Member Info for Serif

Can’t imagine that there were many of us back in January (when EOG was on life support!) who actually imagined we would be looking at such a great outcome 6 months later. With these results the JV partners now have the flexibility to run production at the levels that deliver the best benefit to their businesses over the lifetime of the well - including bring on stream the other reservoirs as appropriate. What a great position to be in on Wressle - a result to enjoy.

@MrI. Think the profit estimates for next year should be even better. EOG pre-Wressle production should be producing enough revenue @$70 to cover cost base, particularly after cost cutting end of 2020 (including saving on FD salary and giving up of London offices). Everything from Wressle should be pure profit after extraction costs which may be even lower than the $9 figure quoted, now that production has increased above the 500 bopd level.

30% - which at these flow rates could presumably be producing profit of £4-5m a year!

Something is clearly holding us back at present, so that large seller(s) want to take anything they can off the table at 1.60 over past week or so. The fundamentals around our profitability have never been better in terms of high oil price, much higher production, lower cost base and main work on our farm out prospects (Morocco and Ireland) completed for now.

If we miss out on that opportunity to attract more investors, it’s just another self inflicted wound.

@Tac. Sorry think you mean” geothermal warmed cave”. Wood fired would be seriously damaging for the environment - in fact population growth in developing countries and the consequent degradation of land and burning of wood etc is (if I remember right) the primary driver of climate change!

Looks like the political cost of delaying and appearing inactive in the face of such clear warnings is rising by the day on Mr Ryan. Hard to imagine he will go into winter just hoping that he will get away with it this year. Consequences are biting much sooner than he probably thought they would. Question is - what can he do or be seen doing to tackle the situation? When jobs are going and bills are rising the excuse of “I have to wait another 9 months for the Energy Security report” sound less and less credible.

Wouldn’t touch a purely Irish focused share such as PVR or LOGP, as you say too risky. But there are clear shortfalls in energy provision in moving towards reduced carbon emissions which will mean countries have to address questions about transition fuels - and then things can change quickly, whatever history there may be. Irish gas could form an exciting part of a company with other less risky assets as it will certainly be high reward if it moves forward.

Yes £50k profit every week from Wressle now on 500 bopd flow at current prices. Not a position I can remember EOG being in over recent years!

It really is time to get this new asset out into the open, as at the moment all its doing is putting a huge question mark over the SP when we should be romping ahead with Wressle, the rising oil price, Morocco farmout activity and Ireland all moving in our favour.

In last interview on Wressle Simon did say that they were in discussions with companies on the Irish farmouts -“so some news on that” - in response to question about expected newsflow. Vague but at least they seem to be keeping something alive - which as the wind final seems to be changing more in our direction in Ireland - is what we would want to be happening.

Two points on GPS calculations. Firstly reaching the 500 target isn’t announced until 24th August, so as GP notes for 4 of the 22 days it was probably flowing a lot less as it cleaned up - which significantly reduces the average. Secondly isn’t it not the convention that operators take their costs from the oil produced first - so when DB talks of $300K, you might need to increase this by 13% ($9 a barrel costs) to work out the actual flow rate?
All should be made clear soon in any case - but the one uncontested fact is that Wressle has turned out as a great success, certainly exceeding expectations.

See that Chariot have commissioned more offshore drilling to start December 2021. Looks a lot further North of our licence, but presumably any activity in the region is potentially helpful in generating more interest.

Pretty stark warning in the Irish Times about the long term problems Ireland specifically faces in terms of power supply. (Thanks to Tommy for this link on other BB).
https://www.irishtimes.com/news/environment/electricity-network-constraints-may-keep-worsening-for-years-1.4665506?mode=amp
What practical options do they have except for using gas to meet the shortfalls? And why would you want to make yourself a hostage to foreign imports?

There seems to be gradual upwards price pressure on the SP over recent days. Wonder if we will get confirmation of final Wressle production rate this week. Will be interesting to see if the flow is much higher whether they increase production slightly to maximise use of tankers.

And the Russians have just confirmed that they have enough gas for centuries in the Artic if we will just pay then enough to exploit it! The choices for Mr Ryan become ever starker. No Irish produced transition gas or protecting the Artic - which will it be.

Let’s hope someone is saying that about Wressle in 2040!

Looks like additional storage tanks being put into Wressle. All good signs for flow rate.
https://twitter.com/Roofershound/status/1433007701370580997?s=20

Hi GP - I think you might even get a little more as the OPEX per barrel estimate is presumably based on a 500 bopd flow rate, so should drop if a higher production rate is achieved. And Wressle income is pure profit to EOG as current cost base should be comfortably covered by pre-Wressle production assets at current OP.

Thanks, Rubey - it’s a wait and see I guess!