George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Whitehat - completely agree. CNE should go for UK, USA type regions instead of another expansion in the MENA region. Although, the recent reports of CNE bidding for Tamar field share wouldn't be too bad. A part purchase from Delek for Tamar or Leviathan field could be great for cash flows. CNE seem to have bid $1.1bn for the Tamar field according to those news reports. Strangely Delek is trying to diversify away from that region with purchases in the North Sea via Ithaca Energy. CNE could have teamed up with Delek for swap of assets?
Re Egypt cash flows - CNE have made it clear that EGPC pays in arrears for the purchases of Shell/CNE production entitlements and in the circular seem to have mentioned that the overdue amount net to Shell was $80mn so I guess $40mn net to CNE still to receive from Egypt? Hence, why I disliked this acquisition irrespective of the numbers, reserves,etc. Genl, gkp krg experience shows how much market hates irregularities in cash flows. The next acquisition hopefully would be better than this EGY one?
Also, CNE has made it clear that this EGY acquisition is only the first step - so my guess is there might be two more acquisitions I.e. Step 2 & Step 3? Let's hope EGY acquisition is the worst CNE could do in terms of political risk of assets. USA seems to have a lot of disposals going on although not sure if they might be low cost large reserves that CNE is after.
34a - Catcher and Kraken sale has not completed- due for Q4 completion, and there will be a shareholder vote on the sale of these assets so still to go through that as well. Current cash flows will be retained adjusted against the consideration.
Would be interesting to see how many shareholders vote for the sale of these North Sea assets vs Egypt acquisition vote.
I think they are and it will be even more unliked as market won’t give fair value for assets in that region.
??? They've sold Catcher & Kraken and there's a working capital adjustment in favour of the purchaser.
CNE production now is 35kboepd(Egypt) + 18kbopd(Catcher +Kraken) = 53kboepd
Would be interesting to see what would be the cash flow contribution of Egypt assets for Q4 of this year to CNEs cash position.
HBR seems to be planning Catcher infill drilling next year. Plus Kraken for next year. Nice exposure to upside without any capex outlay for CNE next year.
Fri, 24th Sep 2021 07:00
RNS Number : 8339M
Cairn Energy PLC
24 September 2021
FOR IMMEDIATE RELEASE 24 September 2021
CAIRN ENERGY PLC ("Cairn")
Completion of acquisition of Western Desert Assets, Egypt
Cairn, together with its consortium partner Cheiron Petroleum Corporation (Cheiron), is pleased to announce completion of the acquisition of a portfolio of upstream oil and gas production, development and exploration interests from Shell Egypt NV and Shell Austria GmbH (Shell) (the "Assets") in the Western Desert, onshore The Arab Republic of Egypt.
Capricorn Egypt, a wholly owned subsidiary of Cairn, acquired 50% of the Assets, with the remaining 50% acquired by Cheiron subsidiaries. The acquisition value, which is subject to completion adjustments, is US$323 million net to Cairn, with additional contingent consideration of up to a maximum of US$140 million over four years net to Cairn if certain requirements are met.
The gas-weighted portfolio, in a region with strong demand growth, offers low cost production, near-term development, owned infrastructure and significant exploration potential.
Cairn has appointed Dr Eleanor Rowley as Managing Director, Egypt. Dr Rowley joins Cairn from TotalEnergies where she was Vice-President Exploration for the Middle East, Caspian, North Africa and Southern Europe.
Simon Thomson, Chief Executive of Cairn said:
"The addition of the Western Desert assets to our portfolio is an important first step in expanding and diversifying our producing asset base, alongside offering significant exploration potential.
We look forward to working alongside our partners to deliver the attractive growth opportunities the assets provide.
I would like to thank the Government of Egypt and the Minister of Petroleum and Mineral Resources for their approval of the transaction."