We would love to hear your thoughts about our site and services, please take our survey 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.
@socialist. thanks but given no news on the licence position or identification of vehicle to realise any value from the Djibouti licences held by Subco so I'll stick with NAV =£0 unless someone can give me a good reason for treating it otherwise? The only comfort I can draw at this point is that of the £375k+ invested so far there is a route to realising £260k of sunk cost via "Sajawin option to purchase Madagascar oil licence by 30-Oct-20" so I've noted that at £260k minus £20k cash received so far ... and await the transaction to close.
AIMHO APR
At least £375.000 was invested in 2017, and from memory I seem to recall more has followed since, but uncertain about how much.
Thanks @socialist that makes a lot of sense. If you have the figures of what cash we invested then I can use that as the £NAV figure until we have a better idea and the sale to Sajawin (ENERGYCAPTURE PTY LIMITED) concludes.
This should then be a very conservative figure but certainly better than the £0 NAV I have wrongly assumed so far.
APR
Hi again Aprogerson.
The licenses in question are as follows:
Madagascar Block 1101, which I expect we have managed to maintain.
In the Republic of Djibouti it’s the Blocks 1, 2, 3 & 4.
These will be a positive surprise, if we have managed to keep them.
As to NAV, I have not got an exact number what so ever.
It really is the famous question of how long is a piece of string.
If the sale goes through to Sajawin (ENERGYCAPTURE PTY LIMITED) our percentage of the asset will drop significantly. And our new percentage will become whatever we invest in the new company.
For me, it is not a question about, is there oil present.
I am sure it is there, that’s why I have stayed invested for so long.
The big question is, can the oil be extracted and in what quantity?
And not least, how easily and cost effectively?
So the closest I can bring us to NAV is: X % of Sajawin (ENERGYCAPTURE PTY LIMITED) divided by X amount of barrels of oil produced and sold. (millions, hopefully)
And then you have to add number of producing years and the fluctuating oil price on any given day.
In other words, how long is a piece of sting.
In this case, I both hope and think, it could be very long.
About ZTR becoming Angold, that was and is, truly an added bonus.
We are allowed to be lucky once in a while.
@socialistB Thankyou for your thoughtful posts. I had simply assumed that ZTR RTO and Angold transactions had occurred that this was it and all we retained were the licences as nothing else had been said one way or the other hence my assertion of zero carrying value. If these licences indeed have value and IF the arrangements with Sajawin (ENERGYCAPTURE PTY LIMITED) do come to something then GUN SP & NAV should benefit considerably.
Do you have any figures for £NAV for these assets and what assets are these then exactly?
APR
But Scotty666 made a good point when he said that they might have let the Djibouti license lapse.
I seem to recall that there was quite some uncertainty about that license in particular, at one point, but the Madagascar license, here there seemed to always be hope and faith that an extension could be reached.
So now we just need to find a partner, that have the ability to go and explore.
And there has been one lined up for the better part of a year now.
I think it would be fair to say, they would have walked by now, if they had come to the conclusion, that there is not a single drop of oil present.
Question is, can they live up to their part of the deal.
Or do we have to find another partner who can,?
May I suggest following examples:
UKOG
88 ENERGY
RED EMPEROR
TULLOW
PREMIER OIL
ZENITH ENERGY
Any other suggestions?
Part 2
I assume as Mr. Ormerod had done his due diligence on the available data, Gunsynd decided to invest further sums into Oyster Oil and Gas, as in July 2017 they invested a further £250.000.
https://www.lse.co.uk/rns/GUN/further-investment-in-oyster-and-issue-of-equity-4unpcszatzrky6g.html
My take on the original plan was that Oyster Oil and Gas was to list on AIM, that did not happen unfortunately. And quite a challenging period followed.
At least £375.000 was invested in 2017, and from memory I seem to recall more has followed since, but uncertain about how much.
To me, it now seems like we are back on track.
I assume we have managed to maintain both of our licences in Madagascar and Djibouti, (after all it is challenging times and for these governments it might be better with the devil you know.)
Gunsynd will receive £240.000 for the Madagascar licence alone, of which we will then have to re-invest a significant part for at least 1 year in Sajawin (ENERGYCAPTURE PTY LIMITED)
Then there is the potential sale of the Djibouti assets. I assume we still have them, I do not recall we have been informed we have lost them.
But I do not hope, we will sell them outright, I would like to be involved in the discovery of a world class find. Both places.
Oil will still be in demand for centuries to come.
Part 1
There is so much more to Gunsynd, then just mining.
Oil exploration, for example.
And news, could be, almost right around the corner.
No later then October the 30th, will we hear from the company formerly known as Sajawin (recently changed their name to ENERGYCAPTURE PTY LIMITED)
https://opencorporates.com/companies/au/628778861
I expect that the negotiations are still ongoing. They have not collapsed, otherwise we would have heard by now.
Sajawin have been looking at all the data for the better part of a year.
If they did not have faith in the assets or believed that an extension of Block 1101 held by Oyster Madagascar Limited was possible then they would have walked a long time ago.
From:
RNS Number : 0739V
Gunsynd PLC
29 November 2019
https://www.lse.co.uk/rns/GUN/update-on-oyster-oil-and-gas-872j1f5hsojkyne.html
b) In consideration of the sale of the shares in Oyster BVI to Sajawin, it will undertake to pay Gunsynd the sum of A$457,647 (approximately £240,000) of which 80% is to be paid within 5 working days of completion of the Transaction ("Completion") and 20% is to be paid within 60 days of Completion………...
Gunsynd has agreed to subscribe for A$200,000 of shares to be paid for from the consideration set out in b) above. Gunsynd has agreed not to sell these shares for a period of one year following the subscription………..
But this transaction is only related to the Madagascar asset.
On top of this, there is:
“The Production Sharing Contract for Blocks 1, 2, 3 & 4 in the Republic of Djibouti are not included in the Transaction and will be transferred to a party of Northbay and Gunsynd's choosing on or before Completion.” (still from above RNS)
Listen to the enthusiasm of Michael Wood, former president and chief executive, Oyster Oil, why these assets are so interesting.
https://www.proactiveinvestors.co.uk/companies/news/308479/oyster-boss-opens-up-about-world-class-potential-of-its-djibouti-and-madagascar-assets-8479.html
Gunsynd first invested £125.000 in Oyster Oil in January 2107.
https://www.lse.co.uk/rns/GUN/investment-in-oyster-oil-and-gas-jdfhqj3uf4imzr9.html
In March 2017 Mr. David Ormerod was appointed as a Non-Executive Director.
“David is an experienced oil and gas professional who has been involved in public companies at a management and board level for thirty years. He has experience with operations in Africa, Asia, US, South America and Australia where he has been involved in business development, initial drilling through to field development. He is a member of the AAPG, SEG and a fellow of the Royal Geological Society. He adds technical governance and strategy at a critical time in the development of the company. “
https://www.lse.co.uk/rns/GUN/appointment-of-director-4b3t1l9xhe2woi6.html
Hi Aprogerson.
I would be so disappointed if the assets in the former company Oyster Oil and Gas was marked down to zero.
All the efforts of the Board of Directors would either be borderline to criminal activity or sheer stupidity in choosing investment opportunities when it comes to Oyster Oil and Gas.
They have put so much energy and effort into, first researching Oyster Oil and Gas and since turn it around, when things went haywire, that I refuse to believe the above paragraph to be the case.
But there was a RNS, not to long ago, that did scare me, as it could be seen as a forewarning about not getting the hopes up to high in regard to these assets.
Maybe there has been a shift in the BOD's direction of investments, but I would absolutely hate to see the assets disappear for less then we paid for them, at a mates rate, just to find out years down the line that there was bucket loads of oil just waiting to be pumped up.
I mean, that was why Gunsynd invested in Oyster Oil and Gas in the first place.
I will repost 2 posts from last month, telling part of the story, about Gunsynd and Oyster Oil and Gas.
Djibouti but think they let lapse. Madagascar (oyster oil) licence they have a term sheet for around 240k
Rincon IPO could be anytime now but nobody knows specifics
@socialist what Oil related assets do GUN have left other than some Dubai related licences areas which I think were joint ownership with another entity? I was supposing them to be marked down to £zero, but happy to be corrected
There is so much more to Gunsynd then gold.
It was oil that originally lured me here, and it was all that was talked about 2 years ago.
A lot of research and work was put into that theme by both the BOD and contributers on this board.
And best of all, news are right around the corner.
I both hope and expect to hear a positive outcome before the end of October.
I know oil is down at the moment, but it is therefore exactly the right time to get involved.
The worst thing that could happen is to sell it on the cheap, for a mates rate.
At some point in the future, oil prices will rise again and that means the expenses for mining gold and other minerals will increase.
Being involved with oil is a fantastic way to hedge your income stream ,if you ask me.
Oh, and let's not forget the spirits.
Always in demand, in good times as in bad. (Sadly)