Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Agreed DonMac. RTO Into WTE listing of cataleya energy on any commercial strike could be on the cards. Although JHI given increased holding is also a good possibility. Then the multi bagger potential will look obvious to all. The team and opportunity here is totally under the radar. Exxon have given the tanager well a 73% of stroke. I wouldn’t be arguing with their geo team given the strike rate of 13 out of 15 of drills On the starbroek block have proved very large discoveries.
Zero bad news here. We have already established recorders we’re not lifted due to lockdown and chinook is only delayed until lifting of gov lockdown. North clearly are in need of the funds for a number of reasons unrelated to TXP prospects. Opportunity knocks
I think TXP have struck big with Cascadura and that a Material find at Chinook (0.3-0.4 TCF range) would make this a takeover target. Hopefully cannacord are on board to raise institutional awareness as we hopefully cross the £100m mcap threshold near term. However often a bookbuild and placing comes prior to a compelling event and the anticipation of The chinook drill and similar results may be the perfect window. A raise is no bad thing If it signals a major development which would take treble the time to commercialise from FCF. PB has always stated he has no issues with debt for pipelines, infrastructure Etc but not for exploration drilling. Let’s see if he is true to his word.
I hope there not getting ahead of themselves and lining up another placing to accelerate development Of the Cascadura discovery. We know they are fully permitted already for 2 more wells off the same pad but really hope this is not the case. We haven’t even finished the exploration programme yet.
Looks like Exxon are pressing ahead on tanager. seismic and read across from starbroek block means a 73% COS assigned..
www.upstreamonline.com/exploration/exxonmobil-to-press-ahead-with-guyana-deep-water-probe-despite-covid-19-challenges/2-1-802076
Being very conservative Coho and Cascadura should produce 50MMCF per day and if we assume $3 per MCF (guidance is currently north of $3) that’s $54,750,000 per annum. Once we are into production I think 50p is a conservative SP target. So any repeat of the recent casca success at chinook (Liquid rich gas with similar flow rates) Will be very cheap at £1
As below with addition of tie in of coho discovery to come online early July at 10mmcf doubling production. Plus reserves report on large Cascadura discovery as relayed below (CEO has stated 100s of NCFs) . Further to that we are awaiting news On spud of Chinook a separate structure a mile away from Cascadura well. The target is large and the structure is 4 times larger than Cascadura and had hydrocarbon show in late 60s well much like the Cascadura well. Chinook is not priced in at all but interest will gather. If reserves at Cascadura are in the 100s of BCF range then Chinook could be 0.5 TCF!
Agreed lexion , though no stock for buyers sub 26p yet. The spread and games here are clear as day and the price can jump or nosedive on tiny volume. coho and Cascadura production underpin the market cap here now and I can’t find a peer producing 9k boepd at a £45m mcap. Chinook appears to be a freebie for the believers!
Hadn’t seen this angle DonMac but did some extensive research this evening. I think an RTO is on the cards. JHI most likely candidate here and would make total sense. Based on read across from ECOs current Valuation with 15% WI in orinduik the NAV of the stakes built at current WTE looks like basement floor pricing. I’ll be adding more. Why is there no interest here in your opinion ?
Unless the lockdown is sustained Beyond mid May the licence commitments will dictate that Chinook drill is a requirement. I’d chill if you are concerned. No reason for Down hole pressure gauges not to be retrieved as TXP still have people in the field so this is also highly unlikely. I’d expect an update on resource size imminently.
Clearly the stakes in ECO and RATIO are easier to value here as they are quoted stocks. However they are near year lows and offer plenty of upside. the interesting part is then assigning a value for the 3% JHI stake given the $185M carry on drilling. All in all I think the upside given Exxon’s amazing geo team and history finding oil in the region is considerable. I’ve watched this stock for a while and sub 10p this looks a very compelling investment. Very quiet at present but it won’t be long