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BREAKING NEWS- Wood Mackenzie ...ExxonMobil to expand oil production offshore Guyana with new multi-billion-dollar Hammerhead project!
Https://worldoil.com/news/2024/6/25/breaking-news-exxonmobil-to-expand-oil-production-offshore-guyana-with-new-muli-billion-dollar-hammerhead-project/?oly_enc_id=7132C2727501G1B GH, what is our share?
Starvin, thought 15% but not sure. The timing of this move is very interesting. Think they have drilled Four appraisal wells so far in Hammerhead.
Could it be that Exxon are planning a Heavy -ish oil project with Hammerhead? Would look positive regarding Orinduik and the Jethro discovery.
Taken from a Hannam & Partners Equity Research note dated 20 Nov 2019:
"Hammerhead is a major discovery made by Exxon/Hess on the Stabroek Block,
which extends onto the Orinduik Block. Eco believes ~10% of Hammerhead could lie
on its block"
It's not just what we own of Hammerhead, its the possibility of the infrastructure to tie back to Jethro that could be the game changer. I'm not counting Joe in this, it may be developed, but Jethro has far more potential.
Wonder what Gil would accept for Orinduik? The success deal with TLW could be distracting I guess.
If Exxon was interested that is.
Prob not the best outcome for us. Interesting times.
The CPR didn't ascribe many barrels to Hammerhead.from memory.
Exxon can mix this with lighter crude from other drills and easier to transport snd ultimately process the oil if mixed
Eco believes ~10% of Hammerhead could lie on its block"
I suppose the question is- does Exxon believe that too..?
Come on Gil- do your magic
I think at one point during Exxon Hammerhead drill Eco shared its 3D with them (nice neighbour).
I guess the big question is are Exxon up for a collaboration in Orinduik? Hopefully find out soon-ish
Nice timing, too, that the bids have to be in by month's end it might perk a few up!
Looks like this is getting primed for another pump and dump.
Eco will not be left out in any case, if exxon is not interested in orinduik they will have to reach a unitization agreement with eco, if they will go the logic way they will pay the same amount and get the extending reserves plus 250 m jhetro reserves to tie in..
“According to Berenberg Bank, one of the world’s largest multinational investment banks, it projected that Exxon’s Hammerhead discovery holds 800M net recoverable resources, with the Orinduik Block ”
Ours on top!
https://www.kaieteurnewsonline.com/2020/03/11/project-details-reveal-exxonmobils-hammerhead-project-to-produce-150000-to-190000-barrels-of-heavy-oil-per-day/
Great news on hammerhead. Gets us closer to finally realising value for orinduik. Desperately disappointing share price response. 😑
Gil did mention unbidden last week there was a billion barrels of Tertiary for Orinduik bidders free of charge essentially.
If doing an FPSO around Hammerhead, Orinduik must be replete with associated drilling opportunities to support a platform that could share Hammerhead resources.
Definitely interesting times particularly as Exxon are trying to pre-empt the Hess deal for sale of Stabroek. So from a Capital perspective they have plenty of appetite for Guyana.
CPR only allocates 14 million barrels (range 8 million to 24 million). Now that we have 100% that still means $70million on a conservative $5/barrel in ground. That’s £55million ie more than our market cap!
3 big teriatery prospects in the golden lane between hammerhead and jhetro including the jhetro channel and the big prospect that is located where deeper prospects are as well...
IJT ... Why wouldn't GH not be in contact with Chevron? Orinduik would be a great toehold in Guyana should the Hess decision go against Chevron, just having a piece of Hammerhead would have to be a decent consolation prize if not a message that Chevron is in Guyana like it or not.
They'd need to come to Gil to be in the conversation Marvin but certainly a.handy backstop for them or decent complement to there new assets if bid succeeds.
Seems big news
IJWT nice to get some inside into your casula chat with Eco.
Yes some big numbers with the Chevron Hess deal. Looks like it could conclude in 2/3 weeks? Maybe Orinduik news could be circa then too.
This is a nice distraction while we wait for Total or could it eclipse.
I think Guyana offers a real prospect of healthy returns for Eco..what I don't get is why tullow and Total left it..surely they would know Exxon were going to develop Hammerhead?
In the negotiation situation that eco is in with the parties interested in farming into our concession, it is interesting to note the following:
Exxon has a card that is interesting, namely Hammerhead. The stakeholders who do not have the corresponding cards to play can, however, give Eco a larger share of the block and still refer to the unification that will then follow from an exploited Hammerhead. If it follows without Eco binding Exxon to this in an agreement. Eco can, just like in 3b/4b, enter into an agreement on a unification that carries them all the way to production - or not. It is a choice. The latter may result in a better unification agreement now, but a weaker share of light oil discoveries in other parts of the concession than if you settle with another party.
Without a doubt, it is interesting that the hammerhead project is there with its environmental application, it drives up the price/percentage that Eco can keep in our block, all else being equal. If we go with Exxon, we already have something that can grow more with our own, already found, heavy oil. I find it important to secure drilling for light oil in such a deal.
As someone pointed out, the timing of the publication of the environmental application for the start of Hammerhead is of interest. Reasonably, it is included as part of a negotiation game about our concession. A similar application for Hammerhead was submitted and delayed during the covid 19 period. I therefore believe that the lesson learned from the negotiation with Total Energy is to be careful in establishing timelines, something I understand was what caused the settlement to be delayed in the first round of negotiations in our concession 3b/4b.
The short summary of the matter is that the environmental application by Hammerstead is driving the price of our concession.