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From reading the reports by Miller and Lents with an approx 71 dollars a barrel oil price from 2024 the figure s show just over a billion of revenue to Petroneft on Licence 67 alone and that is after capital expenditure Mineral Extraction tax and Operating costs ! There is approx another 500 million on Licence 61 and that does not take account of future revenues from Emtorskaya phil45.
I topped up again this morning and hope to keep doing so as my funds allow.
Merry Christmas

For anybody interested there is a new interview with Davis Sturt up on directors talk

woodfromthetrees I suggest that you go onto Petronefts website and read the latest Miller and Lents reports for the two licences that Petroneft is involved in it will give you and idea of why many of us are excited by the prospects here. The production increases by 2024 are immense for instance not to mention potential profits and cash flow and also based on oil prices below current levels and the potential of Emtorskya is also there with both oil and gas but this will not likely to start to come online until 2023.

Simon you have taken the wrong figure for Proven Reserves the 316m is the gross valuation of the two licences but the Petroneft share is 178m because they do not own 100 per cent of the licences.
I expect the share price to improve as we get more RNS in the new year that explain how they intend to build the wells on PAD 1 of licence 67 and the fracking programme on licence 61 shows results and put financing in place for the capex.

Hopefully the company will get the rerating it deserves after the good work put in by the management. Hoping for a good start today.

I found the presentation at the AGM very interesting and David Sturt did an excellent job of explaining the plans ahead. Licence 61 looks as though with the fracking programme planned and possible future fracking could finally start to produce better cash flow especially with the reduced costs and current Oil price I would also expect the development of Emtorskaya to be more efficient than other drilling on the licence. Licence 67 could be a huge game changer for the future of Petroneft and the planned production initially planned from platform one with 7 horizontal wells as well as vertical wells wells which could mean in excess of 10000 BOPD being produced. The operational costs on licence 67 are extremely low and they can also take advantage of being able to build on the site during the off peak system thus reducing the capital expenditure required to bring it in to production. The first platform will also take more wells (up to 24) which again should mean more oil production which should surely could be financed from internal cash flow. The prospect of within 5 years of three platforms and up to 53 producing wells means this is indeed a valuable asset which in the medium term could be producing in excess of 40000 BOPD. Hopefully the new reserves report which is due this week will show there is plenty of oil to extract

Directors talk

There is a good interview with David Sturt on the half year results and future plans on ************* website released today.
The one thing I picked up on was the building of a drilling pad on licence 67 which will allow many more wells to be drilled and thus increase production dramatically (next door field on another lease with similar layout has over 200 wells with more going in and 35 million barrels taken out so far). The thing with this field is production costs are very low so it could provide enormous cash flow for its own development over next couple of years.

One has to hope that they manage to open another couple of wells soon on Licence 67 to make the most of the lower productions costs and to really boost cash flow. If we can get to a thousand BOPD on that licence it could be transformational for the long term future of the company or in attracting a buyer with the reserves update

Irl-Investor that figure is BOPD and means the first quarter was lower production than 2nd quarter production. After fracking some wells the production increased on licence 61. Average production for the half year includes the better production in quarter 2

I am disappointed that with the improvement of oil prices and production that the licences are not making good profits at an operating level. I was hoping by the end of this year that the companies would be making enough operating profits to at least come close to covering their financing costs and to thus be generating good cashflow. I think this will happen on Licence 67 but looks very unlikely to be close on licence 61.

I believe that neither party has done a job which is beneficial to us normal small shareholders. I would be more inclined to go with the Anderson route as if we back the board we will just end up with the money disappearing anyways which is partly why I believe that the board was proposing to wind up the company. If Anderson has a proposed way forward and ideas for the company why would he not be prepared to tell us what they are before the AGM. I also do not believe the answer is allowing the board to issue large numbers of shares as Anderson is likely to challenge this due to the large dilution of his ownership percentage which I believe may have been the problem with the other proposed deals

I know it is a two week postponement to 17th and nobody can attend due to covid but why not postpone the extra day when restrictions are due to be lifted in Ireland

This is not new information as it has come from them reviewing what was already carried out and now deciding that it is viable whereas a while ago they were trying to offload it but had no takers

The company has received the cash now but this is only around 1p a share (before any tax or fees). The directors are considering a number of initiatives and until they come up with something solid I would expect there to be very little happening, The cash just means there is very little downside at the current price but if they do not do something fairly quickly the cash will soon disappear on paying overheads'

Interesting article. Thanks for the link. Looks like we should be rewarded over the next year as the surplus recedes and we start to ramp up production

It is good that they confirming the potential of these field with the finds and reserves upgrades but it would be nice to see them actually getting the oil out of the ground and improving cash flows.

Showing a nice increase on the Irish Stock Market today Bid is .065 to Ask of .067 cents

And the 45 million of investment is being paid by OIL as part of the buy in. This is so that it has the same investment in World Ace as Petroneft. Both companies will have loans outstanding from World Ace of 45 Million then. Petroneft as stated before is debt free now following the money paid to them by World Ace after the OIL share purchase to give 50/50 holding each. This money was used to repay Arawak and Macquarie loans. The capital expenditure has meant the pipeline is complete and future wells can be linked into it. This means most future capital expenditure will be on getting wells online and upping production.

The directors felt that the bid for the company was too low at about 4p I think. If that is the case then they should be topping up their own holdings at theses prices.