Member Info for Serif

HDT - worth remembering that this is an appraisal drill, they are still trying to find out how big a field they have found etc. production will be a further drill down the line. That said if the appraisal delivers a positive outcome EOG will be sitting on a highly valuable asset which will no doubt be reflected in the SP. They can then decide to sell, farm out for a carry, pay for further drilling from accrued Wressle revenue or raise more cash from the market depending on what they think is the most profitable route. That’s not a bridge that needs to be crossed until we know the Serenity result.

On other prospects for 2022 I just wonder if a Morocco farmout might surprise us in the next couple of months. It had seemed a distant prospect but there is a lot of focus on NOrth Africa at present and it could attract interest. Ireland gas should see some movement or indication of a decision by H2 once the Gov review is completed and the politicians get their heads out of the sand to address the energy shortage - that’s a huge prospect if Ireland green lights gas. Finally they have said that they will have some more results to share by H2 on the work with GTCauseway and Baker Hughes re geothermal. Lots of potential positive upsides here for the SP in the next 6 months - can’t see much downside at present (now the “lazy” £7m placing is all but churned) - but who knows for sure with Aim companies!

Already making in excess of $750k a month from Wressle and listening to DBS interview it looks sustainable long term and with more to come from other reservoirs and the gas link. That’s on top of the 70+ bopd EOG have from legacy wells which will be very profitable at this OP. I can’t believe they are going to sit on all this just in case they need some hypothetical contingency fund for Serenity, so I am curious about what they plan to do with all this cash windfall.

No. The EOG contribution has a fixed ceiling as part of the deal. More interesting question is what are they going to do with all the spare cash now being generated for them by Wressle.

Very narrow spread at present - 2.22 to buy 2.21 to sell. Liquidity looks healthy!

Thanks for the response H. I agree particularly with your last para - they seemed to have reverted to normal timetables and hadn’t notified they were extending (as they had done previously), so I was surprised they didn’t appear. As you say hopefully it will be this month - maybe it is connected in some way with completing the farmin?

Any idea what’s happened to the Annual Report due 30th April? They haven’t told us that they are applying for another extension this year or why it would be necessary post Covid.

From the article I think this might affect future prospecting plans by the Moroccans nearer the Canary Islands, but not EOGs licence which is a lot further away on the map.

Not seen many rns’s like this from eog - in fact it’s the first director purchase on the open market (excluding placing) I think I’ve seen since following the company. So personally not knocking it - however small.

He’s a Non-Exec so he shouldn’t be twiddling his thumbs at EOG all day. Maybe ask over at his company RBD - not sure you will get too flattering an answer there!

Pleased they have appointed a new CFO, time to get this extra expertise and widen the Board perspectives with a younger Director.

Selfish - And updates on GT Causeway/Baker Hughes work “as the studies gain momentum in H2” reported in the Interims. So we should hear something more on this by Summer as our H2 ends 31st July,

Largely expected/known info in the rns, but 3 positives for the development of Wressle.

1. On tests they achieved instantaneous flows of 1000bopd. So we know it can flow at at least that rate once the gas is sorted and it makes the higher rates indicated by down hole pressure within easier range
2. There seem no concerns about depletion rates at present on these predicted flow rates which suggests they are confident about available reserves - we still await the updated cpr or whatever it’s called now.
3. The gas pipeline solution looks the most attractive way forward from any perspective and should enable us to maximise the Pstone Flags which are much gassier. If they get this in place by end of the Autumn we could well have revenues from flows in excess of 1000bopd and more from the not insignificant gas flows. Starting to look like serious money for our size - whatever happens with Serenity.

Egdon have confirmed that their interims will come on next Tuesday and it seems to be expected that a separate update will be published on Wressle for all the partners before then - so it looks like a busy start to next week.

Alot of words that seem to say nothing concrete about how that are actually going to address their energy supply problems! Deliberately skating over any of the hard questions.

Try this link for interview
https://www.proactiveinvestors.co.uk/companies/news/979694/europa-oil-gas-ceo-simon-oddie-cheers-rip-roaring-half-thanks-to-wressle-success-979694.html

Sounds like Ireland is also in focus at present. Who knows which way the politics will go, but there seems some optimism that at least we should hear something over the next few months and if the decision is to go indigenous, that could boost us every bit as much as Serenity.

208bopd is an average for H1. As Wressle only been flowing over 500 for 5 months and will have been affected by the various upgrade works in this period, I would hope that we have been averaging considerably higher in H2 so far - perhaps nearer 300bopd (Wressle 225, non Wressle 75bopd). The promised update this month from Egdon should give us more info on this.

Yanis - agreed good volume, but it would be 12 days as the volume is made up of buys and sells!!

Yes for the PIs but it’s not the model that most the city financing firms use. They will look to move on their money quickly to the next available placing, so we should expect some sizeable churn IMO.

Think