Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I agree with you JD. It is just a question of timing. For me it's all about A8, everything they've learned should be being applied to this drill and it should hit the oil soon. I hope they make regular updates like before on A5 to build momentum. What is interesting is that all the red bus presentation they had on the website have now been taken down... It obviously doesn't make good reading in hindsight! :)
Nothing would happen until the result of A8 anyway...
It wouldn't be in the interests of stakeholders.
I think they have just had problems getting the deeps to flow and this has impacted their cashflows and ability to perform for the market.
They will want to have a listed element to frank the price of their shares I would have thought.
Also, they want institutional money which needs a listing...
We should get the first zone coming up quite quick....
Deep Well A8
Background
Deep Well A8, was spudded on Nov. 23, 2018 with a planned Total depth of 5,300 meters. The well will target the same pre-salt carbonates that were successfully identified in the Deep Well A5. We also plan to evaluate deeper carbonate targets of Devonian to Mississippian ages.
Based on our interpretation of the 3D seismic data we expect to encounter the top of the salt layer at a depth of about 3,900 meters.
The well is being drilled in two parts. The first 4,100 meters, to the expected base of the salt layer, will be drilled by Sinopec, with a separate contract issued to drill the final stages of the well.
Current position - January
The 17 ½ inch hole was drilled according to plan to 2,000m (Lower Cretaceous) with casing was set and cemented. The next drilling stage with diameter of 12 ¼ inches has begun and reached a depth of 2,127 meters without incident. We expect to reach 4,100 meters in April 2019 with completion, and an initial well test in Q3 2019.
A8 - March
Progress remains encouraging at our latest deep well, A8, which was spudded on November 2018 with a target Total Depth of 5,300 meters.
We have successfully drilled to a depth of approximately 3,900 meters reaching the Permian aged Kungurian salt section. The next planned casing point is at the expected base of salt and enter the Artinskian (shale) at a depth of approximately 4,400 meters [presumably Clive's usual poetic license here] here.
We have also extended the contract with Sinopec, who are now engaged to drill the well to the full planned Total Depth.
A8 - April
Progress remains encouraging at our latest deep well, A8, which was spudded on November 2018 with a target Total Depth of 5,300 meters. [Cut and paste]
We have successfully drilled to a depth of 4,100 meters. Wireline logging of the open-hole has been completed, the 9 5/8" casing has been set and cement has been poured. [It was 4,100 metres all along...]
Based on progress to date we continue to expect to reach total depth [NOT zone one...] in the first half 3Q 2019.
Because the market is tired of false promises and not following through. I am agreed with others that all of this bodes really well and things are falling nicely into place. For once some of this stuff has happened quicker than my new revised expectations (it's still massively delayed in the overall timetable). Once the market has seen a deep properly flow then I think this share price will rise and keep on rising.
Key events are as follows:
A5 flow
A8 flow
A6 flow
New well completion and test
MJF license conversion
New MJF drilling
New resources statement from Gaffney Cline for the shallows (due soon)
New resources statement from GC for the deeps (due in the summer/autumn)
It all looks like it's being lined up to be a success.
They're releasing lots of RNS statements and it seems like for once it's a planned strategy.
Also, Clive's comment at the end of the RNS statement this morning was also positive. A year of good progress!
Let's hope so....
She had better blow otherwise I will lose the fricken plot! This was the final piece of the puzzle for the wells to flow. Let’s hope they loosen the taps now please! For the love of Clive our savour and redeemer in the name of pies our lord show me the flow. No I mean it I literally can’t take it anymore. Amen.
Why didn’t they close the acquisition, if the conditions have been met why a six month extension? None of this or any of the recent RNSs seem to make any sense or hang together. I emailed the PR advisor about the previous inconsistencies they responded saying they would look into them but never came back to me despite me chasing them! Not great communication for a communication expert. Something ain’t right here. It’s either very good or very bad! Lol
Acid was introduced to the well earlier this week with a view to cleaning any borehole damage caused in the perforating process and enhancing the permeability of the reservoir. We expect to learn soon whether this acid treatment has sufficiently cleared the well to allow a flow test to commence. 4-week’s later.... The pressure build-up in Deep well 801 since Caspian's last update has been steady, exceeding the Company's initial expectations, and now stands at approximately 360 ATM (5292 psi). Procurement of services are underway for re-perforation and acid fracture jobs to be followed by a 90-day flow test. Does anybody speak Carver fluently??? Maybe it would work better if I took some acid and tried to make sense of it!! Do they not read their previous RNSs when drafting new ones. There should be some consistency in information and explanations. Sigh....
I can only hope they are holding it back for 3AB otherwise they are just massively out of their depth with getting things flowing. Doesn’t seem like much has been achieved in 8 weeks.... let’s see what happens but with winter coming it’s not encouraging....
OK coffee fair enough, their communication style isn't the best for sure...
Let's see what tomorrow brings.
I really don't know what to expect...
I guess see you all at around 730 tomorrow morning once it comes through and we've had some time to read the tea leaves... I hope they are good!
I'm going to go out on a limb here and say we are going to get the Interim Results and an update this week for sure. lol. How good or bad it will be I don't know... Such a long delay is either really bad or really good. Good luck all, everyone deserves it to be really good!
Seems to me that this was designed to stop the price running away. It's clearly taking longer than planned.
I think we will get news in this order:
3AB complete
MJF license application
801 flows
A5 flows
A6 flows
I would expect the fireworks to start in September.
However, it does appear to be proving difficult to flow the deeps...
I think we'll get there but it's taking an awfully long time.
Pray for a mild winter...
Enjoy the holiday season and see you all back here in September when the fun should start...
What a month after YEARS of waiting. If I didn't laugh I'd cry...
Either means that we will get a full update in due course with flow rates and loads of progress or another set of delays and issues that meant they couldn't report anything... I guess the fact the price isn't moving means no one is really sure which way it's gonna go.
I'm quietly confident... :)
Thanks for that. Would be interesting if anyone knew what the top five oil companies produce for comparison. Seems the delays are causing funding issues and drawing things out which isn’t good. I liked the holding things back theory better. Shame they won’t raise money to get on with it but happy to dilute with 3ab. Has always been a long term play but the constant waiting is somewhat soul destroying. I still believe though...
All the pieces are now in place - exciting few months ahead. Now 3ab is done without even a vote it would seems to me must be because it’s less than 10% of share capital, there really should be no excuse the let it fly now. 121m of potential pay for 801 has got to be a really good result. Hoping for nice regular updates of all this as we go. Good luck all. I hope our time has come!
Final results with the acquisition, meeting to approve the acquisition, following acquisition then a5 and 801 miraculously flow then followed by a quick a6 explosion that sends oil to the sky. I guess I don’t care as long as it works but it is becoming beyond strange now. Nice to see that they are doing the horizontal drilling that people mentioned - upside there too? Also, what happened to the new well, a8???
I agree with FK, I think they're going to wrap this all up into Results and hopefully get a solid good update. I would expect to see a recommended take over of the 3ABest as well. The share price has (conveiently) been range trading at nicely below 12p per share so I doubt they'll change the price. As others have mentioned, I think it would be better to have a strong of good releases so let's see. Maybe they can do results, acquisition and A5 flow test, and MJF update with the sidetrack results and updates thereafter....