The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Https://www.youtube.com/watch?v=BiuvSiFUAf8
Texas 2021 power outage of nat gas facilities, they have since installed basic winterisation kit, albeit from 1970s era.
DEC experienced in Appalachian winter conditions stands them in good stead to use their more modern approaches in Texas/ Louisiana to gain higher production.
Recent interview Rusty mentioned buying assets in Gulf coast for LNG sale market.
Large market potential due to the macro events unfolding, and DEC are in the region and growing assets, strategic planning shows insight and positioning for revenue enhancing Company operations.
Https://www.youtube.com/watch?v=ihuKAWilXDw
5 mins in -
many opportunities
buying gas assets on Gulf coast so they can hook into growing LNG export market
Also mention of more oil assets procurement.
access to capital the constraint, but 14 lenders 100% support indicative of way forward
Https://www.div.energy/operations/midstream-and-marketing/
"Consistent with Diversified’s focus on enhancing acquired assets and developing field-level synergies, our asset portfolio has grown to include approximately 17,000 miles of gathering and transportation lines and associated compression stations located throughout our operating footprint. The vertical integration of these assets and Diversified’s in-house energy marketing function complement our strategy of reliable cash flow generation through strong, sustainable operating margins."
https://d1io3yog0oux5.cloudfront.net/_8f3098238bb4cbb535f5adec69544739/dgoc/db/581/5825/pdf/DEC+Corporate+Presentation+%28November+2023%29.pdf
slide 8
TRACK RECORD OF DELIVERING ON STRATEGIC OBJECTIVES
consistent performance since 2017
disciplined hedge strategy
reduction of risk, maximise sustainable growth, proven business model
Delivering consistent value return to equity and debt investors
disconnect with SP
"repayments are due to start in April 2028. The island is on a fiscal cliff edge and they need to get something producing asap."
RNS Oct 24th 2022
"revision of the Chuditch engineering concept study has commenced. It is anticipated that this work will illustrate and quantify a fast-track development pathway that targets first production in 2028."
2028 it is then - needs must.
CPR third party confirmed resource
LNG scale project - with spiralling demand in APAC long term
" Chuditch-1 gas discovery best case Recoverable Resource estimate of 1,350 BCF is materially larger and may independently represent a Liquefied Natural Gas ("LNG") scale resource"
Multiple prospects:
o Chuditch SW prospect estimated to contain 675 Bscf gross Pmean Prospective gas
o Chuditch NE prospect - 744 Bscf gross Prospective
o Quokka prospect - 143 Bscf gross Prospective
Carbon capture - net zero optics:
"Development strategies for handling carbon dioxide could include Carbon Capture and Storage ("CCS") at Bayu-Undan or for disposal within the Chuditch PSC. SundaGas aspires to achieve net zero LNG through long term supply arrangements with buyers that have an effective Scope 3 strategy."
ENI Scope 3 Strategy:
https://www.eni.com/assets/documents/press-release/migrated/2021-en/02/PR-strategy-2021-2024.pdf
"Full decarbonization of Eni’s products and operations will be achieved :
- Natural or artificial carbon capture to remove residual emissions
- CCS projects: total storage capacity of .. 7MTPA at 2030, 50MTPA at 2050.
"In the long term, gas will represent more than 90% of Eni’s production and will support
the energy transition as a back-up of intermittent sources."
"The board are sticking to their words and trying to do something different: get the mine into production without diluting the early stage holders to next to nothing. That has always been and remains the goal. I repeat: it is not easy. At any point we could throw the towel in, issue a few hundred million shares or make the bonds convertible. But we are taking the more difficult path that offers much greater rewards to early stage investors."
I accept the Short term delay for longer term gain - share in issue is minuscule compared to peers in sector at this eary stage of development - its not easy as maintained - but Phoenix know its viable to gain the Bond finance, or they would not have bothered and continued to persevere.
Looking good Doug -
multiple news still to come
today RNS shows some awareness of SP bolstering perhaps by BOIL, they could have just RNS when farm up complete, great to get this unconditional milestone stage.
"Completion of the Farm-Up will occur in due course."
So another boost once completed and re rate on the path towards drill and eventual sale of the field - macro need for LNG in region, whats your view on timescales now?
cheers Mr D
Https://www.woodmac.com/news/opinion/what-second-trump-term-could-mean-for-us-oil-and-gas/
Fundamental.
"A second Trump administration could pull to help the oil and gas industry and have a positive effect on production at the margin. In his campaigning, Trump has identified boosting oil and gas output as a priority."
RBM - 2p worth:
https://www.proactiveinvestors.co.uk/companies/news/1037866/new-uk-isa-on-cards-as-chancellor-looks-to-boost-stock-market-1037866.html
London stock exchange flagging, Chancellor lookin to boost by multiple measures.
One aspect is the perceived corruption and unfair market- what better way to boost the LSE than by making an example of flagrant Company behaviour , pour encourager les autre.
COPL circumstance is as blatant as it gets, its an election year, makes the Conservatives look like they are taking action - it works on every level.
Lobbying Conservative MPs could be beneficial to raise awareness with the Chancellor.
Https://justthenews.com/politics-policy/energy/research-supporting-bidens-lng-permitting-pause-has-parallels-study
"Joe Biden has scored huge points with climate activists over his decision to pause export permits for liquified natural gas (LNG)."
Japanese will no doubt react to secure longer term supply of LNG, TL would never take a green position blocking exports as its their main revenue, so supply to their customer base in Pacific Rim would be far more stable.
Interesting times for Baron, could start to move soon as demand and TL need finally wades through the TL political molasses inertia to enable the gas supply development.
Uund - maybe your right and the confidential wells were not actually drilled - but it was COPL stated intent and they were permitted as on WOGCC .
Http://pipeline.wyo.gov/OperatorsFrame.cfm?Oops=1
Select southwestern production corporation
select current wells
then at bottom WC, select display wells
click on
49-009-49002
BFDU 41-30-3576FH
Horizontal well drilled in the Fed Deep targeting Frontier 2 - confidential well status confirmed Dec 20th 2022
click on view APD and it downloads a well status file:
"Southwestern Production Corp proposes to drill a pilot hole to 9,079' TVD in the Frontier formation, then kick off horizontally to 8,961' TVD/11,053' MD to test the Frontier 2 D Sand formation"
Anticipated spud date was Jan 8th 2023
COPL stated intent :
"Phase A of discovery delineation in previous presentation August 2022 was for 6 drills
https://www.canoverseas.com/wp-content/uploads/2022/08/COPL_August_2022_Investor_Presentation_Final_080822.pdf
slide 9, red stars marked
Deep well locations A (permitting now)
confidential wells permitted and intended to be drilled in Jan/Feb 2023:
BFDU 42-19-3576FH - Frontier 1
BFDU 41-30-3576FH - Frontier 2
COPL stated that 50% of the casing was already bought by Aug 2022 - which means intent and presumed ability to pay for a drilling contractor must have been viable - these wells were exactly as stated targeting Frontier 1 and 2, slide 16
"COPL has been able to secure 50% of the casing required to drill the first two horizontal wells.
– There is a current global shortage of oil field tubulars (casing) due to the Ukrainian conflict.
– Casing prices have increased >50% with all grades in short supply
– Production tubing prices have increased by >30%
• COPL’s Southwestern Unit has identified a drilling rig to conduct the operation.
Contracting the rig will occur once there is certainty around casing supply"
Confirmation bias or Chinese rumour as you claim? no, just evaluation of data on WOGCC, which we should believe, that also correlates with COPL stated intent.
You may be right, but evidence also supports that they could have been drilled - and their results not reported for the reasons playing out now.
Its a circular argument.
1 - If assets were actually worthless - then this would have come out sooner by RNS through COPL/RS/JVP evaluation and JVP walking a lot earlier than 15 months - ergo they are of value as PI were told throughout - so retail being enthusiastic or "ramping" was with due cause -the support continued despite the nose dive in SP as the promise of JV sustained.
2 - If assets are worth something - then PI were also right to be positive about their investment - that value has not materialised as the assets are being taken private in full sight.
Either way, its not the so called "rampers" at fault here - but those perpetrating the heist , supported by their paid detractors.
Https://www.youtube.com/watch?v=GJ2Qc7WnguM
Worth listening to this 10min outlook for US gas demand and market going forward.
Will be a premium on Nat gas suppliers that have maximum ESG accreditation and best practise = Diversified, despite recent naysayer positions.
As this expert outlines in the link, the optimum marriage for maximised green electricity build up is Nat gas, can cycle up in 15 mins for demand when wind low and at night when solar off line, its the elec production reality - DEC should benefit from this going forward, through their well positioned business model.
Cant argue with the delays Bill. It was more around rationale for the ABB at this time - all yet to be seen, but bond funds re deposited so further advanced perhaps than ever before -
Im more confidant of Bond soon in any case.
"The relevant documentation relating to the creation of the bonds has now been finalised, the bond security has been recorded with the Custer County Recorder in Challis, Idaho, and the bonds have been deposited with the settlement agent."
I read this as the $80m is not working earning any interest, as its been deposited with the settlement agent, its actually more in the the Bond issuers interests to expedite, issue the bond and start the clock on coupon repayment.
Perhaps they know now that bond is confirmed pending final signature with a known ETA, they could have waited for Bond first but chose to take the dilution hit now to advance the project rapidly with long lead equipment bought, as overall its the better move strategically, cycle through the gears quicker towards prod revenue and ability to pay first coupon as Trek outlined.
WBH,
Also posted this as follow up Sep 22nd on COPL intent to drill at least.
At the time it looked positive to me., hope this may assist in your case to find out well status.
"Phase A of discovery delineation in previous presentation August 2022 was for 6 drills
https://www.canoverseas.com/wp-content/uploads/2022/08/COPL_August_2022_Investor_Presentation_Final_080822.pdf
slide 9, red stars marked
Deep well locations A (permitting now)
confidential wells permitted and intended to be drilled in Jan/Feb this year were
BFDU 42-19-3576FH - Frontier 1
BFDU 41-30-3576FH - Frontier 2
They may well have been drilled, the presentation states the plan , 50% of the casing was already bought by Aug 2022 - which means intent and presumed ability to pay for a drilling contractor must have been viable - these wells were exactly as stated targeting Frontier 1 and 2, slide 16
"COPL has been able to secure 50% of the casing required to drill the first two horizontal wells.
– There is a current global shortage of oil field tubulars (casing) due to the Ukrainian conflict.
– Casing prices have increased >50% with all grades in short supply
– Production tubing prices have increased by >30%
• COPL’s Southwestern Unit has identified a drilling rig to conduct the operation.
Contracting the rig will occur once there is certainty around casing supply"