Maybe Toronto will like it better than London Maybe Toronto will like it betterToday 11:43
The bad:
1. 4-6 weeks to imminent first gas at Coho.
2. Review and assessment of EIA with no material deficiencies BUT there are some clarifications. Written clarifications to be submitted on May 13 which is TOMORROW. What we do not know is why it wasn’t submitted yesterday and whether one person can sign off on it - or if they need 20 copies to 20 government agencies and review by all participants in the process.
3. No drilling timetable or sequence announced. Nothing about a Coho development well. Looks like they may try to drill one Royston well (Royston 1-ST) to fully evaluate the intermediate zone and maybe test the sub thrust as well. Maybe that one well will give them enough info to submit a Royston development plan. Two Coora legacy development wells are still in short term plans - maybe they will even start there as has been the plan.
4. Not a lot of return on the huge jump in oil price on current relatively flat production. No details on any flow optimization at recent WD-4 and WD-8 wells.
FOR good news:
1. 20 inch pipeline to Cascadura site approved. To be constructed by NGC. Paul has said they can do that in 4-6 weeks. Sounds unbelievable with 4-6 weeks still to go on Coho pipeline.
2. Approval for liquids pipeline south from Cascadura site - to be built by TXP.
3. NGC to buy Coho pipeline immediately on commissioning. (price unknown but should be millions. that will make well head pricing more fair right from the start).
4. Cascadura development plan accepted - that is 8 more wells from two more pads and all the facilities. They can get started once EIA is signed off on their May 13 ( tomorrow) response to some “immaterial” items. I say that because there are no “material” problems identified.
Of course the separators are built but not in country. But they can get started on roads, Cascadura A and B pads, buildout of facilities at cascadura site, preparation for liquids pipeline south (should start immediately). TXP should have URGENCY on cascadura infrastructure and do as much as possible in parallel manner rather than sequentially.
Anyway, a lot in the report , a lot of questions still. But Paul’s first slide for London talk will still be “Timeline for First Gas at Coho pushed back again