Post by
Margin321 on Nov 12, 2021 1:47pm
A lot of action is coming on Royston prospect footprint
Pretty exciting, a big oil play in intermediate thrust sheet below the targeted overthrust sands. That will be better defined by additional drilling in 2023 or beyond. It is a card we hold in our pocket, and it seems to be a Joker.
But in next two weeks we will have much more complete testing of the first and largest of the two overthrust target sands looking for liquids rich gas similar to cascadura. And we will have similar complete testing of the upper of the two target zones by end of the year. Those tests will give us the mix of natural gas and liquids, maximum flow rates and projections on initial production rates for gas and liquids from each zone. They will also allow for calculations of reserves based on this well and set the stage for increasing reserves as development wells further delineate the reservoir. There will also be enough data from these tests to move toward a Royston project development plan similar to what is occurring right now at Cascadura. That will include the number of additional pads, number of development wells, nature of surface facilities that will be needed, gas pipelines to be built by NGC, and oil pipelines to be built by TXP.
If the development plan (as they have sort of implied) is made broader to include oil production from the new light oil filled intermediate sand just discovered, that will add more wells (maybe from same pads) and different sizing of the oil pipeline connectors. That really becomes a huge complex project. And of course by then the mighty Kraken will have been drilled and comes into play and IF that is a cretaceous oil pool like guyana/surinam offshore pools, it is also under the same Royston project surface footprint - and it becomes really mind boggling how to develop everything. Royston project development and production won't start until 2023 or beyond and will continue to ramp for years. But the shares will reflect some of this value as soon as two weeks from now, if the results are clean and as expected. Then there will be another bump with test results from second interval, before end of year, again assuming results are clean and as expected . Then there will be a positive response to the next independent reserves report early 2022.
Shares are below US $2.00. They are undervalued. I am going to continue to add. I bought some today at US $1.88. Not a lot, but I already have a lot (for me).