Harbour Energy Share Discussion Threads

[crystball] 27/6/2019 07:46

This is great news regarding Zama.

[steve73] 27/6/2019 07:44

Not clear whether that figure is for the entire field, or just the Block 7 portion. No doubt Pemex will try to secure a preferential deal when unitizing it.
Still, it's a good result, a little better than is already included in our valuations, and so should give us an uplift... although we will now need to consider how we will finance our share, so it could easily work against us.

I'm not planning to add or reduce on this news though.. Just keep on keeping on..

[molatovkid] 27/6/2019 07:43

I think a good day will be in the offing given this massive boost to PMO...should set the scene for a rise to £1 in the near future,

[stockport loser] 27/6/2019 07:39

Zama is worth $500m min to PMO pre capex. The issue is unintisation and when that will be finalised. Anyone have an idea of the % they will take given on the geography?

[ny boy] 27/6/2019 07:38

Just have to be patient with these, happy holding.

“has caused us to significantly upgrade our resource estimates of the Zama structure”.

[fadilz] 27/6/2019 07:37

Zama or Sealion - can they do both? Hm...

Net to PMO
Zama cost $450m (1.8*0.25), barrels: 200m (800*0.25)
Sealion cost $900m (1.5*0.6), barrells: 120m (200*0.6)

[adg] 27/6/2019 07:30

Our share of that on its own near justifies the best part of the current PMO market cap...
This world has gone crazy - just click on ADVFN header and look at the mkt caps of all the bitcoin Variants it is truly astounding and none of it is actually real - look at the actual companies that should have much higher caps and there are many - sense will soon prevail (hopefully!)

[longwell] 27/6/2019 07:28

Learning as i go with oil companies.looks like great news that will generate positive newsflow going forward.first big investment in sector for me so happy with pick.

[molatovkid] 27/6/2019 07:22

RNS

Premier is pleased to announce that it has significantly increased its resource estimate of the Zama field offshore Mexico, following its evaluation of the data acquired from the highly successful Talos Energy-operated Block 7 Zama appraisal campaign. The campaign comprised two appraisal wells (Zama-2 and Zama-3) and a vertical side-track (Zama-ST1) which was flow tested.

The latest appraisal well, Zama-3, has proven the lateral continuity of the reservoir 2.4 kilometres to the south of Zama-1 with the quality of the reservoir sands encountered at the upper end of expectations.

A comprehensive set of data was acquired during the campaign, including high resolution wireline logs, extensive fluid sampling and pressure data, together with the recovery of over 400 metres of core and a drill stem test to confirm well productivity.

The data has demonstrated reservoir properties at the upper end of expectation, including a higher net-to-gross ratio, better porosity and increased hydrocarbon saturation. This has resulted in a higher estimated oil-in-place and ultimate recovery from the Zama field. Consequently, Premier has refined its gross resource estimate of the Zama structure to 670-810-970 mmboe (P90-P50-P10).

Tony Durrant, CEO, commented:

"We are delighted with the results of the latest Zama appraisal well which, together with the positive results from the earlier appraisal wells, has caused us to significantly upgrade our resource estimates of the Zama structure. Our focus now turns to selecting the optimal development for the field, ahead of taking a final investment decision next year."

[molatovkid] 27/6/2019 07:19

Sounds like good news!

[deans] 27/6/2019 07:11

Thanks from me as well.

[steve73] 27/6/2019 02:49

Thanks WitJ, I've given that post some +1 to keep it at the top of the posts for a few extra days...

[xxnjr] 27/6/2019 00:29

so likely to be 600 - 800 MMboe then.
or putting it another way, the appraisal program seems to have added at least 200 MMboe.

[whiskeyinthejar] 26/6/2019 23:40

Talos Energy Completes Zama Appraisal Program

HOUSTON, June 26, 2019 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today provided an update on the Zama appraisal program in Block 7, located in the offshore portion of Mexico's prolific Sureste Basin. Talos is the operator of Block 7 in a consortium (the "Consortium") with its partners Sierra Oil & Gas, a Wintershall DEA company, and Premier Oil.


The Zama-3 appraisal well is the third and final appraisal penetration drilled by the Consortium to better define the resource potential of the Zama discovery. The Zama-2 and Zama-2 ST1 appraisal penetrations, both drilled in the first half of 2019, generated results that met or exceeded the Consortium's expectations. The Zama-3 well was drilled approximately 1.5 miles (2.4 kilometers) south of the original Zama-1 location with the goals of testing the southern extent of the reservoir and capturing additional reservoir description data.

The Consortium is continuing to evaluate the full universe of data and samples collected from its four penetrations of the Zama reservoir, including approximately 1,450 feet of whole core, fluid samples from 30 separate points in the reservoir, 180 pressure points, 25 logging runs and two extended flow tests, with the goal of integrating this data with internal models and sharing it with external auditors to produce an updated contingent recoverable resource report by year end. However, based on the preliminary information collected to date, Talos expects the updated value will fall in the upper half of the previously provided pre-appraisal guidance range of 400-800 MMBoe.

The results specific to the Zama-3 well were as follows:

The well was drilled downdip of the Zama-1 well, allowing the well to penetrate the oil-water contact in the southern portion of the field, consistent with the geophysical flat spot seen throughout the downdip edge of the reservoir. The well logged approximately 1,000 feet (greater than 300 meters) of gross true vertical depth ("TVD") sand and 748 feet (228 meters) of gross TVD pay bearing section, consistent with expectations for the southern extension of the Zama reservoir. The net to gross ratio across the entire pay section is consistent with prior penetrations, with Zone 3 significantly exceeding expectations with a net to gross ratio of approximately 85-90%. Zones 3 and 4 comprise the majority of the Zama resource potential.
Talos captured 717 feet (219 meters) of whole core with 99% recovery, breaking its own record for the longest whole core from a single well in the history of offshore Mexico. The additional core samples will provide critical information to assist the Consortium in evaluating expected recovery factors, completion techniques and other details to aid in optimizing recovery in the Zama field.

Operations for the Zama-3 well were concluded approximately nine days ahead of schedule and within budget. The entire three-penetration appraisal program was finalized 39 days ahead of schedule and under budget. The appraisal was conducted without any lost time incidents or environmental issues over approximately 600,000 man-hours. Local contractors and service providers were again critical in delivering positive results for the Consortium.

The Consortium is simultaneously advancing both its front-end engineering and design ("FEED") work streams as well as unitization discussions with Petróleos Mexicanos ("Pemex"), with the aim of making a Final Investment Decision ("FID") on the project in 2020, pending required government approvals.

Talos President and Chief Executive Officer Timothy S. Duncan commented, "Based on the preliminary results of our appraisal program, we have confirmed the combination of outstanding subsurface properties, significant recoverable volumes and attractive economic potential that have already made Zama a globally-recognized asset. The match of the preliminary well data to our geophysical model suggests that we have a gross recoverable resource in the upper half of our pre-appraisal guidance range of 400-800 MMBoe. With the collaboration of our Consortium partners, Pemex and the Mexican government authorities, we look forward to reaching FID as soon as possible and then turning our attention toward first oil. I'm extremely proud of our operating performance throughout the exploration and appraisal program, and we are excited to advance the project to full realization in the near future."

[adg] 26/6/2019 22:17

The 900m figure I mentioned earlier for the PMO tax loss credits was from memory from PMO themselves when I asked what the estimated actual value of the £3b or so was estimated to be worth in real terms
The average circa 160p broker targets was posted recently with the covering brokers targets on either here or LSE bb

[colebrooke] 26/6/2019 15:50

Market inventories of crude oil declined by 12.8 million barrels (mmb) in the week ended June 21, nearly 5x more than market consensus (-2.5 mmb). It was the biggest drop since the Sept 2, 2016 week (-14.5 mmb) and third largest since the EIA began publishing in Dec 1994. #OOTT

[colebrooke] 26/6/2019 15:45

From Oilytics:#EIA Crude Stats: A huge -12.8MM draw as crude production declines by 100KBD for the 3rd week in a row, despite a high adjustment factor. Record high crude export number and the 5th wk in a row when its above 3MMBD.

[colebrooke] 26/6/2019 15:33

#EIA (wk ending 21 June)Crude: -12.788MCushing: -1.746MGasoline: -0.996MDistillates: -2.441MMassive draw

[osirisra] 26/6/2019 15:14

PMO not collapsing after the 75c straight drop in POO earlier and then climbing as POO has a tentative recovery. Could we have turned a corner? Extremely out of character.

[whiskeyinthejar] 26/6/2019 14:42

I think it's nonsense to use market capitalization to value pmo or use it to compare to other companies.

To buy pmo, you have to buy the debt too. So if you want to value the company it's the Enterprise Value that you need to consider.

Anyway, brokers build the tax advantage, decommissioning, oil price, growth plans etc into their NAV calculations. So nothing is kicked down road.

It's NAV brokers use when they say pmo should have target of £1.70. Or rather RENAV (Risked Exploration Net Asset Value).

The problem is that the only thing PIs often see is the target price, and just wonder why the target price hasn't been met. But the target price is meaningless unless you have some idea of how it's calculated. eg UBS base case of £1.70 includes a calculation that Sea Lion has a 35% chance of going ahead. Is this reasonable? I think Sea Lion will almost definitely go ahead, but everyone can make their own judgement.

[stockport loser] 26/6/2019 11:39

Because many PIs use the tax allowance as a factor when looking at the SP, as in seeing it as potential market cap, but on the other side of the sheet PMO has been kicking the decomm costs down the road.

[beatley] 26/6/2019 09:59

I'm not sure what you mean. They're two independent lines on the balance sheet, I’m struggling to see how they're connected?

The tax asset is hugely valuable when you take into account the amount of profit we’d have to earn to fully utilise it.