After further review, I wanted to clarify my attached post.
I still stand by what I said earlier, and that is Delek GOM Investments, LLC has earned a 75% Title interest in the Tau and Canoe Prospect’s US Federal leases upon satisfying it’s spending obligations associated with the two prospects from the Participation Agreement’s Phase I.
Delek GOM Investments has the “rights” (they purchased a basic license) to only the “Underlying Seismic Data” (Basic Seismic Data) of the Tau and Canoe Prospects. Gulfslope Energy holds the Master License with it’s Seismic Data Providers on the Tau and Canoe Prospects. Matter-of-fact, Gulfslope Energy holds the Master License on all their Prospects.
Delek Group has access to “interpretations, maps & other analysis owned & controlled by Gulfslope, insofar as same covers and pertains to seismic data covering the applicable prospect.”
The “Participation and JOA can be amended and revised from time to time by the parties”. Which I believe was the case in 2019 between Gulfslope and Delek. Only excerpts of the “amendments” were released, I personally never saw or could find the amended agreement in full .
So was the Tau-2 well officially considered a “substitution well” of the Phase I Participation/JOA agreements or was it a work-in-progress up until the insurance Lump Sum payout, thereby leaving Delek GOM Investments, LLC without rights or access to Gulfslope’s detailed information on the Tau-2 drill well? We know Delek had access to the Tau-1 exploratory well data due to the creation of the 12/2017 and 6/2019 NSAI Tau prospect’s Recoverable Resources reports, but did they really have access to the Master License Holder’s Tau-2 drill well information, good point.
Even if Delek’s asset valuation on the Gulfslope and Tau/Canoe assets become negligible on their financials due to the crisis, Delek still retains a 24.46% Capital Share interest in Gulfslope Energy along with a 75% Title Interest in the US Federal Leases of the Tau and Canoe Prospects.
I think it is important to note that Delek Group recently made the following statement about the USA:
“Delek recognizes the USA as the world’s leading Natural Gas & Oil Producer. In the US Gulf of Mexico region where the Tau Field is located there has been extensive experience in exploration, development, production of oil and gas assets, and as a result, oil treatment and pipeline infrastructures are very developed. In most cases, the development of oil and gas assets in the areas where the company’s oil and gas assets are located is based on local know-how and experience accumulated with regard to nearby and similar assets, as well as regarding the extensive use of existing infrastructure. These circumstances often result in shorter development time of oil fields and less capital expenditure needed then many other places worldwide.”
Let’s not forget the low breakeven of under $20/bbl on the GOM Shallow-water Tau-2 drill well.
Delek Group also recently stated:
“Work Schedule on Tau Asset 2020 Onwards: Further Seismic Assessments by the Operator”
Do I think Delek this Oil and Gas E & P company is chucking all of their 75% Title interest in the Tau Prospect’s a.k.a. “Sleeping Giant” Federal leases anytime soon, probably not.
Well here you go, crude oil inventories down another 4.5 million barrels from the week earlier. Hope this keeps up.
Just my thoughts on the matter,
Smith
