1. We now know that Linc have put down another well at Cedar and worked over another at Kirby bringing up extra oil which by Marks estimates should bring us up 9,000 barrels a day plus gas. These wells were logged in Jan this year.
In any companies books that not only spell good news but it falls fair and square into the MARKET SENSITIVE news category
THIS INFORMATION WAS FOUND BY MARK ON THE INTERNET....... NOT PROVIDED BY LINC!
2. We now know that Linc are having some flow problems created by possible tight rock and wax blockages. Oil flow problems mean cash flow problems!
In any companies books that not only spell bad news but it falls fair and square into the MARKET SENSITIVE news category.
THIS INFORMATION WAS PROVIDED BY JP. MORGAN.......
NOT PROVIDED BY LINC!!
The quarterly made no mention of wax or tight rock problems. This is what Linc had to say;
Average production for the quarter ended 31 December was 5,157 BOEPD, comprised of 92% oil which was lower than our forecast production exit rate. As a result of extensive evaluation of well performance in our Cedar Point field, we have opted to control flow rates in order to extend the life of the wells. Reservoir pressure has maintained across the wells drilled at Cedar Point but, for unforeseen reasons, we have been unable to maintain production at the rates anticipated across the fields. Various attempts at remediation were unsuccessful in significantly improving production. Consequently, we are now producing at controlled flow rates at Cedar Point to minimize water production and maximize ultimate oil recovery.
During the months of November and December we curtailed drilling activity across our Gulf Coast asset base in order to focus on enhancing our prospect portfolio through the interpretation of our newly reprocessed 3D seismic data.
Additionally, we were unable to continue our Cedar Point/Atkinson Island drilling program due to previously discussed water depth constraints during winter months. We expect to be able to maintain current production in the Cedar Point field whilst planning a second Galveston Bay drilling campaign in Cedar Point and Atkinson Island. Linc Energy plans to return to Galveston Bay in April 2014 to target up to ten additional prospects in the two fields combined. It is anticipated that the reservoirs at Atkinson Island will perform well and not experience the issues experienced at Cedar Point. Consequently, the initial production rates will be maintained for a longer period than we experienced at Cedar Point.
No mention of wax or tight rock! and no mention of plans for the extra Cedar Point well and the work over at Kirby which we know was worked in Oct-Jan and logged in Jan 2014.... not the April 2014 plan from above.
Dicko spells it out that flow is flow and normally tight rock doesn't interrupt flow after it starts.
Mark has given us great trade info on wax problems and how quickly they can be solved.
We arent getting market sensitive information but others are!
I followed Marks lead and complained to the SGX and havent even got a reply....
Anyone who follows Linc know that increases/decreases in oil(and by extension cash) are critical for the company and is reflected by SP fluctuations
I know that this is beating the same old drum but do we let it slide?
Is this acceptable? and what extra can we do about it?
Ideas anyone?
Add to My Watchlist
What is My Watchlist?