Member Info for Shedulike

Although the news yesterday potentially diminishes the significance of a single legacy oil well I do think shareholders deserve an update on KRT-39ST. Certainly the project farmouts and CCS are likely to be the game changers but we need to know our prospects for near term revenue IMO.

Two and a half months since the spud of KRT-39ST and no EWT as yet. Are we resigned to filing 'slim hole technology' under the ever growing list of BLOE false dawns?

Wonder if they'll announce an extended well test on KRT-39ST. For now all we know is that the well is being completed and will be "Handed to the production team". This suggests we're flowing but to judge the merits of the slim hole technology we have to be able to compare production levels before and after the side track. Hope it doesn't go the same way as the much heralded low cost PII sidetracks that disappeared without a trace.

Sure Heps as you point out the warrants vote has to happen before Feb 4th 26 or thereabout so it's the most likely purpose of the GM on the information we have. I do still think that (if successful) the CCS could constitute a change in the nature of our business but I guess any commercial announcements will come after a successful pilot injection which may not be confirmed for a while yet (late Feb 26 if they need all of the 6 month estimate).

Just a thought - if there is a transaction that constitutes a "Fundamental change in the nature of the business" then shareholders must vote on it. Such is the potential scale of the CCS could it constitute a substantive change in what Block does? In other words the CCS business would dwarf the O&G.

Sure Avi8r - I was looking at WR-34Z which was a month to drill and another month for test results. Maybe 45 days is more realistic as they're implementing a new technology. The optimist in me had hoped that the slim hole technique might be quicker.

Would have thought we'd have had KRT-39ST TD by now....

I'm hopeful for something on the KRT-39ST slim hole drill soon even if it's just TD. On the CCS note, "It is expected that it will take 4-6 months to determine if the CO2 has successfully mineralised in the reservoir and therefore proceed to the next steps in the project", so I doubt we'll get anything definitive on the success of the pilot injection this year.

Just for clarity costs obviously aren't just a matter of man hours but it would be interesting to know where this 40% comes from - smaller liners, less fluids etc? I sometimes wonder if there is just a culture of minimum info or would they be surprised that most investors are genuinely interested.

WR-34Z took just over a month to reach TD so on the face of it this slim hole technology isn't any quicker than previous drilling. On current evidence we can only guess what makes it 40% cheaper, this is so Block!

Perhaps if one of the reasons that the 'slim hole' technology being more cost effective is that it is simply quicker could we expect news on KRT-39ST a little sooner than usual? Couldn't find anything online that suggests it is a more rapid technology than a conventional sidetrack but there may be a logic there.

I have hung in here on the logic that eventually the size of the potential prize would overcome the geopolitical risk. The CCS project strengthened that opinion for me but the problem has always been that the 'prize' has always been somewhat intangible. That is still the case as we can only theorise about what the CCS could mean in terms of numbers but perhaps we have reached a tipping point in terms of reward / risk.

Good points.

Probably a bit of optimism bias here but could the non-appearance of a simple MOU renewal suggest that a higher level agreement is being worked on? I think if Indorama had walked away it would have to be RNS'd swiftly.

I would have thought an update on the status of the CC MOU with Indorama is likely since it expired today. Hopefully a renewal would at least indicate that the project is still viable even if they continue to be reticent on putting numbers on it.

Interesting observation br re.Linkedin. Not sure if I'm in your 'moaners' category or not but my gripe was simply that it was open to debate if the pilot injection was in phase 2 or not part of that process. Anyway we now know for certain that it wasn't so let's move on. My main frustration is that after all this time it is still impossible to value the CCS project accurately. Personally I don't see why they couldn't publish some figures cautioning that there is still some risk if the pilot injection fails, who knows maybe they wanted to but the Nomad objected. Personally I think they are keeping their powder dry due to being cautious and frankly because it suits them not to set the hare running for reasons that I'll leave open for everyone to conclude :) Until the 'reward' case is made more strongly I think in terms of attracting new investors the 'risk' case will hold sway which I think we all know is primarily geopolitical. I realise that won't be a popular comment but it is the elephant in the room IMO.

Bit annoying that this phrase from Nov 24 was ambiguous "Phase 2 will include desktop and laboratory studies followed by a pilot injection scheme designed to achieve a monitoring and verification plan for carbon storage, allowing commercialisation of the project" Looks obvious now but over the last 5 months I think we could all be forgiven for thinking that the pilot injection was part of phase 2.

BR - sure, I think we're seeing the beginnings of some new less risk adverse investors dipping a toe. With commercial proof of concept and a partner like Indorama I think a whole new swathe of investors will come knocking. Add some regional stability (which is still a big question that could go either way) and who knows what is possible for Block.

That's interesting Avi8r - 100 days for lab + pilot injection scheme in an analogous project - perhaps we won't miss Q1 by so much then?

A lot of conditional tense in there - 'would', 'could' so as ever with O&G I'm cautious but certainly promising. I'm more eagerly anticipating the CSS results, if the concept works and we get good numbers on the commercialisation then bingo. I am hoping we won't get a disappointment on timelines, looking at the Nov RNS I was initially under the impression that the pilot injection would happen Q1 but looking back there is a little linguistic wriggle room on whether the lab and desktop studies will be complete leading to pilot injection or whether both elements are Q1. The Tennyson note states "Proof of Concept" H1 so I'm guessing we're a little way off being able to value the CSS project other than the industry standards prices per /t and our currently theoretical capacity.