And not yet agreed to by the partners. Vaalco has two big player partners that won't pump money into a depleted field when they can play anywhere they choose.
Shale/sand producers in NA can't produce at this level. It was the collapse of African light sweet crude that got the Saudis busy and that pressure comes from NA. OPEC will lower production without cutting their own by sustaining below $70 for months. No need for $60s, $10 more out of their own pockets.
The number of sidetracks is unknown and they can drill as many as they need to hit the bogy. The longer it takes to announce the more sidetracks to get there. I think they'd be happy to announce 2k but could be backing off oil prices. 3k could be tops?
The detail was that they hit TD and are sidetracking. The aim as I understand it is to increase production not to find 'new oil'. They're at ~14,250/bpd and will be at least into Q1 15. If the shut-in for pressure problems can be repaired simply it will come back online then. If not it's a work over and that adds months. That entire field is now shut-in and H2S enters into the investment equation there. They might have to write the field off. The Ngongui project is back burner and Angola is delayed. They drew down $15mm in debt that we know of. Whatever it is that keeps this bouncing off dips wasn't part of any recent news.
I think these new wells are in the category of "clean up". They're drilling pockets they didn't get to yet in a known field. Almost impossible not to hit oil and since the infrastructure is already in place, almost any amount will be commercial. The issue for me is depletion. This move and the last dry hole are by definition final stage. They've done the math. Either they think there's enough that has been bypassed to pay the $300mm price tag or they plan on moving that gear somewhere else.
This news can't have hit yet? Talk about short fodder. Maybe the funds have known and taken it out already but the current price ($7.18) doesn't look like it to me. Should be down 5% not up?
This is a very big deal imo, another Ebouri well down. They must be under 15kbpd now. Not to speculate on H2S being involved but it is Ebouri. Shut it down early Oct. and just reporting it now?
0 possibility of a dry well. They're drilling on a known field in Angola and stepping out from existing wells in Gabon. I sure do agree on the next two Qs though. And 4 will be worse than 3 with the drilling expense. But they will have a "strike" to announce somewhere in there. I recall your pumping this Angola well not long ago. Good company next year and beyond don't you agree?
The '13 report covers it, SEC filings. You misread the Q if you think they mentioned selling any of the crude in question. H2S is a deadly gas that can kill in seconds and all 3 wells are shut in. Note they were running ~22kbpd before they shut down the first two. The latest was a few hundred bpd but of concern because it's in a different field. They're pumping ~17kbpd now. The question imo is will they ever bring those 2.5kbpd back on line? They have a sweetener budgeted for '17. They've got a lot to do elsewhere between now and then.
The problem they have in Etame is H2S. They have shut in 3 wells, ~2000bpd. So they aren't selling any sulfur crude. How are your reading their reports and not seeing this stuff?
Remember him? He's now Chairman of Panoro which owns a 1/3 share of Dassafu. The ousted BoD claim they turned down $60mm for the share believing the offer was short. Balkany wants to maximize shareholder value and position the company for "immediate success". He plans to sell all or at least Dassafu and soon. Don't know if he's still involved/associated with EGY but a $60mm price tag would be something they would have to look closely at. It will sell quickly at that price imo.
Just acquired a nice lease portfolio. They need a cash machine to fund E&P, Petrodelta. Plan sounds familiar, Harvest was just in there too early. +P(Repsol) becoming a major SA player.
Agree, they put the operation guy in charge and he knows what they need - investment. I don't think Ramirez had the opportunity to approve this deal. They also canceled a tender and an import of Naphtha. Not to suggest that these clods are business men but that would be typical stuff in a major reorg. Especially a new partnership would be the new guys call. If this deal goes as is, Harvest gives up any right to sue. A motivation for PdVSA, +P is paying what those #$%$ owe us.
"MONTEVIDEO – Uruguayan state-owned oil company ANCAP has signed an agreement with state-owned oil giant PDVSA to produce oil from a mature field in Venezuela’s Orinoco Belt, media reports said.
ANCAP will have a 40 percent stake in the field, while PDVSA will own a 60 percent interest.
The agreement was signed by ANCAP CEO Jose Coya in Venezuela.
The Orinoco Belt, located in southeastern Venezuela, holds some of the largest proven petroleum reserves in the world.
ANCAP plans to team up with a foreign investor who will receive a 49 percent interest in its stake in the field in exchange for providing the capital needed to fund the project, ANCAP exploration and production chief Hector de Santa Ana said.
The mature fields in the northern Orinoco Belt currently produce between 1,000 barrels per day (bpd) and 2,000 bpd, and the goal is to increase production to 6,000 bpd, the executive said.
ANCAP will be paid a dividend in oil if it boosts production to avoid exchange-rate problems.
Uruguay imports nearly all the petroleum it consumes, with Venezuela being one of its top suppliers."
$50mm from the private investor for 1k bpd. Allowing the junior to take payment in oil is a big move forward. Not the case with HNRs current deal and something +P will be bargaining for. PdVSA needs cash, +P has cash. Notice no mention of who/which/what "approved" the deal on the VZ side and no PR from them.
Prudent contingency management, they had an ATM in place previously but lost it when they had to refile. I think it's mostly to move the Gabon deal forward. They need a source of funding to get the final approval and this is one. They're in a hurry to get that approval by eoy and I think they'd like to drill the out board as soon as they can arrange it.
Did you see where +P delayed despite approval? I haven't, they had the right to kill the deal on the 7th. Instead they asked Harvest for the extension. If +P had approval from the oil minister Harvest would have the right to demand performance under the existing deal. I think they just need the time to reset, meet and clear the air. Both sides would have been talkiing regularly with Del Pino so if there was a deal there is a deal. The group he ran previously did the leg work on all the JV deals.