Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Gallifreyan, thanks for the excellent summary . while some are focusing on delay issue, to me, at current low sp, its worth to wait. we have came a long way and our mcap still tiny in consideration. after all, most companies out there also have delays in their projects and yet sp steadied. i think more of the case derampers have sold and want to buy back in lower.
at current sp, its time to buy and not time to sell
our largest holder happy to buy and hold, that is good enough for me.
Good old Malcy. The same guy who did a positive writeup of FRR just before it all went to ****, the NOMAD resigned, shares got suspended, lawsuits starting flying, CEO stole oil, etc etc etc. Yeah, Malcy's the man to listen to.
Andrew Marr wouldn't be so polite, he would put George through the ringer like the politicians.
Gall. The figures are impressive, but until we get a future RNS saying the landowners are on board they are irrelevant just yet.
Having listened to that interview, my faith in the financing has been somewhat restored. The security point makes reasonable sense, and stating 'very complete' drafts is not a sign of a phantom deal. Also if Aleph don't produce for whatever reason, then the multi-nat could be persuaded to meet the shortfall for an increased coupon. By no means guaranteed at all, but does sounds like they are substantially down the path.
I also like the fact that Angus are talking about 4 geothermal products, which if properly financed could create some significant revenue stream. I dig a bit of digging and came across the following government doc on deep geothermal, they talk about a base case assumption of deep geothermal being sold for heat at £25/MWh. The docs is 2013, but serves as a useful proxy. Which extrapolating at £25/MWh gives £10m per year gross revenue for a 50MW site (based on 24/7 production), assuming I haven't missed anything.
Page 62:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/251943/Deep_Geothermal_Review_Study_Final_Report_Final.pdf
Power & Heat Sales Prices
To calculate the potential revenue from the energy volumes, it has been assumed that the base load power
price is £45.00/MWh (a realistic price for baseload power at the time of writing, 2013) and that each MWh of
generation is eligible for 2 ROC’s at a price of £44.00/ROC (based on the April 2103 auction price). Deep
Geothermal is currently supported at 2 ROC’s/MWh and this has been used in the base case. For heat,
Deep Geothermal is currently supported at £35.00/MWh and in the base case we have also assumed that
heat can be sold at £25.00/MWh. As noted above the potential heat sales will be dependent upon suitable
heat load customers that can be connected to the station via a district heating network.
A cynic might point out that this is merely a puff piece (like all such arranged interviews) and nothing said is in the least binding. Malcy's hardly Andrew Marr, is he?
So much publicity - how much is the placing going to be? I am going for £5m if sufficient demand.
Thanks, Galli - that's a lot to process. Just shows how much growth potential there is in this share.
Hope I haven't missed anything material or made any mistakes
SFB:
- Deep in financing documentation – very complete drafts
- Security/charges have been slowing things down
- 20 million commitments in total – Alep 11, multinational the remainder (as a joint provider of finance). Will participate in same facility and loan documentation
- Terms unchanged – 12% over LIBOR, tail end royalty
- Less than 3% of shares issued over term of loan
- Bulk of SFB delay finance related
Geothermal:
- One site identified – 2 well system (injector and producer)
- 5 km down – fantastic heat – straight to electricity generation
- Difference of geothermal - looking at 15/20 year life cycle with 24/7 production. Grant funding possibility
- W Europe doesn’t have a great deal of drilling skill for these types of projects
- Very substantial funding partner, hope to announce next month
- Not an oil well site – most oil wells don’t meet depth for generation, just good for heat
- Looking at 4 projects of this nature, aim for a rolling programme
Lidsey:
- Extremely exciting, very real prospect on farm out, planning conditions so much easier
End of year aims:
- Drilled Balcombe (I guess he means flow test)
- Planning permission in place for drilling Lidsey
- Re-injection approval from EEA for Brockham
- Approved sites (not plural) for geothermal
- SFB producing and earning cash
- Production resuming at Brockham and production online at Balcombe
- Within an “eye sight” of production at Lidsey, funded by 3rd party