It is worth listening to the June presentation again as the CO2 issue was was discussed more in that presentation. 2A is outside the CO2 areas |
I thought the same and a very good idea to remind everyone. The low CO2 in shallow gas samples is another major benefit for 2A in comparison to neighbouring blocks to the SW in the CO2 belt (i.e., no need for CCS, lower production costs) |
Thanks SIRC and just a reminder as it wasn't touched on today ..it seems 2A doesnt have a CO2 problem which some gas structures have in that area. |
Cash - from my perspective the critical risk (as mentioned by James today and ERC) is seal integrity. From my perspective, for what it's worth, as an experienced industry geologist there is a misnomer that a seal can be "bust" so gas clouds are bad news. Seals don't work like that, they're more like pumps that will open once pressure builds, and close once the pressure is released. The gas cloud likely tells us there is a very prolific source rock recharging the structure - James said similar today, in between the lines. These guys are good and I genuinely think 2A has a much higher CoS than 22%, particularly given the nearby megastructures with gas clouds above them |
I'm very much a laymen at this, but in the summer time they were talking about the seal being broken, and that all the gas could be gone. I think that's what they meant, they won't know until drilled.
However the DEWA cluster now underpins this company. They have a known resource. |
Zengas et all,I've been trying to knock holes into the thesis behind 2A. But yet again, given the presentation today, the case is very robust.What are the key unanswered geological risks as you see them?Cash |
I have to say I had a lot of time for Helge.
A straight up and down guy ..maybe a bit dull but you always knew he was competent and honest . |
Yeah I agree on that. They were absolutely loving it. I reckon this pivot and what's coming has them very excited .. as we are! |
Quite apart from anything else while watching the presentation today I was just thinking that those 3 guys are just consummate professionals who aren't just good at their jobs ..they really love what they're doing .
They have a perfect springboard now to do something really special for themselves and their shareholders.
The only risks now are geopolitical .
Equally if you turn that on its head you would want to have to have a small position here at least to hedge against that.
I really was most impressed today .
GLA ..roll on that 2A farmout ! |
I dabbled and lost with this share in the 90p - 130p range back in late 2020. Everybody was piling in with their RockRose Energy winnings at the time, pushing up the share price, in anticipation of Helge Hamster pulling a rabbit out of the hat. (Turned out his hat was just full of hot air...)
After watching the presentation today I am now back - back with a vengeance baby
Some opportunity here, with the shuffling of the pack, the old IIs leaving, and before new ones arrive.
JM may have done the deal of his life by getting Block 2A off of BHP. Getting the DEWA cluster for free aint bad either. Hell - he's even got Nick Ingracious smiling and sounding like a man with a purpose!
One thing is very clear now - James Menzies is everything that Helge Hamster isnt.
And Seascape Energy is everything that Longboat Energy wasnt. |
They were obviously limited in what they could say about the Block 2A Farm-Out. But they show it on the timeline as being announced before year end. So sometime in the next 9 weeks.
That will be a big catalyst! |
Hope so Junga - they've been one hell of a drag on the share price.Was also great to hear from the horse's mouth today that share dilution is to be avoided, and that they are confident of arranging other funding sources to bring the DEWA resources to market. |
This isn't even back to here it as in Sept. and that was with no deal yet signed. |
Probably our seller since July is done? |
Company assets now better than ever before. Share price yet to get the memo... |
Time for some rerating |
added today |
Looks like the overhang has cleared |
Only 57.1m shares in issue. So at current 16p, valuation is just £9.1m.
Crazily cheap now they've been awarded the DEWA Production Sharing Contract. |
This transaction seems to be as close to the very opposite of the truism, "there's no such thing as a free lunch" as you can imagine! |
 My notes
DEWA -
Hugely transformational at zero cost for those resources.
500 Bcf in place (3-400 bcf recoverable).
'A lot of upside beyond those figures'.
Also a lot of low risk fault blocks to be tested yet.
'There is hard value in those - now underpinning the company.'
'Lots of options under consideration -'negate any need for equity'
Build a train of these opportunities (in what's being looked at post DEWA).
-----------------
Kertang on Block 2A.
Mentioned the 3 other analogue type fields that had gas chimneys etc similar to Kertang.
Gas coloumns are huge in those fields - the 450m in one being higher than the Pertronas towers. The other 2 fields with 800m and 1km columns.
Kertang modelled at around 600m - potential upside could be 3.7 billion boe (why i said this was a 'Cove' like play for value months ago - see the £14.65 estimate for 1.7 billion boe).
Expect a transaction announcement this quarter.
Worth mentioning in previous presentations (not covered in todays) - other major prospects in 2A beyond Kertang if a success.
------------------
My take as ever - DEWA+ expected resource upside are company making as Malcy himself opinioned on yesterday and with further opportunities of similar likely - so this is only the beginning of material resources/reserves growth coming in at zero cost wheras others have to use the drill bit first to find those BOEs. Hoping for a 10 bagger from these levels on that basis (which is barely £90m m/cap at current shares in issue implying a future 30 mmboe). This is the underpinning of the company on those.
Kertang - entirely blue sky opportunity. |
https://youtu.be/tb56KHNYrzU?si=am9wwh4LncH-MM5QOn Youtube |
Happy with that presentation. The real key is to get 2A farmed down and the well commitment in. That in my opinion will be when we see a step change in the value of the company.Cash |
Excellent presentation. Very exciting times ahead.
I noted JM's thoughts on current lowly share price also contained the element of overhang from IIs who have been selling out due to them switching focus from North Sea to SE Asia. I'm hopeful of a phoenix like rise from the share price ashes soon, but have been grateful for the chance to load up recently at these levels! |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
