Member Info for Ribeye

You're under cooking Wressle there old boy. UJO now have 40%. From the CPR:

Gross P Mean Oil Initially In Place (“OOIP”) is 14.18 million stock tank barrels in aggregate
across three reservoir sands, the Ashover Grit, Wingfield Flags and *****tone Flags, of which
2.15 million stock tank barrels are potentially recoverable (2P+2C)

Significant RNS today - that looks like a good bit of business. £26m spent with a rental yield of 7.7% and development potential for the land into the bargin.

Hydrocarbons could mean anything from methane/gas (CH4) all the way up to bitumen.

Seriously WTF?

They've hit hydrocarbons in a formation that is 2.5 KILOMETRES from the first well.....and that means it's 'not commercial'.

Its onshore 10 miles from Saltend.

They're spending even more money on a sidetrack.

Its a duster....full porous dust stuff full of hydrocarbons....

Been doing this for years old chap.

Its an appraisal. Its all about the 'p' number is it not? How do you flip or farm-down an oil/gas target without volumetrics? That requires finding the edges of the prospect every bit as much as it does flow rates and reservoir characteristics. It takes time and a lot of money.

Its an update not a well result. No figures on porosity/pressures were given from which to infer anything. They didn't even say 'gas' they said 'hydrocarbons'. It it were just methane and nothing else, they could have said 'gas'.

and in the meantime, oil is now $46......which meant that Wressle prodcution is worth $1000 per day more than it was last week when the price was $44.

No. Its an appraisal well which found hydrocarbons in the place it was expecting to find them.

The side track it get to a place which is better for testing/future production.

WN B was a step ou from the discovery well, with the primary aim of confirming the extent of the primary formation (the Kirkham Abbey). It has been successful at that - i.e. there is a Hydrocarbon charge in the primary target in communication with the WN A well MILES away. (think about that....MILES). They have also said 'hydrocarbon' and not 'gas' (condenstae under pressure and gas, under pressure beneath mud aren't that easy to tell apart I understand).

The puprose of a step-out appraisal is NOT to hit the optimal reservoir for production/flow test. The SIDE TRACK is being done for this purpose, and may well be a future producer (it's also close to the gas 'main' I believe.

Ironically, if the KA formation was at it's best at this location, they would have to have done ANOTHER well (at cost ++ and delay to appraisal) or a second side track to find the limits of the reservoir. That would have beenthe reason for the fools on bulletin boards to **** the company.

As it stands, as some of the more informed commentators have said, this is a successful appraisal of a MASSIVE gas prospect, onshore, less than 10 miles from one of the largest end-users in Europe.

The Cadeby Reef is just a bonus and still in with a shout. IF, the KA is also full of condensate under gas........then WOW.

Flying UNDER the radar....despite a positive IC comment last month

Most of the board have chucked in 10 grand or more, and Lynda has now put in £70k.

She's got some skin in the game. Nice to see, and good luck to her.

The key will be the proportion and volume of sales now online. Stores won't give any clue to that at the moment given covid.

I've just bought in for my Share Club (based in Cheltenham) at 169p.

I don't see covid affecting retail sales as the big issue - its design lead! i.e. It will sell online if its good enough, and SuperDry stuff looks great. People want it.

Dude. Calm down! Its an APPRAISAL welll not an EXPLORATION WELL.

The RNS states 6-10 weeks. This is week 4.

Its a complex well, in complex geolgy with one than one target needing careful analysis. We more or less know there's oil - we're trying to find out what type, how much and how it can be recovered. The gas over the top of it is just as important and that needs TIME to looks at too.

On top of that, this is a multi-million pound engineering operation. Doing it properly means they have a well from which to produce in the future, saving months and millions in future development costs.

As I said, we're engaged in actually planning it........Starting Q1. Multiple different vaccines matches to different cohorts......

First phase still possible start before Christmas.

But then again, heading into the northern hemisphere winter........oil prices get some support. China, Korea (and Vietnam) and India have covid under a greater degree of control than we do in Europe, and that where the oil goes!

I'm a doctor, and we're gearing up for mass covid vaccination in early Q1 2021. Mass vaccination is something that the UK is genuinely good at.

We're not there yet, but I suspect that we'll snap out of covid in late Q1 2021 and it will be fierce in retrospect but not necessarily obvious at the time the bounce back starts.

It looks like over 1% of the company's shares have been bought back and cancelled (over 2m woth about £7m) in the past month?

This can only widen the discount to NAV, and enhance EPS a fraction too. Its also a good hedge on a weak pound/dollar and an Asia rebound post covid.

Yeah mate. However, a sidetrack from an established well site will still be MUCH quicker and cheaper.

Further info on the Equinor 'Blue Hydrogen' Development at Saltend:

https://www.equinor.com/en/news/plan-for-world-leading-clean-hydrogen-plant-in-the-uk.html

This is 9 MILES by road from the West Newton A site and closer to the West Newton B site.

There's already a hell of a lot of gas infrastructure landing North Sea gas within that 9 mile Radius too.

Forgot to add.....

From a political perspective this is:

a) Tax generating activity through TAX
b) Jobs in the North
c) Improved UK energy security - no dodgy Arab/Russian influence brough to bear.
d) WAY above average from a carbon and environmental point of view as its onshore and near the refinery
e) The local council took a battering in the courts for impeding Wressle arbitrarily. Lower risk of a local authority trying to **** with us in the future.
f) Supports the existence of the refinery and petrochemical plants in the area (major source of jobs and revenue).

Considering it was 0.3p in Auguest, before SP angle tipped off their mates about fund raising.

By Christmas Wressle should be producing, the company will still have a pile of cash (some of which may have bought up more producing assets) and West Newton will either be the size of an elephant or the size of a whale......

SP - 0.5p+ by Chritmas. Fair value medium term north of 1p.

This has something for EVERYONE: Cash! Producing Assets! Excellent Exploration track record! Drill ready targets that are analogues/on trend with existing finds! Development/infill potential! Seeling off large chucks of West Newton! Biscathorpe! North Kelsey!! More production from Wressle......