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@GP. Just seen your piece on EDR board, but don’t want to cross post. Not disputing what Wressle may be flowing at present - just not sure it really matters until the upgrade is complete. Want to stress however that you are misunderstanding the term “instantaneous flow rate”. If you aside your dictionary (!) and look it up on Google, you will find it is a technical and legal term of measurement and not some casual piece of English that needs interpretation. It tells you no more about the duration of a flow than the term “miles per hour” tells you about how long you have travelled!

Nothing new on production rates, upgrade etc - as was to be expected unless there was a cross JV partners RNS. Have stuck to the same line as the others in working on basis of original target production as their “initial production guidance” for the year, but “subject to review as further production data becomes available”. So we still wait for the upgrade, reporting of maximum flow rates and decision on final production rate - perhaps the final piece may also be informed by the revised CPR when issued.

“In the coming months ….hoping for something by year end ….depending on how the process goes” - interview on 4th August. Simon’s always pretty cautious in what he says - an honest assessment I would have thought as it really all depends on who has gone into their data room and the timescales the other companies want to work to. At least some of the bigger companies should have plenty of cash slopping around at present if they want to make a move.

With today’s planning rejection for Egdon and Ujo, and Egdon’s Results due soon, don’t think you need to be a genius to predict that a Wressle update may be coming in the next few days/couple of weeks to cheer up our JV partners! Meanwhile EOG continue to quietly save up the Wressle cash - altogether I suspect we should now have a pot of almost £1.5m with the money carried over. Good to see a little gentle buying pressure over the past couple of days.

@GP - meant for the Egdon Board?

Couldn’t think of a worse day to take a planning request to a local council!

Not sure I follow the logic of that. They could have raised any time before putting out the delay rns if they urgently needed funds for “going concern” for the accounts - what would be the sense of doing it this way round?

Anyone know why UJO may have commissioned a new CPR for Wressle rather than the JV Partners? I realise that UJO now have the largest stake (40%) but would have expected a CPR which will be relevant to all partners to be commissioned jointly?

Only because I was presuming that 884 bopd was as high as they were willing to take it with the current equipment, so might want to take some pressure off until they upgraded. Once that is done I am very hopeful that we may see even bigger numbers. As you say I am looking forward to a series of good news stories from Wressle - an astonishing success” as our unemotional CEO called it!

@GP. Aren’t the figures that UJO are giving NET revenue, so after production costs have been deducted by Egdon? Wouldn’t this affect any calculation of bopd based on the $1m fret figure - ie you would have to build back operating costs into the equation so we wouldn’t be getting net $75 a barrel? I think it is tricky working out flow rates until they tell us them

For the record I wouldn’t be surprised if EDR had throttled the flow back from 884 - not sure you would want to run production rate at full system tolerance for a long period while you await an upgrade - which will then allow you to produce at a higher rate comfortably within levels of tolerance. Why take the risk of damage?

Personal GP I welcome your knowledge on the geology - the more people with understanding of different parts of the operation the better in my view. I am just wary of those (and not suggesting this is you) who turn up here occasionally (and more frequently on some of the other boards you mention) and try to deceive or mislead through half truths and deliberate distortions in words and calculations - to present a false picture and try to do down other people.

@GP. I don’t envy you if your reading the RBD and UJO boards for your “fun flutter”. There seem some really unpleasant posters there when I have dipped in to read - and they’re not all exactly what I would call rampers!!

It doesn’t really at this stage whether it’s precisely say $750000 or $870000 - the point is both figures are a lot of money for Europa and should over the next 3 months ensure we are very well funded for any future operations or acquisitions. The precise production rate only matters once they have identified the full potential of the flowrate and decided on the technically and commercially optimal production level. And for that we await a report on the upgrade - hopefully in the near future.

9 weeeks since the first announcement that Wressle had exceeded 500 bopd and 5 weeks since they told us it had reached 884 bopd on a restricted choke on a “instantaneous flow” (a technical term of flow measurement which tells us nothing about flow rate sustainability). Must have a pile of cash from flows since August and we should be getting an update soon on the upgrade which they are undertaking since the operator clearly believes that significantly higher flows are still achievable. Looking forward to a series of positive announcements over coming weeks on Wressle including higher potential flow rates, increased production rates, Forward Development Plan for other Wressle reservoirs and the level of revenue being achieved as oil likely approaches $100 this winter!

Hi Yanis, you are spot on! Whichever cost figure we use it’s very profitable and at $85 oil the difference is less than 10% on the figures, which will be easily overshadowed both by changes in oil price and if we go for a higher production rate than 500 bopd - on which these figures were initially calculated. All the indicators at present suggest that we will be revising profitability further upwards. For me now the upside factors likely over the next few months easily (and significantly) outweigh downsides at the current 1.5 SP. I would be very surprised if we are not well north of here by early next Spring.

We clearly have different understandings of how you predict overall project breakeven points over a number of years - but no matter let’s move on! The key point is that the operational costs to extract and transport are $9 per barrel @500 bopd, so if we want to calculate revenue received which is the key point of interest at this stage, this is the figure we should use. Of course if production increases above 500 bopd, it will drop below $9 per barrel. Even better!

If you look at the rns of 18th March 2020 first para, it makes very clear that the $17 figure is the PROJECT breakeven figure, so includes in its modelling all predicted expenditure both Capital and Operational (running) costs.

Yes Opex is $9 per barrel for all companies @500 bopd (it will be less if we produce at a higher rate).

As I’m reading it I think you may be just mixing up Capex $17 and Opex $9 @500 bopd for Wressle. Capex includes all Capital expenditure on (probably) the Licence, Planning permission, drilling and storage equipment - ie all one off significant payments to get the Well/production flowing which you need to take into account to assess the lifetime profitability of a project. Opex is just what it costs year in year out to extract the oil and transport it to the refinery. Which is why when calculating the money that EOG is now going to get from Wressle it is more helpful to use the Opex figure as most Capital expenditure has already happened and appeared in previous accounts.

I think looking at the EOG Annual.Report on their website that the heading Cost of Sales includes most if not all the corporate overheads and Administration includes other costs on portfolio such as licences, seismic, new analyses etc. It makes a specific reference to licence costs under this heading in this year’s report.

Great -something more to come but that doesn’t sound like cash is going to be needed for this just yet, so roll on the Wressle income!

Just seen this new interview with Simon where Proactive have got the company name wrong,

https://www.proactiveinvestors.co.uk/companies/news/964034/europa-metals--says-wressle-is-showing-capacity-to-produce-at-significantly-higher-rates-964034.html

“We are continuing to identify a new development/appraisal project” doesn’t sound that imminent to me - no more “shortlies” or “very excited”