Proven Lower Eocene Gas in Sam-Pat • Multi-TCF resource potential (>8 TCF) identified in Middle Eocene by Block associates within and around Block licences • Monetisation will be achieved through collaboration with neighbouring operators
Lower Eocene Gas up to 2330 mtvss Possible 2000m gas column
Market is sentiment driven and most don't read into the RNS's
the details of todays rns are overshadowed by the negative sentiment created by these two statements...
rns in feb 2021....Production across all of Block's portfolio is currently approximately 940 boepd,
rns today....Block is currently producing at a production rate across all the Company's licences (excluding WR-16aZ well, which is undergoing intervention) of 555 boepd (30-day average)
That is a 40% drop between the two figures and whilst we know the reasons, the fickle sentiment driven market will see that drop and won't attribute any credibility for all the work being undertaken at this time and is why the share price is red again.
once the weaker holders are out again, the price will stabilise and find its level - there is much going on and plenty of share price triggers in the pipeline.
back in Jan 2020 they indicated that WR16A was shut in to upgrade facilities and that a well intervention programme had been designed with a view to increasing production by 100 to 200 bpd. As we know, the whole Covid situation arrived not long after and both the wells were shut in after showing stable production at 325 boepd.
It would seem that they did not carry out the intervention to conserve cash during the pandemic and are now in a position to implement that intervention, in line with the plans indicated over a year ago.
This to me, would seem like 16az coming off line now and having the intervention done, is in line with the plans outlined ages ago and not a cause for concern, unless advised otherwise.
Extended well testing (EWT) is an appraisal technique that requires flowing one or two wells for durations ranging from several days to several months. Test durations are governed by reservoir rock and fluid compressibility. In high permeability reservoirs durations more than 120 days are needed to determine well drainage. It is much shorter in low permeability rocks where pressure response is faster. EWTs can be designed to assess lateral and vertical reservoir communication, test efficiency of horizontal wells, completions and performance of downhole pumps in deep or heavy oil reservoirs. In short, an EWT enables significant de-risking of subsurface uncertainties, greater confidence in estimating well rate and recovery predictions, and selecting an optimized field development plan.
In the UK, directors and employees have agreed a scheme in which, with effect from 1 April 2020, 40% of their salaries will be paid in nil-cost options to acquire ordinary shares in the Company, reducing monthly cash salary costs from £43,000 to £26,000. Options will be priced at a VWAP over the monthly salary period. ...........
So yes, the lower the share price throughout the month, the more nil cost options they get for their 40% pay. It is in their interests for the share price to be lower, until they get their full salaries in cash again.