Must've been a bot losing its bottle...
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Must've been a bot losing its bottle...
It must be time to be adding more to the stockpile .. huh ;)
No spud announcement today but has to be next week.
Beach announced their quarterly results today and confirmed Ironbark still on track to begin drilling at the end of October (next week).
Results to be announced in the March 2021 Quarter.
yeh they also said
a targeted measured depth of ~5500metres.
and because NZO hasnt had the best of luck with drills and we need to pump ourselves up a bit - this is from that Beach report.
Beach participated in 17 wells where drilling operations were completed – all 17 in the Cooper Basin – at asuccess rate of 94%
Drilling, now thats a bit boring??
Lets hope it augers well.
Maybe too deep for some?
This Spuds taking a while to sprout
I'll be getting Agria if they take much longer
Hey BC. See the activities report? Looks like next week is the BIG ANNOUNCEMENT :D
With regards to your comments...it's not that I am not concerned at all or oblivious to what is going on. I absolutely agree that Management either need to jump around a lot more to justify the high Admin expense, or slash costs to reflect our business size.
Paying our CEO $750K seems outrageous, as one example, given not a Hell of a lot has been happening. When you consider that Martin Stewart from Sky only gets about double that - and his business still generates over $1M per week in Owner Earnings it is crazy that our CEO gets paid so much.
They have been slow to deploy the available funds (~NZ$50M) for investing, and Christ only knows what is taking so long.
The point I was making is that, given where we are with Ironbark, these issues are 'small fries' relative to the opportunity we face right now - and that is why I am reasonably Zen about things carrying on as they are for the next 3 months while we drill and appraise Ironbark. OGOG are running the show, and they are comfortable with the current Admin spend - and unfortunately that is both the long and short of it.
Drilling is expected to start shortly in the Ironbark prospect in the Carnarvon Basin, 170 kilometres offshore from Karratha in Western
Australia. The Ocean Apex rig intake process is continuing, but delayed by a few days due to some intake actions that require closing
out prior to drilling commencing.
Weekly drilling updates will be published on the NZX and ASX.
The well will be drilled in water depths of ~300 metres, to a total depth of around 5500 metres, making Ironbark-1 one of the deepest
wells ever drilled in Australia. The well is expected to take 70-90 days to drill and will be the first test of the Ironbark gas prospect.
The prospect is approximately 50 kilometres from the existing North West Shelf LNG infrastructure. New Zealand Oil & Gas has a 25.7
per cent interest in the well, comprising a 15% direct interest and its 50.04% holding in subsidiary Cue Energy, which holds 21.5%.
Read an interview with operator BP here: https://tinyurl.com/NZOGIronbark
Cheers for the reply mistaTea. Yes totally excited about the BIG ANNOUNCEMENT!! Have sold my excess NZO at 73 a few weeks ago. Holding onto the core holding for the potential Ironbark. Like you, I could probably retire if it comes in :)
What I do not get is the CEO expense. But also what the hell is NZO doing with a Legal Counsel on its payroll. That seems even more outrageous. Now the problem I have is that these people on the NZO payroll are being paid well but what are they actually doing. NZO is not an operator. It is not doing anything. They are basically a holding company. There was an accusation at the last AGM that those on the NZO payroll were working for OG interests. That does worry me a lot. If Ironbark does not come in $8m a year will not last long. There is no independent oversight to monitor these expenses.
https://www.nzx.com/announcements/362387
Little did I know, but while I was enjoying a lovely brunch at Cafe Baku in Taupo on Saturday - we were breaking ground at Ironbark!
The well is currently at 407m MDRT as planned. The cementing of the 36” conductor has been completed. Once the cement is dry, the Operator will begin drilling the 26” hole.
The Ironbark well will test the Triassic Mungaroo Formation with multiple sand objectives. The reservoir has been explored nearby at comparably shallower depths and includes discoveries at the Gorgon, Goodwyn and North Rankin gas condensate fields. The primary target is at a planned depth of 5668 TVD subsea metres in water depths of 298 metres. The well is expected to take around 85 days to complete operations.
CEO Andrew Jefferies commented that “It has been a long journey to get to this point, we are excited to be breaking ground on this frontier well”
I wonder how long before the 1st objective is met
Oops, possible typo there with the month, mistaTea? Something in the way of your typing hand maybe? (I reference your post on HC)
Won't they know if there's gas there as they are drilling? I thought that was what wire-logging was all about.
Great to be drilling at last. SP hasn't reacted much.
Haha! Yes indeed, in my 'excitement' and ecstasy I got confused. That will serve me right for trying to type with my non-stroking hand!
They are wire-logging on the way down, so we will get indications of gas before 85 days (if they exist).
But I remember that when we drilled Kohakutai we got some decent sniffs of gas all the way down until we plugged and abandoned - no discovery.
I feel the world has changed so much since Kohakutai .
I even googled it and got no results .
What I do know is that the predictive value of wire-logging has improved .
The objectives are very deep .
Ocean Apex is powerful and has the technology.
Reports are weekly .
We may not therefore get an indicative sniff until we hit the indicative target .
The American election is an irrelevant diversion to the SP in a years time .
BP have the experience to know what they are doing-my expectation is that they know this is more likely than not to be successful .
Success should be measured in confirming a potential resource .
Further drills may need to be performed before the resource is tapped-this drill is planned to be plugged and left .
Analysis,negotiation etc could take years .
OGOG will be circumspect before deciding whether to make another takeover offer after the drill .
If successful key shareholders will consult together to decide their response should an offer be made .
I doubt if they will be as pragmatic as before.
Personally I am happy to wait a decade if necessary for the value of a gas find to be realised.
It costs nothing to leave the gas and NZO has the cash to allow this .
First things first, let's make a discovery!
Figuring out whether to hang on and participate in turning the discovery into a producing asset (a process that could take many, many years...) or whether to sell our equity to someone else (BP may offer us an attractive price) to realise the large gains now will be a wonderful problem to have!
In July 2019 Peter Strachan valued a discovery @ $6.51 per share for NZO (or $1.074B). That is just for Ironbark and does not take into account existing assets or recent discoveries (like Mahato).
OGOG will decide what we do (sell, or hold the asset to production) - in this 'best case' scenario it will be interesting to see what they do.
It will also be interesting to see how high the SP goes in the meantime, given NZO is not a liquid stock.
[QUOTE=mistaTea;854000]First things first, let's make a discovery!
Yes the old saying springs to mind, counting the Chickens etc,etc.
Takes me back 20 YEARS and no doubt others too, still on this Forum.
2000 Ellerslie R/course Convention Cntr.
Tony R.=== Lets dream a little, concerning the drilling of Hochstetter
and the possible Billion $ Company maker, S/P was about the same 66-67 cents
Lets hope for a diff. outcome this time.