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Thanks for the responses GP. When the GC report comes out we can give you marks out of 10 for your answers! All of the explanations look good for Wressle production, although fingers crossed for the unexpected reservoirs options.

@GP. Interesting thoughts, hopefully we will know soon from GC report. Do you understand where the Wingfield Flags may fit into all this? Could they have been accessed by the PS? They seem to get brushed over in most discussions/announcements on Wressle.

Should be a good month for news from Wressle. We have the revised cpr, full flowrate testing and decision on optimum production levels to report on, as per the last Wressle RNS. If Egdon have been able to install the new oil/gas separator system by the end of last week as planned, we should hopefully start getting updates sooner rather than later.

Hi GP, it was a 1.5m buy at (from memory) 1.375. The SP pricing is odd since the rise actually happened yesterday rather than today. Also don’t understand why they are holding the price the same today but only allowing people to sell in this range. Why don’t they increase the bid if they need to acquire shares to sell?

Can’t now buy anything this morning. That large late reported buy yesterday seems to have soaked up most the available stock.

Bah humbug - the spirit of scrooge lives on! Personally pleased to see they are alive and apparently upbeat - plenty of positives emerging at present. And with the sudden increase in use of Twitter - may be they are finally starting to listen to you Yanis?

Happy Christmas all.

That’s certainly the impression I got from the original MOU. Linked to all this, just been looking at the FinnCap note on this https://t.co/8mIEC2DMa1 - page 2 has some figures that begin to show what a difference Wressle is going to make to our finances in 2022 across the board.

Just read the Baker Hughes press release. Does sound very promising in that the West Firsby site is to be the demonstration project for the new technology in Europe - and we get mentioned in the release. Our original MOU with Causeway was said to focus on desk research and test design with Europa providing the data accumulated over the years from the well site. Obviously all very low cost and long term stuff. Perhaps this new collaboration will now speed up the design and testing stage. Should certainly be helpful in raising our profile on ESG work.

No idea about whether this geothermal project is a great option or pie in the sky, but the involvement now of Baker Hughes suddenly makes it appear a lot more interesting.

If we think the window is opening on a deal re Corrib then it will be a very happy 2022 for all of us! Agree that Wressle is not the company maker, but think it still has the potential upside to give us placing-free operating room if we are canny for at least the next 3 years or so, which looks like a much better place to be than the last few years.
Re third legs and the like, interesting new policy emerging re O&G developments widely reported in the Press
https://oilprice.com/Latest-Energy-News/World-News/New-Oil-And-Gas-Projects-In-UK-Need-To-Pass-Net-Zero-Test.html
May help move the debate on re imported v locally produced energy in general. Perhaps COP 26 demand to get real over delivering targets will help Govs think through how they can lower footprint for real rather than just virtue signalling. About time.

Looking at FinnCap figures, they assume Wressle 1 will be producing 197boepd which works out as a gross production rate of 600bopd. They calculate after costs that this will provide £3m for EOG in FY2022 with oil @$70. We are 4 months in to production so should therefore have passed £1m mark, especially as oil has averaged higher than this for the period. If Wressle production is finally fixed higher than this and/or the oil price stays above $70, income will need to be increased proportionally. Strong figures and likely upside to come, while non Wressle production continues to cover outgoings.

@Vauch. Agree our income is looking extremely healthy and if we are producing more regularly at the latest published rates, our cash in hand by January will be at the top end of what I was hoping. Once we get the gas to power unit up and running, production costs should start to drop lower than the $9 a barrel especially as production levels are higher than original estimates. More profit per barrel.

Just need to be careful we don’t double count on non-Wressle production. Think it is closer to 80bopd, the 93 figure includes the earlier small contribution from Wressle pre August. Still producing revenue between £1.5-2m a year from this alone at current oil prices.

Very positive operational update from egdon. While it may be taking its time the news is consistently good from the site and it looks to me that more good news is on its way in January. In particular pressure seems excellent, they are having to restrict the choke quite a bit more to bring flow down to 666 bopd, so still looks extremely positive for a much higher flow rate if they want that, the new oil/gas separator should be installed by end of year, presumably the cpr is almost ready and they will be able to complete tests in the new year.
Whatever crazy price for the moment our big seller has pushed us down to this week, the fundamentals look increasingly good here IMO, and with a bit of time and reflection the value should get recognised.

Hear, hear Tacuma. Doing nothing deliberately is sometimes the best thing to do especially if we need to wait for opinion to shift further, but the delay is always difficult to sit out calmly, especially with such a low SP for now.

We all know that we make our investments with all the risks on our own decisions, but I sincerely hope that the SP allows you to recover enough of your investment (about 3p was bearable if I recall?) and will raise a glass to your liberation when it does!

Whether it’s the right thing to do all depends on the value they can realise on the asset they acquire. If it’s blue sky/needs a farmin type of stuff, no one here will back it. If it’s short term low risk/medium value payback - but needing some short term cash injection to bring in - then may be worth it - SO has spent long enough looking at it!! Just sincerely hope that if they do go for anything it doesn’t still require some form of planning permission - wouldn’t trust anything to pass in a reasonable timescale in current environment.

@Tacuma. Alot of sympathy for your view and of course it would be better (and my preference) if they could buy out of cash rather than selling any valued asset, but that depends how long it will take them to acquire the necessary cash - and a part sale is better than a raise. If Wressle finally delivers 750 bopd with a similar uplift in reserves then selling 10% still leaves us with the revenue we originally targeted on the project. At some point these companies have to try to leverage current assets to make more profit - the view that because it hasn’t worked in the past (although of course it obviously did with the Wressle risk) would certainly condemn the SP to stagnation. If we sit and wait for Morocco/Ireland to deliver - what’s the plan if they are further delayed/derailed?

Key word in the question is “part”. It’s a tangible valuable asset as Tacuma says, but it is still only an asset. If the price is right and releasing some of the cash now enables us to take a great opportunity (and that would need to be v good in exchanging certain income for some more risk) that’s what AIM companies are about. Wressle is exceeding expectations, so we could presumably sell a part and still retain enough revenue to fund us for years. Wressle has always been about underpinning and strengthening our SP (haha look at that now!) not really breaking out. If the market continues not to give eog/edr/ujo any credit for the asset, IMO it makes sense to realise its value in some other way.

That’s a bit unexpected! But maybe it’s been in the air for a while which is why Ryan went for the gas power stations. Of course it may all come to nothing, but just now this looks the most promising flow of news for Inishkea/Edge there has been for some time.

@VHB. Thanks for your response, we are all in the same boat it seems scanning the horizon for the next piece of news.

Fwiw am now inclined to thinking that they were more likely all along to sell a piece of Wressle than do a placing (UJO did that still unexplained £3m raise at the time and they have said they wanted more of Wressle). The fact that Wressle has been successful beyond expectations may have thrown another spanner in the works, as we presumably can’t estimate it’s value until the new CPR and final production flow rates are available. Hopefully if we do still need to raise more money for any acquisition, and they go down this route, it might now be a sliver of Wressle rather than a slice!

@VHB. They have said they are still intending to still pursue this acquisition, but it has sounded vaguer recently - “in our sights” etc. Do you have any reason to think it might be more imminent than next Spring? Tbh it has acted as a dead weight on the SP ever since SO mentioned it back in the Summer.