Like most posters on HC you carry on with a missionary zeal, and the fervour of a religious nut, if one does not agree slavishly with your every word. Good GOD mate. The market and particularly this stock can readily accommodate both our styles of investing. Why am I a short term investor. Well I am 77yo, so next year may well be long term for me. Also my temperament makes me a trader rather than an investor.
The basis for my estimates. I allowed 10% for cost overruns. ie. there was a 3 day delay in moving the rig to Vali 3 due to local rain. If they drill 5 or more wells, say ten max., the costs would drop 25% or so. Honestly, in the near future, I can see a takeover offer for VEN. Santos, Cooper, or BPT.
The capital cost associated with the pipeline connection is based on concept select work carried out by GPA. Well costs are based on a standalone well, however, it is considered that optimisation of these costs may be possible by drilling a campaign of wells and applying lessons learned from Vali-1ST1. The estimated Vali Field capital costs, from a gross perspective, include: $7.0 million for engineering and pipeline construction and connection (including separator); $5.0 million per well to drill, case and complete; $3.0 million per well to fracture stimulate; $0.5 million per well to connect to the Vali manifold; and $1.0 million for geological, geophysical and engineering ('GG&E') studies in the first twelve months.
Operating costs are expected to be low, with well integrity and facility integrity testing part of variable operating expenditure and adjusted based on the number of wells. Inspection and testing are required to maintain compliance with Vintage’s Well Integrity Management System ('WIMS') and Government Regulations.
Over the coming months, a joint venture approved detailed initial development plan will be completed and submitted to the regulator. Once a production licence is issued and the Vali Field pipeline is tied-in, further wells will be drilled as a means of increasing production. These wells will be subject to sales gas transactions that support the level of gas production.
Original article link
Source: Vintage Energy
May the road rise to meet you....Marum. (Old Gaelic blessing)
This is not financial advice, only the reasons for my own investment. DYOR. I also own BPT.
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