"The BMG project commenced production on Dec. 17, 2006 and has an estimated field life of 17 years. At peak production, the project is expected to produce roughly 30 to 35 Mbopd. "
That of course was before
Feb. 2010 - Resource Investment Strategy Consultants completed its review of Roc Oil's reserve estimates and estimated Roc's remaining gross 2P reserves for BMG stood at 3.1 MMbbl as of year end 2009, assuming no additional development activity.
Preliminary results from an integrated full field reservoir simulation model of the Basker and Manta reservoirs indicate remaining gross 2P reserves are likely to be reduced from roughly 18 MMbbl to between 3 and 5 MMbbl. This preliminary review is subject to further sub-surface modeling and development optimization work. Currently, BMG produces approximately 6,000 bopd and should produce at an average rate of 5,000 bopd for 2010, and plans for future development on the BMG phase-1 oil project and the phase-2 gas project are being evaluated.
That Reserves downgrade hurt ROC badly http://www.smh.com.au/business/roc-takes-beating-after-bass-strait-downgrade-20100203-ndk6.html
This ROC Y/E presentation 2010 worth reviewing as to production & forecast http://www.asx.com.au/asxpdf/20100225/pdf/31nxjhdmv019fg.pdf
Also interesting commentary and charts here http://www.asx.com.au/asxpdf/20100513/pdf/31q9y8g08ytxz7.pdf
Especially the $50M to do new wells.....
Now BMG is thought to contain a 350Bcf Resource http://www.naturalgasasia.com/rocs-victoria-gas-project-on-sale
That must be what the JV referred to a Phase 2 Gas development (and a way to commercialise remaining 2P oil reserves) and where COE interest lies - at least I hope so.
What did we pay exactly? $1M for the "asset" + $5M if we produce and we now hold to exposure to abandonment costs?
A steal if we are able to commercial and a terribly costly deal if we exit not being able to monetize.
COE Price at posting:
54.5¢ Sentiment: Hold Disclosure: Held
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