Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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still happy here with my 111p average
think this has a lot of legs this year
small drop was really just because a lack of news which was detailed in the RNS
today is another big step forward
Grewber - thanks for the info, which is interesting. I only said "oil - in simple terms" because, as far as I am aware, JOG only has reserves of oil, not gas. The recent evidence of price per boe I referred to is Cairns' farm out of a 10% interest in the 80mmboe Nova Field (off the coast of Norway) to Dyas for $59.5m. There's a FDP in place but they're only at tender stage for the infrastucture.
Whichever way one looks at the situation here, JOG is fundamentally undervalued. I've been a lot more relaxed about my investment in JOG (which is significant to me) since discovered reserves in such volume unexpectedly arrived. As I read things, JOG has plenty of options on the development funding front. There's no doubt in my mind JOG's senior team are very skilled at what they do and that JOG is very well advised. I've always thought that BMO taking on JOG as a client was significant, because it showed the high regard they must have for what is a company with a market cap that's normally a long way below their radar. The don't take on anyone!! And Vicary Gibbs's appointment as CFO was equally significant, given what he's noted for being skilled at achieving.
For general info, this was taken from the further explanations given in this morning's RNS, below the announcement itself:
" The acreage is contiguous with the previously announced 31st Supplementary Offshore Licensing Round awards both in the Greater Buchan Area ("GBA") containing the Buchan and J2 discoveries and the Capri, Chamonix, Courchevel and Zermatt prospects and the Licence P2170 (Blocks 20/5b and 21/1d) acreage that contains the Verbier oil discovery, in which JOG holds an 18% working interest alongside operator, Equinor UK Limited ("Equinor") (70%), and CIECO V&C (UK) Limited (12%).
Together with its interest in the Verbier discovery and previous GBA acreage awards, the addition of Block 21/2a to its portfolio provides the Company a significant opportunity to operate a major new area development of in excess of 120 million barrels of oil equivalent ("mmboe") of discovered mean recoverable resources net to JOG.............
..............JOG has already commenced work on a Field Development Plan ("FDP") seeking to deliver a JOG-operated area hub development in line with the OGA's Maximising Economic Recovery of UK petroleum ("MER UK") strategy. JOG is fully funded to an FDP. This area hub will be planned to incorporate the redevelopment of the Buchan oil field, together with the development of the J2 oil discovery and potentially the Glenn and Verbier oil discoveries as well as other discovered and yet-to-be-found resources in the GBA. First oil, subject to funding, is targeted for 2024. JOG will evaluate and determine the optimal sustainable development plan, designed to deliver phased and extended plateau production."
JOG has to be an attractive proposition to a bigger player at any stage along the line. The price just has to be right.
dyor
Good Morning Dick,
Reading your post this morning reminded me to correct the common misunderstanding around barrels of oil equivalent. Oil companies almost universally allow investors to assume that when they use the term "barrels of oil equivalent" , when describing the value of the their estimated gas reserves, that they mean equivalent value- they dont! Barrels of oil equivalent refers to the equivalent energy value ie 1 barrel of oil is roughly equal to 6000 cubic feet of gas in energy terms. That is to say if you set fire to a barrel of oil and to 6000 cubic feet of gas you would get an equivalent bang. Not the same $ value.
I understand it doesnt fundamentally change Jogs position but it constantly irritates.
Anyway GLA
i failed my maths exams and being dyslexic with numbers didnt help but it does seem that JOG is amazingly undervalued at the moment !
I get your gist PC01, but not your maths :-)
I work on a conservative value of $7 per barrel. This is an estimated selling price achievable for discovered resources in the ground pre-infrastructure spend, in an area of the NS that's close to the Forties Pipeline for tie-back purposes (recent evidence is there to support this price - higher actually).
JOG has 18% of Verbier's minimum of 25m barrels, which is 4.5mmboe. Add to that the 52.5mmboe (net of likely transfer to Equinor) in Buchan & J2 and this gets us to 57mmboe (ie 57 million barrels of oil equivalent -'oil' - in simple terms). Today's addition takes us to 71mmboe.
71mmboe alone (ignoring the value of hundreds of millions of barrels of prospective resources across JOG's five contiguous licences) gives us a value of $497m - say $500m. I don't really see a reason to discount the $7pb but, even if one did, it would still leave a value of the discovered resources alone of $250m - or £200m using a $/£ rate of 1.25.
This is £9.16 per share (I think much higher because I wouldn't discount my $7pb by 50%). Throw in 84p for the rest of what JOG has (not least extremely talented and committed management and staff) as we're being ultra conservative - and £12m of cash, plus the prospective resources referred to above, and say £10 a share. I'm doubtful the directors would entertain a bid at that level.
One day the penny will drop
dyor
As punters wake up and digest the RNS this will rise throughout the day... Monumental RNS
Every bit helps. As debated a few days ago JOG's Partners are likely to be part of the action, in exchange for Infrastructure Funding. It was projected Equinor and Cieco will receive a share of these awarded assets on the same basis as P2170 (70% and 12%), leaving JOG with 18% and little or No cost.
On the latest award this gives JOG 18% of 120mmb or 22mmb or thereabouts, a very convenient number with 22m Shares in issue. On that basis the SP should be above £5 as a minimum.
The market's reaction will be interesting.
If you lived on planet mars and you came to earth today and someone sat you down and said :
There is this company that has just been awarded 14mm barrels of oil and the average profit for the company is between $5 and $10/barrel, our Martian friend, who is very clever at Maths having negotiated all the problems of getting from Mars to Earth would say 'excellent. that should make this company of which you speak worth something like $70 and $140mm. What other assets does it have?'And you say, well this is the strange thing - it has another 50mm barrels in a neighbouring field, 1 17% stake of a field that has at least 25mm barrels in it, the same stake in 2 other fields thought to hold another 3-60mm barrels in it, some cash and some DTAs.'
Ok, says our Martian friend, so lets discount all of that by 50% for ****s n giggles as it all sounds too good to be true but my martian calculator says this company of which you speak should be worth
$35mm for today's award
$125mm for the larger award the other day
$30mm for Verbier, Cortina and Meribel
So $175mm. With this strange thing called Brexit making your currency a bit weak, that is £145mm. And you can buy ithe company for £40mm at the moment? OK, where can I find a stockbroker to buy me some with my Martian dinars...
With apologies to all who read, but I think you get my gist!