Phew, hopefully this is the last quarterly I look at today!
Firstly, it would seem I was a little off with the size of the storage now being installed at Ungani (I guess around 4000bbls), by the end of Nov, it will hit 4,900bbls. Clearly the Ungani 1 &2 results post sub pumps was enough to ensure this was given the go ahead. As Cruiser also mentioned, lots going on at Ungani overall with the facility upgrades being done as we speak.
I liked reading that the power generation unit will allow for production of barrels of fluid upto 4,500 per day, with the water segregation unit capable of 8,000 bfpd. Which shows some serious forward planning, as the water cut will increase in years to come, but should be very manageable with the new system in place. The best bit though, to quote - "This upgrade will form the basis of a step change in the production processing capability at Ungani". Basis... starting point... more to come.
The section on Ungani 4 is pretty clear, success will mean absolute certainty in going forward with Broome (i.e 3000bopd), failure, well.... as others have pointed out, nothing is guaranteed and my heart may skip a beat with they report on the U4 well when in hits the expected pay.
Ungani produced 28,644 barrels after the first shipment, which seems a bit below my earlier guessimate, of 31k, which I think means they will end up shipping around the 65-k mark (very happy to seem them destroy this number and get over 70k). It all depends on when the ship comes in. The later it is in Nov, the better.
While not important right now, I was happy to see that the Blina field is simply still shut in, not gone for good. Its has some good infrastructure there, plus I believe, the ability to be profitable if BRU so chooses to bring it back online (that is pure Speculation on my part).
This I think clearly explains that Eric is not interested in just a small farm-in option, everything is on the table, conventional oil and conventional gas, Ungani trend, Anderson plays etc.
Yulleroo - RISC still working on an updated resource, but no timeline given, I am guessing its still a way off then.
The last thing I want to discuss is the cash balance. I think Eric got a little lucky, as in reality, if the extra $3.6m was not raised, on Dec 31st, the company would be sitting on just over $8m, instead of the $12m.
Now I do caution, that because of the timing of payments, BRU wont get all of its revenue until the Jan quarter, so... it will look a lot better than that, still, things could have looked a bit less rosy without the oversuperscription occurring. Anyway, while the cash burn looks high in the current quarter, it was always going to be so. New tanks, etc, 2 wells, all the analysis etc for a big potential drilling program next year.
@yatchy - I hope your prediction hits the mark farmin wise. I don't think they will get a 10 well program, more like 4, but... I am a bit more pessimistic these days.
BRU Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
