Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
In the target area. Tullow share price seems positive.
*development costs
For all those that said Gill had sold the stake to Total too cheaply, it shows just how much if a stroke of genius that was. Imagine if we still had 40% of the de elioment costs of these fields..
Share the cost, share the risk, well done Gil.
Was sent a snippet from a market report...
On a positive note, the (Jethro/Joe) reservoir conditions support the producibility of the heavy crude. Tullow remains upbeat about the light oil potential of future exploration on the Orinduik block and expects Tertiary targets in the central and southeastern portion to contain light oil and even gas condensate. The ongoing Carapa-1 well on the non-operated Kanuku block is testing a Cretaceous target – which has delivered light oil on ExxonMobil's Stabroek block.
We are only talking about 2 prospects here. People are acting as if the whole of the block is heavy oil. It's like assuming the whole of the North Sea is heavy oil because there is a couple of heavy oil fields. The rest of the block is anticipated to have light oil.
4.5 Billion barrels to play for, and effectively the potentially remaining 4.35 Billion have been written off by the market because the first strike was heavy oil. It's ludicrous, and shows a lack of understanding by retail investors on the oil industry.
Jethro flows as we know. You can take this or leave it, it makes no odds to me whatsoever, but I have just heard that it could be developed using a standalone (HEATED) FPSO with an expected $10 discount to Brent, potentially rising to $11 after IMO 2020, however demand for heavy oil is so high in the Gulf Coast that these discounts can be wiped out while Venezuela is down.
Also, the tertiary targets in Central and SE side of the block are predicted to have light oil.
The mentality of some beggars belief. Jethro was 250mmbo prospect if I recall? We targeting 3 billion barrels in cretaceous. Tertiary was 1.5 billion. The problem here is that we are situated in the hottest region in the world for exploration, expectations are too high. Any company would be delighted striking 2/2 oil finds, regardless of quality. They are only beginning to understand the play here, the cretaceous is the prize. The tertiary was a bonus.
Conoco had to drill dry holes for 2 years before they struck in the North Sea.
Massive overreaction, but hey ho. I'm in for the cretaceous. Well done to anyone shorting for banking a profit. Think about being caught out overnight if carrappa comes in. Could easily open tens of pence up.
Proselenes, well done on your short. Have some dignity with your call and move on.
Some real information.
Bentley is in the FID under a new owner. Xcite Energy ran out of cash due to the oil turn in 2014. It wasn't brought to production because of financing, not lack of ability to flow or demand. Nice try on the spin but you look a bit silly.
Hess at the energy conference stated
"According to the Hess ‘Boss’, “We already have three ships on the way,” and that the Hammerhead discovery has already been found to be commercially viable. In downplaying the move by the Guyanese authorities on the third field, Hess disclosed further that plans for a fourth vessel to be used at the Hammerhead discovery are already at an advanced stage.
In fact, Hess has projected as many as seven FPSO’s operating offshore Guyana in the Stabroek Block"
Make do doubt about it, HH is also heavy hence the lack of detail, but it makes it no less commercial, potentially less profit per barrel but insignificant when the assets are as large as they are.
Carrapa is inboard, but it's cretaceous, a different age altogether, so that spin makes you look a bit silly too.
Not sure if already posted. https://www.lse.co.uk/media/eco-atlantic-coro-energy-petro-matad-and-nostra-terra-brief-the-market.html
Pros:
Longer Carrapa goes on the better.
Total want to target the largest targets
Tullow want to appraise Jethro and look at channel (why would they do that if they didnt think it would be commercial)
Eco want the low hanging fruit. Looks like there are some obvious pools of oil on seismic.
Eco likely not exist in few years ( they could be taken out at any time on the cheap now)
Pros.
Tullow have a 150m drilling budget and must honour obligations in Peru, Suriname and elsewhere.
May not see 2 or 3 drills in 2020
https://www.spe-aberdeen.org › ...PDF
The Bentley Field, UKCS Block 9/3b - SPE Aberdeen
Ok not the result we wanted, but the tertiary play is 1.5bboe compared to 3bbobe in cretaceous. It's a working petroleum system, we have everything and more to play for here. Today's technology allows the extraction of heavy crude using submerged pumps and by injecting polymers.
Minnow xcite energy ran out of cash in the oil downturn few years ago , but they mastered how to extract it, so I'm sure Tullow Total and QP can match it.
https://en.m.wikipedia.org/wiki/Bentley_Oil_Field
Em...... you buy Eco Atlantics stake and enjoy the ride.
https://youtu.be/5dVQab5Ku6Q
I cant help but think that the recent spurts of PR are an attempt to push support the process as we are looking pretty vulnerable to a hostile takeover. Gil and co own a huge number of shares, so it's in their interest to keep support and raise the market capital to prevent low balls coming in. National oil companies are preferring to bank reserves through acquisitions at present, rather than risky wells.
So when we say 100M barrels of oil resources that’s great, it’s a good result but it’s the start to what we are trying to achieve, and it would require further work, and further interpretation of the data that we received from the well,” he explained.
Jethro-One was drilled by the Stena Forth drillship to a total depth of 4,400 metres in approximately 1,350 metres of water. Jethro-One was the first discovery on the Orinduik licence and comprises high quality oil bearing sandstone reservoirs of lower tertiary age. The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow’s pre-drill forecast of 100M barrels of recoverable resources. Meanwhile, the Joe-One exploration well was drilled by the Stena Forth drillship to a total depth of 2,175 metres in water depth of 780 metres. The evaluation of logging and sampling data confirms that Joe-One has encountered 14 metres of net oil pay in high-quality oil-bearing sandstone reservoirs of upper tertiary age.
Cazenove noted that though the Joe-One well may not have exceeded Tullow’s pre-drill forecast of 100M barrels of recoverable resources, it is a strong indication of what exist within that section of the block. “The Joe Well opens up a lot of the western side of the licence. The licence has a western side and an eastern side. The Joe Well opens up whole of the western side, and if that had been dry, if we had found nothing there, it would have been difficult to carry and explore on that side of the license. But now that we have found oil, we can use the data from there and map it unto other prospects within the licence. So it is a great start of the campaign; we are so happy and excited to drill two successes but it is still the start,” he explained.
The Repsol-operated Carapa-One well on the Kanuku licence, of which Tullow owns 37.5 per cent, is expected to have commenced drilling with the Rowan EXL II jack-up rig and will test the Cretaceous oil play with a result due in the fourth quarter of 2019.
Cazenove told this newspaper that the successes of those three wells will determine how Tullow moves forward in 2020. “So what we will do in 2020 would be a mixture of further exploration, so again, we will be looking for new accumulations of oil, but we will also be deciding what to do with both the Jethro accumulation and the Joe one as well,” he said.
Overall, Tullow Oil has injected US$80M into the drilling of the three wells offshore Guyana. With U.S oil giant ExxonMobil putting its gross recoverable resource estimate to more than six billion barrels of oil equivalent in the Stabroek Block, Cazenove said is cognisant of the country’s potential.
GUYANA stands to benefit from as much as 60 per cent in oil profits, if discoveries in the Orinduik Block continue to be successful, Tullow Oil’s spokesman, George Cazenove said, as he dismissed claims that the country will only benefit from a meagre one per cent in royalty.
Less than six weeks apart, Tullow Oil, a UK-based oil company, discovered oil twice in the Orinduik Block at the Jethro-One well and the Joe-One well. Amid its success, claims surfaced that the Production Sharing Agreement (PSA) it signed with the Government of Guyana is “worse” than the PSA signed with US oil giant, ExxonMobil.
But Cazenove, in an interview with the Guyana Chronicle, said the PSA must be analysed as a whole. “There is no point talking about the royalty in isolation,” he said. According to the PSA signed between the Government of Guyana, Tullow Guyana B.V and Eco (Atlantic) Guyana Inc., the country could benefit from as much as 60 per cent in oil profit, including a one per cent royalty once the companies commence pumping for oil in the Orinduik Block.
“So we have Petroleum Sharing Agreement, in terms of the sharing which range from 50 per cent to 60 per cent. So if we produce over 80,000 barrels per day, then the government gets 60 per cent share of production and that is absolutely aligned with contracts all around the world, and that is a key part of the contract in terms of where the Guyanese economy and its people will benefit,” Cazenove explained.
According to the PSA, for the first 25,000 barrels of oil, Guyana will receive a profit of 50 per cent. For the next 25,000 barrels, the country’s profit would increase to 52.5 per cent and 55 per cent for the next 15,000 barrels. For the subsequent batch of 15,000 barrels of oil, Guyana would benefit from a 57.5 per cent profit and 60 per cent profit for more than 80, 000 barrels of oil. The profit will be shared between the government and contractor on a monthly basis.
He said in cases where the royalty is higher, the profit with the PSA is lower. “So you may have a contract where the royalty might be 15 per cent but the production sharing would be that much less, because the royalty is that much higher. So it just depends on where the weight is within the contract,” he further explained.
Iterating the need to analyse the PSA in its entirety, the Tullow spokesperson said Guyana is fortunate that at the beginning of its oil and gas life cycle it has transparency due to the fact that the government has made the contracts public.
“In many oil and gas economies, the contracts are not public, so you wouldn’t know what the state’s take is and what the company’s take is,” he noted.
Turning his attention to the company’s successes thus far, Cazenove said though Tullow has made two successful finds to date at the Jethro-One and Joe-One wells in the Orinduik Block, it remains cognisant that it is still in its early stage of exploration.
From wood Mackenzie report
Kanuku: Repsol acquired the licence in May 2013, and subsequently farmed down 30% to Tullow Oil in July. Total
farmed into the block in 2018. Qatar Petroleum farmed into the block in 2019. The current participation is 37.5%
Repsol, 37.5% Tullow, 15% Total and 10% Qatar Petroleum. Repsol and partners spudded a well in September 2019
in the block. The Carapa-1 well will target Cretaceous sandstones in shallow waters.
Carapa has spudded. Spudded in September, Wood Mackenzie reports same.
Total: the French Major farmed into a 35% stake in the Canje Block and 25% in the Kanuku Block in early 2018. In
September 2018, Total farmed-in for a 35% stake in the Orinduik block. The company also recently farmed-out 10% of
its 25% equity in the Orinduik and Kanuku blocks to Qatar Petroleum – subject to government approval. Qatar
Petroleum has leveraged its relationships with the Majors to bolster its international acreage and with Jethro – its third
discovery in 2019 –, the strategy seems to be paying off.
Kanuku: Repsol acquired the licence in May 2013, and subsequently farmed down 30% to Tullow Oil in July. Total
farmed into the block in 2018. Qatar Petroleum farmed into the block in 2019. The current participation is 37.5%
Repsol, 37.5% Tullow, 15% Total and 10% Qatar Petroleum. Repsol and partners spudded a well in September 2019
in the block. The Carapa-1 well will target Cretaceous sandstones in shallow waters.
There is tremendous exploration upside remaining on Stabroek and the operator plans to bring in a fourth drillship to continue
testing the block into 2019 and beyond. The Tripletail, Uaru and Maku prospects will be drilled next. Development activity also
got underway in 2018 at Liza, with ExxonMobil aiming to achieve first oil by 2020. This will be the first of multiple phased FPSO
developments aiming to exploit Liza and the surrounding discoveries.