Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Tanz - posters on the other board are concerned about your friend UWE.
Do you know if he's OK ?
yes the raised £1.85m was used to finance and reprocess the existing 2D seismic, and plan for the acquisition of new 3D seismic and the transition of Kiliwani South from a prospect to a drill ready target
https://www.lse.co.uk/rns/AEX/kiliwani-programme-acceleration-capital-raise-t89k3iqrqxwuy2g.html
7 February 2019
"The Company is pleased to announce that as it enters a period of operations it has raised approximately £1.85 million (approximately $2.40 million) before expenses through the issue of 127,226,781 new ordinary shares in the capital of Aminex (the "Placing") at a price of Stg 1.45p per share (the "Placing Shares").
"The board of Aminex has taken the strategic decision to seek funds to accelerate development over its Kiliwani North Development Licence ("Kiliwani") and Nyuni Area PSA ("Nyuni") to take advantage of depressed market conditions in the service industry. The net proceeds of the Placing will finance the reprocessing of the existing 2D seismic, to plan for the acquisition of new 3D seismic and to transition Kiliwani South from a prospect to a drill ready target (management estimates of 57 billion cubic feet gas initially in place). "
Alcapone1, I think the £250k was for opening the stuck valve, but this didn't allow the gas to flow due to water build up in the formation. Aminex raised £1.85m at 1.45p in a placing from the Zubairs, to re-perforate the well in the lower gas zone and work over the well to deal with the water. Still awaiting approval for the workover, which hopefully will be soon. I guess the £1.85m was used up in the meantime.
That £250k related to the use of compression to "force" the gas to the surface; it proved to be grossly underestimated, with the final estimated cost of the project eventually running to over £750k which even then wasn't guaranteed to succeed.
Needless to say that "strategy" has been totally superseded with the new re-perforation strategy.
The Ministry of Energy took part in the work programme presentation as an observer. I guess they will approve any programme if it meets requirements or would have given their own opinion if not.
THE Petroleum Upstream Regulatory Authority (PURA) has kick-started a string of meetings with petroleum exploration and production companies operating in the country aimed at discussing companies’ work plans and budgets for the coming year. Through these meetings, the license holder (the Tanzania Petroleum Development Corporation – TPDC which is also the National Oil Company - NOC) and its partners (International Oil Companies – IOCs) are presenting the performance of the approved work plan and budget for the year 2021 and put forth the work plan and budget for the year 2022 for PURA’s approval.
Approval of the work plan and budget is one of the responsibilities conferred to PURA through section 12(2)(d) of the Petroleum Act, 2015. In addition, Regulation 32 through 39 of the Petroleum (Cost Recovery Accounting) Regulations, 2019 have put it succinctly clear the modalities of executing these annual work plans and budget meetings. The modalities cover a gamut from the establishment of the work plan and budget approval committee to the approval of the proposed work plan and budget.
Speaking at the opening of the first meeting held yesterday in Dar es Salaam, the chairperson of the approval committee Eng. Fabian Mwose from PURA explained that these meetings are crucial to both the Authority and companies since the parties get to dive deep into proposed activities thus bringing about a common understanding among them. “These meetings are fundamental in setting basis for monitoring of planned activities in the coming year. It is also an opportunity to discover implementation gap for the previous year and improve compliance in the subsequent year” Added Eng. Fabian.
This year’s meetings will see eight companies seeking the Authority’s approval of their plans, a critical step before implementing any activities in the subsequent year. These companies are Mourel and Prom Exploration Production T Ltd (Mnazi Bay and Bigwa Rufiji Mafia Blocks); PanAfrican Energy Tanzania Ltd (Songo Songo Block); Equinor Tanzania AS (Block 2); ARA Petroleum (Ruvuma Block); Swala Oil and Gas (Kilosa Kilombero Block); TPDC (Mnazi Bay North Block; Shell Exploration and Production Tanzania Limited (Block 1 & 4); Ndovu Resources Limited (Nyuni and Kiliwani North Blocks). The Ministry of Energy is taking part in these meetings as an observer and TPDC as a license holder, is a partner in every block and therefore appears in meetings for all blocks.
Was it not just a mere 250k to fix the well issue according to ex ceo Jay?
"Aminex have presented their 2022 work programme and costings for Kiliwani and Nyuni to TPDC and PURA and are awaiting approval. We await the result."
it would seem the work-program is supported by the TPDC and PURA, but is still negotiating with the Minister of Energy ?
this from the H/Y results
"In July 2019, Aminex submitted an application to the TPDC to enter the Second Extension Period of three years together with a request for an amendment to the work programme obligation for the licence area. The proposed number of blocks to be retained under the licence would reduce to five, from the current ten blocks under licence. Although the proposed amended work programme and associated commitment is being supported by the TPDC and PURA, the Company continues in negotiations with the Minister of Energy. "
We don't know what was presented to TPDC and PURA, but clearly it will have been something that will be likely approved on the basis Aminex knows what work will be involved, the cost, and what it is that would meet approval, otherwise why present. The strategy Aminex presented is yet to be revealed.
Exactly my point.
That said if AEX are not capable of executing that work programme without a JV or additional capital will the TPDC approve it? I suspect they would but having that JV "in the bag" would no doubt help the process methinks?
Aminex have presented their 2022 work programme and costings for Kiliwani and Nyuni to TPDC and PURA and are awaiting approval. We await the result.
Indeed PoC, the point being that AEX will not receive approval for "gas production" simply for the work programme and maybe agreement for a reduction in pressures for receipt of the gas at SS GPP?
The issue that I would like confirmation of is whether the AEX Bod actually see themselves as future operator of Kiliwani at all...? It would be good to hear this, officially, one way or the other. Are they actually capable of completing the work programme without a JV partner, even if they have sufficient cash?
As with any oil and gas operations there is always that risk. However, it's clear there is an unperforated gas reservoir at KN-1. This is why Aminex may elect to bring in a partner to take part in KN-1 and do 3D seismic and drill KS-1. Options available.
For Gas production? Do bear in mind that there is no guarantee that the proposed remediation and work programme will actually work.
The joker RNS that could come anytime is the Kiliwani North well receiving approval from TPDC for gas production. Does this fit their non operating strategy. Option of Kiliwani North being a sweetner to a farmout partner in return for conducting 3D seismic and drilling Kiliwani South.
But then again! :0)
So maybe just the one License after all? It will be interesting to see how it pans out.
Bye for now GLA.
I am not saying it was easily achieved?!?
i don't know that you can merge the two licenses as such, the The Kiliwani North is a (30 year ?) Development Licence and the Nyuni is a exploration license.
Agreed BG it was always the previous board's intention of "selling off" the deep water element of the Nyuni License and then merging the "inshore" elements with Kiliwani into one license. That said they always admitted that this was totally reliant on TPDC complicity in that manoeuvre. So yes, in principle whether one License or two the strategy would almost certainly to treat them as one. But the sentiment "without a crippling dilution of the asset" still holds true in my view.
"Or a farmout of Kiliwani and Nyuni?"
yes well i think the fact that they are asking to merge the 3D work-programs of both the Nyuni and Kiliwani licenses, to me would indicate that any potentual farm-out would involve both licenses ?
I think that comes under the bracket of "without a crippling dilution of the asset".... ;0)
Nyuni? Actually is is worth ZERO on the balance sheet and a million miles from monetisation so a farm-out there is broadly neutral but farm-out of Kiliwani? It would surely depend on the terms? Hopefully not quite as derisory and punitive as Ruvuma?
Or a farmout of Kiliwani and Nyuni?
Apologies - one potential addition: successful remediation of KN1 without crippling dilution of the asset.
Absolutely PoC that CH1 drill will be an exciting time and hence I am sure will have a significant impact on the Market Cap etc
At the risk of repetition it is the drill and maybe (and to a limited extent) the Seismic results that will be the only catalysts to this SP over the next 9+ months (and the last 9 months for that matter).
well, we're going to get all the data we need, when its drilled. lol, no, the 3D will reveal or give an indication of whats down there.