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Let’s hope so!
Down she goes but is it just MMs getting cheap shares prior to AGM
yeah ... we may even make up the loss on the drop since June ... hurray ....
Wish they would move it this much and as fast when the buyers are in the market
Nothing day.
Hard to say , news can drop at anytime.. I would imagine we will get regular news in August and September ..
But reading between the lines, it appears they are creating a very professional outfit .
DYOR
Expecting much next week. Could get some antipication prior to uplift and AGM
I am convinced we will hear soon about a change of broker..
This should on its own send the SP north , but also attract larger investors...
DYOR
Change of brokers would be nice on AGM day too, get rid of the penny share bucket shop broker
Apologies if it appeared to be a bit or the likes, never was my intention. Yes it be not be a pressing issue now, with the Nigerians looking to loosen off the regulations and red tape, it would certainly pave the way for it to be looked at more seriously.
I've a feeling HH and ADME won't want to be a minority player in any partnership for too long so expect moves to be made sharpish.. Good point below on how our board is getting too big for the current size of company we have (HH still has the right to appoint somebody else) - I really can see this fly.
Hopefully a business update to go with the lifting update (cargo delivery estimated for 27th) would be timed just perfectly prior to the AGM. Exciting couple weeks ahead indeed!
It was not my intention to particularly highlight cost of gas capture - this seems generally beyond existing aspirations. Future liftings are anticipated to provide positive cash at project level. This will be offset against administration and anticipated debt financing for any future AJE development and other projects.
While £250m is a huge amount of money, it is certainly at the lower end of significant on the grand scheme of things in oil and gas.
When OO got announced, it said he'd already raised approximately this amount of money ($300m) for the first phase of development alone - further development was always going to require further investment.
As HH was quoted before, he will leverage contacts both in industry and in finance to both buy into, and progress developments. I can see him buying out partners if they are holding up cracking on with the project. Will be far cheaper to buy them out early than wait until plans are in place
interesting link, thanks aphrodite.
puts funding issues into perspective:
"How about the gas development? “It would cost $250Million to fund the gas project, so it is not a priority”.
Pretty sure when HH came in he said funding is not longer an issue. If partners don't want to cough up then he'll just buy them out, again what is very common in the industry..
The low production is due to it being an early production system, this was never designed to be producing 50k barrels just yet. Exactly the same idea with Hurricane Energy in the UK - early production system before a full field development
https://www.energymixreport.com/aje-field-heavily-constrained-by-costs-low-production/
Very standard way of doing business in the oil industry.
Loans can be configured to suit - if MX Oil had wanted more cashflow, they'd had extended the loan period and kept more for themselves. They were obviously happy with the format they settled on, it would only have been another 6 month and they'd be keeping the uplift profits for themselves anyways.
thats basically what the partnership has now, funding the current wells with 100% of profit repaying loans, with any profit after interest been at the backend (hence ADME not received any monies from current operations) and why the 2020 uplift is important as it is the first time there will be cash going into ADME's bank to meet the administration costs.
No projects on this size, even with significant producers, get paid upfront with cash, via placement or otherwise. This will require tens of millions at least
This will be funded by significant bank loans, with the collateral or similar being the production / license etc itself. Bear on mind we're a small partner in this. As with the current development, it'll be paid up front then will be paid back as we produce oil
I'm watching developments. If they chose it, new shares via a placing would assist with working capital, but as MXO said, would be wholly insufficient to fund Phase 2 of the AJE field development, from theirs and partners perspectives.
I think it's fair to say that all the partners in the licence are currently primarily focussing on prioritising development of the Aje field, which is fair enough.
But clearly from the map on the New Age website a number of partners are well aware that OML113 potentially may not just be a 'one trick pony' with the Aje field.
ADM Energy themselves do briefly mention on the Operations section of their website that:
"OML 113 covers an area of 835 sq km...and holds the Aje field as well as a number of exploration prospects."
If Aje gets developed and utilised to its' full potential, and becomes a 'cash cow', it does make me wonder if profits from that might end up - in time - help finance exploration, appraisal and evaluation of any other leads and prospects elsewhere on OML113?
Obviously, that's for the future.
Clarity needed soon on whether they get the authority they want to issue new shares at the AGM.
Snooze or just deep sleep
Watch crude jump on tanker seizure
No selling no buying everybody hanging on to their shares
This report is purely on the Aje field itself, and in particular the reservoirs which are already in production. It states "while any oil production forecast from these two wells beyond 1 January 2022 is dependent on Turonian gas development commencing production when the condensate stream will help support the costs of the oil FPSO"
The Turonian reservoir has already been classified as 'Justified for Development'.
All other potential leads on the block aren't captured as part of the report, as it's a report on the Aje field not the block itself. Further appraisal of the block would be required, and would be a no-brainer once further development on Aje itself has commenced.