MAY

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AP We Need a 2nd Drill Rig for Block 9 ASAP, page-10

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jwoody1000

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08/05/22

14:04

Post #: 61273693
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Originally posted by The Mechanic: ↑

IMO a 2nd smaller drill rig is required to start production ASAP from Amistad which has a combined 119 million barrels of Prospective Resource (100% share, unrisked mean estimate). Amistad is shallower than the other oil zones and as such should be able to be drilled quicker and with a smaller drill rig.
If a smaller drill rig is found we could be producing in 1-2 months. This 2nd drill rig should be used only for exploiting the shallower Amistad oil zone and they should be aiming to have at least 10 production wells from this upper sheet within a year.
Once production starts from Amistad this will totally de-risk MAY as spec oil stock and will become an oil producer. We will no longer have these wild swings in the share price and MAY will find a stable share price well above what it is now.
I have no doubt the current cash reserves of $32 million and another $18 million coming from excise of options is more than enough to finance our 30% share of a 2nd smaller drill rig.
This will allow the current bigger drill rig to be used to exploit the oil from the lower sheets of Alameda and Marti after Zapato and can then be used to explore the other prospects in Block 9.
The oil from Amistad is probably heavier than the oil from the lower sheets and likely to be the same oil type being extracted from the Varadero oil field. Even though its a heavier oil, it should still be able to command a good price with the current high oil prices.
This type of heavy oil is being used for Cuba's energy generation for their electricity supply.
Oil production from the Varadero oil field is on a steep downward trend, from its peak in 2019 at 32,000 bopd to about 22,000 bopd now and falling (see graph below), Cuba is desperate for this type of heavier oil now and even more in the coming years, Amistad oil will be the ideal solution to their heavy oil shortfall.

Varadero Oil Production Past & Future:

50% of the country’s daily output.

Total Production, boed20,000-10,000-5,00005,00010,00015,00020,00025,00030,00035,00040,000L199019952000200520102015202020252030203520402045205020552060Value

Remaining recoverable reserves

Expand

isn't most of our off towards china, a deal done a couple of years ago?
wondering if the meeting this week could be directed to spend the money to get us into production?
the explosion in that hotel doesn't look good.... they say it was from gas issue...but gas would not do that much damage of blowing a side wall out?

anyone done the sums on how much revenue expected in a quarter? hundreds of mil?

Last edited by jwoody1000: 08/05/22

MAY Price at posting: 10.0¢ Sentiment: Buy Disclosure: Not Held
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AP We Need a 2nd Drill Rig for Block 9 ASAP, page-10

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

GreenX picks up prospective copper project in Germany

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Is oil undervalued?

Venture to sniff out high-grade REE targets at Jupiter project, WA

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AP We Need a 2nd Drill Rig for Block 9 ASAP, page-10

Top Stories

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Westgold sets its sights on top five producer status through merger with Karora

GreenX picks up prospective copper project in Germany

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Is oil undervalued?

Venture to sniff out high-grade REE targets at Jupiter project, WA

Featured News

Buyers (Bids)

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