The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Massive over average volume and down 33% at this point. I guess even the homies can't decipher the RNS. Management say its great news for the shareholder but nobody else can see it.
I think we need a further release for clarity on certain points, ie 4 stk barrels, and the analysis of even the first reservoir as they must have that by now.
Scot, the company must think it is commercial else why release that statement? I agree that it's not a black and white point of view however 88E see this as a step in the right direction and seek solace in another to take it forward. There is no doubt in my mind, that is what will happen. Limited capital invested to get it to a target audience and take the best bid. I keep saying that Texas will cover Namibia with at least $3Mpa (300bopd) and by end of year at least $6.5Mpa (600bopd) and possibly much higher (assuming 75% and $40pb). If money needed on top they have 15% dilution available with a further 10% after agm. Not the 100B shares banded about today but maybe 31.25B by year end. I would hope for a deal before the full 25% was needed.
'Commercialisation options for Project Phoenix are to be advanced in parallel, including farm-out to
a strategic development partner and/or early, capital-lite production given proximate infrastructure
advantages'
So 88E think it is a commercial proposition imo.
Scot, 'with a calculated total volume during the flow back period following establishment of oil cut of ~4 stk bbls.
No measurable gas or NGL’s were recovered from the SMD-B test.
They are quite precise in saying that the measure of 4 stk bbls were during the period 'following establishment of oil' not the full 16hrs. Who is lying?
Richer, you have no idea which time zone I am in so to make that kind of statement is ludicrous. Even if you thought I was in the UK why should I not comment at your night and sleep during your day? Is there a rule I am not aware of?
Thank you Older.
I don't get the 4 barrels over 16hrs though as again they mention it was measured when the cut was right so not over the full 16hrs. Similar to the first test not being over the full period.
I can see what you mean regarding gas pushing out the oil naturally but no gas in 2nd test. Your thoughts this time round with no to little gas for a low OG ratio?
I was not aware that the depth of drilling related to the head pressure so it makes sense that it would be lower, but a 1000ft difference this time just under 2000psi must be a positive?
As for spin, I guess it is to be expected, but you surely can't blame them after flowing to reservoirs when many on here said they were dusters?
I think overall this has to be a positive for 88E, and for others a confirmation for next door. I just hope it reflects on the sp this time.
Older, now that we have the 2nd flow test results I note that the company emphasised the natural flow with regard to the first test. Is this more of an asset than first thought on reflection? Also noted on 2nd test that the OG ratio was showing little to no gas, again how does that reflect to the first test point made about a ratio too high? My last observation was the well head pressure, during first test it was 2000psi but 2nd under 2000psi and your thoughts were that 2000psi was rather low. Does this suggest yet another low test outcome for you? I hope the above shows that I have been listening and learning ;)
It appears that 88E have taken offence at something PANR said regarding Phoenix else why mention ' positively differentiating Hickory-1 from results on adjacent acreage' and 'flow test results can be rightly characterised as in-line with those observed from equivalent reservoirs on adjacent acreage. Importantly, the performance of the
USFS reservoir exceeded expectations, with the well flowing naturally with increasing oil cut' ?
I also thought we would have had further analysis of the reservoir(s) now rather than wait until 2Q end when they hope to establish 2 more discoveries.
My thoughts are mainly positive and I look forward to evaluating coming posts from the knowledgeable.