Peter & co Presentation
Good presentation. I would have liked a little bit more detail about why LC2 is still drilling but they didn't have time for any question after the presentation, which i'm guessing would have been the first question...
Here's my note on what was said for those who might have missed it :
It's good to know that the reason the production didn'T add up wasn't due to decline or anything like that but more that LM5 was shut-in. They say they could produce well over 12 k but their JV partner and PTa have decided to produced in a conservative manners to manage RLI as much as possible and to deviver Quarter-over-Quarter Growth.
LM14 which should be drilled over the 4th quarter is the one to watch carefully as it will test the southern extent of LM field and it will help mapped the field which could increase reserve booked for the field.
While LC2 is still drilling, no more detail were given, an additional prospect on the block (el bosquet prospect) was found, they will move the rig to Rumi-1 after LC2 is completed. Curiara should still be put on long term prod in January, and LC1 still at the end of this month. Also, an additional prospect was found on the el porton Block.
They still maintain their revised 5000 bopd for Year production. But it is really important to note that ACtual Year average production (from Jan to Aug) is 5002... So if the field continue to produced at a rate of 6000, they will have to revised again to 5500 or more depending on when LC1 is online, when LM5 is back online, results from Laguira-1, LC2 and LM12-14...
The increased capex guidance from 70 to 87 MM$ is still fully funded and they expected to be fully funded in 2014 too.
Their 12 month plan is still to increase actual assets to 10 k prod while maintain and RLI near 3 Year. More beyond this, i think they'll look into M&A or try to diversify their portfolio by adding more blocks...
In Overall, i'm really pleased with the presentation, would have like a little bit of detail about LC2, the only detail was that they are hoping they will be able to release Information into the market "Soon", which isn't really precise..."
Later
White