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CH said in his email re the insurance Co

"The insurance company has been a very good partner, but they take their guidance from our technical team. It has been Zephyr’s call to continue the current well work, and I believe as long as we act as a prudent operator the insurance company will continue to be supportive."

So lightly contradicting your point. And hence my confusion. I do hope the pipe can and is pulled sooner rather than later!

Does anyone here think the co will be able to wrestle the remaining pipe from the ground?

Or do you think its lip service until an alternative has been firmed up?

CH intimated in the email I shared here that they are still trying to get the pipe out, and it's still a real possibility that 36-2 could be rescued as planned.

But there is a shadow of doubt in my mind, I do feel that we are more likely to need a side track or worse case a re-drill.

My questions regarding that, will we need permits to be issued or does the existing permit cover redrilling?

I'm going to send CH another email asking the above, just wondering if Ezhik/Oilman/Adon have anything to add?

We need the gas processing plant and the 1.3m pipeline to be built for 16-2 to be able to tie into the dominion line. As we know, Zephyr are tendering the gas plant to a 3rd party, hopefully that comes to light soon, and the blm pull their finger out and issue the permit for our pipe to the gas plant.

Alas, I misremembered, the slawson wells should increase our production to 1750 barrels a day.

If I remember correctly, the slawson wells alone are due to increase our production substantially? Am I mis-remembering 3300 barrels a year including the williston?

....,

Thanks for your questions and sorry for the delayed response - been a busy few days. In regards to your questions:

1 & 2) We are still working to pull the remaining pipe. It’s not a linear process, but yes, clearly we believe it’s still possible to get it out of the hole. Pulling the remaining pipe is still plan A. We are working up Plan B in parallel and will release timing if and when it become necessary. There are quite a few variables involved.

3) The insurance company has been a very good partner, but they take their guidance from our technical team. It has been Zephyr’s call to continue the current well work, and I believe as long as we act as a prudent operator the insurance company will continue to be supportive.

4) I hear you about an interview - you’ll see a Proactive released in the morning.

Thanks for the questions and please let me know if you have further concerns.

Best,

Colin

So likely just conserving cash this side of Christmas, If they can't recover the pipe then we either need a raise, or the insurance company to pay out to enable 36-2 to progress.

Frankly if a raise is needed at this point to get us into a position so that we can progress I'd welcome it now, done with the delays and waiting. Much like the initial insurance money, and the raise to for the clean up, we will likely be able to recoup it. I'd rather that, than being at the insurance companies mercy. They could hold 36-2 up for months.

The insurance company needed to see exhaustive efforts to recover the pipe before paying out for an alternative solution. Would explain the delay in this being done. I really hope CH does an interview once the dust has settled. I am of the opinion that we have seen a market overreaction today. There are a few other glimmers of what's to come in q4 23 and q1 24 in the TP note. Resuming sitting on hands and not looking at the SP.

CH needs to get in front of a camera ASAP. I can't believe they needed to wait until today to tell us that. Frankly at this rate I'd rather see a small raise to get the capital to sidetrack or Redhill and reclaim from the insurers at a later date, sick and tired of delays! And frankly this seems an unnecessary one if trying to get the damaged pipe out is akin to flogging a dead horse.

Well let's hope CH had some good news for us in the morning! I haven't bothered checking for RNS's for some time, but I will be ready and waiting come 7am tomorrow.

Agree setanta. But I am not surprised. Until we get an rns saying all the pipe is pulled, new pipe is run, and we are ready to test I'd expect the market to remain cautious.

Fair point Oilworker. I hope the proper fomo begins when the beginning of the production test is announced.

Fomo, news likely Monday. If we are approaching the production test the reversal will begin!

Ezhik, thank you for continuing to share your extensive knowledge, it is very much appreciated.

16-2 is on hold. It will just be tied in when the pipeline is ready, production issues will then be dealt with accordingly. CH has mentioned this several times, there won't be a further production test. It has been deemed economic even at the lower levels. As MTucker has said below, all eyes on 36-2, that's the crown jewel.

We shall see. They've got to run 10,000ft of pipe back in and cement it. Would love to see a production test in September

Definitely some buying going on, news could come from left field at any time. CH does like a Thursday rns too.

19th Jan rns, significant kick witnesses, drilling suspended to stabilise high pressure well.

14th Feb Rns, well completed with 7" production casing. So no it won't take to long to run the pipe.

It's extracting the damaged pipe that is time consuming.

I think the positive to be taken from the recent tweets is they could be nearing the end of this ordeal. I'm hoping for a production test start date in September. A week from that I'd expect initial flow rates to be reported, and then perhaps a proper recovery of the share price.

Thanks for reaching out and sorry for the delayed response. The 36-2 site is much more accessible than the 16-2, so flash floods aren’t much of an issue - the only time we need to shut down is for lightning or high winds. The heat has finally abated so the team is working day shifts again, as we alluded to in the last RNS.

In terms of timing, we are working as hard and as fast as the well will allow in order to get to a production test as soon as possible. I know it’s been very slow going, but we continue to make progress and clearly the well continues to demonstrate the same pressure that caused the initial incident. I’ll be back to the market with an update as soon as I can, and thanks for your patience in the meantime.

Best,

Colin