"... Since April, the Ministry has been in regular communication with the Company in order to process the requisite approvalsrequired to restart An Nagyah production.
Part of this process is a review of the Company’s capacity to be an operator in Yemen and capacity and schedule to restart production at the An Nagyah Oilfield. The Ministry has requested documentation supporting the Company’s application for approvals be completed by the end of October.
Documentation supporting the Company’s application was supplied to the Ministry in late July, including commitments to meet Block S-1 obligations, to rehiring the field operating staff of the operator, Yemen Block S-1 Inc., and to the operator’s subcontractors. These documents are under current review by the Ministry.
The Company has provided the Ministry a restart schedule for 2018/2019 for the An Nagyah Oilfield that proposes initial production of 5,000 bopd within the first three months of restart of production with the aim of increasing production within 12 months to 10,000 bopd, from currently suspended wells.
Based on production of 5,000 bopd and current Brent Oil prices of US$70/bbl, the An Nagyah Oilfield would generate revenues of US$130 million per annum of which 72.5% (US$94 million) is to the benefit of the local staff and contractors, people of the Shabwah Province and the Yemen Government...."
Fike .... I think you're being over critical of the progress ... Sounds to me that they are providing the documentation / assurances in July 2018 (whatever that includes) as quickly as possible ... knowing that the cutoff time for approval documentation is October 2018 ...
Based upon this ... an invitation by the Government to resume production in late August 2018 does not seem unrealistic ....
PeterRG
PSA Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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