focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
More good news of another store opening up around Teesside.
https://www.gazettelive.co.uk/news/teesside-news/card-factory-opening-soon-former-28787295?IYA-mail=7f82d2c8-26c9-4f76-a5be-2bf06c4ddb5e
It's worth bearing in mind the depth of the formation damage. From their RNS of 14th Dec, Beacon Energy were expecting it to be somewhere below 3 metres which I think could be considerably more than what PRD are thinking for the MOU wells to date.
"The SCHB2(2.) well encountered excellent oil-bearing reservoirs with thickness and properties in excess of pre-drill prognosis, but operational challenges encountered while drilling has left a legacy of drilling fluids that have invaded the reservoir near the well bore. These fluids are currently impeding production. From our analysis, this invaded zone is likely to be less than 3 metres around the wellbore which we intend to tackle with industry standard well stimulation techniques."
Interesting comment made by Graham Lyon at the Sound Energy Investor presentation last night. He expects Sound to be getting the Star Valley 101 rig at the end of March.
So does that mean that MOU-5 will be fast tracked and drilled before then or are we looking at drilling after Sound and so at the back end of the current forecast April-May window? Any thoughts on constraints whether PRD can drill sooner rather than later?
Comment made at 4mins 30secs:
https://www.youtube.com/watch?v=GWR68wCx06E
'The new acreage is close to pre-existing surface infrastructure in the form of a six-inch gas pipeline which traverses the leasehold.'
The leasehold referred to here could be the existing Zephyr leasehold could it not ?
The RNS may have been a little rushed as the Zephyr guys might be a tad busy at the moment. Colin usually gives 1 or 2 interviews after a deal is done but not this time which makes me think getting 16-2 testing underway (plus any the other well activity) is taking priority.
Just gone through some of the Vox Markets presentation from May, Colin stated that they wouldn't RNS a permit application but they would if they receive a permit. Fully expecting news on Monday.
Thanks for that snippet of info Evan3020, ties in nicely although the Utah website only shows approval for the one well and not the 36-3 LN-C9. Still time yet as they're 7 hrs behind :)
If you click on the dates header, looks like permit approved for the State 36-2-LNW-CC well today. RNS Monday ?
https://dataexplorer.ogm.utah.gov/DataMining.html?EntityType=Well&EntityKeyName=PKey&EntityKeyValue=38788&DETAILSONLY=True
THE_CHAIN, if you check the Utah government website, they received the APDs (Application for Permit to Drill) for the wells on 8th April.
They must all be on their holidays !
In the May ********** interview, Colin stated that Dominion was telling them the pipeline would be ready in 2023 and that we (Zephyr) expect that to be early 2023. So early 2023 was Colin's view which I think since then has reverted to just 2023 in subsequent interviews, which is understandable.
A couple of things of note, to me anyway, in that interview was the processing facility at the head of the pipeline which hasn't been mentioned before. I'm assuming it's for 3 phase separation of the water/oil and condy/gas and storage which will be sized and costed once the fluid mix is known across the Cane Creek reservoir and upper layer(s).
The other was the comment around the focus of maximising underlying value by moving more of the 2C/2U into proved reserves as that would give a better development plan which in turn would be more attractive to much larger players or partners.
Reading between the lines it seems like the objective is to prove up (another CPR?) and sell on or partner up but not to go it alone after these 3 wells are tested.
From Jacinda Brown at around 21 minutes in, rule of thumb is 70-80 mcfd of gas to run a 350kW generator.
So for our initial 1MW generator, it would consume in the region of 215mcfd of gas or roughly 6% of the 3.6mmcfd from 16-2 test.
I think that works out to be equivalent to 215mmBTU per day or 37boepd.
https://www.youtube.com/watch?v=WFieQm6OQ40
RtB
DIY-Investors update available on youtube including the Kistos offer
https://www.youtube.com/watch?v=DuhUNtMuTP8
Evan, your units are incorrect, should be 1MW rather than 1kW. 1kW would be enough to boil a kettle
RtB
Indi123, The Vox markets presentation was uploaded to the Zephyr website on 14th May. On page 6 it states that the drilling permits had been submitted.
Hope this helps.
RtB
Like a lot of other shareholders, I too am wondering where the CPR has got to and the reason or reasons why the delay is so long. On 9th Feb LSE interview, Colin stated that the CPR was with the reserves auditors so what could've happened to it since then?
I personally think (and all of this is my opinion only) that it has had to be re-written, certainly a major change for it to be so late and no comment as to why.
Now worst case would be to think that they've got the whole basin geology wrong and the figures need to be significantly reduced downwards. I don't expect that to be the case given the quantity and quality of people who have been poring over the data for the last few years, back up by a successful proof of concept 16-2LN-CC drill. So if not that, then what ?
Well Colin did comment that the drill found the oil as expected but they found more gas than anticipated and I think what could happen with this gas is why the CPR is delayed.
The intention, as far as we've been informed, is to combust this gas onsite to produce electricity to supply to the crypto-mining industry. That would mean that the CO2 emissions arising from burning this gas would be onsite rather than at some industrial end user at the end of a gas distribution network.
Now being responsible stewards, would it be possible to use some of this electricity generated to operate Carbon Capture equipment and capture the CO2? One of the issues with CO2 is that once it is captured at source, it needs to be transported to where it would be stored. So to get around this, could this CO2 be used onsite to enhance the % oil recovery in the Paradox and leave the CO2 captured underground?
I wouldn't be surprised if Zephyr were thinking about something like this as they do seem to think outside the box. It would tick the environmental considerations of having the gas consumed onsite, reduce transmission costs and it would help extract more oil out (big financial tick too). However, getting the economics pinned down to do anything along these lines would take some time to assemble and so would delay the CPR.
Now I don't even know if it is possible to use CO2 in this way in the Paradox etc etc and all the above might be completely the wrong reason for the CPR delay, but with the radio silence we're all going to be coming up for possible answers. So this is my one to add to the list!
Setanta1, regarding the next wells. The WSU is already satisfied, this second well within the WSU will guarantee extension of the lease agreement beyond the 36 months. Another piece of value to add to the portfolio. What I find of more interest is that one of the proposed wells is outside of the WSU. It appears, to me anyway, that this may be getting drilled on some of the newly added 12000 or so acreage which I don't think has 3D seismic or at least recent 3D. I can only assume that Zephyr are confident in the read across from existing wells and from the 16-2 LN CC well. Zephyr have stated that they've actively managed the leaseholds to date, swapping out lesser prospective areas for better prospects so the 25000 WSU acreage is the prime real estate to them. I wonder what they've seen outside this that they are keen to drill next year ? As will all things Zephyr, the good just gets better. AIMO
The Herald article seems to have been updated to "Serica said the Iranian government no longer has an interest in Rhum".