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On 6th Oct we were told.
"This financing package is designed to ensure the Company is fully financed through Q1-2024, at current production levels of approximately 1,200 bbl/d"
I don't suppose the gas injection was started then. If fact may not have started until we got the finance confirmed on 13th Oct. I am hoping/expecting 1400bopd for Oct. 1700bopd for Nov, and 2000bopd for Dec.
That would be a massive step forward and vindicate the plan as set out. BUT there is still plenty of time to get to 2000bopd. We ARE fully funded for Q1 2024 on 1200bopd. If we can get to 2000 by Xmas we are well ahead of the game.
It's a great time for the new director to arrive.
"COPL will shortly appoint a new director, who is expected to focus on production increase and operating costs control"
He can hit the ground running with that process already under way.
I expect September fiqures to be around 1200bopd.
"The company plans to spend over $500,000 on NGL injectant in each of October and November to increase the density of NGL's in the gas injection
The company expects to see initial results from the higher density NGL's before the end of November 2023."
Clearly being rather cautious with promises, BUT I'd rather see the BOD under promise and over deliver.
Time will tell if we can trust the new lot.
Yes, I would have thought COPL must be over paying the bill to compensate for the difference between 2.6p and the current SP.
Be interesting to see if we get a dip in sp as an indicator of whether said creditor immediately offloads their shares.
Yes. We know Arthur said of the JV. "I know them, they know me"
Did Exxon give Arthur the nod to go after Cole Creek. Now he has confirmed huge amounts of OIP Exxon want back in.
The wells were abandoned previously as there were easier prospects, BUT now we have the modern technology to extract it.
"As President of COPLA, he will be well positioned to continue to add value and success to COPL, where his strengths in upstream hydrocarbon exploration and development will focus on completing the Joint Venture discussions. "
It's fairly simple now.
Finances sorted. Just waiting on news of steady increases in output to profitability.
AND a transformative good deal with the JV.
Will our new CEO deliver the former and our former CEO deliver the latter !?
Most analysts are predicting oil prices to remain high in 2024.
WTI futures are well above £80 well into next year
Goldman Sachs are predicting £100 for Brent crude in 2024
https://markets.businessinsider.com/news/commodities/oil-prices-outlook-brent-wti-rally-supply-shortage-goldman-sachs-2023-9
Leew, 2000bopd by Xmas would be fine by me. It would mean the plan IS working.
This is the first time COPL have actually told shareholders the target they are aiming for that funds all of the next year.
We never got any indication from the previous management what they were aiming for and at what level would we be cash positive. It is quite shocking that we have been able to cut costs by $2.3m with another $1m soon to follow off General and Administrative costs.
We appear to be running a tight ship now. Costs under control, and a fully funded plan for success.
Oh.... and the small matter of a JV with a BIG oiler may pop up at any moment....Come on Arthur redeem yourself.
Possibly simply the market properly adjusting to our current situation.
The recent placing was 2.6p. So technically the sp should be just below that in line with the % dilution of the extra shares.
BUT it rarely works like that. Confidence is a key influence. We now are a stable business, fully funded to achieve our plan of 2000 bopd to provide fully funded ops for 2024. Just need to start delivering and the sp will re rate.
I also think there will be a cash payment (that is what is currently under negotiation, IMO)
BUT I think it will only be enough to pay off a lot of /all of the bonds, not the SL.
Our existing SL has mellowed considerably recently and seems a lot happier with where we are. The RBL was supposed to be for partly paying off the SL, but they amount o the same thing really . Why change to another lender if the existing one is happy to carry on.?
The JV are just arguing about money now. The JV want in cheap COPL want fair value.
John Cowan "...if the interest being shown by certain third parties in joint venturing with us matches our own views on value, we will seek to further scale through partnership....."
Took a while for Exxon to get their hands on Denbury
"....Denbury Inc. held talks with more than two dozen potential buyers and rejected two offers from Exxon Mobil Corp. before finally agreeing to sell itself to the Texas oil giant for $4.9 billion in stock last month.
Executives and their advisers spoke with more than 28 parties, from international oil majors to pipeline operators, signing confidentiality agreements with 17 of them over a two-and-a-half year period..."
https://www.bloomberg.com/news/articles/2023-08-29/denbury-held-talks-with-28-potential-buyers-prior-to-exxon-deal?leadSource=uverify%20wall#xj4y7vzkg
Getting to 2000 bopd can only strengthen our hand and we now have the infrastructure all in place and the funding.
I think our new CEO will be VERY wary of overpromising and under delivering, especially as that has been the undoing of Arthur.
That being the case from what he has said I am very confident we will achieve 2000bopd in the next few months.
Additionally, with the new upgrades we shouldn't seen the same problems as last winter if it is a bad one.
I think 2000bopd by January. JV to follow.
Yes there is absolutely NO reason why we can't achieve over 2000bopd. We were doing that before we upgraded the field.
We are fully funded until we get there, and when we do we are funded for all of 2024.
No more cash need !
Just waiting for JV next which will appear out of the blue sometime in the next few months.