Replies to post #2438 on GulfSlope Energy Inc (GSPE)

[smith199]

Correction:. (SOP) is Suspension of Production not Suspension of Operations.

Smith

[smith199]

Delek Group includes Gulfslope in Asset Portfolio off their September 2019 “Barclays CEO Energy-Power Conference Presentation”. Great to see Delek Group foreseeing “Value” in Gulfslope Energy, so much so, they included them as having 22% ownership in this E&P Upstream-GOM Asset.

EXCERPTS from Delek Group September 2019 Presentation:

Page 4, Titled: Delek Group Asset Portfolio by Holdings, E&P Asset: Gulfslope, Ownership: Public, Ticker: GSPE, Ownership: 22%, Business Sector: Upstream GOM.

Page 13, Titled: & New Investments, •May 2019 Acquisition of Chevron’s North Sea Assets for a net price of USD 1.65bn, •Considering Further Drilling in the Gulf Of Mexico.

Page 14, Titled: To Sum Up..., Expanding Operations Globally section, “Seek Presence In The Gulf Of Mexico”

In my opinion, the above excerpts are consistent with Delek Group’s 8/29/19 Regulatory PR: “The “Group” is Assessing The Conditions For Proceeding Further At This Location.”

Source:. Delek Group website, Investor, Investor Presentations, “Delek Group Investor Presentation September 2019” dated: September 16, 2019. Titled: Delek Group Israel’s Pioneering E&P Company

Smith

[smith199]

Current Drilling MMBOE Opportunities in the Vermillion Area, Block 375 GoM for a 100% Working Interest are 238 MMBOE with $3,810,000,000 NPV10.

MMBOE VR 375 recap:

8 MMBOE, $140 MM NPV10, VR 375 Development
21 MMBOE, $370 MM NPV10, VR 375 Exploitation
209 MMBOE, $3.3B NPV10, Corvette Prospect

NPV10 is the value defined as the present value of the estimated future oil and gas revenues, reduced by direct expenses and discounted at an annual rate of 10%.

This does not even include the 100% working interest in the Tau Prospect of 418 MMBOE, with $4.5B NPV10.

Hoping for more good news soon.

Source: Gulfslope Energy’s 2019 Johnson Rice Energy Conference Presentation.
Gulfslope Energy’s website, Investor, Company Information, Presentations.

Smith

[smith199]

TXSO, Texas South Energy has logged about 3 million shares since late last Friday. The volume over the last month basically was stagnant. The most I saw traded per day was 10,000 shares if any at all, now 3 mm shares in about 48 hrs. Could be nothing, since it is only about $15k.

TXSO was the contracted 5% Partner in the Tau well 1, GOM leases G35244 & G36121.

Smith

Source: MarketWatch

[smith199]

After a little more review of Gulfslope’s current September 2019 Johnson Rice Presentation, I noticed the Corvette (all of VR 375) and Tau were very close in their 100% working interest NPV10 dollars. The Corvette’s NPV10 dollars was $3.81 Billion, and the Tau’s NPV10 was $4.5 Billion, but their MMBOE was 238 and 418, respectively.

In my opinion, the Tau Prospect could have extraordinary potential beyond the 418 MMBOE. Look at W & T Offshore, and their continued Seismic Testing/Analysis, Development and Production of the Mahogany field.

But in my opinion, all of Vermillion Block 375 & 376 (Corvette Prospect) is a huge win too ($3.81 Billion @ 238 MMBOE).


NPV10 is the value defined as the present value of the estimated future oil and gas revenues, reduced by direct expenses and discounted at an annual rate of 10%.

Source: Gulfslope Energy’s website, Investor, Company Information, Presentation, September 2019 Johnson Rice Energy Conference Presentation, dated: September 16, 2019, Page 8.
W & T Offshore website.

Smith

[smith199]

I have a good amount of “faith/belief” in Gulfslope Energy, and that they will do what is in the best interest for the Company and Shareholders. In my opinion, Delek Group a Multi-Billion dollar company believes in Gulflslope Energy, and so does little old me.

Pretty brilliant using the “Anadarko VR 375 Discovery” to get a “BOEM Well Producibility Determination” on June 5, 2019, and a “BOEM New Producible Lease Designation” on June 11, 2019 for Gulfslope’s Corvette Lease G35193. Gulfslope’s Team had to be working on this for several months prior to those BOEM assigned dates of 6/5 and 6/11.

Source: Gulfslope’s 2019 Presentation, Page 13, Titled: Vermillion 375 Opportunities. Left side in between the two graphs.

Also, they were definitely on top of things when they acquired Corvette VR 376 Lease G36357 with the fixed “Platform”.

I am still a believer that Gulfslope Energy has “GRIT”, and it will all work out for the Company and the Shareholders.

Smith

[smith199]

Reminder, 2019 Johnson Rice Energy Conference September 23 through September 25.. I anticipate Gulfslope Energy will be in attendance.

Gulfslope Energy’s September 2019 Johnson Rice Energy Conference Presentation is out on their website under, Investor, Company Information, Presentation.

When I first joined the board and wrote about Mr. Seitz speaking at the Louisiana Energy Conference, someone responded with “Big Deal, attaining a business sector conference never did anything for Shareholders.” I disagree, large and small companies go to oil and gas energy conferences all over the world to further assist them in their business objectives.

At these conferences, large and small Cap companies are all on a level playing field. Everyone is bringing something to the table, and competing for the same reward.

Some Possible Advantages Are:

•Oil and Gas Networking and Marketing
•New Cutting-edge Technology and Procedures
•Exposure to New Equipment, Parts, Oil Field Service Providers, etc.
•Financial Exposure
•Farm-ins and Farm-outs
•Exposure to Long-Term Capital Investors
•Presentations

Looking forward to the next few months because of the conference, the drilling, and the potential for good news.

Smith

[smith199]

Vermilion 376 Fixed Platform offers additional time savings and overall costs savings to the VR 375 Corvette Prospect of 200+ MMBOE, VR 375 Anadarko’s Discovery Fault Block of 8 MMBOE, and the two adjacent VR 375 Fault Blocks of 21 MMBOE, in my opinion.

In my observation, it significantly reduces the “timeline” to get the Anadarko 1996 Discovery Fault Block well into production, only “9months”. The Fixed Platform “offers option to extend well into deeper Corvette Prospect” too. To me, this is a big deal in the overall well’s “chance of success”.

Ownership of the VR 375 Anadarko Discovery well, and BOEM Lease G36357 with the option for the “Fixed Platform” is a clear advantage to the overall “chance of success” on these prospects, in my opinion.

Hoping for more good news.

Source: Gulfslope’s September 2019 Investor Block, Go to Gulfslope’s website, Investor, Company Information, Presentation.

Smith

[smith199]

The Johnson Rice 2019 Energy Conference wrapped up yesterday, September 25th. GulfSlope Energy was in attendance September 24, 2019 at the Johnson Rice Energy Conference with their current September 2019 Investor Block.

Source: GulfSlope’s website, Investor, Company Information, Presentation, September 9, 2019 Presentation which references their 1.4 Billion BOE of “Grossed Unrisked Recoverable Resources” representing $13+ Billion of Net Present Value.

Looking forward to the next Press Release from GulfSlope, and any Press Releases from future Potential Partners.

The Contracted Valaris (Ensco) JU 102 Rig is slated for October 2019. Anticipating good things in GulfSlope’s next Press Release hopefully regarding the Rig and Spud Date.

Smith

[smith199]

”Gulfslope executed a Letter of Intent to acquire the adjacent VR 376-A Platform , and is in the process of Finalizing a Purchase and Sale Agreement (“PSA”). “Gulfslope anticipates Spudding the VR 375 by year-end.”

Per John Seitz, “Our Current Development Plan of Utilizing Existing Infrastructure Should Allow Production of the VR 375 as early as mid-2020.”

Opinion:
Ownership of the VR 376-A Platform and production of VR 375 by mid-2020 is definitely a “Good Thing” for Gulfslope and all the Shareholders.

Source:
Gulfslope’s October 9, 2019 Press Release

Smith

[smith199]

Louisiana Light up +0.2% @ $64.21/bbl
December 16, 2019 Wholesale Petroleum Spot Price.
Gulfslope used $55/bbl in their NPV10 calculation for their Prospects.

This is a 16.75% increase in the EIA.gov’s Wholesale Spot Petroleum Price of $64.21/bbl, and Gulfslope’s flat-rate price of $55/bbl.

At a 100% Working Interest
Gulfslope Prospect’s BOE NPV10’s off their 2019 Presentation are:
$3,300,000,000 NPV10 for the Corvette Prospect
$510,000,000 NPV10 for the Anadarko Prospect
$4,500,000,000 NPV10 for the Tau Prospect

At 100% Working Interest
A 16.75% increase would have the following “additional amounts”:
$552,750,000 for the Corvette Prospect
$85,425,000 for the Anadarko Prospect
$753,750,000 for the Tau Prospect

Price per barrel is a variable in the Prospect’s Profit Margin calculation, and any price increase, as you can see, can be material in a well becoming “Commercial”.

Also, Oil & Gas Offshore Operators are at an advantage due to oil prices being below $100/bbl. There is a significant decline in overall drilling costs, since there are fewer Operators in the Gulf of Mexico. Lower Operating costs increase Profit Margins making a well more viable for production.

Based on Gulfslope’s Timeline once the Corvette is in Production, the price per barrel is anticipated by some analysts to be higher than it is currently.


Smith

Sources:
Gulfslope’s 2019 Presentation
EIA.gov






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