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Has anyone numbers for gas potential for lm14 in dollars and other wells at shoats creek now price gas rising and how it translates to nct
Blingy - you have a significant holding here, but like all of us you know no better than any of us. Having no idea of actual figures still is worrying for me, don't you feel lard ass RC should be giving us updates on this front more regularly? Deadlines never been hit till this day and burger butt does placings like its free money! 'The next bit of news is going to be a game changer' has been thrown around for the last 10 months and all we see is the price drop on any news we receive because it never says anything about the company making money. Is this something you can ask that fat turd to do? Feel it may be more compelling coming from someone who holds a decent amount in the company! Thanks!
With you on that c45hm0ney. I think we'll still be haemorrhaging money which is my concern as we'll need another share placing just to cover working capital as no banks are willing to lend to us. The payment terms are likely to be long on the contracts at the remediation plant so we won't see any benefit from that for some time
Cash 4 money, you really do have a foul mouth, why don't you try growing up.
There was an issue on payment terms with Pemex last year: that has now been addressed. With the liberalisation there are now a lot more O & G cos operating in MX. The games isn't just about Pemex.
Blingybird re Gas numbers - see my post below when they announced SC update last week. NCT have circa 52% revenue interest in LM14 (source blog). If the tests results provided translate to revenues that means top line $2.3M so NCT entitled to circa $1.2M. What are the costs? Well NCT have already updated the infrastructure to extract gas - costs sunk and the latest update says they are negotiating gas sales near term. LM14 is a low cost workover so the costs have been paid. No idea on costs of tie in but I expect these not to be significant. NCT have said they will chasing more gas once LM14 producing. Gas revenues near term should be a SC game changer. Gas prices increasing 30%, very good test results and other low cost gaseous sweet spots identified - per RNS - are the drivers imo "Blimey, well no one can say they haven't been busy down at Shoats Creek. Looks like workovers and gas is the name of the game. LM19 successfully completed. When did they announce that they were doing a workover at LM14? They didn't and it looks like to be a HUGE game changer: Quick calc, pretty sure this is correct.... 2.5 MMcf = 2500 Mcf US$2.50 per Mcf = $6,250 per day 40 barrels * US$45 per barrel = $1,800 per day That's $3M gross per annum........and from LM14 only! NCT have over 50% revenue interest. That's massive news : ) What is our current market cap?! And with gas prices on the rise. Add in the rest of production. Very good news. Comment on the next planned workovers, more surprises planned (like LM19, LM14). Plenty of other locations identified. No comment from Randy Connally? Are we are about to have a new CEO, temporary Statement from Chairman. Very interesting development, changes afoot imo."
From SC update last week Natural Gas Sales The project management team is undertaking discussions to tie-in production of natural gas utilizing one of two existing tie-in points located at Shoats Creek Field. Once gas sales can be undertaken, additional exploitation opportunities of well bores with re-entry potential in gassier pay zones holds substantial potential to generate additional low risk, low cost revenue at Shoats Creek Field.
Payment terms are still likely to be significant on the remediation plant Helpful, regardless of Pemex. The going rate being in the region of 60-90 days. And I'd be surprised we get an RNS about it being complete this week, they don't have a track record of keeping on track
Ok, if you know better. Payment terms are down to commercial negotiations. Last year Pemex was paying 200 plus days late. I don't what is standard terms for waste disposal in MX. The last annual report did state that plant was revenue generating: obviously not how much and on what terms. Fingers crossed on the update.
I asked that question directly a little while back - the answer back was - "Payment terms in Mexico are 30 – 45 days after invoice submitted to customer. " Pemex will be just one of several companies in the target market. I have a list somewhere.
Received further replies regarding lm14, would urge others that are interested to contact the company and ask why they are not including these details in the RNS as I have. Due to lse rules cannot post the reply but it is incredibly frustrating when they have clearly had a great result that it is totally underplayed. http://www.aminex-plc.com/FCKuploads/file/publications/140806_Circular%20for%20Proposed%20Disposal%20of%20Aminex%20USA%20Inc%20and%20Notice%20of%20General%20Meeting.pdf page 56 has p1 reserves at 18Mbbls of oil and 175MMcf of gas for lm14 appears these are somewhat conservative. Get the information in the public domain, if the company is able to provide me with expected recoverable oil and gas figures then surely they should be able to provide an acceptable version to the market.
labratt "when they have clearly had a great result that it is totally underplayed. " The penny is dropping I see - if RC had written the RNS about LM14, the market might get it a bit more. Underplay is imo is an understatement. There are also things I cannot say here : )
LM14 was nice but what I thought what was significant was Robert Cain #1 and Robert Cain #2. It looks to me that on those two they didn't need to do anything except turn them back on and test them. Robert Cain #1: 72-hour test, 10-15 barrels of oil per day and natural gas at rates of up to 100 Mcf/d •Robert Cain #2: 72-hour test, 30 barrels oil per day and natural gas at rates of up to 350 Mcf/d I don't know for certain but I think NCT's NRI on those is 56.25% so at 45 barrels per day: marginal cost $10; net $38 that gives NCT circa $960 per day for not doing very much. That is $350k pa plus the gas on top. There are two other wells where I think NCT can just turn them back on and get producing. It is also important that they now have the SWD capacity: trucking was costing $3 a barrel. Fingers crossed.
labratt - Mr M won't be happy that you're talking to the company, but I'm definitely in favour of a good dialog; imo there is potentially a very obvious reason why it is possible they are not saying anything further at this point. I'll give you a pointer - is there the possibility in their extensive workovers carried out - 4 I think in just the last few weeks - that they have identified other gaseous zones where NCT does not have complete control over the acreage, so they might want a bit more? Commercially that would very sensitive, if true. Just a thought but would explain lack of detail at this point. RNS said".....additional exploitation opportunities of well bores with re-entry potential in gassier pay zones holds substantial potential to generate additional low risk, low cost revenue at Shoats Creek Field." The other point I'd make is that the Aminex Circular on sale of Shoats Creek to NCT makes lots of reference to capex needed to exploit the proven resources. Aminex stated they did not have the capex needed to do drilling - one of the reasons for selling (but they had lost interest by then - Tanzania being their focus); however, what Aminex failed to say was with new drilling techniques etc low cost, high impact workovers were alternative route to shore up the SC field. As Helpful said, and I also a note somewhere, NCT have identified another 15-18 workovers at SC.
Orslega, the customers will be on monthly invoicing so that ties in with 60-90 day terms
I want them to get the SC acreage off Indigo. The Area of Mutual Interest (AMI) covers just the Wilcox but in Indigo's SC acreage there will be Frio and Cockfield targets as well as potential workovers. Indigo is much bigger than NCT and the SC gig is just too small for them to be interested. It would be wonderful if we could do a deal with them.