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@tony Remembering as Serif has said we are liable for 25% of all future ongoing costs for Serenity.
If we do need another appraisal well next year and going on the same costing as the current Appraisal well, Europa would be responsible for £7.5M; I believe we will have generated this money from Wressle by the time the money is needed.
Also if we do have a successful hit from the first Appraisal well our SP will have risen hopefully substantially so if we are short, another much smaller fund raise or better still a debt raise could be done if really necessary. Again not wanting to sound like a broken record "we have plenty of options".
I don't believe this is in anyway a serious issue or a blocker if you like.
IMHO
My understanding is that we are fully funded for Serenity, (through share placing and existing generated funds which are considerable, at least for the initial stages, the first £15M), we will be fully funded for Inishkea should it happen (through a farm down of the asset).
Only Morocco should it happen will be funded by debt.
This will all change based on timings, oil price etc.; the slower the projects take the more money would have been generated from Wressle. Also we have much further upside on Wressle which will happen hopefully soon once the gas issue is resolved. Any hint of success on anyone of these projects will also push up the SP.
The point is I don't think raising money for projects that gradually come online is an issue; we have many options.
IMHO
@Grey I think Boltok would have been correct about the profit if it hadn't been for the commitments to Serenity, most of the money generated by Europa will have been set aside for Serenity development to cover our £15m or so commitment plus additional expenditure to develop Wressle further.
IMHO
@boltok I think we are so close now that it shouldn't be perceived as ramping; the projections of oil reserves are what has been speculated about in the presentations. The Top end result of 200M barrels would be great but I'm hoping we far exceed this even as we have done in Wressle. These companies always tend to be conservative in their estimates.
IMHO
Gas supplies dwindling from Russia:
https://oilprice.com/Energy/Natural-Gas/Gazprom-Slashes-Natural-Gas-Deliveries-To-French-Utility-Giant.html
The Russians will start to reduce supply of oil too and then the real panic will set in.
IMHO
@Tac I totally agree; I was a fan of proportional representation but it just doesn't work, nothing gets done and everything that should be done gets delayed or watered down.
The Irish seem to plead ignorance or blame each other on most issues. The Irish are putting their own people at risk this winter and indeed their economy; they apparently are at the end of the energy pipeline and may get very little gas if its a bad winter and that too at very high prices.
I now have changed my mind on this and feel they will at some point have to give in and grant the licences as this energy issue is not going away anytime soon.
Lets see what happens this winter when the s**t hits the Fan and everyone panics for energy.
IMHO
@Cash I don't think that's the case; Egdon is a better known company and more importantly has about half the shares in issue as Europa, hence the slow slog up for us. Both have their own merits; Europa had some good press over the weekend and will do over the next month, as long as we continue to head up its all good.
IMHO
@Goliath - The pressure on Mr. Ryan to grant the necessary permits must be reaching boiling point. Hopefully very soon we'll hear something very positive on this.
Serenity (happening) is very big but Inishkea is huge (if it ever happens)
Hopefully it's like the buses, wait ages for one and three or four come along at once!
Wressle has come in, Serenity is turning the corner and in sight maybe Inishkea is not far behind and at the current high oil and gas prices Morocco not too far behind that. Wishful thinking maybe :-)
IMHO
I think it'll be a slow slog up; we have a lot of shares in issue and people will be offloading as we go up taking a short term profit but missing (probably) long term higher gains. Unless we have great news which just boosts us up very quickly.
But we will go up!
IMHO
@John I think things are moving at such a pace I don't think the presentation is current. We have a report due from UJO coming anytime soon that will put a better picture of Wressle reserves and hence potential flow rates; the numbers seem to be heading in one way and that's up.
IMHO
@Tony This is definitely not about cost more likely bureaucracy! It took 6 years to get Wressle up and running from the point of discovery. It's no small amount of Gas.
Remember too from the presentation *****tone has approx. 2B cubic feet of gas ( I hope I have got the units right) which one of the previous posters worked out to be worth £80M Total once *****tone is in production.
IMHO
What we should remember is that SO and Fincapp tend to be very conservative in their estimates.
Wressle was predicted to produce 500 bopd, it is producing above that now and estimated to produce between 1200 and 1500 bopd once the gas issue is sorted out.
The point is the estimates tend to be very conservative as not to disappoint; so I suspect we could be looking at potentially higher values from Serenity; we know we have oil down there but it's how much is what we are all waiting to know; I suspect the £273M is a conservative value too. We will know soon enough.
Europa is starting to shine on us all.
IMHO
@Selfish Partnering with I3E is a most excellent idea as both companies have now worked together very closely so much so that SO said I3E changed the location of the drill based on Europa's inputs; this indicates a good working environment and trust.
Hopefully both companies will be flush will higher SP prices if Serenity comes in.
One step, ( company maker ) at a time though :-)
IMHO