The author obviously doesn't know what months are in each quarter...
'The company’s press release later specified a spud date of “early in the third quarter”, which would suggest a June timing is feasible' LOL
Things we need to tick off in the lead-up to M2 for actual drilling to occur:
Exalo RigThe recent ANN stated that maintenance and upgrading of the rig are occurring this month. They would want to be extremely thorough with the maintenance checks with all that occurred last time. Given the rig is already warm stacked at Mukuyu 1, it would take no time at all to move the rig and related facilities over to Mukuyu 2. Exalo has known for quite some time that they need to undertake these upgrades so I would say most of this new equipment is either already in the country or currently en route. Possibly 1 month for maintenance and upgrades and then 1 month to move and set up the rig at Mukuyu 2. Puts us sometime in June if things go to plan.
Services CompanyAs stated in the recent ANN, all the major service providers will submit a tender proposal for the M2 program. So Scott & Co will be in a position of power where they can selectively pick the most suitable service partner. Penny Stonks also stated that in the Soph investor call, Scott has his eyes set on one of the service companies (can only assume SLB) and that they are finishing up an existing drilling campaign nearby and could mobilise on completion in June. From Penny's wording, sounds like this service company wants to be at our site in June. I would assume that a week or two of stock takes and servicing of the equipment then we would be good to go ahead with drilling.
This is what I see as the biggest headache for the upcoming drilling campaign. Would like to see an agreement signed and a firm date of mobilisation set as IMO this will be the biggest factor in determining the Spud date. The recent Cap Raise will be cleared on the 14th of April so I would expect a contract to be signed and announced during the week after (Not this week but next).
Long-Lead ItemsAs stated in the recent ANN, the funds in the capital raise are to be used to prepare for the Mukuyu-2 well including
long lead items. I assume that this would be the ordering and payment of the items required. However, Scott previously stated in the webinars Scott that it takes up to 6 months for long-lead items to be delivered. My assumption here is that they already have the majority of larger items (casing head etc) in the country due to previous expectations of drilling BaoBab after M1... which we are now shifting to M2 instead of BaoBab. So now what they need is muds etc which I would assume doesn't have such a wait time to acquire as they would be general stock around the globe. Casing heads etc are more specific and Scott stated that they often have to be manufactured for specific parameters.
Well PadDan from the CIS ** recently sent a satellite image taken on the 26th of March of M1, M2 and BaoBab locations.
Obviously, you can see the roads leading into M1 and BaoBab however nothing is around M2. Construction of the M2 well site may have not started yet, which off memory took 1 month for Baobab. Or Dan's estimate for the M2 location is incorrect and it's off the map or the clouds in the picture make it difficult to see.
So this recent capital raise could have been required to also raise the funds for beginning the construction of the M2 well site. Let's say 1 and a half months which again places us roughly in June.
