supposedly CATS has over a 99% uptime so shouldn't be a long time to fix it.
Posted by Sir Coop:
Mon Oct 21, 2013 5:43am EDT
Huntington oilfield producing at 40 pct capacity -partner
* Field partner cites constraints with BP's CATS pipeline
Oct 21 (Reuters) - The North Sea Huntington oilfield in waters off Britain is producing at only about 40 percent of capacity due to problems in using a pipeline operated by energy major BP, a partner in the field said on Monday.
Norwegian oil firm Noreco said it was unclear when output at the small field, which is operated by German utility E.ON, could be ramped up.
Noreco's share of Huntington's production was 3,391 barrels of oil equivalent per day in September. This would bring Huntington's total output to some 17,000 boe per day last month.
But the field has the potential to produce 40,000 boe per day, Noreco said last month.
E.ON, which also pumps some gas out of the field, must ship some of that gas via the CATS gas pipeline to be able to produce oil. The capacity to do so is limited, however, by constraints on the pipeline, Noreco said.
"It still is CATS that is the problem. We expect further information from the operator in the coming days," Noreco Chief Executive Svein Arild Killingland told Reuters.
Noreco holds a 20 percent stake in the field, E.ON 25 percent. Premier Oil of Britain 40 percent and Canada's Iona Energy 15 percent.
BP could not immediately be reached for comment.
The Central Area Transmission System (CATS) is a 404 km (251 mile) pipeline that transports gas from the North Sea to Teesside in northern England.
A major gas pipeline for Britain, it can handle more than 48 million cubic metres of gas per day.
Per Noreco's news release about refinancing its debt and an equity offering on 10/21/13:
The status of the producing fields has not improved since the previous regular production report. Total output so far in October has averaged close to 4,000 barrels of oil equivalent (boe) per day. The Huntington field is still producing at about 40 per cent of capacity, and it is unclear when it can be expected that production will be ramped up. Further information is expected within this week.
Still at 40% and news expected this week on when the CATS issue will be resolved. This is not a reservoir issue and not even a Huntington issue, but apparently related to the Everest field per OJ. Not sure where the latter info comes from.
noticed you left the IONAF board and since you seemed to be knowledgeable on reservoir/geology I was wondering why you sold out (assumption)? Just curious.
seemed like a pretty knowledgeable poster about reservoirs/geology and kind of shifted between optimism and pessimism. Now he has disappeared and is most likely out. Anyone heard from him as to why he sold out? Just a bit of curiousity.
Tight oil decline verses traditional wells:
The U.S. Energy Information Administration estimates that about 29 percent of U.S. oil production today comes from so-called tight oil formations. These dense layers of rock and shale are cracked open by blasting water, sand, and chemicals deep underground, creating fissures that allow the oil to flow into horizontal pipes, some of them thousands of feet long. Production from wells bored into these formations declines by 60 percent to 70 percent in the first year alone, says Allen Gilmer, chairman and chief executive officer of Drillinginfo, which tracks the performance of U.S. wells. Traditional wells take two years to slide 50 percent to 55 percent, and they can keep pumping for 20 years or more.
In North Dakota’s Bakken shale, a well formally known as Robert Heuer 1-17R put out 2,358 barrels in May 2004, when it went live. The output proved there was money to be made drilling in the Bakken and kicked off an oil rush in North Dakota. Continental Resources (CLR), the well’s operator, built a monument to it. Production declined 69 percent in the first year. “I look at shale as more of a retirement party than a revolution,” says Art Berman, a petroleum geologist who spent 20 years with what was then Amoco and now runs his own firm, Labyrinth Consulting Services, in Sugar Land, Tex. “It’s the last gasp.”
Google "U.S. Shale-Oil Boom May Not Last as Fracking Wells Lack Staying Power" follow link to businessweek article.
Michael Irwin in his last Market Call segment on BNN said the stock was trading around 1/3 of NAV (my recollection, if anyone has a correction please chirp in) which must be similar to the MPV10 figure you quoted, and based on that concluded that the market hadn't yet recognized Iona's value. But since many stocks are trading under NAV my guess is $1-$1.20 which would put us around a 1/3 discount to NAV instead of a 2/3 discount. Not sure but my WAG! A good comparison may be to Ithaca if anyone wants to check it. I also recall he said he would sell Ithaca at $3 but no mention of a sell point for Iona which he thought was more undervalued.
post from rxdoc2 on IV:
Lowest volume in short positions in the past 5 months.....something is coming.
Volume picking up in IONAF and INV.A during last hour and a half with large bid sizes up to 2 million shares in INA.V.
New CFO with M&A expertise hired right when the bond closes. Looks like they already have a target and a deal is in the works.
Option to increase Iona's share of Tyne to 37% could come at any time.
Maybe something is coming, or maybe we'll just have to wait longer, but if the latter is the case and then we double overnight on some new catalyst does it really matter? That is the question I think you have to ask yourself.
Me I'm not going to worry much about it. At least progress is being made. That being said I did like the way the stock was trading right at the end on Friday and hope we go up on Monday. Should get news on the CATS back to 100% functioning this weekend or by Monday.
Just saw a trade of 700k shares of IONAF @ .625, we going to make $$$$ me and the ducks will be rich! Yahsuh!!! That right!!!
We've got a Nor' Easterner blowing in and starting to fill Iona's sails! Cheap shares being snatched up. Hold on to your hats! We going up and the duck may be saved after a big scare (for the duck).
I have 6-7 Muscoy's that just hang around on the lower land but I don't eat them (yet anyway). That's in addition to my 200 or so Mallards, there are several separate subspecies that look quite different. Wood Ducks are some of my favorites.
There are also a few Great Blue Heron's, I've even had Bald Eagles right here, Cormorants, you name it!
At least the duck would quack while our PR firm doesn't seem to even do that much!
My guess is the reservoir engineers already had their eye on something and they brought in Rod Begbie to get it.