Member Info for somm

K,

The CE contract was signed 7 March (over three months ago) so I would think CASP keep all the $15M charter cost though an additional hire for a second well may be split and this would be written into the 50% sale contract, why give them $7.5M to the buyer making the 50% sale actually $15M?

If one or so of WCP have bought the 50% who knows, but a smart negotiator/ lawyer wouldn't give up half the charter fee.

One for the AGM.

Amend to: The CE was bought for $25 million in a 160m share issue (12.5p per share), but even so they've got $22.5M in cash from it's 50% sale.

Every quarter they have to pay down $800K from the $32m BNG licence fee. On top of that they’re down about $400k per month ($1.2K pq) from the drop in production (down 400 bopd) and the price of oil has dropped to boot. Thye also have had to out $1.2M in mooring costs (now $50K pm).

If they’re to continue with their operations as outlined last year end together with new wells 803 Deep Well/ 150 Shallow Well you can see there’s been a strain on finances in recent months. Hence the 50% sale of the CE to help cover their operational costs and dividend payment (£3M) each quarter.

At the end of the day they’ll have $22.5M in the bank from the sale of the CE, $10M more than they spent buying it with at the very least another $22.5M to come later if fully sold and $15M/$30M in charter fees next year. The Coffers are looking good this year with an expected production increase from the shallow wells being worked on and the 803 Dep Wells 1K+ bopd? in a couple of months ,but I don’t think they’ll have much in the bank now as the FY Results will show.

So the 50% sale of the CE was necessary to keep the good ship CASP afloat and will make a massive contribution to financing their work program this year. imo.

That's a 12 month dividend figure they're using not a monthly one, catch up ;-)

No is the simple answer.

Carver has said the dividend update would be in the end of June FY report, should have been in the FY Report last months end, but they've moved it towards this months end so the dividend update will be included in that.

Other than the 2022 FY results next week, what’s on the card for the next 6 months re drilling program?

Best guesses:

802 – at least 2-3 more months to complete.

803 – at least 6 months to drill to TD – spudding next month so say 8 months to TD from now.

A7 – at least 5 months to drill to TD – after the G70 rig has finished drilling the 803, completed 12+ months from now.

A5 – at least 3 months to drill (sidetrack) after the 802 is completed – TD 7 months from now.

A6 - spud next year.

801 – spud next year.

142 – completed in 2 months.

150 – spud within 3 months + 4 months to TD say 8 months to TD from now.

155 – spud within 3 months + 4 months to TD say 8 months from now.

With CE dosh and oil sales there should be enough in the kitty to spud all of these well this year or so.

The 802 and 142 wells should be producing in August?

Year end / 1H 2024 should see the share price significantly up if they drill these wells and other stuff to boot.

2024 the offer year Rodder's?

They've dropped 400 bopd from the shallow wells probably due to 141/142 being worked on, the good news is they're currently drilling the 142 Shallow Well horizontally and back to drilling the 802 Deep Well.

CE dosh better than nothing.

All in all a damp squib.

CC,

Also to note is they say it will take a further 2 months to complete the well now the crew are back.

They had 100m to finish drilling the sidetrack before completing and perforating the well.

2 Months is enough time to drill down to their original 5,200m TD (another 1,200m) where hopefully the 4 intervals as in the 801 Deep Well are there to boot.

Drilling 20m per day is 1,200m over a further 2 months to complete the well, which coincidentally would get them to 5,200m original TD, previously they've been drilling @25m-30m per day so the 4 deep intervals could still be game on.

Arrow,

I doubt it would take them over 2 months to fit a pump, more like some specialist equipment was needed for blocked holes/ stuck pipe? Anyway it looks like they now have whatever the equipment was needed has arrived from China as the CASP crew are now back on the rig, maybe a replacement part of the rig was needed?

Everything is guesswork with CASP.

Smarty P1,

They're drilling the 803 Deep Well to complete their 6 deep well commitment because the 802 Deep Well flows oil and the A7 Deep Well is an unknown, meaning they have a better chance of a deep flowing from the 803 Deep Well also fulfilling their deep well commitment, then go back to he A7 Deep Well. The 803 Deep Well will drill through the softer sandstone and 3,900m is a lot shallower to drill to than the 4,500m? oil zone in the A7 Deep Well.

Though hopefully they will drill the 803 Deep Well deeper to see if the 4 intervals that exist deeper down as they do in the 801 Deep Well - using the G70 rig?

‘’work at deep well 802 on the yelemes deep structure was suspended awaiting additional equipment, which due to the sanctions on russia, now needs to be sourced via china with much longer lead times. accordingly, the crew at deep well 802 was moved to work on shallow well 142, historically one of bng's best performing shallow wells, at which the company is drilling a horizontal side track.’’

as i said one of the permutations was the 802 deep well could be blocked after perforating the flowing interval due to the length of time it was taking for an update and they might need specialist equipment and that looks very much to be the case. this means the g50 rig has been sat there doing sfa for 5 months when it could have sidetracked the a5 deep well while the crew worked on the 142 shallow well in the meantime, have they only got one crew? the 802 crew are now back at the 802 deep well which will take at least another 2 months to complete, putting the a5 deep well sidetrack way behind schedule again, and the wondering all over again if the 802 deep well will flow again, and at a higher rate if so.

the 155 shallow well was supposed to have spud by now – why hasn’t it spud after 6 months of waiting?

why hasn’t the a7 deep well started drilling with the new g70 rig after the sale was supposed to have been completed in january 5 months ago, is it being used to drill the 803 deep well? again they could have started re-drilling the a5 deep well in the meantime or the a7 deep well with it months ago.

no mention of block 8 paperwork being completed, it was supposed to have been done q1 if due diligence was okay?

no mention of dividend payment so looks a no goer for this past quarter. where has the £3 million gone they’ve been doing pretty much sfa over the past 6 months.

no mention of in-house broker now getting $5-$10 buck extra per barrel and the net profit being $x pboo – let’s see what the fy results say.

50% of ce sold – will stepping stone investment get 50% of the summer 2024 $15 million charter contract that was signed over 3 months ago – i don’t think so, let’s see what carver says at the agm.

could go on but once a gain one step forward and two steps back.

ce aside all in all i’m very disappointed with this very sp**** operational update.

A,

So will I get paid the dividend (approx. 6p) within 2 weeks?

And after it's been paid then transfer the share into a SIPP?

I have approx. 50,000 shares that are in my HL ISA.

Is that right?

I take it you would do this after the dividend has been paid within the next 2 weeks?

SmartyP1,

BTW, hope your knee/hip operations go well and your emailing Carver giving him a heads up is appreciated.

WRT the Op's Update RNS I'm expecting it to be pretty positive after 6 months of work, especially with the 802 Deep Well flow rates/ spuds.

Next week then?

Smartyp1,

You've been saying news will be out next for some time now, let's hope an Operations Update is out this time, next week.

They said they would let us know by the end of Q1 if the water cut hade been sorted, 155 Shallow Well, Block 8 signed, 2 deep wells being re-drilled - all over 2 months late.

Must be a block buster on it's way: Carry on Carver.......

CC,

They included the dividend within the drilling program.

They have had three months of not paying the dividend and any dosh to pay it/Operations will be from the 2,400 bopd/ 802 flow rates, there will be NO upfront payment from next Summers $15m boat hire fact, which will be paid out at $150K per daily rate.

The 700-900 bopd flow rates from the 802 Deep Well (if not f--ked up) might be enough to help a bit to pay towards this/next quarters dividend from the past four months though I'm not holding my breath re dividends being paid out this month, unless the flow rates have increased into X,000's of bopd from the shallows/ 802 Deep Well, which I'm still doubting in the case as why would they include a dividend update in the FY Report for 2022 towards month end? it's not happening, so the dosh for the reported drill program from the Op's RNS 6 months ago should be there to pay for ALL drills they said they were going to do next, especially as any dosh from the 802 Deep Well was an unexpected early wind fall.

Let's see what next week brings if anything on the op's front.

They've added the 150/803 wells which is great, but what we don't know is have they started drilling the 155 Shallow Well and started re-drilling the A5/A7 Deep Wells and increased the flow rates of the 802 Deep Well. These are the biggies we're all waiting on.

We've been waiting 6 months for an update and these 'new' wells (803/150) have only very recently been reported on so they've five months to drill the wells they said they were drilling next i.e. 155/A5/A7.

CEO/COO both need firing if none of these wells have spud, the A5 Deep Wells sidetrack was supposed to have been over a year ago!

Their inconstancy and glacial pace needs to be pointed out to them at the AGM.

If there's no Operational Update next week it will 6 months since the last one, if one's released the following week - with the 2022 FY Results in the same week?

That's got to be a record.

Surely there'll be several spuds and new flow rates to announce?

K,

''@Somm - Do you think they are targeting the same reservoir as 802 or higher?''

Yep, and the deeper 4 intervals as found in the 801 Deep Well. I'm hoping they didn't stop at the initial target depth of 4,300m and carried on drilling down to the original 5,200m TD on the 802 Deep Well, if they didn't and being a betting man I'd say they will will try again to drill to 5,200m TD with the 803 Deep Well - hopefully these 4 intervals are there too.

I wonder though if they bottled it with it flowing 700-900 bopd and they decided to stop at 4,300m-ish like they did with A5 Deep Well and put these bopd under their belt - drilling the 803 Deep Well deeper down to 5,200m is game on if you ask me.

They're paying £5.3 million for the 803 Deep Well and I'd guess the TD will be 5,200m and the cost of the well will be covered to this depth, costs are usually based on $$ per day so it could take 4 months or 7 months - the £5.3 million will probably be based on a 6 month month drill.

They have their own rigs and they will no longer be paying $10 million per deep well, we might see the new G70 more powerful rig drill the 803 Deep Well next instead of the A7 Deep Well, though I'm hoping the Operator will be using their own rig inclusive of the £5.3 million and the G70 rig does commence re-drilling the A7 Deep Well.

They've had over 4 months to complete the 802 Deep Well (hopefully not f-----up) and I'm hoping they've mobilized the G50 rig to start sidetracking the A5 Deep Well and getting those 2,000-4,000 bopd flowing again to boot.

They've had over 5 months to flow/ spud several deep and shallow wells so it had better be a bumper RNS....or else be seeing you at the AGM Carver!

So I have HUR shares in an ISA and expecting the 6p dividend to be paid out within the next 2 weeks.

The final payment 6.48p per share is expected to be paid over 2-3 years. So my shares will sit in the ISA over this period waiting payment(s).

What happens to the HUR shares once both of these payments have been paid?