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They don't have permission to produce from the WNA location. They've a permit to tanker upto 2kboepd during the EWT. Production would be from another location (possibly WNB but again I'm not aware of permission there as its a farmers field at the moment).
Bottom line is - it's a significant acreage so they can just build a production facility, drill a producer well and pipe it into the various local pipeline. Job sorted.
Any visibility of Interims date? Was 20th September 2018?
Very excited to see any dividend policy.
Uggy,
All the kit is pretty generic. It's a seperator, heater & storage tank. Getting the permission for the 199 tonne tank is key. Once that's sorted they will be back in double quick time. There is a schematic drawing of the flowtest process equipment knocking around.
There was a lot more kit when they wireline logged / perforated / tested the well initially.
There is clearly remedial work to be undertaken to deal with the blow out section of the well - cement job, etc - but tellingly ADX still quoted the drill time as the same in last monday's update. If there were to be delays they would of stated then surely?
Anyhow - as others say here not long to wait.
It will (hopefully) be such a similar well to WN - plenty of high-pressure gas with a lower oil component.
AA said in Malcy I/V - Cavendish likely finished not sure about Macquarie
Can't blame them - if they've been in since £1.50 - sell out at between £17-19 whoop whoop.
Iam,
TBH i've no idea how much it would take to develop WN cost wise; as it's still in the proving stage. Once the revised CPR is published & the WNB drill into the deeper Cadeby formation is complete Q1 2020 we will know more; but RBD is a declared early prove-up & sell on business. The total opposite to RRE. AA interview yesterday he speaks of their expertise in dealing with late life assets extending life & then decom - he reckons RRE are "best in class" in this speciality. I tend to agree.
Majors / Super - have no interest in these assets so the likes of RRE / SQZ are geared up to milk & remove these assets in a much more efficient way - and OGA / HMRC are v supportive (more boe out of the ground = more tax / energy security) it's a win win all round.
Marathon - they exit & remove liability whereas RRE get a cash lump & an opportunity to extract significantly more value out of assets than Marathon (as RRE will invest / Marathon cut costs to the bone).
Iam
I've got 80% of my portfolio across RRE & RBD - i'm that confident on both.
Can't see RRE interest in WN. It's way too early stage - AA likes producing assets / extending the life / reducing decom costs with RRE expertise. Arran aside it's a simple model that works very effectively. WN needs massive CAPEX to get into production. Likely Perenco / Ineos buyers as both have sizeable processing facilities either on the WN license or within 10Km. Both RRE & RBD have huge upside albeit different ends of the O&G E&P market.
Nobody knows if there will be a placing or not - but the price action tells us that there is significant demand for large volumes of equity; likely from ii.
If there was a placing being marketed to ii's then there wouldn't be this buying pressure. This isn't pi money it's ii money.
Just my 2penneth based on pure logic & nothing else.
JS,
It's looking like the appraisal of the Cadeby liquids will have to wait for the WNB drill from B location end Q4 2019; but agree additional news on wire log & cores analysis imminent.
Excellent RBD Twitter group - plenty of posters here on LSE.
Noix, MadCrann, Thanks for your replies. Guys I'm not "deramping" that is not my intention at all. We can only go on what has been said in the RNS's published. The one this week 2.4.19 only refers to 25mmboe. There are no other figures mentioned & there is reference both to the North West & deeper accumulations within the Verbier prospect. Noix - I'm not saying "Equinor will walk away" - I'm saying it had to be a possibility due to the lack of infrastructure in situ as a tieback to another existing facility would be v costly. As you'll probably be aware there is potential for a wider production "hub" at Verbier - part of the reason JOG have recruited Field Development people onto their team in 2018. Noix - the single Verbier well coupled with 3D seismic work had cost JOG £7-11m; hence I am concerned how many more drills JOG can fund. The worst thing is if someone is factually inaccurate /deramping for malicious gain. That is not my intention at all. I value commenting on these things and having my thoughts challenged (in the right way) by knowledgeable posters. Appreciate your post in particular Noix as it's factually correct (just checked the details out).
MadCracc, You're quite right in that Equinor call the shots /not JOG. That's what concerns me about 25mmboe. If it was JOG as operator then maybe more optimism from me. I've just checked RNS 2.4.19. Only refers to 25mmboe. Surely it's obvious - if they then announce 60mmboe+ that would be wholly misleading. You simply can't do that. In my eyes - there is no reference /inference of further drilling activity now. It's all about "evaluating future options". This complete lack of any upside to 25mmboe & talking about "further Verbier Appraisal activity (i.e. Drills in 2020 or beyond not now) is why I've taken the decision I have to step away. JOG ain't financed for much more than 1 more drill so they will have to get cash from somewhere (i.e. dilution as they did in Nov 2017 which I participated in at 200p). I can't personally see any upside whatsoever from the present situation. Holders will slowly seep away as reality dawns. Again many will disagree but this is simply my thoughts. As I said previous - respect everyone's decisions. I'm simply posting as part of a wider discussion.
MadCracc, I understand your thoughts - and like anything this is a judgement call. Anyone who's been In here for 2yrs+ like me knows what happened in Aug 2017.....RNS said no oil & may sidetrack but v unlikely - then x days later they say "we're sidetracking" and boom 25mmboe+. If went up 389% in a day in Nov 2017. I've a screenshot of it in my JOG research file. So - optimistic holders here IMO are holding out that this happens here. But - my reading of AB RNS this week is there is no further news inferred - and imagine if they announced 60mmboe+ on Monday /later date? They would be lynched /prosecuted by authorities for misleading the market. Crashing the price then "oh actually we've confirmed much more than 25mmboe". Personally i feel thats unrealistically optimistic thinking - which is only human nature /natural defence mechanism when faced with a painful truth. I've learned the hard way - got to read the situation quickly and make decisions. I'm not happy one bit but getting out at 110p and 80p today I'm a bit happy about. If it booms upto £3 and beyond I'll be back on here saying congratulations to you guys - as there are no hard feelings. I blame nobody for my decisions as the world is a blame culture environment. I see it how I see it and react accordingly. Good luck everyone.
Madcrann, I'm a guy so you are aware. I did a £10k buy at 173p back in Nov '18 and sold at 217p on 1.2.19 - simply was a trade. I'm not telling anyone to do anything - I'm simply commenting on how I read it. If you disagree fine no problems. For the record I've lost 60% on JOG so it's my record hit & it's taken me 48hrs to get my bearings as I've felt v bad but getting over it. I used to post back in 2017 with bigbench /ajax62, etc but due to the time period between 200p rights issue I kept away from here. JOG is on my watch list now - but it's beyond the worse case result for me never saw even a whiff of this. Good Mgt here, well funded, super major farm out partner, 3D seismic, etc. All looks good and boom....... 25mmboe.
Noix, IMO Verbier was drilled as the first target as it was the most probable resource. And its not like its an average result - its a terrible result. Further appraisal on Verbier will be another £10m net to JOG. Then there is Cortina and Meribel to drill separately. I didn't say Equinor would definately walk away - but it is a distinct possibility. Verbier being say 60mmboe+ would of been sufficient to press the button on a FID for FDP & revenue could then be used for further expo /appraisal drilling on the block. IMO 25mmboe makes it much more borderline whether it's economically viable for a Co the size of Equinor. A good analogy would be Barratt /Persimmon - buying up petrol stations and building 3 or 4 houses on the land. They just don't do it. The effort is in bigger fields. Just my opinion - but the expo costs versus Field Development costs for a major are pence vs pounds - hence I'm concerned about Equinor motivations to progress. They've said they are committed to UKCS but it's still commercial decisions that drive things. I maybe wrong (I was wrong to put over £100k into JOG stock in Oct 2017) but the share price action tells me I maybe on the right lines.
No mention of it in the RNS on Wednesday. IMO it's going to need a big cash outlay to develop the block from here. 25mmboe isn't a "stand-alone" project. 50mmboe+ would of been fine & JOG Could of financed off the back of that. Meribel & Cortina are prospects and there is a proven hydrocarbon system on the block; but its whether Equinor want to invest further. Even if Equinor do invest - then JOG will need more than the £11m they have as cash - so logic says JOG need more cash. I've exited as I can only see the SP sliding or a dilutive event. Sadly the OIP proven is too small IMO. If it was next to local infrastructure then maybe - but its a big leap to build infrastructure to link localised fields. As I say - Equinor may make that investment & indeed develop the block but in that scenario - JOG need lots of cash to pay their 18%. Not a "duster" but not looking good.