Morning all...Does anyone think Actis could invest/takeover GDC...some really interesting info on the Actis website..
At the forefront of the nation’s embryonic gas market, Seven Energy, an upstream oil and gas company, has become a champion domestic gas producer, transporter and supplier. Founded in 2004, it focuses on two core areas of operation, the South East Niger Delta (Akwa Ibom) and Kwale.
Since Actis invested in Seven Energy in 2008, it has worked with the company to maximise its existing assets and will also help it to explore acquisition, partnership and investment opportunities as the Nigerian government and big oil and gas multinationals divest some of their marginal assets. Minimising the social and environmental impact of all projects is vital to Actis and its Environmental, Social and Governance team have worked alongside Seven Energy to ensure it meets with all IFC Performance Standards. International consultants, Environmental Resources Management (‘ERM’), have also been engaged to accelerate the achievement of these objectives in 2011. The aim is to turn Seven Energy into Nigeria’s leading gas development and production company targeting 300 MMboe (Million Barrels of Oil Equivalents) reserves and 100,000 boepd (Barrels of Oil Equivalent Per Day) production by 2014.
To answer your question - processing plant on itself is a cost saving but should lead to maiden profit. So on that front - very positive news.
I suspect that nothing is priced in until 'the day' and then it is down to sentiment and momentum. Don't know a lot about them, but a few days ago, ROSE were up, issued dilution RNS and stayed up. Yest dropped on no news. No rhyme nor reason.
Thanks for your comments , what event is breached when we purchase the processing plant? if the market has already priced this in then would you say that the market has priced in group cashflow positive?
I have no doubt there has been negotiations going on for sometime between Vog and Actis, in an earlier statement Vog was to supply gas for thermal and electricity to Dangote, now just thermal, so there must have been some incentive for Vog to allow this to happen, secondly gas is cheaper than heavy fuel, cleaner and less transportation costs, plus Actis get a reduction on loan. There is only 1 gas pipe network in Douala Vog's, there is no other competition, so I have no doubt Vog will supply the gas that Actis needs! the negotiations will obviously consider cost per scuff, term of contract, cost of gensets, reliability, Actis could potentially require 20 scuffs for all plus maybe additional future mini power plants for industrial estates etc so time scales will come into factor as well and finally, i think dry season starts in September/October so things will have to be sorted soon, or more blackouts would give Actis bad reputation.
L&g How can you think plant purchase is priced in? With the plant purchase VOG become group cash flow positive. That is not priced in However that is my opinion & you are entitled to yours. We will only tell if the price goes up or stays the same when that news is announced
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