The well was successfully drilled, cleaned up and flow tested to a maximum gas rate of 45.5 mmscf/d through an 80/64th inch choke within two months of spud. Also China is a mixed bag, still importing plenty of crude but there are worries about the economy.The storm season continues and the latest one is named Teresa, and with only two names left on the list it looks like they are going to need a bigger list… IOG ( LON:IOG) IOG has provided an update on the Blythe well 48/23a-H1, the second Phase 1 development well. As they might have said in Dad’s Army, they dont like it up there…A mixed bag of reasons though, continued supply shortages across the board keep the market tight although the API stats after the bell showed a build across the board, hence the fall this morning. The faster that water can be removed from fabrics and infrastructure, the better the chance they have of being used again.After showing its head above the parapet of $80 yesterday Brent fell back and settled down 44c, this morning both crudes are back some more from what had been the top of the trading range. In most cases, working fast will be key. Professional water damage contractors will be able to closely examine the source of the water to determine the proper course of action.The improvement in drilling performance at Blythe is also very encouraging as we progress on to Southwark and then on to drill the Goddard and Southern Hub appraisal wells in mid-2022.Gas market conditions not just for this coming winter but throughout the forward curve indicate the potential for very strong cash flow generation for IOG over the coming years. Phase 1 First Gas is now coming firmly into sight which is a testament to the dedication of the whole IOG team and the excellent collaboration with our contractors.We are now integrating the well data into our planning for the start-up of both Blythe and Elgood in Q4. Phase 1 First Gas guidance is reiterated for Q4 2021 and with initial Blythe Hub production rates expected to be within planning case range, at current gas prices, 2021-22 cash flows are ‘expected to substantially exceed planning case’.“Delivering the Blythe well within two months and achieving a maximum well test rate of 45.5 mmscf/d gas is another important step forward for IOG.PetroTal Corp ( LON:PTAL) PetroTal has announced it has commenced drilling development well BN-9H, the Company’s next horizontal well, and continued robust field production in excess of 15,000 barrels of oil per day. I thought that Paul Griffiths, in great detail, made the progress in Morocco much more understandable and I think that shareholders would have been comforted by the enthusiasm he portrayed.With exciting wells to come I feel that the MOU-1 well has probably de-risked the area by more than the market had initially thought and of course I remain very excited about Morocco as a place to operate. Predator Oil & Gas ( LON:PRD)After I wrote about the Predator announcement yesterday in slightly straightened circumstances between meetings in London I listened to the Predator webcast and in particular the detailed analysis of the MOU-1 well. Before long the prize of first gas will be in its grasp and along with it the additional prize of the current gas prices being in excess of 200p/Therm which dwarfs the initial planning expectations and even if of a temporary basis will make IOG’s start in Phase 1 a highly successful one.
Dmg Contractors Update On TheHurricane Energy (LON:HUR) Hurricane has provided an update on production guidance from the Lancaster field, which takes into account additional production and pressure data gathered since the annual maintenance shutdown in July 2021.On 30 April 2021, the Company provided annual production guidance for the full year 2021 of 8,500 – 10,500 bopd. It takes no great stretch of the imagination to more than double the current share price and based on solid, profitable and increasing production, PetroTal looks like a very safe bet to justify investment. PetroTal is showing it is well positioned as a dynamic emerging market play, given our strategic investment in Peru’s Bretana field, that is delivering strong results.”It is clear that PetroTal is going from strength to strength, its recovery from the darker days has been exceptional and today we can see a further increase in production on the road to 16/- b/d and higher, moreover highly efficient, more profitable production.The shares are starting to move upwards, it has passed the years high of around 18p but my target of 50p is now looking if anything somewhat parsimonious. The recent rise in Brent oil prices has created an environment for substantial returns on invested capital and we look to continue our momentum into Q4 2021, and beyond. Drilling and completion should be finished in the second half of November 2021 and is expected to contribute materially to exit 2021 production.The Bretana field continues to achieve robust field production, average field production for the ten days ended Septemwas 15,494 bopd which demonstrates success of the revised water disposal strategy, allowing full water disposal into the two disposal wells.Using an $80/bbl Brent oil price and PetroTal’s estimated EBITDA netback of approximately $47/bbl, annualized earnings before interest, taxes, depreciation and amortization at 15,000 bopd would be approximately $255 million and, this expected significant EBITDA growth, will easily allow PetroTal to complete the remaining Bretana development wells, retire the bond obligations early and examine ways to return value to shareholders, in due course.Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:“We are entering the fourth quarter in the strongest position PetroTal has seen, from both an operational and financial perspective. Assassins creed 4 game for android free downloadAs a result of the combined efforts of the Hurricane and Bluewater teams, we anticipate being towards the upper end of our production guidance for 2021 and this is also reflected in our guidance for the next six months to 31 March 2022.”To say that I don’t understand this set of numbers significantly is an understatement, operationally Hurricane is actually appearing to go well, prices are creating operating cash flows materially ahead of market forecasts including my own but are not recognised.Also the FPSO is going at amazing uptime rates, given it was getting such bad press makes me feel that it has to fight its corner every step of the way. Whilst this has been factored into the guidance for the Period, there will remain a degree of uncertainty regarding the full impact of this, along with the risk that gas liberated from the reservoir could be produced which could result in production either being reduced or ceased altogether.Antony Maris, CEO of Hurricane, commented:“The Company has benefited from higher than expected oil prices and excellent performance to date of the FPSO. The increase in the uptime assumption is a combination of there being no planned maintenance shutdowns anticipated in the Period, and reflecting the excellent production uptime that has been seen on the FPSO to date.The guidance for the Period is slightly lower than the average for the full year 2021 due to the expected gradual production decline from the reservoir over time, partially offset by the higher FPSO uptime assumption.Based on current trends, management estimates that wellhead flowing pressure in the Lancaster reservoir may reach the bubble point by the end of Q1 2022, consistent with the time range estimation previously announced on. Management’s production guidance from the Lancaster field for the six month period 1 October 2021 to 31 March 2022 is 8,500 – 10,000 bopd, which is based on an improved FPSO production uptime assumption of 96.5% and production from the P6 well alone on artificial lift via ESP. The production uptime assumption of 90% includes the impact of the annual maintenance shutdown, evenly spread across the year.As previously announced, the Company has committed to providing six-monthly updates on production guidance. This annual guidance is based on an FPSO production uptime assumption of 90% and production from the P6 well alone on artificial lift via ESP. The figures speak for themselves, gross profit of £46.0 million (1H 2020: loss of £19.8 million) and cash flow from operations of £63.8 million (1H 2020: £19. Serica Energy ( LON:SQZ)Simple is as simple does in the Serica results yesterday, I went to the meeting where CEO Mitch Flegg gave the up to date situation which is decidedly rosy.
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