Talking about the issue of power supply, the company boss explained that they will take power from the National Grid, ACTIS Energy but explained that it will be only for a short while since they intend to construct their own power supply station on the site as it operates in all of Dangote’s factories the world over.
So ENEO just signed up to a 2 year legally binding contact with a company thats cash strapped and potentially might run out of money before they hook up. Sorry but rather put my faith in ENEO's CFO than a disgruntled ex-shareholder
1 Assume they have $20 m in the kitty 2.Assume Drill cost has reduced from $40M to $35M because of reduced demand 3.Assume Dangote takes us past group breakeven and all sub power station sales = 85% contribution to net cash 4.Assume....on back of 3 above that borrowing of some kind ($15M ) is possible ( Well Soc Gen is!) .................means they dont need dilutory finance.
Work out what the net cash and profits contribution will be if Dimbambe is hooked up and consuming VOG gas.
It isnt all in the bag but does seem likely......and the big question is ..the speed of achievement. If Vog candoitquickerthanbefore it is great. I certainly like the sound of $100m cash flow surpluses - dont you?
orapaboy so are you saying the accounts are wrong? and the fact is they had more money than they stated.? some of you do have wonderful imaginations. no wonder the sp is still on its knee's. according to some of you they has loads of money, gas pipe that they have done and never told anyone about, companies using gas that we have not been told about. gee talk about the blind leading the blind.
It doesn't matter too much about West Med as long as we still have the licence to drill. We can consider itan asset for the future. Any day now we could have an update on whether they have purchased the processing plant and whether Dangote is up and running. It doesn't matter how much gas they are using at first just that they using vog gas because this as like or not will increase.
Naks Yup. In the 1980's when here were 100's of idle rigs parked off Aberdeen & the Cromarty and Moray Firth...the day hire rate for rigs declined by over 50%. Same may apply to Cameroon drilling. One concern is to ensure there is a competitive tender for VOG's drilling. I imagine JG in the picture probably helps. Mel
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