Member Info for Proselenes

It means when the operator calls for the cash to develop, ECO has to stump up the money to pay for development, and if they cannot, they can forfeit it, or raise money to pay for it. Thats when big boys crush the small little ones, like is happening in US Shale.....the big boys move in and hoover up the bankrupt smaller ones. Of course, in the magic land of the fairies the big boys will buy it...........in reality they will imo screw ECO to pay for development costs that of course ECO cannot afford.

What he says, does not bode well for Carapa imo.

John B. Hess, Hess Corporation - CEO & Director [12]
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No. The market should not be concerned about Hammerhead. We've drilled 3 wells there. Exxon is our operator. We wouldn't have drilled 3 wells, unless we thought we had something commercial. We're not ready to give all the specifics of that. And obviously, we didn't know that block at Tullow has is in board of us. It's closer to the shore. And what we've seen from our block? Remember, our block, Stabroek Block, is 1,150 Gulf of Mexico blocks. It's a massive real estate area. We've gotten 14 successful discoveries, and only 2 dry holes. It's a pretty good success rate. So I think we have a pretty good understanding of the real estate around us.

And as you go onshore, as you go into the shallow waters, hammerhead is an indicator of this. The oil is definitely heavier but what we have there, we have a pretty big tank of oil, and we think that's going to be a commercial development. Plans are going ahead with that. The specifics of that, I can't get ahead of the operator or any plans we would be submitting to the government. But definitely, Hammerhead figures out to be a commercial development for our joint venture.

It doesn't surprise us. Until you drill a well, you really don't know. But in the way the geology of the block works, as you go onshore, as you go in board, the oil tends to get heavier. That's the case with Hammerhead. And so it doesn't surprise me that even more in board, Tullow had a heavier outcome.

And if Carapa is carap.........then ECO is going to plummet down.

Tis a very high risk stock now ahead of Carapa.

The big worry is of course Carapa.

Now, Mr Hess of the Hess Corporation says its no surprise that Joe and Jethro are heavy treacle because the closer you get to shore, the heavier and heavier it becomes in this area. Thats why Liza is good, the distance away is sweet.

Now Carapa is even closer to shore, there is a very high chance if they find oil, its going to be treacle again imo, maybe even thicker.

Do a search for what Hess is saying about this, then worry Exxon are out there and why they did not want close to shore licenses.........

Wondering why in 42 years since discovery that this heavy oil but low sulfur Bentley oil discovery has not been brought into production................this is backyard North Sea.

And now you say a similar heavy oil but also very high sulfur content oil (so much less valuable) is going to be commercial offshore Guyana ??????

I have a new profitable scenario.......Aliens land and want high sulfur treacle to power their UFO, and they pay 500 dollars a barrel for it.

There.......thats a profitable scenario.....number 9.

Bentley........

Same old flow test good, oil good, we will commercialise.......... plonk, phart....game over.

Discovred in 1977 - not high sulfur either - not into production still - that high sulfur treacle in Guyana has got no chance imo.

https://www.offshoreenergytoday.com/bentley-field-pre-production-flow-test-progressing-well-xcite-says-uk/

Bentley Field Pre-Production Flow Test Progressing Well, Xcite Says (UK)

Following planned equipment maintenance, offtake procedure testing and further optimisation of process equipment, the 9/03b-7 well at Xcite Energy’s Bentely field, has been producing at a stabilised rate of approximately 3,200 barrels per day with no associated basic sediments or water.

This is viewed as being well within the operational performance of the reservoir.

Bentley crude oil collected so far in the Scott Spirit tanker is in excess of 47,000 barrels of dry oil and thus achieves another major technical objective of the flow test.

Early data gathered from down hole pressure and temperature responses demonstrates that the underlying aquifer support is strong and consistent, which is a good indicator for longer term productivity of the reservoir.

The pre-production flow test will be continued in order to determine the reservoir fluid behaviour and to gather data to assist in the optimisation of ultimate life-of-field performance.

Commenting on today’s announcement Steve Kew, Chief Operating Officer, said:

“With the Phase 1A work programme thus far having once again demonstrated the expertise and delivery capabilities of the Xcite team, we look forward to completing the programme and moving forward with the important next stages in the development of the Bentley field.”

Bentley

Xcite Energy’s Bentley field is one of the largest undeveloped fields in the North Sea, containing some 550 MMstb in-place of 10°-12° API heavy oil. Following a highly successful flow test of the 9/3b-6Z well in December 2010, Xcite Energy are moving the field towards development. Further drilling and testing is being undertaken in 2012 which will leave well infrastructure in place for the development. It will also enable finalising of the field development plan for approval later in the year.

Xcite Energy holds and operates 100% of the Bentley field located in Block 9/3b (Licence P1078). The Licence was granted to XER under a Promote Licence in 2003 and converted to a Traditional Licence in 2005.

The Bentley field is located on the East Shetland Platform in the UK Northern North Sea, 8 km southeast of the Bressay Field (currently operated by Statoil), 15 km east of the Kraken Field (operator: Enquest) and 20 km north-northeast of the Bruce Field (operator: BP)

Press Release, August 3, 2012

You know they are blagging when they talk "profitable scenarios".......but dont quote any NPV10 or any IRR......... total and utter blagging it without data to back it up.

Invest 10 Billion and get back 10 Billion and 1 pound profit. Thats a profitable scenario.....but nobody would of course do it.

I will give a profitable scenario, I will buy Mars Bars for 1 pound and sell them for 2 pounds. Thats a scenario thats profitable......how probably is it though......... LOL

How heavy is it ? Why no API figure ? How much sulfur ? Why no percentage ?

Ask yourself why the Bentley heavy crude field in the North Sea is still not developed ......

A project has to have a good IRR......if the oil is crap and the IRR is low, nobody will invest in it to develop it. Why do you think TLW are so negative on it.

You say 9 different profitable scenarios......

...................but how many of those have a good return on them. if you have to spend 5 billion over 10 years to make 5 billion and 100 pounds profit......you made a profit, the return on investment is not compelling. But yes, its profitable.

Lots of flowery diversion and deflection going on.

Its all about Carapa now, they are trying to tread water until that result.

Very high risk - Carapa is good with light oil - saves the day.

Carapa is bad and the share price will suffer devastation - down to maybe 30 million market cap, which is around 17p a share.

You pay your money, you take your chance.

I would watch out for pumping of Namibia now, if suddenly lots of focus goes on promoting those assets then they are getting ready for further bad news ahead.

Good luck to holders - I might buy in on any Carapa success, but certainly not at the moment considering the potential massive drop if Carapa fails.

Good luck with it wallact, I hope it does come good for you. At this juncture its now a very high risk, everything now hinges on Carapa. Failure there will devastate the share price.

ECO is a company with a market cap of 120 million pounds at a share price of 66p.

For 120 million pounds you get -

Looks like zero commercial oil.

3 or 4 wells drilled in which you have just 18% share.

When those wells are drilled, bank account is empty, no cash left ?

Looks like this license area is the back end, the crap end, the crap quality high metal content, highly acidic, very high sulfur content, low API treacle. So even those 3 to 4 drills before the money runs out - might strike more non-commercial oil. Exxon picked the right licenses it seems.

I mean, 120 market cap for that ?? People focus on the share price as if it has some divine right - but its all about the market cap and whether the cash and assets justify the market cap.

Looks like they are just hiding the info now, if a TLW rep can confirm to the press its Very High Sulfur and also Extra heavy, then you can see why they may want to bury this until Carapa results end of the year. If Carapa is also the same useless very high sulfur treacle, or fails completely you can see TLW kitchen sinking the lot and walking away. If Carapa comes in they can just sweep Jethro and Joe under the carpet and let people forget them.

https://www.spglobal.com/platts/es/market-insights/latest-news/oil/111319-tullows-shares-tumble-after-guyana-find-shown-to-contain-heavy-crude

......A Tullow representative confirmed that laboratory results of the oil at the Jethro-1 and Joe-1 wells indicated that the specific gravity was as heavy 10-15 API and of very high sulfur content........

.

WOW........that explains why they are hiding it. Very high sulfur content, thats the killer, not worth developing and not commercial. Not just high............Very High.

https://www.spglobal.com/platts/es/market-insights/latest-news/oil/111319-tullows-shares-tumble-after-guyana-find-shown-to-contain-heavy-crude

A Tullow representative confirmed that laboratory results of the oil at the Jethro-1 and Joe-1 wells indicated that the specific gravity was as heavy 10-15 API and of very high sulfur content.

.

Canada so far marked down to 29 pence (0.5 CAD) pre-open........wow

Must be a load of sell orders needing execution. Book cleared out. See if it picks up as the opening bell nears.

They cannot release the CPR, unless they then divulge the API and the Sulfur level.

TLW is the operator, TLW will only allow that information to come out, when they want it to come out. Obviously TLW at the moment dont want to release that critical information.

Maybe thats why the CPR from ECO is late and delayed, you cannot have a CPR unless you let everyone know the API and the Sulfur content, and then, your naked, everyone can see..........

The main things for me are :

The operator, TLW, are very downbeat and assessing commerciality - which means it may not be commercial. Secondly, ECO have changed their wording, last RNS 24th October said the planned 2020 drilling, now its the LIKELY 2020 drilling - that suggests to me that TLW are now not keen on further drilling and so told ECO hold on, we may not be drilling there anymore in 2020.

The API and in particular the Sulfur content is not being released.

Could make Carapa the end of that particular license block if it fails, and there is nothing ECO can do, as TLW are the operator. If they pull the plug, thats it.

Lets see how Canada deals with the news when the market opens there at 14:30 UK time.

Looks like to me the API and Sulfur content levels is being hidden, so they dont have to say its not commercial yet.

Probably hoping Carapa comes good, then write off Joe and Jethro....or bury Joe and Jethro with Carapa if thats bad as well, write it all off in one go ??

https://www.ft.com/content/750131be-05f3-11ea-a984-fbbacad9e7dd

Tullow shares tumble on oil quality at Guyana discoveries

Analysis finds projects contain heavy crude, making them harder to commercialise

Nathalie Thomas in Edinburgh an hour ago

Shares in Tullow Oil fell heavily in early trading on Wednesday after the London-listed explorer warned that two significant discoveries in waters off Guyana contained heavy oil, leading to warnings from analysts that the projects would be “difficult to commercialise”.

Tullow Oil shares slumped as much as 23 per cent shortly after the open of markets in London after it announced the results of a recent analysis into the oil quality at the Jethro and Joe discoveries off the coast of the South American country. Oil recovered from both wells were heavy crudes, Tullow said, with a high sulphur content.

Refiners prize light, sweet crudes and the heavy variety tends to trade at a discount.

The discoveries, the first of which was announced in August, had previously provided a significant boost to Tullow’s share price.

The company said on Wednesday that in light of the analysis it was assessing, along with its partners Total and the UK- and Canada-listed Eco Atlantic, “the commercial viability of these discoveries considering the quality of the oil, alongside the high-quality reservoir sands and strong overpressure”.

London-listed shares in Eco Atlantic were down 38 per cent shortly after 8.30am in London.

Analysts at JPMorgan Cazenove said the oil quality “risks the commerciality of both prospects despite excellent reservoir quality”.

Al Stanton, analyst at RBC Capital Markets, said he expected investors to now be “increasingly cautious” on Tullow stock.

They never said LIKELY in the last update a couple of weeks back.

Today they say LIKELY.

The implies perhaps TLW have told them that its likely not going to drill any more there, oil is too heavy and too sour.

Wonder how low the Canadian shorters will push this later on today, they will certainly hammer it. Anyone buying today might wake up to a big loss in the morning once the TSX has its was with the share price. You just never know.

I3E have applied for consents to Locate a Mobile Installation and Undertake Drilling Operations for Liberator field earliest start date 12th DEC.

So possible 4th well planned this year.

If Carapa fails, or is also heavy oil, i would not be surprised if TLW just mothball the area. Heavy oil, high sulphur - offshore - not worth the effort for TLW, they have much better projects to put their cash into with better returns.