Member Info for Serif

@Rubey. Thanks for that. There is a traffic management plan with the planning permission which is based on a max of 3 HGV visits a day during production phase. This could limit production until reviewed. Annoyingly it’s not clear is daily visits are limited to 6 or 7 days in this phase. Either way this would open the door to potential upside if flow rates allow.
6 day collection = 565 bopd
7 day collection = 660 bopd.
Of course if there is planning permission in place limiting production to 500 bopd none of this matters at this stage - so if anyone has the evidence could they post the relevant link to this BB?

Btw. I think your option 3 is the smart way to go on any acquisition and I think they will have some cash still from the last placing. But we will know soon enough, so can’t see the point in speculating further until they tell us some more.

@Cloves. That’s interesting re the 500 bopd not being an actual planning condition. Do you (or anyone else) know how many barrels of oil the Wressle tankers can carry, as that would then set the current permissible flow rate limit.

@Yanis. Worth weighing up your risk attitude to the “Noth Sea Acquisition” that Simon indicated was imminent in his last Proactive interview. There is no clarity yet on funding (see Wraith views below). Some fear it may result in dilution. If it does I think that would be pretty crass considering our post-Wressle financial situation. I have always presumed that a chunk of the raise in March was to cover possible Wressle problems and the need for a sidetrack - so as that’s not needed there should be cash sitting there for acquisition (can’t think what else they could have spent all £1.5m on in last 5 months when current production revenue should have covered running costs!). IMO if they do the acquisition without dilution the SP could respond as much from relief as any benefit from the acquisition! But it’s all a personal judgement call at this point in time.

You are right, but their position is gradually becoming untenable. Coalition Gov with the relevant Minister Leader of the Greens - hence the blocking. But reality is biting - power shortage were evident last winter and there is going to be a clear shortfall in renewable sources for decades. As the economy relies heavily on power including attracting data centres - power outages are a complete disaster. The Minister has commissioned an “energy security report” - which looks like political cover for softening the position re Gas - but this has been postponed to report till H1 2022. Looks like a win/win for him and us, as Minister can stay in Gov for another year without having to make these decisions and the increased threat (or reality) of power shortages over this winter should bring home to the Gov that they can’t postpone any longer. Then they have to decide on the best option for energy security for them. Would you go for importing expensive foreign gas (feeding uncontrolled environmental damage abroad) or for properly regulated home produced gas which also provides tax funding to accelerate your renewables programme? That’s why so many here hold for Corrib. And another positive impact of Wressle outcome is that now we know EOG has the financial means to stay in the game until this sage plays out to the end game.

If you look at the Proactive Presentation on the Europa website page 3, there is a helpful graphic on what this is likely to mean in terms of Europa’s production in coming years. Since Wressle 1 is such a success this now seems based on reasonable assumptions. Key message is that from now on Europa’s production is likely to stay at this level for a couple of years before gradually increasing significantly again.
In practical terms that is approximately £200,000 Profit from Wressle at today’s oil price ($72) every month looking forward. So if you want a site survey for an Irish drill site - no need to fund raise, just wait 2 months. $1m bond for new licence (e.g.Morocco) - well that’s 4 months of Wressle production.
Different ball game!

Ok you can find the link on the #wressle Twitter site.

Worth listening to the first 2.30 mins of the MA interview - he describes what’s coming next with Wressle, oil and gas in the next reservoirs. Looks like this will be producing good income in one form or another for years to come.
https://www.***************************/egdon-resources-wressle-oil-increase-transforms-cash-flows-with-strong-prices-interview/4121019158

Hi Wraith - agree that this now looks really attractive at this price, but that the mention of an imminent North Sea acquisition causes some hesitation over the buy button! On reflection however after such success at Wressle, EOG could surely avoid any need for fund raising by renegotiating to pay a bit more if necessary, but in installments. This shouldn’t be too hard and would be a win-win for everyone - except the brokers of course. Isn’t this flexibility what Simon means when he talks about Wressle “transforming” our financial position?

Funny sort of day.SP reaction leaves you feeling flat, but success at Wressle clearly leaves the company in a much better place than for ages and should provide a really strong springboard for future activity. And it also opens up so many other possibilities at Wressle and elsewhere - it’s always a lot easier to make money when you got some to start with!

Agreed. And if you listen to Simon’s interview from this morning, it sounds like we are going to have a North Sea late stage development project to throw into the mix very shortly.

Very good income - but I think you are being very conservative in your figures. Unless there has been a sudden unexpected fall off in current production, we should now be producing in the 230-240 bopd range - rather than 200. Also most of the development costs for Wressle have probably already been paid, so we could now be clearing $60 a barrel at current oil price!

@Yanis. The full project breakeven costs @500 bopd were given as $17.62 (rns 3/8/2000). Not sure we’re the extraction cost figure comes from but have seen similar figures before. Probably looks about right - the key message whether it’s $6 or $9 is that Wressle operating at 500 is a highly profitable well and the cash should already be rolling in!

This is Aim. Company announcing successful production and good income stream for years to come - no reaction. Silly unfounded rumour on Twitter and we will hit 2p no problem.

@Tacuma. As always Aim is a mystery and a lottery! But you would think that if anyone should gain immediately from this it would be EOG. Unlike Edr and Ujo we have no debts and no large repayments to make to previous licence holders. And we have current production levels which already cover our running costs - especially with oil just shy of $70 again.

Brilliant result. Can’t remember when one of these small companies actually delivered the numbers promised! But here they have done it and it’s not “potential” but real production and a very strong revenue stream for years to come. More than that it makes all the follow on reservoirs look high desirable for the years ahead.

Would seem odd not to get an rns Monday or Tuesday as Egdon have their next community liaison meeting Tuesday evening at which they are going to be updating on progress. The timing also broadly fits with the cleaning operation mid last week to allow them to assess the new flow rates achieved - so long as these have stabilised.

Sounds good, Tovoc. Any movement on Inishkea would completely dwarf Wressle 1000bopd - or any other figure you like!

Tbh anything over 350 should put us in a very decent financial position in the medium term. Would love 500 and higher flows would be all potential bonus. Just a bit wary of how much weight to attach to Twitter and to “strong unconfirmed rumours” whatever they are!

Hi Copperpot, some nice buying has continued this morning. Looks as though some think that there are bigger announcements on their way than this weeks UK licence news. Fingers crossed!

No PR now please just before the Wressle flow rates come out - pretty sure how the market would interpret that! (The Taliban on the other hand will want to ensure the West remain hesitant while they liquidate any remaining local opposition.)