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Gulfslope on July 25, 2019 Fleet Status Report of Ensco Rowan, plc.
Jackup Rig:102, Design: KFELS MOD V-A, Operator: Gulfslope Energy, Duration: October 19, 2019 through November 19, 2019, Contract: One Well.
Source: Ensco - Rowan’s Website. Choose “Fleet Status Report”
BSmith
Link not working. For Source go directly to: Ensco Rowan PLC’s website and choose “Fleet Status Report”.
Gulfslope on July 15, 2019 Fleet Status Report of Ensco Rowan, PLC
Jackup Rig: 102, Design: KFELS MOD V-A.
Operator: Gulfslope Energy,
Duration: October 19, 2019 through November 19, 2019
Contract: One Well
Source: Ensco Rowan website:
Https://www.S1.Q4.CDRO.com
BSmith
Tau’s Oil (MMBBL) Resources Increased Sharply when comparing The December 31, 2017 (NSAI Resource Report) to the June 1, 2019 (NSAI Resource Report).
Tau’s Oil (MMBBL) increased in both the “Best Estimate” and “High Estimate”.
Delek Group referred to the “Best Estimate” in their Regulatory Press Releases, but I am also including the “High Estimate” from their reports for reference too.
2017 “Best Estimate” was 91 MMBBL of Oil compared to the 2019 “Best Estimate” of 204.9 MMBBL of Oil. Tau’s Oil Resources for “Best Estimate” more than Doubled.
2017 “High Estimate” was 184.8 MMBBL of Oil compared to the 2019 “High Estimate” of 530.6 MMBBL of Oil. Tau’s Oil Resources for “High Estimate” almost Tripled.
Summary: Gulfslope Energy and Delek Group drilled Tau Trial Well 001 based on the 2017 (NSAI Resource Report). They allotted a 50mm Budget for the Tau and Canoe and final costs to Delek was 70mm.
Considering the increased MMBBL potential in the Oil alone on the “2019 NSAI Resource Report” there is still great value in the Tau Prospect. That along with the Increase In the “Average Net Layer Sand Thickness”, and “Better than Expected Sands” makes it that much sweeter on the “3 year Confirmed Lease Extension”.
The Tau and Corvette Prospects still have potential and value to GulfSlope Energy and the Shareholders In my opinion.
Source One: Delek Group’s Regulatory Press Release dated July 1, 2019. “Title Update on Prospective Resources Report for Trial well Tau - 1”
Source Two: Delek Group’s Regulatory Press Release dated January 8, 2018. “Signature of an Agreement for Acquisition of Rights in Oil Assets in the GOM”
BSmith
All Signs Point To Them Moving Forward.
BSmith
Regarding Correspondence between Gulfslope Energy and The United States Department of the Interior, Bureau of Ocean Energy Management (BOEM) and Bureau of Safety and Environmental Enforcement (BSEE) You can access Information directly at:
https://www.boem.gov and https://www.bsee.gov
There you can locate references to Gulfslope Energy’s Tau Lease (G35244) Extension to the year 2022. Also, the Corvette Lease (G35193) Exploration or Production Plan Approval of July 9, 2019.
You can access Delek Group’s July 1, 2019 Press Release by going directly to:
https://www.Delek-Group.com
There you will find “Netherland, Sewell & Associates Inc. (“NSAI”) June 1, 2019 report analysis which was prepared according to the SPE-PRMS Rules.”
You can access GSPE’s:
June 28, 2019 Press Release about the LOI to Form Joint Venture with a Definitive Agreement for the Joint Venture on or before August 31, 2019.
June 19, 2919 Press Release about the Execution of a Drilling Rig Contract with Ensco Rowan.
BSmith
BOEM & BSEE letters to John Seitz, Gulfslope Energy. Source: BSEE Data Center, Online Queries, Leasing Information Category, Scanned Documents Category, Active-Inactive Leases Category. Input OCS lease: G35244
Excerpt from BOEM July 15, 2019 letter: “Confirmation that the initial period of the lease has been extended for an additional three (3) years to June 30, 2022.”
Excerpts from BSEE June 27,2019 letter:
•”The first exploratory well for lease OCS-G35244 is well Number 001, API No. 177124069200;
* The spud date for well no 001 is September 14, 2018
* The borehole was bypassed twice and sidetracked once during the course of operations.
•177124069201 - Bypass 01
•177124069202 - Bypass 02
•177124069203 - Sidetrack 01
•Well Number 001 reached a total depth of 14,987 ft TVD and was permanently abandoned as of May 27, 2019.
*Well Number One Sidetrack 01 was permitted to a depth of 18,000 ft TVD however due to deteriorating wellbore conditions this depth was not reached.
*During all stages of Well Number 001 Drilling operations, poor hole conditions necessitated numerous casing design changes making it more difficult to successfully reach target depth.
•While the original Application for Permit to Drill proposed Well Number 001 with a target depth of 25,000 ft TVD in Lease OCS-G36121 Ship Shoal Block 351, this Well did not reach this target depth nor did it cross into Lease OCS-G36121.”
Summary of Tau Lease Status: Both leases do not expire until 2022.
•Tau Lease G36121 SS Block 351 Lease Effective Date November 1, 2017 and Expiration Date of October 31, 2022.
•Tau Lease G35244 SS Block 336 Lease Effective Date July 1, 2014 and Expiration Date of June 30, 2022.”
After Trial Well 1 on Tau, Mr. John Seitz has successfully worked towards the continuation of Tau Lease Blocks 336 and 351 to stay with Gulfslope Energy. This is good news for us all considering the “Oil Sand Quality Was Better than Expected and The 2019 Average Net Layer Sand Thickness Increased” This was reported by Delek Group’s July 1,2019 Regulatory Press Release “Tau Drilling Resources Report for Trial well Tau - 1 by Netherlands, Sewell & Assoc.’s report dated June 1, 2019.” .
I thought I read under the BSEE/BOEM Tau lease agreements G35244/36121 with Gulfslopes, the Joint Operating Agreement and the Participation Agreement would prevail the BOEM/BSEE Leasing Agreement in certain circumstances. Source: BSEE Data Center / Online Queries/ Leasing Info/ Active & In-Active Leases/Input G35244/ Type: Bid, Lease, Receipt / Download pages (1-15).
Recap - “Tau Leases G35244 & G36121 “Resource” Potential of target layers M1, M1A, M3, M4, M5 & M6 has a Low Estimate of 63mm BOE, Best Estimate of 240mm BOE, and High Estimate of 681mm BOE.”and “The Average Net Layer Thickness of the Target Layer Oil Sands almost double on the 2019 High Estimate of 1,325 feet. The Low Estimate was 325 feet.
Upcoming Event: Gulfslope’s June 28th Press Release stated “The intent is to enter into Definitive Agreements for the Joint Venture on or before August 31, 2019”
Excerpt: “Joint Venture Evaluation Team to identify, evaluate, and recommend
targets for Lease Acquisition, FARM-IN and DRILLING.”
BSmith
GSPE’s Business Model is to Farm-Out and Drill.
Source: Past Presentations, Interviews, and Company Profile off their website.
BSmith
BOEM on 7/19/19 changed TAU Lease Status Code from "Primary" to "OPERNS"
"OPERNS" Field value meaning: Initial term extended because of activity of the leased area.
BSEE TAU Serial Register Page Has A New Entry:
"7/19/19 Held By Prior Drilling Operations Ended On 5/27/19
Source 1: BSEE Data Center/Serial Register Page for Tau Lease G35244
Source 2: BSEE Data Center/Field Values for LEASE LIST
BSmith
BOEM Approves 3 year Extension on Tau Lease OCS-G35244 Ship Shoal Area, All of Block 336. Original Date of Lease: 7/1/2014. Expected Expiration date: 6/30/2022.
Excerpt from BSEE Serial Register Page:
“15-Jul-2019 - BSEE and BOEM have confirmed this lease has met the conditions for an extension of the initial period of the lease. BOEM Hereby Extends the Initial Period of the Lease For an Additional 3 years.”
Source: BSEE Data Center, Leasing Information category, Online Queries category, Serial Register Page
15-Jul-2019 entry.
BSmith
7/15/19 TAU LEASE EXTENDED FOR AN ADDITIONAL 3 YEARS.
ON 7/15/19 BSEE & BOEM Extended Tau Lease G35244 SS 336 FOR AN ADDITIONAL 3 YEARS.
Source: "Serial Register Page" of the BSEE Data Center, Leasing Information, Online Queries, Serial Register Page last entry dated 15-Jul-2019
BOEM 7/9/2019 Approval on Exploration or Development Plan for Lease G35193 on VR 375 Corvette. Submitted on 5/23/19 Approval Code “A” on 7/9/19.
Source: BOEM website under Exploration and Development Plan Approval.
Original Post references The Delek Regulatory Press Release sources which include all the “Tau Table” references I used in my summary. All the numbers for the Prospect Layers are shown on Delek’s “tables” in detail.
Go to Delek Groups Ltd’s website under Investor/ Regulatory Press Release with the Corresponding date and Document title.
I believe it refers to the Sand Depth of the target layer.
Tau Increase in Average Net Layer Thickness in feet for ONLY M1, M1A, M3 & M4 Comparing the Current June 1, 2019 Report to the December 31, 2017 report. Low estimate dropped slightly by 19 feet, but the High Estimate increased by 131 feet.
New Sand Layers M5 and M6 were added for 250 feet and 250 feet, respectively on the high estimate, and a total of a 100 feet on the low estimate.
Partial Summary of the Tau “Rights” in (M1 lower, M1A, M3, M4, M5 & M6) the 2019 Total Current Average Net Thickness (feet) for the High Estimate is 1,325 feet and the Low Estimate is 325 feet.
That is an overall Thickness increase from report dated December 31, 2017 of 631 feet on the High Estimate and 81 feet on the low estimate. The Total Average Net Thickness (feet) on the
High Estimate almost Double.
I thought I read that the Regulatory Authorities would respond in 30 days on a lease extension.”, if I remember correctly.
Source 1 - Delek Group Ltd. Regulatory Press Release Dtd. July 1,2019. “Title update on Prospective Resources Report for Trial well Tau-1”
Source 2 - Delek Group Ltd. Regulatory Press Release Dtd. January 8, 2018. “Signature of an agreement for acquisition of rights in oil assets in the GOM”
BSmith
Interesting GulfSlope Energy statement on June 28th Press Release 2nd Paragraph:
“We are excited about the opportunity to be part of this JOINT VENTURE AND IT REPRESENTS A NATURAL COMPLIMENT TO OUR EXISTING SUB-SALT EXPLORATION PROGRAM, Stated John Sietz, Chairman & CEO”
Great to see there is still potential for the Tau Prospect in Delek Group’s July 1, 2019 Regulatory Press Release. “Better than expected Sands after Tau well-1”. Could there be another Tau drilled well somewhere on the horizon?? Keeping my eyes open.
”The Quality of the Sands discovered at Tau-1 Well was better than Expected “. Source- Delek Group’s July 1, 2019 Regulatory Filing “Tau Drilling Resources Report” by Netherland, Sewell & Assoc. their report dated June 1, 2019.
Total Reported BOE Estimates for TAU target layers M1, M1A, M3, M4, M5, & M6 are as follows. Low estimate 63 mm BOE, Best Estimate 240 mm BOE , and High Estimate 681 mm BOE.
TAU Drilling Resources Report “ Deleck Group Regulatory Filing Dtd. July 1,2019. “Netherland, Sewell &Assoc June 1, 2019 Report. BOE findings for the M1A, M3, M4, M5, & M6 (excludes M1 Lower) Total low estimate 60mm BOE, middle estimate 230mm BOE, and high estimate 656 mm BOE.
”Partner is Privately Held Company” Source- Gulfslopes June 28th News Release. “SpaceX” is Privately Held and is “the 4th most valuable Tech Company”. Looks like their new “Privately Held Partner” is coming up with the funding for the Many Joint Venture (Gulfslope’s) requirements prior to the drilling option on the Corvette prospect . Good for us!
Gulfslope’s Presentations are still archived out on Google. The ones for the May 2018 Louisiana Energy Conference and August 2018 Johnson Rice Conference. GSPE’S Archived Presentations are not current, but are from last year. They Show Corvette at +-70mm BOE @ 79 % oil, and the Tau at +-300mm BOE @ 75% oil.
Gulfslope Energy’s Current Presentation section on their website shows “Under Construction ”.
Gulfslope Energy appears to have quite a bit to still offer the Investors and any partners. Their June 28th press release stated their ownership in their seismic data too.
Did some research and there were many oil and gas companies and oil and gas service companies that did not survive 2016. Gulfslope Energy not only survived 2016, but drilled two wells, is under a new rig contract, and LOI for a new Joint Venture for 2019.
Gulfslope Energy has “GRIT” no question about it!
Bsmith
Last year, their May 29, 2018 Louisiana Energy Conference PR stated in the 3rd paragraph: “Associated Slides can be accessed by visiting the Investors Relations Section of the Company’s Website. “ Not sure if they are still out there on their site.
Hoping they release and post slides on the Company’s website for the 2019 Louisiana Energy Conference.
Per last year’s 2018 Gulfslope PR for the Louisiana Energy Conference it came on the first day of the Conference May 29th at 5pm. No reference to an Investors Deck in the May 2018 PR. The only one posted on their website is dated September 26, 2918 for the Rice Johnson Energy Conference. Still hoping they post one in 2019.
The 2018 Investor Deck Presentation has been the only one posted since September 26,2018. The May 28, 2019 showing next to the 2018 Presentation is the Current Date. Tomorrow it will show the Current date of May 29, 2019.
The Current and only Investor Deck Presentation on Gulfslopes website under Investors/Company Information/Presentations is the 2018 Johnson Rice Energy Conference Presentation. Hope they post a new one for 2019.
One Seismic Data Source - Oil & Gas Journal (OGJ.com) Houston dated January 8, 2019 Article titled BP approves expansion at Atlantis field in GOM.
A few Excerpts: “BP approved a 1.3 billion expansion at Atlantis field in GOM and said recent Seismic imaging identified 1billion bbls of additional oil in place at Thunder Horse field.”
“In Thunder Horse field, BP said proprietary algorithms enhanced full waveform inversion allowing interpretation of seismic data within a few weeks compared with what previously would have taken a year to analyze.”
“Following a field trial at Mad Dog field, more advanced Seismic imaging with Ocean Bottom Nodes & BP ‘s Proprietary Wolfspar Seismic acquisition source is planned for Thunder Horse and Atlantis. Wolfspar’s ultra low frequencies allow geophysicists to evaluate deeper levels below salt layers than previously was possible.”
One more interesting article on seismic advances beyond 3-D seismic technologies I was unaware of.
Sourse - Offshore-technology.com. April 2, 2019 Article titled “Five Exploration Technologies for the Offshore Industry.” “Digital Transformation, Methane Detection Systems, Seismic Imaging, Artificial Intelligence and Automation”
Hoping a new “Investor Deck” Presentation for 2019 posts on their website soon. It would show up on their website under Investors/Company Information/Presentations/2019.
Gulfslope’s Press Release from September 25, 2018 “ Johnson Rice 2018 Energy Conference - Gulfslope will post an updated “Investor Deck” in the Investors section of the Company’s website that will be used for its meeting with investors at the conference.”
Gulfslope’s went to three Energy Conferences in 2018 starting with the Louisiana Energy Conference in May. Happy to see them continuing the process. Source from Gulfslope’s 2018 Press Releases.
The Panel discussion Seitz will be on will discuss “U.S. Offshore E & P - Deep water and Deep Shelf GOM. The return of Conventional Exploration.” Source- LouisianaEnergyConference.com
”Confirmed Panelist, John Seitz to speak in the first of 20 Panels on May 29,2019 @ 8 - 8:40 am at the Louisiana Energy Conference. Two weeks ago it was a Preliminary Listing of Panelists Companies this week it is a Confirmed Listing of Panelists Companies. Source Louisiana Energy Conference 2019 Website.
During the 2018 Louisiana Energy Conference The Gulfslope Panelists speakier was Vice-President, Clint Moore. This year it will be John Seitz. Source for Moore was Gulfslope’s Press Release dated May 29,2018.
b]
Learned some interesting knowledge on New Seismic Data Techniques from the company’s websites after reading their articles on BP’s Thunderhorse and Atlantis Fields, ExxonMobil’s Guyana’s Field’s (Stabroek, Kaieteur, Canje blocks) & W&T Offshore’s Mahogany Field
BP’s 4-D Ocean Bottom Nodes (OBN) Seismic and Distributed Acoustic Sensors, and Wolfspar Seismic Technology. ExxonMobil’s 9/13/18 article off of ExxonMobil.com “(FWI) Full Wavefield Inversion combine with Supercomputing. In past industry could only utilize a portion of data recorded in 3-D seismic waves”. W&T Offshore’s “(WAZ) Seismic data allowed the company to more clearly image the sub salt formations and assess the additional upside of the Mahogany field”.
[Great article from ExxonMobil website under Guyana - Article dates May 10, 2019. Titled- Guyana Project Overview. Subtitled “ExxonnMobil initiated oil and gas exploration activities In Guyana in 2008, collecting and evaluating substantial 3-D seismic data that led to the company safely drilling its first Exploration well in 2015, Liza-1”
Yes, did find out “Delek GOM Investments, LLC a Wholly Owned FOREIGN SUBSIDIARY the Buyer contracted with Gulfslope Energy and Texas South Energy” in an Agreement for the acquisition of oil and gas rights”. is a wholly owned foreign subsidiary.
Quote taken from the Delek Group’s website under, Investors, Regulatory Filings, Page 9, Tel Aviv Stock Exchange , January 8, 2018 Announcement, January 8th document - “Investment in Oil & Gas Asset in GOM” , Page 1, 1st Paragraph, Sentance 4.
All reports on the Tau are out of Delek Group ‘s website under their regulatiry filings Tel Aviv Stock exchange. Not there Delek US Holdings Inc out of Brentwood TN which is listed on our N.Y. stock exchange “DK”. And has over 900 employees in the US. Delek US Holdings never reports on the Tau just Delek Group out of Tel Aviv, Israel .
So the BOEM Document, “Oil and Gas leasing on the Outer Continental Shelf” Page 4 excluding cover sheet, Section- Acquiring a Lease”, Paragraph 1 states “ In order to become a lease holder a qualified bidder must be a legal entity under US law. Including being an America National, Resident Alien, Corporation or Partnership or Any combination of the above.” Does say to be on an oil and gas lease you have to be an entity under US law.
Wondering if this is one of the reasons Delek Group, Tel Aviv’s subsidary- Delek GOM Investments LLC, a wholly owned Foreign Subsidary entered into an agreement with Gulfslopes and Texas South Energy for their 3 Phase “Agreement” in January 2018.
Per Wikipedia under BP, BP America Inc in Houston Tx New York Stock Exchange Symbol, (NYSE Symbol “BP”) is the Parent Company of BP Exploration & Production Inc. which does all the Exploration and Drilling in the GOM for BP. So BP Exploration and Drilling’s Parent Company is an American Company on the NYSE (BP). Delek GOM Investments,LLC’s Parent Company is Delek Group on the Tel Aviv, Israeli Stock exchange.
Can Delek GOM Investments,LLC a subsidiary of Delek Group LTD based in Israel directly acquire a oil and gas leases in the GOM from the BOEM?
Based on BOEM.gov website under their 7 page PDF "Oil and Gas Leasing on the Outer Continental Shelf" Section "Acquiring a Lease" Page 5.
"In order to become a lease holder, a qualified bidder must be a legal entity under United States law. This includes being an American national, resident alien, corporation, or partnership, or any combination of the above."
Was this one of the attractions for Delek to partner with Gulfslopes in their Potential GOM 3 Phase or more on the January 2018 Agreement?
Per Delek Group Ltd's s April 11, 2019 release last paragraph, "Oil and Gas exploration activity we are carrying out in the North Sea and the (GOM) Gulf of Mexico, gives added emphasis to the Group's position in the international energy market."
Per Delek's May 14, 2019 Release "the Company's "Delek" share is USD
70 Million" "after deduction of the insurance monies of 10 Million received is USD 85 Million" Total Tau cost to Delek 70 Million.
Per Gulfslopes May 13, 2019 Release 1st paragraph "Geophysical and Geological models reinforces the Company's confidence that there is resource potential in excess 300 million barrels of oil equivalent remaining" "The company is currently evaluating various options related to future operations"
Question, In the oil and gas Wildcatting industry is it possible that after further analysis (Data/BOEM) on the Tau wellbore could Delek and Gulfslopes reconsider Tau as a Wildcat option? If there is +- 300,000,000 BOE with a potential of over 5,000,000,000 USD would Delek and Gulfslope go back to Tau? Is 70 million to Delek and 15 million to Gulfslope and TXSO too much already spent for this wildcat potential?
Sure hope Corvette's analysis comes back good. Per Gulfslopes 10-Q "Analysis on the Corvette should be completed 2nd quarter of 2019" that would be next month. Also that they acquire the additional financing to continue through the beginning of 2020.