Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Yes, the terms are very different. The part that is defiened as "protected gas" is sold on a non profit basis. No revenue, just sharing of production costs. The other part "additional gas" is sold for power generation to TPDC and Tanesco. The revenue per mcf was 3.61 USD, about the same price as the gas from Mnazi Bay. Gas sold to the industrial sector is priced higher. In Q2 22 the price was 8.43 USD per mcf. In terms of volume, protected gas was 38.1 mscf/d, power generation 71.5 mscf/d and 14.1 mscf/d for the industrial sector.
plus, it should be noted, as TPDC new GPP has only about 20mmcfd feeding into it, and with a capacity of 140mmcfd, then just how vastly under used it is.
plus, i should add, that the GSA terms for the gas that Orca supply's TPDC new plant are certainly different from the GSA for gas that is supplied into the old plant.
yes Orca, supply's about 20mmscf into TPDC new solely owned GPP. The rest of Songo Songo production feeds into the old privately owned/controlled Songas GPP.
Morning Al, "What are your thoughts on why orca are doing it free gratis Crusty?"
I wouldn't read too much into it personally, the reality is that to cover the area they need to cover for their own "exploration" they need to overlap the area that includes AEX license so, to some extent, it was a inevitablity but a fortuitous one for AEX. Might there be some sharing in future projects between Orca and AEX? Yes, I am sure it is a possibility but that may have been true with or without the sharing of 3D seismic, as they own the adjoining license and feed the same GPP. Their GSA terms though are significantly different as they built their own infrastructure and we did not.
planning and planing
It is a pleasant prospect. Aminex have around 92% of the asset from memory and satisfying the TPDC on progress shouldn't be too difficult (they could pay us some of the cash they still owe us for example). In 2023 and 2024 they could be planing, putting things out to tender, hiring staff, reviewing outsource arrangements.... Very easy to squirrel away 24 months (see Ruvuma).
What are your thoughts on why orca are doing it free gratis Crusty?
I would anticipate the latter suggestion Jetty; waiting until AEX can realistically fund their own development. The obstacle is that they have to report back to the TPDC annually on "progress". This year's progress is "ticked" in the seismics that ORCA are producing for us. The question is what next? At the AGM the BoD indicated that they expect to be able to tick this box as both the BpD and ARA, in particular, would perfer AEX toi retain their "operator" status of the Kiliwani license. If they were to manage this they would still expect to "outsource" much of the heavy lifting to seismic and drill partners through a commercial arrangement (possibly for a proportion of the income stream? - purely speculating on that).
I fully agree, Orca would not be doing this purely to be neighbourly. It has to be a case of them doing due diligence before putting a deal together. They have plenty of cash and if we have big reserves next to theirs it could be a sweet deal. Don't Scirocco own a small piece of this, that could work out well too as they are definitely in a place to raise cash quickly.
Of course Aminex could potentially leave it in the ground and in 2025 when they are flush with cash develop the field themselves. They would have to rehire operational staff to drill and run the thing. Nice to have options, makes it easier to make a more advantageous deal.
https://www.globenewswire.com/news-release/2022/08/16/2499625/0/en/Orca-Energy-Group-Inc-Announces-Completion-of-Q2-2022-Interim-Filings.html
Interesting to see will we farm out a % to Orca if 3D results show big gas field in kiliwani south prospect.I find it hard to believe they are doing 3d and will just give us the information and results for the craic? Is there a gentleman's agreement in place ...just musing