Block Energy Share Discussion Threads

[tim000] 06/4/2019 12:13

Thanks LOO, that's some very useful info I wasn't aware of. However, I still maintain my position. Apart from the upgraded infrastructure, there's the drilling campaign to finance. Cash balances are running low. Obviously 1000 bopd helps, but that won't accumulate a cash pile overnight. As I understand it, they're behind schedule with drilling the first two sidetracks, which (a) delays revenues and (b) drains cash reserves owing to G&A. Since any capital raise won't be significantly dilutive, it's not a major issue either way. But I bet there'll be strong institutional demand at the moment, and the saying goes that if an AIM company is offered cash, it's a mistake to turn it away. Cash reserves provide flexibility. So I'd be happy to see a small placing. I guess what I'm saying is that PIs shouldn't be surprised nor disappointed if this happens. It would be for the long-term benefit of investors.

[costax1654x] 06/4/2019 12:08

I have shares in Bloe...

[letmepass] 06/4/2019 12:01

He tried to ramp HNR for months but price fell from 40p to 10p

[markstevenkirby80] 06/4/2019 11:58

Putin Thon it

[lastoneout] 06/4/2019 11:58

Tim regarding the capital raise you can never say never of course but at this point I would venture a "not so sure". From the RNS announcing our 100% take over of WR it was stated that we were originally committed to spending a max of $1m to upgrade the facilities at WR but now wouldn't as the existing facilities were fit for purpose. They were clearly surprised at getting 1100 bopd from 16a so perhaps the facilities are now not so fit for purpose! But they have a plan to tanker the oil away which is doable in the short term. Just thinking that given the amount of cash we will be spinning off in fairly short order we could pay for the facilities upgrade out of that?If 38 and the following 3 sidetracks come in like 16a then of course "we're going to need a bigger boat" :-)As for the gas facilities the take off partner "Bago is considering financing wholly, or in part, required gas infrastructure at West Rustavi, including pipeline tie backs to local infrastructure and gas processing plant solutions." This is just a MOU of course so we will have to see what the final deal isAll speculation at this point of course. The future does look very promising though

[goodbloke1] 06/4/2019 11:57

Costax wants in cheaper as usual hence The deramping

[muddyfox0151] 06/4/2019 11:49

The Russians are coming for it :)

[costax1654x] 06/4/2019 11:07

You don't really believe that it will stay at 1100 barrels!???No offence ...I'm just hoping that it will go nice and easy,no pump and dump!!!

[graylyn1] 06/4/2019 10:38

Yes a fund raise would be a good move if recent results please, raise cash and start to fast track the project price would go nuts imo.

[tim000] 06/4/2019 10:33

I'm expecting a capital raise within the next three months. Indeed, the targeted ramp up of production this year implicitly assumes one. Nothing wrong with that however, indeed I'd welcome it. There's a lot of capex to finance and the sooner they get on with it the better. In my view, this company has the most exciting prospects I've seen in a long time. That's partly because (as others have pointed out) the costs of bringing back into production existing shut-in wells is so much less than drilling new ones. And amazingly, BLOE is targeting a 100% WI in West Rustavi. How often do you see a tiny, newly-listed AIM company have ownership of such prospective assets (as reflected in the $1 bn + gas prospects)?

[graylyn1] 06/4/2019 10:29

A bit of week end reading, enjoy.

[wrtmf] 06/4/2019 09:28

they are 'underwriting' the company costs, providing a sound footing for the more exciting wells and lessening the need for raising funds. steady income. wells quick to turnaround.

[well 38 will be more akin to well 16a]

i was careful to say, 'what's filling the coffers and what's high impact'.

[goodbloke1] 06/4/2019 09:11

How can the updates you mentioned involving a few tens of barrels a day have a significant effect on share compared to the recent update in well that was over a 1000 barrels a day!

[wrtmf] 06/4/2019 08:37

new holders this week - i thoroughly recommend reading the rns going back to the autumn last year to get a feel for the pace of progress, what's filling the coffers and what's high impact.

as many as 4 rns in the next 2 weeks?
-well 16a update
-norio update [3-4 wells producing for 80bopd? breakeven at a 100bopd i seem to recall]
-well 38 ops start/progress
-developt strategy beyond well 38 [maybe deep gas well drilled in summer=high impact]
[-an updated company presentation probably better coming after well 38 complete]

--

last update on norio - 7/3/2019

Norio 44 rising daily to reach 21 bopd on the most recent day for which figures were available (Wednesday 6 March 2019). [perforated]

Norio 27 well has tested at 26 bopd. [perforated]

Norio 39 has also been perforated. A further update will follow after the well has been put on production.

Norio31 - The Company now looks forward to commencing workover operations at Norio 31, which is currently producing approximately 10 bopd. The well, which initially tested at 800 bopd when first drilled in 1950, has since been a consistent producer, and has produced more than 400 Mbbls during its lifetime.

--
[a few here will be wishing this was 88e/rmp/panr a month back or they'd bypassed them and come straight here! chin up!]

[costax1654x] 06/4/2019 07:12

Rre has a 25000 barrels per day and probably after suspension an200 mil mcap...no debts!!!So ...Bloe with 2000 barrels will have a max of 30 mil mcap!For the start

[spangle93] 06/4/2019 02:30

Good catch, LastOneOut, the change of equity would also increase net production by roughly 4/3, which I hadn't considered in the previous post.

The two rigs could be used in tandem, if cash flow from production supported bootstrappable operations, e.g. as you saw in twitter, you don't need a rig to test a well, so the workover rig could be used to run post-test completions, and re-enter wells to conduct integrity tests, while the drill rig bashes on with the abandonments and sidetracking.

Also, if there's no rig at 16A, I wonder if it's already on the next sidetrack? I guess it might be stuck waiting to run the upper completion if the A50 rig is at Norio, but wouldn't it be a plus if the drill rig were already working on the next development sidetrack.

[lastoneout] 05/4/2019 23:55

Spangle I think the change in equity part of your post is keyA couple of things I picked up tonight after a bit more reading are that firstly the 6 month fixed price drilling contract we currently have with GOG cost us $500k but the optional next 6 months comes in at $250k (from the Novum report). Secondly we have not 1 but 2 A50 workover rigs available to us (from 24th Sept RNS). The A50 rig is apparently suitable for re-entering the legacy gas wells. Have a feeling things could move very quickly if the results go our way.

[spangle93] 05/4/2019 23:12

@78steve 1015
Their aim is to get to 2,500 bopd production this year I believe.

Steve, the link to the corporate presentation is down on the BLOE site, but initially 2,000 boepd was due 24 months after IPO (July 2018), whereas both sidetracks should have been completed by 1Q. So your target is probably a stretch too far.

However, perhaps things can be accelerated given the change in equity recently announced in WR, which gives Block the initiative to develop the field at its preferred pace?

[traderbus] 05/4/2019 21:20

Just posted this in LSE as well...Being no expert in the black stuff...normally accustomed to investing in dust bowls, if the RNS drops what are we expecting it to say, realistically, no unicorns and rainbows. And what is likely to be the impact from the results. Not interested in trying to second guess the share price but what could it or will it do for the Mcap and the company? How will it have a greater impact then what we have seen this week? Sorry for the questions. Trying to learn!

[lastoneout] 05/4/2019 20:07

So sometime around the end of June Angus will be where we are now. By then of course we'll likely have 2 wells in production and quite probably have the Norio rig working on the first of our gas wells. Think I'll leave my money here :-)