Ann: Shareholder Update June/July 2018, page-100

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Paddie5

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02/08/18

10:18

Post #: 34684314
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Originally posted by Eagle08 ↑

I should have read the whole report before I posted.
It looks like Jingamia may be the real deal flowing over 300 bbl/day. Our 6.278% share will initially give us nearly 19 bbl/day at around AUD95 bbl or approx AUD650k p.a. Feel free to check the numbers.

On Sunday 23 July 2018, well J4 was successfully brought back online, with flush production exceeding 300 bbl/day. Although this initial rate will reduce over time, it is an excellent outcome as it demonstrates longer-term viability of the field and facilities.
Workovers planned for later in the current quarter should see two additional wells J10 and J12 brought back into production. Optimisation and fine-tuning of the production strategies for all four wells should provide the opportunity to generate additional uplift to production.
With current oil prices and a significantly lower cost of operations than under the previous joint venture operator, Norwest remains optimistic that a long-term positive cashflow can be generated from the Jingemia Field.
Once the two well workovers have been completed, plans will commence to evaluate drilling and side-track opportunities within the Jingemia Field and L14 permit

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The 300 bbl/day you are referring to above is flowing from well J4. During the quarter NWE received a total of 398 barrels from J8. Commentng on J8's performance "Production was limited during the quarter due to change of operator, well workovers and site activities". During Q3 wells J10 and J12 are to be brought on line so with a bit of luck we should have 4 wells pumping oil this quarter. If J8 flows are optimised now and the other 2 brought on line, I would expect that Jingemia will earn substantially more for NWE than the current figure of around AUD650k p.a.

NWE Price at posting: 0.3¢ Sentiment: Hold Disclosure: Held
9 Upvote

1 Great analysis

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