3Legs Resources Share Discussion Threads

[aimshare] 06/8/2014 18:03

the 25 successful stimulation stages will produce more than 3.8million cuft imo, so their high case valuation of 186p comes into play. not only that but they state if the appraisal is successful, and with 25 successful stimulation stages, why wouldn't it be, that it would be no surprise to see conoco put in an offer for the 3leg interest. this is still under the radar at the moment but not for long imo. 186p is what they value it at if it flows at 3.8million cuft so it stands to reason that they'd be expecting that from conoco for their interest if they sold. it could flow much better than that as well. still under 23p. derisked winner imo.

[linksdean] 06/8/2014 15:11

from 3legs report last year..........Our valuation arrives at a single well value of €3.4m per well. Multiplying this by the
potential well stock suggests an un-risked value of €1.8bn prior to accounting for
central costs. Taking account of central costs as well and assuming 70% of the
western concessions are ultimately developed ('site access') reduces this to just
under €1.3bn (€382m net to 3Legs) Applying our risk factors, we estimate a heavily
discounted €260m (€78m net to 3Legs) that translates to £67m or 79p per share, at
this stage as our mid case valuation. Our high case valuation assumes a higher IP of
3.75mmcf/d and larger ultimate recovery of 3.8mmcf/d, arriving at a value of
£158m/186.5p/share. Our low case valuation reflects expected cash at the end of
2013 of £26m/30.3p/share.........3.8mmcfd worth £1.85p per share

[robizm] 05/8/2014 12:46

Bought some more as they will have £17 million in the bank and if this does not work conco phil would go and probably get 20p a share cash back but if it does flow commercial the skys the limit.

[philo124] 04/8/2014 23:13

Hope so! Thanks.

[aimshare] 04/8/2014 21:55

it will already be flowing otherwise the stimulation stages could not be announced successful. bnks horizontal is flowing 200k cuft to 400k cuft with peaks of 1million cuft with just a few successful stimulation stages out of the 9 stimulation stages completed and with less than a quarter of fluid recovered so far and bnk's will improve once more fluid is extracted. 3leg have achieved 25 successful stimulation stages here which is 10 times more than bnk. prop type used by 3leg means faster clean up too. this will flow far far more than anyone expects imo.

[robizm] 04/8/2014 20:00

It has to flow otherwise these will be 10p.

[aimshare] 04/8/2014 15:45

there'll be more excitement than you can handle when the results arrive imo. the pressing conundrum will be whether you sell it at 100p or wait for it to continue higher. there are only 30million shares available to pi's and 55million of the total 85million shares in circulation are held by significant holders and directors. the results will create the combination of high demand and very little stock and will make this multibag imo.

[hugepants] 04/8/2014 13:26

Some upbeat posts there!

Excitement at absolute fever pitch here. Already over £4000 worth of shares purchased today and its only 1:30pm

[aimshare] 02/8/2014 00:12

Shale Fracking in Poland 3Legs Have Cracked It – 3Legs Resources (LSE:3Leg)
Land Valuations Set to Soar

3Legs Resources (LON:3Leg) Lublewo LEP-1ST1H lateral well, Game Changer & Major Value Kicker for Poland's Shale Gas Sector.

Incredible news out this morning by AIM listed Polish shale gas exploration company 3Legs Resources (LSE:3Leg) who have reported the results of their Baltic Basin, Lublewo LEP-1ST1H well stimulation. In partnership with US Major ConocoPhillips, 3Legs have successfully completed stimulation over 25 stages of their Lublewo well, in what is a landmark technical achievement.
For investors in Poland's shale gas sector, this news is of major significance as 3Legs and ConocoPhillips have not only completed a successful stimulation but have worked out the right fluid combination to penetrate the Baltic Basin shale structure.

Getting the fluid combination right is the Holy Grail for a successful fracture and major issue to date in Poland has been working to discover just what is the right fluid combination to deliver a successful frack and one that will be able to unlock Poland's huge shale gas reserves.

Cross-Linked Gel

On the Lublewo well, 3Legs have used a cross-linked gel a step back from the slickwater fluid that was used on the Lebien LE-2H well in 2011. The use of a cross-linked gel was designed to reduce the amount of fluid required per stage, while maximising proppant delivery. It appears that this hybrid fluid systems has been able to control fluid loss to increase the fluid efficiency, provide good fracture conductivity, keep polymer concentration to a low level and help eliminate proppant flowback ensuring the frack can be stabilized.

Poland's Largest Successful Multi Stage Simulation

3Legs, ConocoPhilips and Lane Energy have conducted what is Poland's largest multi-stage shale simulation. By identifying the correct fluid combination, it appears 3Legs have found a way to keep the proppant in suspension and thus ensuring more proppant gets into the rock structure and penetrates much further (Lublewo delivered 7.7 million lbs of proppant over the 25 stages executed across 1,469 metres out of the available 1,495 metres of lateral section) By using the hybrid gel combination, they have used less water, a factor that is significant in that it reduces costs by making clean up much quicker.

Raises Investment Interest in San Leon's Lewino-1G2

The other reason why this news is so significant is the Baltic Basin concession owner Lane Energy Poland Sp. Zoo where 3Legs and ConocoPhilips hold a 30% and 70% interest respectively, contracted the Polish company United Oilfield Services (UOS) to drill and frack the Lublewo well. This is important as it means the on the ground experience in Poland's drilling sector is now gathering pace and where these experiences will certainly be transferred to other companies like San Leon Energy (LSE:SLE). Indeed this news by 3Legs puts a real spotlight on San Leon's Lewino-1G2 well, which successfully flow tested in January and is now ready for a horizontal well to be spud and where I understand UOS will likely be contracted to spud Lewino (UOS did the successful flow test). I would suspect that San Leon would be approached by a major who off the back of this news by 3Legs would want to have access to one of Poland's most advanced shale gas wells, where it too could employ similar techniques to bring Lewino into production pretty quickly.

Raising Valuations
On a final note, surely the news out today significantly raises the valuations of Poland's shale gas acreage. It has been as high as $500 per acre and is today valued at $50 an acre but where a more reasonable valuation after this latest news must be ranging from $1,000 to $2,000, in contrast US shale gas acreage is valued at circa $38,000 an acre. San Leon has interests in nearly 5 million acres of land in Poland of which 1.2 million acres is pure play shale gas.
Shares in both 3Legs and San Leon are up this morning on the back of this great news.

André Morrall
Brand:Petrogas

[imabastard] 01/8/2014 13:03

HP .... I translated the 7.5 million pounds, when listening to the audio as £ notes, incorrectly.

If you read the RNS, it states 7.7 million lbs (weight) of proppant, so apologies for unintentionally skewing the info, pre RNS.

As an aside, it looks like you might have the first commercial shale Gas well in Poland here. BNK's update, which has only taken off 21% of the fracking fluids so far, due to mechanical issues and BNK are correcting this now. This means that BNK's Gas flows could increase many times over once all of the fracking fluid is extracted. BNK only succeeded on 9 of their 20 fracks too. So, with only 45 % successfully fracked and also only 21% of the fracking fluid extracted, they are getting an average of 300,000 cubic feet of Gas a day, with spikes of 1 Million cubic feet a day.

Applying logic, if all fracks had been successful, the Gas flows could have been averaging at 650,000 per day with spikes of 2.2 Million, with only 21% of the fracking fluid extracted. With all of the fracking fluid extracted, BNK could be averaging 3.25 Million cubic feet a day with spikes of 11 Million cubic feet a day.

A commercial well for Shale Gas ranges between 1.5 Million to 2.5 Million cubic feet per day.

Your Lublewo Horizontal at 3Legs has successfully fracked 25 stages (stated in the RNS) .... nearly three times that of BNK.

My guess, based on that, is that the 3Legs well will be the first commercial shale Gas well in Poland .... and it could be cleaned up and announced in weeks if the pressure of the Gas is great enough.

The SLE Horizontal, I understand, is to follow a few months later.

Regardless of who gets the first commercial well in Poland, it's going to lift the sectors profile and the values of any stock within it.

I wish you all the best with it.

[hugepants] 01/8/2014 10:57

News today. Sounds promising but the market is not very excited!



Shares are 21.75p to buy with the results of this frac due in the coming weeks. Then there is also the fracking of the San Leon lateral well due later in the year which could also add value to the acreage.


...we currently anticipate a Group cash position of approx. £17 million at end Q3 2014, equivalent to approximately 20 pence a share

[imabastard] 31/7/2014 18:57

For info folks ....



In the Conoco audio quarterly report tonight ....

"In Poland, we recently safely completed a 25 stage, £7.5 Million, hydraulic stimulation of the Leblewo well and will shortly put the well on an extended Flow Test."

[hugepants] 31/7/2014 11:19

BNK operations update. Their horizontal well seems to have had a few issues and current flow rates look low (about the same as 3Legs first effort)

30th July


Poland

As previously announced, the Company successfully placed proppant in 9 of the 20 stages attempted in its Gapowo B-1 horizontal well, and is continuing its recovery of the fracture stimulation fluid ("fluid"). Mechanical issues with the artificial lift equipment resulted in a fluid recovery rate that was slower than anticipated. The mechanical issues were corrected late last week, and fluid recovery re-commenced at higher rates. As of this date, 21% of the fluid has been recovered, with continuous natural gas being produced from the well.

The well has had gas rates spiking to over one million cubic feet per day for short periods of time, and is currently averaging between 200,000 to 400,000 cubic feet per day. These gas rates may continue to increase as the well continues to unload fluid. The preliminary flowback and gas production results obtained so far indicate that the fracture stimulation may have achieved a lower than desired effective permeability. The Company believes that only a few of the 9 stages may have been successful in creating the desired conductivity. Downhole pressure recorders were installed which will provide further information during the continued flowback. This data will also help in understanding the stronger-than-expected build-up that occurred during the period when the well was shut-in for mechanical repairs.

[g1lo] 22/7/2014 18:20

punk - SLE is just next block south east and just next block north of BNK s one. Any idea if the 3Leg well is currently being fracked? would an RNS have to be issued?

hxxp://www.bnkpetroleum.com/operations/europe/poland#

[punkfeelinglucky] 06/7/2014 14:07

I take it the san leon wells are close to the 3leg wells is that your point?

[gwatson56] 03/7/2014 17:39

Interfax: What's the drilling situation?

OF: "BNK are in the middle of cleaning up a horizontal frack they've just done, and we should hear from them soon. And then ConocoPhillips and 3Legs are fracking next week I believe, so they are the first two big horizontals that have been done in three years – one after the other."

So............. not long now, suspect an RNS to announce fracking. Then wait a month or so then ... flowrates...

[gwatson56] 12/5/2014 09:49

So all eyes on BNK. Gapowo will be in lock down as if the well is commercial this will have implications on lots of interested parties from the majors to the minnows. Acerage pricing will shoot up. Not sure if BNK will announce the results of Frack 1 straight away as once the frack fluid has been recovered the gas will need to be tested for quality and flow. I am reckoning on early June.

[hugepants] 09/5/2014 09:27

update from BNK (8th May)



"...After successfully drilling and casing the horizontal re-entry of the Gapowo B-1 well in Poland during the first quarter, the Company began fracture stimulating the lateral on May 8, 2014. The stimulation was delayed by a number of days due to issues with a sub-contractors equipment which has since been rectified. The plan is to fracture stimulate approximately one third of the 5,900 feet of lateral and immediately flow back the fracture stimulation fluid and then test the stimulated portion of the lateral..."

[rbcrbc] 08/5/2014 14:03

Damille Investments II Limited own 12,735,000 which is 15.02% so I guess it was they.

But why ?

[adam] 08/5/2014 13:18

2. To re-elect David Bremner as a Director of the Company



Against 12,735,000

Why?

[philo124] 30/4/2014 14:40

79p Buy Broker recommendation.

[hugepants] 30/4/2014 10:31

Long lateral completed successfully and strong gas shows detected. Frac due to start in Q3



BNK should be fraccing their lateral now so may get news on that next month.