Middag, Xciters.
Stilletjes hier....
Enfin,hedenmorgen vroeg werd de Rowan Norway, met een ietsjepietsje vertraging dus, uit de haven van Dundee gesleept met 4 sleepboten en een loodsboot.
Een PB van Xcite bevestigde dit. Onderweg naar Bentley. Enfin, aktie onderweg. En geen standby rates van 200k$/dag nadat alle voorbereidende werkzaamheden afgerond zijn.
Gezien het weer en de bestemmingen van de sleepboten, zoals te volgen op scheepvaartsites, gaat de reis eerst naar ???? een beschutte plek op de Noordoost punt van Schotland, waar veel jack-ups eerst heengaan, in afwachting van goed weer voor de laatste 2,5 dagen van de trip naar de eindbestemming.
Hier nog een plakkertje van ondergetekende op het Private Board van iii.
Mag eigenlijk niet, dus: ssssttt, niet verder aan de grote klok hangen.:-)
"Howdy Grumpy.
What you quoted is from the original ES, referring to the original First Stage Production Plan.
This is now obsolete.
In Phase 1A there initially will be a seperator to take out any sand that comes with the fluids, pumped up from the well.
Then there will be a first stage seperator, to degas the fluids. For safety purposes.
The gas will now be flared off.
During preparation of the rig they modified the flare system as fitted on the RN ,as I understand, no doubt to satisfy DECC's stringent safety/environmental rules.
By the way, I understand that it's also the gas, dissolved in Bentley's heavy oil, that helps a lot to let it flow easily!!
The remainig fluids will not be further treated, as in the original plan, but pumped through the 'temporary'(?) insulated pipeline, after sufficient heating to 90-120 degr.C, to ensure a minimum temperature of 60 degr.C to keep the flow going to the tanker.
Well, interesting discussions here the last 2-3 days regarding joint venture options and Intelligent Property.
It seems the BoD are moving towards a joint development approach, which could reduce overall costs, according to the interview with CEO Smith in Reuters Africa.
Well, first of all, what I have learned in life is to be very sceptical about what reporters write in their papers after an interview.
About 50% of what they write is correct, the other 50% is either a bit off or totally wrong. So let's be cautious here.
But, assuming the above statement is correct and also Smith's mentioning of midcaps interest, that would suggest an approach by Enquest, newly operator of Kraken, a few miles West of Bentley. With similar type of oil.
Today I read in Upstreamonline that Centrica are about to receive an upgraded FSPO @ a total cost of 450-500m$ under a 3 year contract for one of their North Sea (UK) projects. Wow, imagine: 450k$/day. Almost half a million greenbacks! For one day only.
So, from this point of view alone, a joint development with Enquest makes sense. Share this expensive piece of kit.
Sharing something with neighbour Statoil is also an option, of course. Similar type of oil.
But, no doubt, joint development, joint venture, take over, the BoD will keep all their options open! Going it alone? Don't think so.
Plenty of interest in their IP, technical knowhow.
Current value, in only the core part of the whole field/all their licenses, and based only on cold flow, is 1,5 billion $. Jeez, upsides here. Plenty of.
As long as they can hold off any serious deals, that is if they can assure funding without too much dilution to move ahead, till after the results of 1A are analysed and made public. Resulting in more reserves. And after further appraisal drilling, while tinkering with the optimal production rates and low water cut during the Extended Well Test, which is actually production, but Xcite are under DECCs rules not allowed to call it production.
Fully utilising the Norway's unique capabilities to produce and drill simultaneously.
Last Monday on the MBB a guy posted DECC's rules re. EWT. It is meant to be for experimental purposes, and absolutely not meant to be a first/initial phase of production! Warning signs start blinking now. But what can do with all the bloody oil that comes while experimenting??
Ah well, some income of 50-80m dollars. Once the stuff is flowing, it's flowing, isn't it? Go with the flow....
Allthough Smith said that the market has 'to reset it's expectations' about what phase 1a is meant to be.
Well, see now, how the BoD had/has to sail around all kind of cliffs to reach their goal, that is to satisfy 'The City' that their knowledge enables them to become real producers of this 'damn heavy oil'.
Groundbreaking stuff requires a lot of proof before conservative investors/bankers are sure about the risks they are taking. Or want to avoid....
Xcite know exactly what they could do with their original FPD plan,resulting in substantial First Production and cash flow, but were blocked by DECC and didn't have the dough to do it as well.
Well, to cut a long story short:
I'm a happy investor in a small company that has a license to pump oil out of an 'elephant' field, full of heavy oil, while having the knowledge/technology to let it immaculously flow.
The, inofficial, definition of an elephant field is: containing more than 100 mb of oil. This particular elephant may produce up to half a BILLION barrels, before it's , economically, sucked dry.
Well, up to a succesfull 'small' experimental bite of elephant.
Enjoy your/our meal.
It's all good.
Enjoy the future.
MrS2."
Einde kwoot.
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Z. te T.
Optimist.