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I’m sure it’s going to be more than $17.5 mm for all the production kit plus drilling. But how on earth would they raise $10mm let alone the rest. It would be a 90-95% dilution.
Not a chance.
Ginksy, several points i think you have missed, NHNL purchased the land, NHNL paid for the survey, the clear cutting and the dredging , these are all costs required to "drill a well in the swamp" Dry land please explain NHNL dredged the slot to ~3 meters to enable a post-it swamp barge rig to drill the well so " The fact that the drill set up on dry land will save considerable costs " we must be speaking of a different location . Front end set up costs for a leased Barge Mounted EPF are well over $1.5 million and barging leases require a 6 month upfront payment not including the increased security for barging
Osa made the important point that the land was already purchased for the drill so that will save time and costs considerably. The fact that the drill set up on dry land will save considerable costs . The barge is also expected to be leased so no big upfront costs in that respect. all in all I would expect drill costs to be on the lower end of estimates somewhere within the region of londonfishs estimates of "IF you have good relationships and logistics in Nigeria one could probably get the cash costs to reach production at about 15-17.5 million,"
Ginksy, refer to Londonfish's extensive informed posts on costs, as well as my own experience in the industry...
I notice you still didn't actually answer the question though...like you haven't answered many from Spikey et al....how much do you THINK it will cost?
Ginksy, I have seen swamp location such as Ango in OML 59 where the wells cost over 100 million. The swamp is a difficult environment, A 8000 foot well, drilled, evaluated, tested, completed with an Early Production Facility, barge mounted with shuttle barges for export all in costs will be about $32 million, yes IF you have good relationships and logistics in Nigeria one could probably get the cash costs to reach production at about 15-17.5 million, the rest will be paid from production. But that requires a local E&P company and ADME is an Energy Resource Investment Company based in London
Tresha , where did you get the 30 million to drill a well from ? since when did 10ft nigerian swamps become 2,000 ft deep water ?
Ginksy, if Align believe Aje is worth £15m, and ADME miraculously manage to borrow against it at that value, where is the remainder coming from to fund the £30m drill at Barracuda?
Londonfish, as you must have a direct contact in zenith AS i noted in your post at 9.26 today that you understand from nigeria that NHHL filed some serious claims, and it was ADME that requested the extension to study these claims? yes in 99% of cases claims are made on both sides of a dispute many can be made up , thats why we use judges to sort out the fact from the fiction. I wouldnt expect to hear any more from the cpr until the court case is resolved . and yes you can take a loan backed from equity ... align reckons this equity stake in aje is worth 15 million currently ..with potential for a substantial increase if phase 11 goes well. and the delay is historical not forecast.
Ginksy, as you must have a direct contact in ADME i noted your post 242 at 20:15 yesterday that ADME would no doubt have a delay in all of 1 to 2 month, thank you for this forecast. I have three question on your debt scenario 1. Will ADME ever complete the XODUS CPR as will that not be required to get the debt similar to the DBI Letter and the Trafigula money? 2. I understand from Nigeria that NHNL filed some serious claims, and it was ADME that requested the extension to study these claims? Is this true? 3. I thought that the majority of the ADME money from their 12.5% WI , 9% revenue interest from Aje Field went to pay off of debt how then could ADME borrow money against this?
? is that it? - any other evidence?
nobody has ever produced commercially
viable oil from drilling at barracuda.
if osa mortgages aje to drill at barracuda, but
the drill does not produce, then that’s aje gone.
mind you, it’s a fairy tale anyway, since there is zero possibility imv that
osa could raise enough money against the aje stake to fund a drill at
barracuda — aje isn’t remotely worth anything like the amount needed.
( take a look at some of the numbers in london’s 16:43, for instance.)
osa and buddies desperately need a story that they
can spin to get the volume up for the next placing.
? maybe they should pay align to write some puff?
well zenith are offering 20 million so their fairly confident
? what makes you think that a first well would
produce anything commercially viable, ginksy?
a mortgage on aje asset would pay for fist drilling on barracuda ...after first well is in production it will become a cash cow for adme.
Geowiz, CASH COSTS, utilizing contractor financing to drill, test & dual complete the currently planned Barracuda well including a leased barge mounted EPF would be about $15 Million as NHNL has reported (NW OML 141 RSC IM) that they already purchased , cleared and dredged the drill site and rig access creek access, full cost will be close to $30 Million. These cost are not reported to include any G&A and or corporate overhead. At a 1 p share price that's only 1.5 to 2 billion share dilution. Ginksy has assured all that if Osa was still in control there will be no near term placement so I am confused as well on how ADME plans to proceed, Certainly the earlier projections of a 2nd Half 2021 drilling did not occur.
How on earth are they going to fund a development on the back of the present market cap? Funding of one well would be several multiples of the company value. There’s no chance.