We would love to hear your thoughts about our site and services, please take our survey here.
They do have a fund, they need to spend it; be seen to be the bigger man; invite those who are causing trouble to help decide how to spend it. And May be throw in a couple of million more if there is more help and less hindrance.
Call it Comms or ESG; its the world we live in.
When you look at the hit that many companies, including oil companies, are making over Russia then its small beer. Cost of doing business.
We need to see a new Royston development well drilled.
The Royston well was an exploratory well, targeting multiple zones and actually set up expecting gas.
A development well targeting one of theses zones for oil will be drilled differently with different placement in the structure and will be likely perforated more. Hopefully the flow rate will be much higher and the water cut lower.
The ROC could be very quick and the world of TXP look very different.
Doesn't sound good; especially when the company could be making plenty or money at current prices. They need to start handing it out even without government support. Schools, health clinics etc. Make sure they are not just seen as the bad guys.
Quite, he retweets, that isn't quite the same as he did in the past; he even posted on this forum when he saw comments about the geology that he didn't feel were correct.
But in case he still reads this forum, ... Xav an update on the geology would be great!
With the price of palladium pushing $3000/oz and Rhodium at $20,000/oz JLP should be seeing a very high cash flo.
But Platinum can be used as substitute and for palladium its 1:1 in petrol catalytic converters.
And against gold it is at historic lows as a fungible and transportable form of wealth.
So I am thinking of buying more JLP but shorting palladium; easily done by spread betting.
Does this seem a good idea, or am I missing something??
Trinidad is an island so other than domestic power the use of NG is limited; instead it is used industrially principally methanol or to LNG. Unfortunately the value of NG for these purposes is low.
Fortunately TXP has a lot of it and its cheap to produce, and even better they now have oil.
Platinum is easily moved, and one of the main users for catalytic converters is china; I don't think they will be too fussed if it comes from Russia. Short term though there maybe some speculation that will push the price up though.
Good things come to those that wait.
Cascadua is coming and its "wall of cash"
When they have $4-5million a month coming in this will fund a new well every 6-8weeks as PB indicates
But Royston was an exploration well.
The first development wells will still have learning to be got, this will still take time.
As that experience is gained, and as new Cascadura and Royston wells are drilled; more cash will flow and more wells will be drilled; I suspect every 4-6weeks by 2023; and we see new exploration wells drilled, and maybe new licenses...
With 200mcf/d we should see $10million/month from Cascadura. $120million/annum
But iRoyston: its the first time we have seem PB putting some more thought on likely outcome. 10-12,000bopd peak doesn't seem unreasonable from a number of wells, 4million barrels/annum, $30/barrel, $120million/annum, so similar to Cascadua.
The wells are deep, will not be cheap; but at peak this company could be throwing of as much cash/annum as its market cap.
Cascadura will produce for years, if not decades.
Royston? 40-50million barrels? With modern reservoir management 100million? With CO2 flooding that T+T is just made for, 150million??
The other 20+ targets they have so far identified have got to be significantly derisked.
Everyone talks of Kraken but I still want to see Cascadura deep target drilled. They tried twice and failed in spectacular fashion.
We have to wait.
There are other companies that may deliver multibagger returns if they come good, but they equally could go bust. You just would not want to "bet the farm", or even more than 10% of a porfoliio.
TXP at these prices is a rare beast IMO were the share price is well covered by future earnings and has very significant upside in a stable jurisdiction.
You can invest a much larger part of your portfolio and just wait. 2-3years it could be 2-3-4x what it is now, and very, very unlikely to be less. If it is less its probably going to be even a better buy.
JLP looks similar, PETN also but less attractive given recent rise.
Ive know I ve said this before but I think this is worth repeating; the Royston well was an exploratory well. It was drilled with more the expectation on gas but found oil in 3 zones.
The well was not optimised to extract oil from any of these zones.
Development wells are likely to be drilled differently, into different places in the structures. They are likely to deliver significantly better flow rates than the Royston well is doing
I would look at Petrotal. 95% water cuts, but with long horizontal wells, with AICDs the latest wells are delivering 8000-10000 Bopd initially which is why their share price has rocketed.
I doubt we will see these at Royston as the permeability of the sands at Petrotal are very good and high aquifer driver; but with fracking? that PB has mentioned in the past, production rates in the 1000s bopd ?
Time will tell.
CM: If your an investor surely lower price are more attractive, your down 22k, but that just gives you an opportunity to buy more at a lower price.
If you don't believe the story or the company can not deliver then maybe you should cut your losses and let others have the opportunity to buy your shares at a lower price.
Probably read some Warren Buffett first though.
I'm agreeing with Prof. They spend big on acquisitions and investing in plant cf £37million but still have more cash, even though some of the investing in plant reduced output during upgrade.
Plenty of cash coming in and they are seeing opportunities to invest and grow. Thats what it is about.
Any accountant can slash investment and push up short term profits, that was a lesson I learnt from British Leyland 30years ago.
"Overall, the investment in capital expenditure over this period totalled 19.3 million (ZAR 414 million) with a further £ 17.7 million (ZAR 380 million) invested in acquisitions, leaving cash and cash equivalents at the end of the period under review standing at £ 21.7 million (ZAR 466 million), compared with £ 19.6 million (ZAR 384 million) at the year ended 30 June 2021.
So to rephrase that. In the half year £40M spent on capital investment and acquisitions and still cash and equivalents go up by £1.1M in 6 months."
Thanks MJ, your referring to XMs twitter post.
I think its important to remember that the Royston well was drilled as an exploration well ultimately targeting and finding oil in 3 different reservoirs.
The next well will be a development well targeting just one of these zones. Optimally drilled, placed, perforated; AICDs if necessary etc.
From PB presentation it sounded as if they maybe producing upto 1000bopd from Royston.
A development well will likely produce significantly more.