Member Info for WorldWidePleb

Picking up more shares. I’ve been having some competition it seems.

The exploration zone 1/5 had light crude which is great, albeit low permeability, I’m sure they took their time getting data for Kraken ( Drill or not to drill)

The upper zones have higher permeability and have already flowed, so I presume the further 4/5 zone tests are going to be more exciting.

May- Two producer drills into Cas C with exploration in the deeper zones with the new rig.

May-Royston testing zones 2-5, ongoing.

June- The moment everyone has been waiting for, Cas A wells come online. 9200boepd

June- Flow test Cas C production wells?

Dec- Ramping up Cas A to 15000bopd?

Looking forward to end Q2-Q3 here. I think by summer this will be exciting.

The payments are also my concern. I don't believe they’re fully factored in with the ongoing political risk. No word from Turkey yet.

GKP certainly won't be paid for this month... Add that to 6 months of non-payment = 7 months. If this political game goes on, add another month or so...

Iraq has brought up publically the payment of the debt owed to companies. What that will be, who knows? A compromise.

The problem is the Kurdistan government has swelling debt and no revenue coming in.

I’m starting to get concerned over a significant write down.

Unfortunately, thats basically a repeat over every weeks news report.

Of the oil was flowing into the pipeline we’d see the tankers loading it.

So far it’s oil from Azerbaijan.

Considering the interests here: USA, China, Russia, Kurdistan stability, Iraqs future Total deal, Isreal, the news blackout is deafening.

Well, the lower zone was pure exploration but the permeability isn’t in range. The mid and upper zones have already flowed greater than 500bopd.

The main rig is to move onto drilling Cas C and the service rig to test the other zones.

Not ideal but the 165mmbbls is still to play for. The 215mmbbls high end target is now off the table.

Back to waiting.

Why haven't Iraq just dropped the claim?

Kurdistan is now under a lot of financial strain.

Turkey has been reported that it may choose not to resume exports.

Kurdistan will lose more than the claim amount if this carries on for another month.

Is there something else been leveraged in these negotiations that hasn't been spoken about. Either party are hardly transparent.

Only now after fritting the cash away on wild and stranded exploration punts, he’s looking at production in asia!?

Is that why he’s lining the bucket shops up for a raise? Sadly not beyond belief anymore. If he does that the dilution will be catastrophic. I say it should go to a shareholder vote at this point. All he wants is his wage and pension.

Cenkos Securities as an additional broker... I wonder what they're famous for.

Why do you think they didn't buy Kveikje?

You sound emotional, Armasmaximilian.

I mean, it's not like disputes are ever resolved, or companies bounce back from setbacks, right? Let's completely disregard their history of operations, the legal framework protecting businesses, and the global oil demand. I'm sure this temporary suspension means they're destined for immediate collapse, and we'll never see a drop of oil from them again. Time to sell everything and invest in candles...

I see the company's operations and growth as more secure and legitimate under an Iraq framework. With open and transparent pricing and bank account, payments to Kurdistan government employees, payments for debt due to companies and marketing through SOMO - not some half-baked under-the-counter deals.

I was thinking more along the lines of a delay from Turkey.

Iraq invested $10B alongside Total and Qatar for an in-country deal. Do you expect Iraq to resurrect Che Guevara and elect him president?

What's the ‘bad news’ everyone is speculating about?

“Discussions will focus on preparations for resuming exports, terms and conditions for pricing crude oil sales through SOMO, the proposed mechanism for paying international oil firms’ debts and their share of future oil export sales, one source said.”

Terms and conditions for pricing crude oil sales through SOMO - Hopefully, a more legitimate price.

The proposed mechanism for paying international oil firms’ debts - The fact that this has been brought up and addressed openly is indicative of a ‘more honest’ and consistent fiscal regime being applied.

Their share of future oil export sales - The price to be paid for legitimacy. A trade-off. Let's see how much. If we get paid consistently, then the market cap increase for certainty over payments should make up for this.

Let's see. Turkey still hasn't made any announcements yet.

For the record I do hope this works out. It's just Helges management. Not even cutting staff that blatantly don't have anything to do, and then giving himself a bonus is beyond belief. The cash burn...

Helges grand plan is ‘getting production, oh no wait, exploration, oh no wait production in asia now?’ but i’m getting paid so who cares.

If he’s going to carry on like this it would be better to redistribute the cash rather then make it disappear on mored desperate punts. Then use the company to hold what it has with minimum management in the hope an asset sells, then wrap it up.

20-40p a share, maybe... At least some can recover losses. If he goes for dilution so that he can continue to pay himself and his friends, a kings wage, it would be a disgrace imv.

Taken from my previous post last year.

“Kveikje.

Stranded and development contingent on Equinor’s plans. Obviously this isn’t a big discovery for Equinor, I can’t even find it mentioned in their recent reports or accounts… That doesn’t stop Helge crowing from the rooftops though.

Kveikje. In the press. (Helge)

‘The Kveikje well was drilled 40 km from the Troll B field and 32 km from Troll C, which are potential host facilities, based on Longboat’s statement. Thus, Kveikje could form part of possible cluster development tied back to Troll B.
The oil and gas player confirmed that the Kveikje discovery will be evaluated as part of potential Equinor-operated area development.’

Reality
32-40km Underwater tie back! - What’s the development costs on that!? How long would it take to get planning and execute? Years and years.

The take away (From Helge and only Helge) - ‘Kveikje discovery will be evaluated as part of POTENTIAL Equinor-operated AREA DEVELOPMENT.’ - 8 months later zero mentioned by Equinor on an area development… actually just zero mention of Kveikje

So Helge spent millions , to punt on a farts worth of oil in a stranded asset. Haha, you can’t make this up.

A ‘trading chip’ he calls it. Haha. I wonder if he could trade it for a ham sandwich at this point.

From Helge again ‘ Actively pursuing near-term monetization opportunities following Kveikje multiple enquiries ‘

After 8 months in a major oil bull market zero buyers. ZERO. If he couldn't sell it then will it ever sell? It’s now a liability.

What's Helges sale pitch!?

35mmbbls GROSS. (What’s the recovery on that? Being optimistic 50%?)

17.5 mmbbls net ( 10% LBE)

1.75 mmbbls at $4

$7m or around £6m

It cost $2m to drill after the tax rebate. Haha .

So $5m (£4.4m) out if helge can fleece someone who’s having a bad day…

THE PITCH

1. Stranded asset
2. Non operator
3. Strong possibility of never getting developed
4. Large costs and extensive time frame if it does

Where do I sign the dotted line!

How much is Longboat on the hook for regarding development costs if equinor do call his bluff and go ahead? Is there a tax rebate on those costs?… it won’t be cheap. This looks like it's now possibly a liability that could cripple the company. Just one of Helge’s DEALS”

It’s contingent on a further decision by Equinor to go for a field development and further drills. As it happens Kveikje is a puddle. Don’t mixed up Gross reserves with Net Recoverable.

At todays market price I think it was worth around £4m to buy- Nada

For a puddle you have no control over and possibly will never be developed.

It needs undersea tie backs! How much does that cost? How would it take ? Planning, legislation etc etc.

Tell me this, if Kveikje isn’t a stranded asset, why hasn’t Equinor bought it back? It’s peanuts to them for something so apparently valuable?

The morning started off with huge sell volumes all at once. Drop ~%5.

Don’t follow the lse buy/sells it’s inaccurate. If there were more buys than sells how does it finish down on the day.

I mention a few posts back that the percentage of drills that had technical failures here is problematic… let’s hope this isn’t one of them.

The large amount of selling yesterday is starting to look ‘interesting’ in light of todays RNS.

When the LP is signed this could possibly re rate in a spectacular fashion. It’s been like a coiled spring for a long time waiting for the LP. Never mind the drill.

These assets and potential are worth a lot. The sp hasn’t been been over 30p multiple times for no reason.

imv Kveikje is a stranded asset just like the one our JV partner dropped as if Helge had thrown a dirty pair of underwear in their face. If it had any worth, it would have been taken by now.

It also happened to be the one Helge had crowed about most. Really embarrassing.

Helge had promised a production deal when oil was at all-time historic lows and LBE had tens of millions in cash... The same as KIST. Only KIST executed, and Helge made excuses. But constantly crowed on about ‘deeeeeals’

LBE ended up with a smash-up of punt drills on stranded assets. He also invited 16 friends to observe the fractional ownership, non-operated drills.

I’ve seen far bigger operations with 5-7 ACTIVE people on entirely operated assets.

Seriously, can you argue that if Helge had gone out at the start and bought 2nd hand Skodas, did nothing but take a wage, then sell them today, that we wouldn’t be better off financially by a large margin?

Imv His ‘management’ is an utter joke. Just like Faroe, where he had the company taken out from under his nose. Again, it was embarrassing.

What can LBE look forward to now after Helge has annihilated all the previous cash (He’s done well himself), major holders selling at crippling losses, JV partner dropping the asset showing its true worth, no money for appraisal drills etc. etc. etc.

Helge is now riding everything on a 70% chance of failure drill. The ‘grand finale.’

That’s a great article. It’s becoming transparent what all parties wanted now.

Here’s another good one: Baghdad to allocate funds for public sector salaries in KRI. https://shafaq.com/amp/en/Iraq-News/Baghdad-to-allocate-funds-for-public-sector-salaries-in-KRI

This is now starting to look like a blessing in disguise for the oil companies.

1. Baghdad paying the public sector salaries - Takes the financial strain and stops corruption in government.
2. Baghdad marketing the oil through SOMO - We get a fair and uncorrupted price.
3. Money is paid into a verified Baghdad and Kurdistan account - The money will be accounted for and made harder to ‘disappear’

In short, hopefully we

1. Get paid consistently on time
2. Have the ‘political uncertainty’ market cap discount removed over time
3. Can move quickly ahead with the FDP to 85,000bopd from the current 45k

From the current market cap the cash flow/dividends would be huge.