RE: Price Jump29 Apr 2024 08:18
From Brave AI…
“ Overlift oil and gas refers to a situation where the amount of oil or gas produced and lifted (removed from the well or field) exceeds the amount that is entitled to a particular party or entity, such as a joint venture partner or a government agency. This can occur due to various reasons, including:
Efficient lifting arrangements: In some cases, it may be more practical for a party to lift a full tanker or a certain quantity of oil or gas, rather than a proportionate share of the total production.
Imbalances in production: When the production of oil or gas is not evenly distributed among the parties involved, overlift can occur.
In the context of oil and gas production, overlift can have financial implications, such as:
Creating a receivable for the party that is entitled to a larger share of the production
Requiring the party that is entitled to a larger share of the production to pay for the excess production
Affecting the revenue and profitability of the parties involved
For example, in a joint venture, overlift can occur when one party lifts more oil or gas than its entitlement, resulting in a receivable for the other party. Similarly, in a government’s share of profit hydrocarbons, overlift can occur when the government’s share of production exceeds its entitlement, resulting in a receivable for the joint venture parties.”
Main thing was guidance is towards upper end. We just get paid later!
‘ Production averaged 49,258 boepd, down 4.8% on prior period (3M 2023: 51,720 boepd), but 5.7% above Q4 2023 production, and towards the upper end of 2024 guidance (44,000 boepd - 52,000 boepd)“
All said I took 20% off this morning after they had had a good run. I intend to buy them back just hoping for cheaper.
Should have done Friday really as results day often disappoints but I thought just maybe after all the media news we would have had something more concrete on the divestment.
Anyways I was offered a price for 50k. It’s previously been NT to sell this time of day. So there is likely a background buyer still which should put a floor under the SP.
Usual caveats
Trek
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