GulfSlope Energy Inc (GSPE)

[smith199]

From what I have seen, activity is picking up in the GoM.

It appears that your observation is correct, Tiger01. And thank you for this contribution to the discussion.

A few facts for the development of a Gulf of Mexico (GOM) activity comparison. The following figures pertain to shallow water drilling as that is what we are interested in. However, there are also considerable increases trending in the numbers for deep water drilling as well.

BSEE Permit Statistics for Shallow Water Wells as of 7/1/2023:
The total of new wells and revised new wells for 2022 were 7 and 29, respectively. While only 6 months into 2023, the total of new wells and revised new wells reflects 11 and 28, respectively. So it appears that by year end, 2023 will greatly surpass the totals of 2022.

BSEE Permit Statistics for Deep Water Wells as of 7/1/2023:
The total of new wells and revised new wells for 2022 were 46 and 374, respectively. With 6 months remaining in 2023 the total of new wells and revised new wells is already reflecting 33 and 260, respectively.

Permit Statistics Link: https://www.bsee.gov/stats-facts/offshore-information/status-of-gulf-of-mexico-well-permits

For the record, Gulfslope’s BOEM Tau Lease G36121 benefits from the lower royalty rate of 12.50%. Also as an aside, I believe the Tau lease G36121, Gulfslope acquired under BOEM lease sale 249, qualifies for royalty relief programs for shallow water ultra-deep wells authorized under existing BOEM regulations at 30 CFR part 560 and 30 CFR part 203. These are not insignificant considerations to profitability for an operator, or by extension, the partners. And shareholders may also appreciate this information.

And even better, any future income generated by Gulfslope Energy will be offset by their NOLs of approximately $70 million. A significant boost to profitability. Now if only Gulfslope acquires producing assets or places the drill bit into a few of those Miocene prospective targets, we can really get this ball rolling and allow the GSPE shareholders to live their investment dream.

So, once again Tiger01, your comment is prescient. And to me, these types of comments and observations are worth their weight in crude oil. In my experience, even a casual comment can end up providing a significant hint that develops in to the tip of the iceberg. And thanks for taking the time to contribute. Please continue to be observant of the activities of operators and service companies in the GOM.

I am curious if the EIA will increase the 2024 crude price forecast for WTI and Brent on their upcoming (July 11th) Short-term Energy Outlook (STEO). The current report reflects the ‘average’ 2024 price for Brent and WTI to be $83.51/bbl and $78.51/bbl, respectively.

Energy Prices Link: https://www.eia.gov/outlooks/steo/tables/pdf/2tab.pdf

Russia and Saudi Arabia continue to stick to their production cuts through August. In fact, Russia will be cutting an additional 500,000 barrels per day next month. It is reported that Saudi Arabia’s Aramco expects their “2023 capital expenditures to total between $45 billion to $55 billion with capex increasing until around the middle of the decade”. I suppose big oil will also continue to prioritize the high-returns of the upstream.

By the way, the current STEO reflects U.S. Petroleum and Other Liquids Consumption to increase by 1.3% in 2024, and World Petroleum and Other Liquids Consumption to increase by 2% in 2024.

EIA STEO U.S. and World Consumption Links:

https://www.eia.gov/outlooks/steo/tables/pdf/4atab.pdf

https://www.eia.gov/outlooks/steo/tables/pdf/3dtab.pdf







Mrs. Smith