RGN-1 Future, page-4

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wabbit

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26/01/17

12:01

Post #: 22151708
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Originally posted by stumpytrunks ↑

Just re-read - sorry for all the typos in that!

@wabbit the next chapter will come post commerciality decision. Either we have a genuine waste of money (non commercial) or an additional source of cash flow. If my assumptions above are even half correct, then one would assume that they will choose to connect the well to the plant. As I'd stated, the drilling cots are sunk - they've been expended, we can't get them back - and should be excluded form any decision making process for that reason. Ultimately the decision now is whether tying in the well generates more revenue than the cost of tying in and maintaining. In short you would have to say that the answer to that is yes, it should be cash flow positive. The only question mark is regarding the impact of the water on both long term production of gas and condensate, and operating costs (handling, separation).

On a side note it is interesting that they stated in the initial testing release that gas results were in line with expectations. I'm still trying to work out if they mean this in regard to the C sands in isolation; as all presentations and documentation leading up to this point indicated an expectation of a 2 tj/d increase in supply to the processing facility.

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stumpytrunks.

This reminds me of investing in spec stocks.
You drill a well hoping to get more back than it costs and as you say it has gone if you do not.
Now some posters invested in EGO hoping to get more back than they invested maybe some will some will not.
And the poster that will not are complaining about both.

EGO Price at posting: 29.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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RGN-1 Future, page-4

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