Comments from the USA presentation
From a post by DB I was sent - comments from the US presentation done recently.
Worth rereading: Equityhawk:
Different from what we saw in London, very similar information, just presented differently.
Key takeaways from presentation:
Cipero sign-off coming in next 30 days, maybe next two to three weeks.
Swap will be done soon but no definitive timeline.
He said there is some debate on whether to spud Casc C before or after Christmas.
He said unlike when he was in the field, drill crews expect holidays off now.
The plan is 6 months from casc C spud to brining it online. Preparations are underway for flow line between A and C.
First Cretaceous drill probably end of 2024 maybe early ‘25 and they want to drill the three targets one after another.
Other information gleaned:
-Separator unit needed to upgrade the plant to 200 cost $600k. It cost $3m two years ago (Covid and steel prices).
They are going to wait on the liquids pipeline for now.
There may be ways to increase trucking efficiency in the future and they are pretty confident they can truck 2500bpd.
It seems that there is no connection between going to 90mmcfpd and the price negotiations. It sounds like those are more connected to the fact that the current gas price is only for Ortoire and the leverage may be the probable gas from Rio… which we don’t own yet.
Our relationship with the ministry is great. Stuart reaches out to them once a week or so to check if there’s anything they can do to help. They want all the gas we can give them.
They are going to give very conservative guidance from this point forward. Part of the problem with timelines in the past was they made projections based on experience in North America and didn’t anticipate how slow things move in TT. The strategy is to under promise and over deliver. (No Gantt chart, sorry posh).
They do have some takeover and acquisition targets, but nothing in stone and I couldn’t get any more info.
James confirmed that without the upgrades, he thinks he can push the plant to 100-110mmcfpd.
They aren’t building the pipeline before they take the plant to 200mmcfpd. Partly, C is on the up dip side so they don’t know if they will get as much liquid. When it makes sense to build a pipeline, they will build a pipeline.
So, one of the biggest takeaways I got was that he claimed in the presentation that it would be about 6 months from spur of casc C to bring gas to market. I thought he probably mis-spoke so I asked him to confirm that after the presentation. And he said “6 months”. I was very encouraged by that, especially since he made a big deal about making sure they are carful with their timelines going forward.
The prep work they are doing now is getting ready to clear a path for a road between A and C from which to build the pipeline.
From previous information, the only equipment at C will be some monitoring and safety equipment. All the major upgrades will be on A. A and C are only a mile away. So the pipeline will be easy along a road they are constructing.
