Pavilion Energy entered into an agreement to purchase 20 per cent interest in Tanzania blocks 1, 3 and 4 from Ophir Energy plc BLOCK 1,3 and 4 which are estimated to hold an estimated 15 trillion cubic feet (tcf). OPHIR hold 20% of 15 trillion which if im right is 6 trillion and they are going to farm out 20% of that for 1.288 billion that if im right is 1.2 trillion cubic feet for 1.288 billion A resource report has been prepared by ISIS Petroleum Consultants that attributes 5.75 tcf of potential gas-in-place resources to the Ruvuma PSA. ISIS calculates that Ntorya holds mean 1.17 tcf of unrisked gas in place of which 178 bcf are considered discovered. you are actually saying imn my eyes that we should sell 1.17 trillion cubic feet for 10m .
Sounds like a BS answer. Solo cannot be compared with Tullow. It is akin to comparing the form of Ronaldo with a pub team player. Whatever offer they had they should have taken because this SP is being destroyed. If they had an offer of 10m for 50% but no back costs they should have said yes and pressed ahead. Sounds like they were playing games to get a better offer and got jack. Going ahead with seismics on the back of an extremely dilutive placing is dangerous. Bidding co will just hold us both to ransom again. I don't rule out a positive outcome but had this in Tanzania before in gold mining. My guess is they will issue 1bn or there abouts at 0.2.
Pavilion Energy, established by Singapore's sovereign wealth fund Temasek earlier this year, in a statement last month announced the acquisition saying the transaction is scheduled to be completed in the first quarter of 2014.
The firm said it has "entered into an agreement to purchase 20 per cent interest in Tanzania blocks 1, 3 and 4 from Ophir Energy plc for a consideration of USD 1.288 billion."
as I have pointed out before this deal should be done the same time as the seismics finish. ?? is therea link one asks
I sent an email to Neil showing my concern specially with aminex financials, farm-out and sp performance... He indicated that the SP performance is a market issue as well and attached a graphic comparing the Sp of solo with tullow oil... He said that he is in regular communication with AEX, but he obviously can’t report on their finance In regards Gail he indicated the they have looked at our farm-out and are/were interested, but the Ophir properties are more material (we already knew it but I believe is very significant that Gail is one of the interested parts as it has been reported in the media today that they are after ophir farm out). Materiality is a big thing for large companies; more important than unit economics. ( In my email I indicated that Gail could potentially get a more economical deal)
I replied him back asking questions about the seismics and if they will give us enough information for a good farm out. I asked too who is paying the seismics...
My question really is how sure can they be that the survey will be enough proof to get a farm-in partner to put pen to paper at the right price. Will they not want a drill to be done to prove the resource, NR seems to think not. You mention the up dip is that what the survey is going to define?
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