Member Info for Serif

Good on WH for coming out to talk about it and pretty plain that the pump in place is a positive step to maintain control of production as the well continues. Re next steps he seemed to be saying that any delays were down to planning, but as far as I’ve seen no planning application in yet. Are these earlier preparatory permissions that Itsawrap referred to holding things up - the ones the council seems not to know what they’ve done with? Can’t Egdon just put in the formal planning request?

Saw this on a UJO Board posted by Redroobo who found these comments elsewhere. Seems likely to have come from conversation with David Bramhill - although can’t vouch for its accuracy so usual caveats, but some interesting comments re pump and possible future flows.

“ There ought to be nothing unsettling about plans to install a downhole jet pump at Wressle, where UJO has a 40% stake. The water intrusion - is minor and so far pretty routine. A downhole pump was planned for early in the New Year, but the opportunity has arisen with a rig available now, so UJO is going ahead. The operation should take about three weeks.

The well has been flowing nicely, with no issues. It is not clear yet what production levels are likely once the pump is installed, but there is no change in expectations. There were suggestions earlier that production could eventually rise to 1,000 or more barrels a day. Projections do not appear to have changed, though there is no clear commitment at this stage.”

The pump is sensible, inevitable and as long as it’s installed well should help maintain a stable level of production for the foreseeable. Hoping that speed of Egdon’s decision making on this is a reflection of new ownership. IMO we are still likely to see valuable production from Wressle 1 for many years if not decades looking at similar wells in the area. Pstones should now be full speed ahead and tied in with the gas pipeline application so getting immediate benefit from both. If they get the application in by end of Sept, we could actually have it on stream by end Q1 2024. Now that would be a nice boost for the SP.

If so then I can see no reason why they wouldn’t put in for Pstones planning permission immediately - if there is no need for an additional Ashover why would they need to wait for the CPR?

Well if he pulls that off he should get a standing ovation in November! Although come to think of it, it’s basically what he said he would do by the end of the year.

Wonder if the timing might be driven more by Wressle announcements. If Itsawrap is right about a likely 2-3 month delay to monitor water cut, then November should allow him to talk about next stages in more concrete terms.

That’s a long delay - hard to know whether positive or negative. Perhaps timing dictated by having to wait longer than expected for some news to be finalised/announced?

@VL. Do we know for certain tha EOG are presenting on 7th Sept, as they are not listed to speak on the Proactive website on that date.

https://www.proactiveinvestors.co.uk/register/event_details/429#

Well I hope it comes good for you, Gardenener, and we can all go off happily into the sunset saying “that Ryan’s not a bad lad after all”! At least we should find out where we stand by end of year at latest - and if we do get a farm in the SP should respond significantly as there seems nothing in there for it at present.

Assets of company clearly out weigh the value indicated by SP by at least 2x - so don’t need hype but do need to change the negative market sentiment which is clearly weighing on getting a fairer valuation. In retail investment market need to give people something to look forward to/excite them - Ireland or Serenity or Wressle could all do this, but we have no idea if/how they are progressing. The one way in which I agree UPL could be a good example is it’s regular comms - otherwise it’s success as a Sarawakian organisation hitting a geological/commercial/political sweet spot in Sarawak is not easily repeatable - and please don’t give EOG BOD any more wild ideas about rushing off to discover the next Eldorado!

In the past it’s been the Majors interested in these licences. We never found out what percentage we were being offered in 2019 by the Major for Inishkea, but free carries don’t come cheap on this type of drill cost. DNO for Edge (next door) did a 20/80% deal with CNOC before the Irish Gov messed them up as well. Still even 20% of a successful Inishkea is massive to EOG.

Ireland is the “hope” project, and if it fails people may sell out but that would only lead to the value/SP gap on Wressle appearing more stark - and a takeover bid more attractive and likely to succeed. So perversely failure in Ireland could lead to an opportunity and quicker monetisation for remaining shareholders.

@itsawrap - suspect you’re right re likely production drop until they finally sought out gas - then the level of watercut should be of relatively little concern.

Not sure about timing of next $1m milestone. Have a hunch we may all be pleasantly surprised - suspect last announcement may have been delayed a little to sugar coat the water cut announcement and Brent looks like it is running c10% up on previous months. So could come in significantly earlier than last times 49 day gap might suggest despite the likely drop in production.

@BobbyB - “nice to see the board come back to life” - if only the eog board would follow suit!

Set the special dividend at 2.5p a share and we’d all be happy then!

@Tovoc - totally agree.

Unless they can show they are actually going to deliver on Ireland I am not sure they could defend against a hostile offer - their combined shareholding is pitiful now that WA has retired.

We still have an ii holding a chunk, who as far as I can see has never sold below 3p - so I suspect that sets the minimum level for any takeover which is to stand a chance of success.

And hopefully a rocket up his …. to show some energy and get on with things!

The Board need to give people something to invest in beyond being at net cash value! We have no “expectation dates” for any of the projects, Wressle the one current star dented by a poorly worded update without proper explanation leaving room for uncertainty to be exploited, no progress reports on any of the other projects despite exceeding timelines given in earlier guidance - even now leaving tweeting on Ireland to BobbyB (!) - and giving the impression that they’ve all gone off on a long summer holiday. If you are still working these projects hard - tell us about it, before you start talking about Cloughton etc.!

Looked to me that they had been trying to work those sells at a higher price over last couple of days, which has been depressing the SP.