IF Tintsfield has been a 'duster' as they say in conventional drilling, then we could almost understand the decision to sell at this price. If they had found out that there was not going to BE any reserves from Tintsfield.
BUT THAT IS NOT WHAT THEY FOUND OUT.
As MHA has certified, Tintsfield has begun to produce gas at commercial flow rates (it only started in April), and hence they have booked an initial 42PJ of 2P. Not 3P, 2P - proven and probable.
The IER has a graph of the flow rates from the BW Multi-lateral. But nothing from Tintsfield.
42PJ is not much, but it is a start. They haven't plugged and abandoned Tintsfield, but it continues to ramp up. Or as ESG said to the market on 10th August,:
"production from Tintsfield has increased steadily from the onset of gas production"
So, it is ramping up. Small reserves so far, more to come, and at an increasing rate.
I wonder what the Tintsfield curve looks like? It probably reveals a pilot ramping up flows, and just now getting over the commercial threshold for production.
So clearly, some of the Hoskissons seam is commercially viable. No doubt further testing, further dewatering and removal of the wellhead pressure will see further reserves upside for this large and thick seam.
ESG are selling into a reserves upcurve.
Yaq
ESG Price at posting:
73.0¢ Sentiment: Hold Disclosure: Held
