A contrary, though highly credible, contrary viewpoint to that, and one that is being greatly promoted within the industry, is that during periods of low O&G prices the main criteria of concern is exploration and production cost reduction.
One of the best ways to reduce your overall cost base is to reduce the cash burn that you have in finding/replacing reserves.
Therefore, would you rather risk burning through a heap of costs on exploration wells (where a realistic success rate would be 1 in 5, or worse), or, would you rather derisk by acquiring reserves through M&A activities ?
There is numerous suggestions, from many noted players in the industry, that the recent lull in M&A action within the industry is likely to turn 180 degrees, and an increasing number of M&A activities is beginning to occur.
A new investing strategy perhaps worthy of consideration is, identifying companies currently positioned such that hey become takeover targets.
Now, if only I could identify these targets, then "this time next year Rodney, we will be millionaires" ..... lol
Has it occurred to anyone that if we are in negotiations with a major over some kind of farm in deal there would be an enforced news blackout and confidentiality clause to avoid the bidding war that happened over Cove energy? After all if it is still early talks then that would hardly count as price sensitive information until an offer was to be made.
Thanks for the update J-K, very frustrating here at the moment with so much promised and so little delivered, classic case of aris dragging but am sure all will arrive in due course, perhaps an update on progress in any area would be in order from AEX as they appear to have little else going on at the moment.
The last RNS we had was the 18th of December so its understandable that people are feeling a little impatient. Its very rare for us to have such a period of news blackout, especially with so much going on in the background and so much news potential. The further we move from the last RNS brings us closer to the next. Of course it will be like the old cliché referring to buses !
We have so many true landmarks within our grasp ;
* OUR GSA, * COMPLETION OF THE GAS PIPELINE * OUR FIRST PRODUCTION / INCOME * CLEARING OUR DEBT
These are all massive transformational pieces of news that will change Aminex as a business forever. Some companies wait years for one piece of news equal to ours, yet we have at least 4 in the coming weeks. That's not all though as we have much more news due on other fronts to run along side our major news. I'm very excited about the coming weeks for us and happy to just sit back and enjoy the ride, knowing most of the hard work has been done. As the pieces of the jigsaw slot into place, we will see investors paying much more to buy Aminex shares with that security. I will be having my very last topup if we see any further drops. Too good to miss in my opinion but I'm biased of course.
The president will speak at Davos tomorrow in front of world leaders to invite investment. They need to show Tanzania is the place to invest, so they will need to ensure energy supplies in the country to run smoothly.
"They too will speak on the potential of economic investments in Tanzania, mainly on gas, oil and transportation. In addition to the 1,500 top business leaders from over 140 countries, more than 300 heads of state, heads of government and government members are also expected to participate."
So, news on Gas Sales Agreement for Kiliwani due, news due on the sale of second tranche of 6.5% to Solo, news due on Mr Andre's reinterpretation of old data and interpretation of new data and plan going forward re exploration drilling across Ruvuma PSA, news due on plan for appraisal drilling of Ntorya. Then what the devil is going on in Egypt? Be still my beating heart...... the anticipation is killing me!
07.04.14 - ...pleased to announce that Mr. Bernard Andre has joined the Company as an Exploration Advisor. In addition to having over 40 years' experience with Exxon, Repsol and Total as a Geophysicist and Asset Advisor, Mr. Andre worked with Cove Energy plc as an independent consultant to interpret and evaluate its assets in the Ruvuma Basin through to the eventual sale of Cove for $1.9 billion in 2012. Mr. Andre will begin work immediately on the re-interpretation of existing data over the Company's Ruvuma PSA which includes the Ntorya-1 discovery well (1.2 TCF Pmean GIIP). Subsequently he will interpret the new data that is being acquired as part of an ongoing seismic programme in order to high-grade numerous exploration leads into drill-ready prospects. 11.09.14 - Aminex today announces that interpretation of the newly acquired seismic data has extended the potential of the Ntorya appraisal area, and management has further increased its resource estimate to 2.3 TCF (Pmean GIIP) by combining the Ntorya discovery with the adjacent Likonde prospect in its Ruvuma PSC in south-eastern Tanzania. The new interpretation has shown that an additional target exists for an appraisal well that would intersect the Ntorya gas and condensate sands encountered in Ntorya-1 and an extension of the Lower Tertiary sands that were found to have oil and gas shows in the earlier Likonde-1 well to the north. This additional target has further increased the recently announced resource potential from 1.9 to 2.3 Tcf (Pmean GIIP).
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