If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them 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.
Hi guys,
Very happy at todays RNS and hopefully this sees us on our way to 1/2p short term and we should see 4/6p long term?
With regards to your question on rig mobilisation, I have listened to AM mention they had contracted a new build rig sitting in a fabrication yard which could be mobilised at short notice. This is definitely the case however that was some time ago and that rig may be on hire elsewhere now and so the situation changes. OPL 226 is in shallow water, i.e 40-70m water depth and so drilling it done with a jack up rig. Jack up rigs are abundant and many are laid up across the globe with no contracts. Older ones need certification and fit for purpose surveys on the cost of the operator (Essar). But they are a lot cheaper now and day rates are really a lot lower hence why BPC for example were able to contract Stena for their Bahamas Perseverance well. Stena are one of the best in the business too.
Arthur Millholland is a seasoned veteran and I would say the rig selection are the least of his worries to be honest. All the rig selection stuff will be happening in the back ground. Hopefully we hear something soon on drill dates. A drill in my opinion won't happen this year but could happen within 6 months of their extension.
Can you guys advise if they have all the well and drilling engineering finalised for this? Id imagine Essar have done this already.
Thanks skittish, that makes sense. Nigeria needs to see a signed deal to be sure they are granting an extension when there is a firm agreement. That makes sense. I hope it can come quickly now. And then I think when Essar announces a drill date, we will finally get the true market cap and share price. If the license can happen that fast- I sure hope that we then get some definite deadlines from Essar on a drill date. GLTA
I suspect AM would have liked to RNS the whole shebang - signed legal agreements and licence extension ie Completion - all in one go, but because of delays with the licence and his own deadlines, has had to make do with just the agreements today.
I did allude to the licence being the difficulty earlier today, pre RNS.
Presumably the Nigerians wanted to see the signed legal agreements prior to licence renewal so they didn't get a re run of the last few years of disagreements.
My surmise on the big buying over the last 10 days or so is that is when the Nigerians saw the completed final drafts of the agreements and approved the same for signature.
Following their approval, and unknown parties taking positions, they've all been signed off by COPL abnd Essar, and made official and public.
The RNS was the final acknowledgement the Nigerians required and so, I suspect we'll get licence extension approval shortly - maybe within a few days or a week.
That is when Completion of the agreements actually takes place and all parties are then irrevocably committed.
After that the share price will rise to a more realistic level.
Then I suspect we'll get the work programme RNS, which is probably already set out in quite a bit of detail in the agreements.
Then further rises and RNS's as matters all swing into place.
All IMHO, but that seems to me a realistic scenario for how things have developed/are likely to develop.
CDN,
Petroleuminvest on this board is in active oil business. So might be best person. Could be other folks here also in active oil drilling business. But my own view is Essar would not order the ship to start sailing without PSC extension in place first. That's my take on next steps. Let's see how things progress.
Well done to all the regular posters and Lths. I expect Bolton is dancing around the pool if he can still stand up.
So the key phrase to me in that release is the part about the application to the two entities in Nigerian government for the extension. I have read on this board someone talking about another company that had a shareholder dispute, sorted it out and had Nigerian approval to an extension within days. But we have already had an extension here, and it took us months. The excuses given at that time were Ebola and Elections. Now we have Corona and isolation issues. So anybody with knowledge about how long this extension of an existing license will take? In current conditions? Next - I understand Essar has its own drill ship. Someone here posted they thought Essar could drill within 6 weeks. Isn't that all we need to do to keep our license? We have about 7 or 8 weeks left on the existing license - so can Essar not already have a ship on the way with definitive agreements signed? So we do the drill we need to do to keep the license ? But I have also read here and heard there is no chance we could drill in 2020. So anybody in oil and gas on this board that could give us some educated direction on timing of next steps?
Bearing in mind we were, for all intents and purposes, 'dead in the water' 3 months ago, this has been quite the turnaround.
Price predictions as ever were ludicrously wide of the mark and are the preserve of the ramping crew, who should be ignored, or at least given a wide berth.
True value will come when we have some more flesh on the bones but this is a terrific start. Well done Mr Mullholland and team.
I'm very glad I stayed the course.
Although I don't know Jay from a hole in the ground, bloody well done you! You have been a constant supporter here (not a ramper), and I sincerely hope you do well.
Best wishes to all those who invested for the assets and believed in Art to pull this off - it's all roses and chocolates from here. Might not be tomorrow or next week but it's coming for sure