Have spent a lot of money and time farming into the Irish blocks with Antrim and Europa. They agreed to pay an undisclosed contribution toward previous costs to Antrim and to carry out 3D seismic (free carry) across FEL1/13 for a 75% share. At Europa, Kosmos paid for 3D seismics across FEL2/13 & 3/13 and and free carry through drilling worth $200m for an 85% share Now Kosmos have finally got the 3D results together and are about to release the prospect inventory any day (according to Europa ). 3D seismics are very accurate these days and are viewed by the industry as very important but are extremely expensive. So having spent all this money Kosmos will soon announce which blocks they would like to drill, between Antrim and Europa. It's suggested they will drill 2 wells in 2016. This could be transformational if Kosmos decide to drill in Antrims block then it would be easy for them to farm down their 25% next year for a free carry. A very critical time in the Irish exploration blocks !!!
Hey Joe, to be fair I have only taken a position in AEY very recently at circa 3.19p just before the news was released. I have done a huge amount of research in the area through a couple of other companies. Antrim has been on my watch list for a while and finally became a screaming buy for me . There are some very strong positives upcoming for Antrim and I happen to believe this buyout isms being used to work in Antrims favour. No matter what people tell you Antrim is in a very comfortable position and do not need to be pressured into a sale, so why even entertain it. I think Gerry has just seen an opportunity at Antrim as he has skin in the game at Sound. Regards Malcy.......well I'd rather not discuss, but let's just say he has plenty to gain from this deal going ahead.
RE: Sound shareholders
I firmly believe the offer needs to be towards £12m - £15m to make it reasonable but still cheeky. Our BOD can easily buy into another project with £5m and save £5m for overheads, This could transform our company. Most AIM stocks have no money so we would be way ahead just with funds. Also if we keep hold of the Irish asset it will cost us nothing until drilling in 2016. Once kosmos choose where they wish to drill and they release the prospect inventory (very soon) then the value of our asset will be worth far more. Next year we will easily be able to farm down our 25% share or sell out for a huge gain. There are huge companies vying for a position off Ireland and its not because they like the scenery. Ireland could well be the next massive oil hotspot and we would be centre stage. Cairn energy are to drill in 2015 and Kosmos 2016. All we would have to do is sit tight. Kosmos want to farm down their share and they will need it to go for a lot of money as they have invested millions already !!. I would not be surprised if they gazumped the ridiculous Sound offer !!
What do you mean when you say Malcy will gain. This is an odd situation, with Gerry Orbell sitting on both boards. I wonder what will happen? Tiptop, have you been in Antrim long? Would appreciate any details/knowledge. Thanks, Joe.
RE: Sound shareholders
I agree TipTop. But you're right they should make a more compelling offer. What offer will you be satisfied with?
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