
……
The Gross Consideration of USD9 million was based on the P50 gross recoverable resources for the Herrera #8 Sand only of 1,823,925 barrels of oil (1,528,449 net to TRex) as defined in the Snowcap 2018 Field Development Plan (“FDP”) submitted by TRex to the MEEI in 2018 following a Declaration of Commerciality for the Snowcap 1 discovery well made by PAREX Resources in 2015. The FDP indicated gross plateau oil production of 96,600 barrels of oil per annum (80,950 net to TRex) based on average gross production of 256 bopd (215 bopd net to TRex). Undiscounted netbacks after all royalties and taxes at WTI oil price of USD65 was demonstrated to be USD18.3/bo. On the basis of the FDP the Cory Moruga Production Licence was awarded TRex, who had acquired all the issued share capital of PAREX.
Look at pages 138 and 139 of the prospectus and recalibrate, based on when testing starts.
Talking s h 1 t as usual :0)
Exactly ShortShrift, if there is no current conversation on that, you don't blow everything on testing to try and start it.
Spend all your money on testing and you have a great asset, but no money. You are immediately in a position of weakness.
Do enough to enable CNG development and you still have enough money to get up and running and then appraise the Jurasssic properly, as well as restart Cory Moruga, which then generates more cash.
This isn't about keeping instant gratifiction monkeys happy, there's a lot more to it.
Https://twitter.com/JavierBlas/status/1734835447090524249?t=3IWDUo-aErESbSAMyXWFOA&s=19
Https://twitter.com/OffshoreIreland/status/1731286408680108083?t=dG25rSo-ZTf18cH4SwwHAw&s=19
With the context of the new information, it is worth relistening the proactive presentation from May. Here are 3 timestamped links to some things I found interesting, but there a several more nuggets in the whole thing.
The timeline for CNG is mentioned here, so IMO if Sept 23 becomes Jan 24, then first CNG could be from Aug to Oct 24.
https://m.youtube.com/watch?v=QdHMex84Utw&embeds_referring_euri=https%3A%2F%2Fwww.proactiveinvestors.co.uk%2F&source_ve_path=MTY0OTksMjg2NjY&feature=emb_logo&t=12m14s
This bit is interesting regarding why there hasn't been a deal with a major yet. Again, this makes more sense, given where we are now.
https://m.youtube.com/watch?v=QdHMex84Utw&embeds_referring_euri=https%3A%2F%2Fwww.proactiveinvestors.co.uk%2F&source_ve_path=MTY0OTksMjg2NjY&feature=emb_logo&t=25m14s
Also, here is where Paul explains about renegotiating the petroleum agreement, which saved us £3.5M in bank bonds and reduced our drilling commitments. But nobody ever seems to give him credit for that!
https://m.youtube.com/watch?v=QdHMex84Utw&embeds_referring_euri=https%3A%2F%2Fwww.proactiveinvestors.co.uk%2F&source_ve_path=MTY0OTksMjg2NjY&feature=emb_logo&t=17m01s
ATB PT
Definitely possible to supply cheaper gas and stay within the rules of the state owned Moroccan Competition counsel, LythamSlim8!
Gas not guess, I hate predictive text before I've had caffeine!