The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Only a very naive person would say that. They have just confirmed they can't continually produce from the Federal 28-11 well because they haven't completed the refurbishment of the gas gathering lines and processing plant. The state of 16-2 with the issue of the high salinity is unknown, plus any steady production from it will also depend on puting the gas lines in order. They are too focused on 36-2 they forgot the other wells, or maybe it is because they cannot afford to invest on the preparation of the gas infrastructure. I don't know why they didn't laser-focus on bringing these 2 wells into production ASAP, that means more cash in the bank and less financial risk.
Aside from the lack of gas infrastructure, they now decide to spend $0.6M on more land and commit to drill a well with a cost of $6M which they recognise that it may not be drilled at all: "Alternative options include ... not proceeding with the project". Now they drop the "Helium" bomb, which is an indication of how lost they are.
Everything here is a big gamble on those new Slawson wells to fund other operations in the Paradox and expect that the insurance company takes every bill.
misleading rnss my ****! you had several posters countering the ludicrous statements made by the pumpers. the company was in great danger due to southwark disaster, after that and the decline of the nbp, it could pay its debt. simply as that.
Be careful with what you wish, other people who read you saying this would be 10p by the end of this year or beginning of the next may try to hold you accountable for posting that. Are't you a fan of suing people?
If you don't like to read me or other, it is fine, just, filter me. However, trying to silence less optimistic participants by threatening with going to court is the opposite of liberty of speech and tells what kind of person are you. If you don't like a point made by other person, just refute it, don't call that person scum.
If the company doesn't say they will recover ALL COSTS, instead it adds "substantially" to the sentence, it is because there is no 100% guarantee they will. Also, the cash position is weak at this point and ZPHR needs to invest a lot more than for the recovery of 36-2. The insurer will not pay for works at 16-2, refurbishment of the gas plant or the deployment of the gathering lines at Paradox. They need capital, either equity or debt. There is a huge expenditure and the current production cannot cover all these expenses in a short span of time, like it or not.
"expects to recover substantially all costs associated with the well control incident"
It is substantially clear they cannot confirm they will recover all costs, so it requires a huge audacity to claim they will by a person who isn't an insider.
I didn't say it will, I used the conditional. They will need to raise capital and the markets are really tight right now. BTW, don't cherrypick the information in the RNS, take a look at cash and debt and the remaining huge capex to connect 16-2 to Dominion plus recover 36-2 with the side track, which may be funded partially by the insurer, but it is very weird the company depends on the issuer's opinion to sort out the issue.
The team is unexperienced as I commented several times, and they keep struggling. The situation is even worse I could have thought of. There has been no progress to connect the 16-2 to the export pipeline for selling the gas. Considering the debt position and delays, I think the company is going straight into administration if they don't secure the support of shareholders to raise some capital.
Some have been warning about this risk. It just materialised. I'm sorry for those who bought shares believing that this situation could be saved somehow. Lessons must be learnt by other who pumped and promoted this, particularly among those who heard them stating a sudden recovery.
You'll not be missed, IOG.
The devil is in the details ... It is carried until first-oil, which doesn't mean the whole development. The moment it produces the 1st drop of oil (phase 1), ORCA will begin paying its share of CAPEX, which will still be important, so the actual FCF of the 18% WI after phase 1 (5 wells + chartered FPSO) towards phase 3 (32 wells + platform) will not be as high as some are saying.
Came across this in twitter today, I liked it, gives a very good overview and how the company is cheap and has plenty of potential at the same time:
https://zerogcos.substack.com/p/pharos-energy-a-far-east-turnaround
Remember the hedging of 50% of production from Q4 2023 to Q3 2025 at $70/bbl, ca. 5.5MMbbl. They said that premiums are excluded, so the actual realised price can be slightlyl above that $75/bbl, maybe? I hope they provide the final volumes and avg. price next week.