Eco (atlantic) Oil & Gas Share Discussion Threads

[rayrac] 28/11/2018 08:15

Yes, I concur with that too!

[ltinvestor] 28/11/2018 07:53

“Beginning of an exciting period”Gil.I would concur with that statement....

[itsyou] 23/11/2018 07:25

Tullow sets sights on Guyana wells drive

Tullow Oil is closing in on a multi-well programme off Guyana next year that may see it drill two wells on its own block as well as partner with Repsol on another probe, writes Eoin O’Cinneide.

Tullow aims to start the programme in the middle of next year, with one well likely to be what is effectively being seen as an appraisal of ExxonMobil’s Hammerhead oil discovery on the prolific Stabroek block next door to its own operated Orinduik tract.

Tullow chief executive Paul McDade confirmed for the first time that the company is hoping to find that connection.

“We think Hammerhead may extend into our licence. So, if it were to, we could drill an appraisal,” McDade told Upstream, adding there is the potential for two wells on Orinduik in 2019.

McDade said Tullow has yet to firm up details of its drilling programme, but said “we have a lot of choices” between prospects on the block, where the company holds a 60% stake alongside Eco Atlantic Oil & Gas on 40%. However, Eco’s stake will fall to 15% following a recent farm-in by Total.

A competent persons report submitted in September by Eco said the block has gross prospective best estimate resources of 2.9 billion barrels of oil equivalent recoverable, comprising nearly 2.5 billion barrels of oil and 2.45 trillion cubic feet of associated gas.

The 10 leads identified so far have prospective best estimate recoverable resources of between 30 million and 670 million boe, with an average of around 290 million boe.

One prospect, which is understood to be close to Hammerhead, is called Latuk (formerly Amalia). Tullow will also participate in a likely one-well programme on Repsol’s Kanuku block, where both are on 37.5% and Total on 25%.

[jimarilo] 22/11/2018 22:48

Total have a rig being towed all the way from the N/sea to drill in South Africa with AEC

The rig not mentioned here is to berth in Walvis Bay first week in December before moving to the drill site in S/Africa

As Total have the deepest well in Africa to drill in Namibia, this would seem to me to be the rig that could do the job (3000m water depth)

It is a 1 well +1 option, wouldn't surprise me if this rig follows up with Totals well in Namibia

[jimarilo] 18/11/2018 09:11

Need to subscribe, but has a free 14 day trial

Here is a report from the AOW and below is regarding Namibia

ExxonMobil has already farmed in to one block in Namibia with Portugal’s Galp Energia and is just finalising another farm-in with Azinam, while the latest entrant is US independent Kosmos Energy, which has taken a large chuck of Shell’s operated PEL 39.

Whispers in Cape Town suggest another international major lining up a farm-in deal within months.



"Another International Major lining up a farm-in deal within months"

Here is a link to recent news in Namibia

[soulsauce] 16/11/2018 23:46

Exactly Divmad.

hiddendepths pay no attention to hangman no one else does.

[hiddendepths] 16/11/2018 15:47

mr hangman - you and the others did well to spot it early! Kudos!

FWIW I'm an ex oil man, then oil analyst who burned out young and was told by the medics that I couldn't work any more (ever). So, apart from writing occasional bits of research for smaller brokers until changing regulations meant I was no longer qualified, I ply my trade for myself rather than advising institutions. It's a living and far less stressful than an actual job! I have built up enough that I don't need to trade and can indulge my natural inclination to be a long term fundamental investor.

[mr hangman] 16/11/2018 13:01

Some of us where buying under 20, well before the "professional investors" turned up

[hiddendepths] 16/11/2018 11:26

Picked up 11k at 45.075. The last three trades have been buys despite looking very much like sells.

There's clearly stock available from the ongoing seller. I've been in this game (the last 22 years as a professional investor) and like buying when a share price is depressed by a big seller. It doesn't mean the market doesn't like the stock, just that someone for their own reasons, probably unrelated to the company, has a need to sell. When they finish, the share price will normally head back to a more normal equilibrium level.

[hiddendepths] 16/11/2018 10:53

The seller's persistent, that's for sure!

I feel tranche number 3 coming on....

[itsyou] 15/11/2018 15:22

Hess presented today at the Bank of America conference in Florida.

Here's the transcript from the Q&A session relating to hammerhead...

Q) So if we thought more about exit rates in 2023, where does Hammerhead fit in the equation?

A) Gregory P. Hill, Hess Corporation - President & COO

Yet to be appraised. So we still have to do some more appraisal. I think Exxon, also talked about the potential to accelerate Hammerhead. So it could be Phase IV. Why is that? Because it's shallower. A little bit easier development potentially. But we don't really answer that, Doug, until we get it fully appraised. And we will appraise Hammerhead next year, and then that will determine where it is in the queue and what's the phasing and timing of that.

[hiddendepths] 15/11/2018 15:08

Divmad - there's need for several appraisals if it's as areally as big as it appears. The field needs to be delineated to ensure it is developed properly. At the moment I doubt that they even know where the thickest sands are.

Great post itsyou. Many thanks.

[divmad] 15/11/2018 14:47

itsyou,

Does it make more sense for XON/Hess to collaborate and plan together with TLW/Total on Hammerhead-1 on the assumption the discovery overlaps both blocks? No point in them independently putting down two (appraisal) drills a bare minimum of kms apart, is there?

[soulsauce] 15/11/2018 12:10

Nice post thanks itsyou. Hopefully the oil price will hold up enough for us to take full advantage of the prospect.

[itsyou] 15/11/2018 10:34

"The easy money would be made if Hammerhead extends into Orinduik."

It could well be according to H&P

"based on the seismic it looks like a large part of the structure could be up dip on Eco’s block".

H&P then estimate half of Hammerhead is over Orinduik.




Gil alludes to it to, as he has done before stating that it'll be more of an appraisal well and their first well, whilst obviously being cautious in this interview as TLW are the operator.




Hess think it's "massive" too

"Speaking on a 3rd quarter earnings call on Wednesday, Hill said Hammerhead is a massive accumulation and very thick sand package. “In fact, it’s the thickest single sand package that we drilled on the block. It’s a very large structure so it’s going to require some additional appraisal. What we can say is that the results of the DST were good, meaning that the reservoir quality is excellent and the reservoir seems to be well-connected.”

He was at the time responding to a question from Doug Leggate – Bank of America Merrill Lynch, who queried about the company’s plans to potentially fast-track Hammerhead to development stage. Leggate also wanted to confirm that the Hammerhead discovery was an addition to the already estimated volume of more than 4 billion barrels of recoverable oil found on the block.

“You’re right to say that Hammerhead’s accretive to the 4 billion barrels and it could jump the queue in terms of being ahead of some of the other phases that were on the Turbot cluster, but it’s too early to say that because we need some additional appraisal before we make that final decision. But, again, it is accretive to the 4 billion barrels,” Hill said in response."




Actual Hess conference call(from 27mins)




Finally, the first well on Orinduik could potentially target two zones. First the higher up and younger Tertiary zone where the Hammerhead discovery is, then lower down in the older Upper Cretaceous zone, where Latuk-D is, which has P50 resources of 600m barrels.

[hiddendepths] 15/11/2018 10:03

I guess that remains to be determined. But they do stress that Hammerhead is only 7 km away from Orinduik so I'd be most surprised if they don't shove at least one well down close to that. The easy money would be made if Hammerhead extends into Orinduik.

[divmad] 15/11/2018 07:39

So will that be 2 + 1 wells in Guyana (Orinduik, Kanuku), or 1+ 1 , or 2 + 0?

[hiddendepths] 15/11/2018 07:05

From this morning's operational update from Tullow, in the CEO's main overview paragraph:

.....and are finalising our 2019 exploration programme which we expect to include high-impact wells in Guyana.

And in the bullet points in the Trading Update Summary:

-- Multiple attractive prospects identified in Guyana acreage with drilling programme expected to commence in mid-2019

And in the New Ventures section:


South America

Guyana will be the main focus for Tullow's 2019 exploration drilling programme. Following the interpretation of extensive 3D seismic, multiple high-quality prospects have been identified across both the Orinduik and Kanuku licences. Furthermore, the success of the neighbouring Hammerhead-1 well in August 2018, only seven kilometres from the Orinduik block boundary, has further de-risked this acreage. Planning continues to determine which prospects will be selected for a drilling programme across both licences that we expect to commence in mid-2019.


It seems that Guyana is far and away Tullow's top drilling priority!

[hiddendepths] 14/11/2018 13:02

Seller still around, being flexible on sell price in line with prevailing sentiment.

I took the opportunity to get my second tranche. Will keep looking for more opportunities to top up. Oil price is rebounding a little today so oil shares are recovering somewhat after the savage POO sell-off last night.

[jasonsd1970] 14/11/2018 12:22

Taken a hit this morning because of overnight bloodbath with Brent, a nice opportunity to top-up

[davwal] 13/11/2018 10:44

Buying opportunity alert..!

[jimarilo] 12/11/2018 23:12

Kosmos and Shell launch alliance in Africa

New partners seek out exploration targets off southern West Africa

[hiddendepths] 12/11/2018 11:50

Seems the ongoing seller is still around this week. The good news is that he/she seems to have a 50p limit. I would imagine that once that stock's all been shifted the share price will have a jump - oil price permitting!

Tempted to top up today rather than wait for my target price. I'll think about it for an hour or two!

[rayrac] 10/11/2018 11:02

Helima Croft, of investment bank RBC Capital, said China may prove to be a distraction from the US clampdown on Iran. “We’re in a bear trap over fears about China,” she told The Daily Telegraph this month.
She said there is “a path to $100 a ­barrel” once the risk of a Chinese slowdown gives way to the reality of the US cuts to Iranian oil exports.
“Either way you cut this, we’re ­already down a million barrels from spring and we have several hundred thousand barrels left to go. That is a ­material importance for the market,” she added.
Goldman Sachs’s Jeff Currie warned the US is likely to bring in steep cuts to the waiver allowances by 50pc each 180 days. This compares to 20pc cuts from president Barack Obama in 2012. Mr Currie said oil prices are likely to bounce back to $80 a barrel before the end of the year.
Should prices continue to fall, ­members of the Organisation of Petroleum Exporting Countries may agree to prop up prices by limiting their own exports. The market monitoring arm of the cartel is due to meet this weekend and may recommend a tighter grip on the market in 2019, according to reports.