Trading update from PFC this morning, all in line with expectations, indeed I would venture that this is a pretty good update given where company has come from. The $5bn order intake is impressive giving a backlog of $10.2bn and with over $15bn of tenders out the outlook for 1H 2019 is very solid. As demonstrated in the impressive visit to the Middle East earlier in the year , management is clearly putting the burners on in respect of the slimming down and sharpening up the company and the shares are increasingly undervalued.
Yet again President has come in with what looks like another very good well at Puesto Flores in Argentina. The third well in the current drilling program has been successfully drilled, logged cased and cemented to 2,360 metres on time and budget. Both the primary and secondary targets displayed 18 metres of net oil pay with good oil shows as detected by electronic logs having good oil saturation and porosity.
The rig is being demobilised and a work over rig will commence testing and completion by the end of this week. The well should be on production ‘at or around New Year’ which will signal a truly impressive campaign. The company guide that this well will produce at pre-drill expected levels of 200 b/d making the Group exit for the end of the year of 3,000b/d. I have to say that I view this number as being extremely conservative and look forward to the actual number being revealed.
As I said this has been an exceptional campaign and an exceptional year for President, in operational matters it has blasted through targets and astute M&A activity has added value behind the scenes. Shareholders should be most excited about the prospects for 2019 and will have a happier Christmas with a few of these beauties in their portfolios.
Unfortunately there was no Bowland shale present at Tinker Lane which is a disappointment but is mitigated by the well location, on the edge of the field as a delineation exercise. This completes licence obligations and the significant efficiency of the well bodes well for Springs Road to be drilled 1Q 2019.
The company has applied for planning for further mineral rights at its licence at Islandmagee. Success here, in an adjacent plot would facilitate a larger, 15 cavern additional development and would certainly bulk up the project. INFA is definitely one to watch in 2019.
Standing like sardines for two hours was not conducive to writing a blog so apologies for that.
Caretaker operator Woodside has announced that it has commenced FEED activities at the SNE field in Senegal and has hired SIA as contractors for the development phase 1. This should lead to FID in mid 2019 with first oil in 2022. As one of the genuinely world class projects this confirms the extent of its largesse and will significantly benefit the confirmed JV partners.
Yesterday Aminex announced a number of operational updates, primarily that at Chikumbi-1 drilling and 3D seismic programmes have been progressed and that a rig has been selected. Work is also going on at Kilwinning North-1 and with Schlumberger are repairing the faulty sub surface valve. Investors are rightly impatient here but recent conversations with Jay indicate that much is happening that should progress the farm- out.