Timing of this presentation is not that good
Really very little progress for Paul to report.
1. Casca deep well is damaged but they are “confident” it will flow. (unbounded and may add some reserves). What is new is that the well bore at Casca Deep is more damaged than I thought.
2. Deep zones at Chinook very damaged and nothing to do there. Could not even retrieve the hardware.
3. They will test upper Cruse at Chinook for gas but maybe there is formation damage there too? Idea of up dip wells at Chinook remains but certainly very low priority and will be years away.
4. Delays at Royston, rig can’t move, can’t finish facilities.
There are doing more seismic in Royston area that will be important for future drills.
5. The second phase of exploration includes Steelhead; Kraken, Guabine. None of that will start until there is robust cash flow from Cascadura (and some cash from Coho)
6. Casca discovery production - more delays. They have a design for
surface facilities. They will find out what the requirements are for EIA work soon. Not a word about NGC pipeline spur.
6. No plan coming together at Coho. Nothing about a hookup or a second well.
7. Canadian rig delayed. Nothing about drilling over on legacy assets.
8. Covid a problem on many different fronts, especially for impacted population.
9. overall the RNS is low grade ore - hard to find any diamonds there. The story is still intact, the shares are still undervalued, but very little progress is being made. That is not surprising since it has only been a month since last presentation, and a month in a covid shut down at that. But as I said, timing of the presentation (given lack of progress) not particularly good.
I will continue to add to my position with new money. Shares will likely remain on sale for some time.