Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I forget Island. Am I right in saying you're on a Scottish Island? Anyway. No matter. Glad you've joined us here
Thanks for replies,not had time to look.
Was it Wres Panamabob?
Atomic are selling as they purchased the land and carried out surveying drilling etc before getting g into production when the Oil price was sky high, taking in a lot of dept.
Due to Covid-19 restriction and lockdowns around the world from Q1 2020 there has been a decline in demand.
Those aware will also know that the 8th March 2020 OPEC asked producers around the world to cut production to factor in the above. Russia refused and increased production to sell to Asia. This is when Saudi Stepped in and increased their production causing the price wars.
Over production and lack of demand seen producers pumping but no one buying, with storage facilities full world wide the cost of a barrel of oil fell to minus $43 per barrel. This had taken a lot of stabilising to this point.
Atomic still has overheads, dept repayment and as such found themselves in a hole they cannt get out of, they have no money to increase production by using miscible flooding and factoring in their dept it’s not financially viable.
COPL done this deal at $35 per barrel
Oil is now $63 per barrel
Unique opportunity well executed by COPL BOD
I wouldn't exactly put it like that Shaa. They saw the same upside as we currently do. Articles on the internet highlights the potential of these fields so this isn't something new for COPL. What happened to Atomic, the NOP and well not CNOOC as they're an entirely different beast is the following. Atomic and their other small partner did all the heavy lifting, acquiring the asset, drilling the asset and getting it to where it is now. Their took on lots of debt to do it and it crippled them when oil prices where low. In steps COPL with $50m and sorts it all out. Approx $8m to get the gas injection rate up and $41m to clear the Atomic debt. NOP is in worse shape from what I can see. They owe Atomic $ms in default payments. So Atomic/Art will have them over a barrel (oil barrel if you wish) come 15th March. As Art suggested they're practically bust. CNOOC being forced to sell all its onshore assets thanks to Donald. However 15% of these two fields would be small beer to CNOOC. So from 15th March Art will be in the driving seat and targeting these two holdings. The unfortunate timing and oil price for Atomic and NOP has been Art and COPL's good fortune.
Regards,
Ed.
Islangirl. Where did we share a BB before. Quite a while ago
Atomic was distressed due to low oil prices during COVID.
They got sideways to their lenders and were forced to sell.
Previous owner was one guy who is getting on in years and ready to sell anyway; taking time instead to focus on his family.
Or so goes the narrative.
A 73 year old guy who wants out, Atomic deal went through when oil prices were $35 a barrel and loss making.
Since, the oil price has risen to $63 and counting.
Today COPL wouldn’t even get a sniff of buying Atomic - fact.
Talk about right place right time.
Islandgirl, debt and bad management is the underlying belief going by the RNSs and AMs interviews
who were the previous owners?
Why did Atomic sell in the first place if its so good?
Thanks for posting Charlie.
My thoughts are that Atomic will be a monster, previous owners didn’t have our knowledge, know how and contacts to take it further.
Like an iceberg at present, we can only see the top.
Charlie you are absolutely correct. The company presentation highlighted the assets being acquired to be circa 28mmbbls of light oil, 1.5mmbbls of NGLs a little gas associated. Acquiring the NOP interest and that of CNOOC would greatly add to liquids 2P from these fields. Also these are stacked reservoirs and there is significant increased potential from deeper drilling under the developed formations as highlighted by previous articles. So yeah while the 31mmbbls is transformative, its just the beginning. Like you I'm expecting this to increase to mid cap, not counting the west African potential too.
Regards,
Ed.
COPL, in Thursday’s statement, noted that Atomic's federal leasehold is in good standing.
Atomic holds 52,250 acres of contiguous leasehold in the State of Wyoming – as a combination of fee simple freehold leases; state leases; and federal leases.
The company also noted that Atomic has secured drilling permits required to continue to conduct the majority of its operations on the critical federal leasehold. Moreover, COPL said that in the future, if federal leases are restricted, operations can be conducted from adjoining leases with directional drilling.
Also, it added that the Atomic assets have new infrastructure and direct access to pipeline with no legacy abandonment or reclamation liabilities.
At Barrons Flat, the facilities are state-of-the-art and environmentally responsible, the company said, with zero gas flaring, minimal methane emissions, and its electricity is sourced from a nearby wind farm.
52,250 acres or 81.64 square miles
If this calculator is correct https://www.worldlandtrust.org/get-involved/educational-resources/area-converter/
How much is that land worth?
https://www.worldlandtrust.org/get-involved/educational-resources/area-converter/
- What is the potential oil and gas reserves of this area?
- Atomic already have applied for licence allocations!
- This is so so much more than the basis of the current NPV.
- IMO most haven’t seen the full picture, this will be a mid tear company in no time once everything drops, only growing as production flow rates are increasing recovery.
- And cash flow allows us to develop and drill the 52,250 acres.
- Also NPV rate increases dramatically once we acquire additional Atomic holding from silent partners (Chinese) what does this add additional 25-35% to the NPV?
What’s PIs thoughts on this?