My thoughts on the presentaiton info.So, my summary of the main points from the presentation:
Cash flow positive now from operations.
Fully funded to bring Coho and Cascadura online.
Focus is get them both on line, get the cash flowing.
No more equity fund raising so no placings.
Coho on line in May 2022 with 10mmscf/day
EIA approval of Cascadura mid May 2022.
Cascadura online around September 2022 all being well with 90mmscf/day
Once clear line of sight of Cascadura being online drilling resumes.
Drilling in 2022 will be 2 off Coora wells, then Royston-1 sidetrack.
Then in Q4 Cascadura development drilling commences after sidetrack.
Royston-1 currently producting 70bopd from the upper tiny section of Overthrust only.
Sidetrack will drill through the complete intermediate section.
Intermediate section (part of) did 550bopd before.
Sidetrack complete we may see up to 1000bopd cumulative from Royston-1.
Unsure at this time if sidetrack will poke into top of the subthrust.
Danger being going deeper may create issues, dont want to lose the intermediate.
Subthrust expected to be oil and highly prolific based on PB oilfield.
May wait for Royston Deep-1 in 2023 to go into Sub Thrust.
2023 continues with Cascadura development drilling to get up to 200mmscf/day asap.
Royston Deep-1 and Krakken-1 will be fitted into the plan as and when possible.
Coho-2 production well likely in 2023.
Focus is, get production up and up and up.
5 year extension to the Ortoire exploration license allows explo drills to be second priority now, no rush. Fit them in as and when between development wells.
Did I mention no placings ?
Legacy WD wells drilled last year are now being finished with the service rig
Production from these wells should near double after servicing/pump install.
Oil samples from Royston align with Guyana/Suriname oil, bodes well for Krakken drill.
Excess cash flow will be directed back into development and exploration drilling.
If still excess then certainly looking at dividends.
Changing company from exploration with a little production to
Production, loads of cashflow with large exploration upside.
Looking at new licenses in the coming bid round, they know the ones with Cretaceous leads in them, for follow on exploration if Krakken has oil.
Downhole issues experienced in 20/21 have been looked at and investigated and actions taken to improve performance in future.
My own thoughts on this :
2022 likely to see Coora wells start in H2, then Royston-1 sidetrack. Then Cascadura B1 and B2 development wells in Q4.
2023 starts with Cascadura C1 and C2 development wells, then possibly Rosyton Deep-1 and Krakken-1 and then Coho-2.
10.5 million current share short will have to be closed buying from the market, no placings.
May should have lots of news (Coho and EIA) and then a short run to Casca being online. So we should see now a positive share price uptrend into Cascadura production online and of course, sometime that big short must close.
https://www.youtube.com/watch?v=Mhtod0Q_ktU
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