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
They need a lot more cash for drills than they are ever making from gas sales. I said before consolidation at some point this year there will be a new round of dilutions , i see nothing after all this , "great news " to suggest otherwise.
Buzzclown , give it a rest Voger , why are you here if you have sold up ?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.