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Also it's funny how some really awful companies are skyrocketing despite having almost zero or negative net current assets and no pending operations. If they can rally then CLNR certainly can. Then again perhaps that shyt is going up to help get a placings away, something CLNR doesn't need to do.
A new asset can be injected at any time.
there is a school of thought, not just here, amongst many junior oilers stock prices are going to remain static for sometime.
Even though Cluff has cash, it is being burnt, with little or no likelihood shareholder value being improved anytime soon, the SP continues to drift.
Redeployment of cash should always be an investment strategy.
Warren Buffet agrees and currently has an enormous cash pile waiting.
Redeployment of cash is a sensible reason, but surely it makes sense to be accumulating at these levels.
Not sure serious investors are desperate, just tired of waiting for Jam tomorrow when, in this market they can see good opportunities
Selling below current net assets per share though is a bit desperate. This is surely time to accumulate.
Fine words which have a habit of not being translated into actions.
We know there are significant programme changes...Shell postponement, OGA's delay to Licence announcements. Is it reasonable to understand these changes have impacted on the Executive Group's work-load , and yet NO announced Cost-savings?
Received a response from camarco yesterday, basically said that there is no substance to the rumours of the company been taken private. Funded until the end of 2021 and looking forward to drilling two wells with shell in 2021.
See rns from AEX this is what should be happening here!!
Good one Scooby if only it were that simple
Rob it has been nosediving since February 2019 with no let up
They need to issue some very positive news and very quickly
How are they going to raise any more money for the next lot of licenses without diluting holders into oblivion?
Cash is burning at an alarming rate and there is nothing showing in the share price
Abbzba this is the reason we need to distance ourself from the Cliff name, he is a very corrupt man, love sto deal with the Africans through the back door, Mugabe comes to mind, the sooner we lose the name the better off we will be,!
Why is nobody on here talking about the Company? The Share price went down over 12% today and I for one is rather concerned about it. Please lets talk about it, or has everyone just given up?
unrelated
https://www.energyvoice.com/oilandgas/africa/238720/cluff-innoson-win-sierra-leone-blocks/
Thanks Exploration. Some interesting metrics required by OGA......economics and costs is a good one!!!
FD - CLNR’s reason for the write-off is described in the notes on their accounting policies in the 2018 Annual Report. Looks like they’d capitalised investment in P2248 and when it ceased to exist they had no choice but to write it off.
Incidentally, here is a link to OGA’s marking system for new applications. Applicants complete a computerised spreadsheet which spits out the scores for each block applied for. Then there is some jiggery pokery resulting in offers to applicants. Sometimes OGA creates ‘forced marriages’ if there is a tie.
https://www.ogauthority.co.uk/media/3974/marks-scheme-reference-sheet.pdf
Exploration
Did find it hard to understand the impairment ( basically write-off) of £800K for 2248 caused, it seems, by the inability of a proposed partner to show adequate funding. I do wonder if proper due diligence had taken place before Cluff got into that position...…..good management???
My comment (BOGOF) was a comedic one aimed to lighten the gloom which has descended upon us generally.
Your insightful and knowledgeable post is as always gratefully received.
Many thanks
Thanks so maybe Spirit Energy
FD
There have been no changes to UKCS fiscal terms for some time apart from the industry ‘levy’ which pays for OGA so I think we can rule out BOGOF!
UKCS licenses are awarded by scoring applicant’s work programmes. The problem facing CLNR on the old P2248 is that they were actively promoting an exploration well on block 43/11 in the failed farm-out - which implies it is still ‘drill-ready’ and therefore they should include a firm well in an application which would score a knock-out 50 points. Such an application would only qualify at OGA if CLNR can demonstrate financial capability and capacity to pay for a well i.e. cash in the bank - which they can’t.
So what to do? Since any gas exports from a discovery would go via the Cygnus system it would make sense to apply jointly with the licencees of the adjacent, undeveloped Andromeda (43/12) and Pegasus (43/13) discoveries who do have financial capability/capacity.
Like other shareholders, I’d like to see some wells drilled on CLNR’s acreage after >5 years of waiting - and so would OGA.
or could it be BOGOF??
Exploration is the expert for sure
Exploration is the man to ask about the possibility of this
you think OGA will pay us to take it off their hands, a bit like negative Oil prices??
Maybe the terms the OGA are offering are more favourable now than they were when they last held the licence
But they definitely stated they wanted it back so maybe they are applying jointly with Shell?
mike that is quite probably correct. It does seem an expensive exercise!!
They did state when they relinquished P2248 they would be reapplying for it
We know they have jointly applied for a licence and P2248 is quite close to Selene so maybe they all tie in?
Just speculation fwiw
That would be ironic having written off £880k when the licnce was relinquished.
Name change on basis of drilling Licences....mmm that's a conundrum especially considering the name change was pencilled in last summer and if I am correct new Licence apps were in during November!!
That's a puzzle mike