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Starbuck - why don't you go away and do some research of your own instead of trying to score points off other people just because their replies don't suit your agenda?
"could be" 8 figures, that in my view is not posting as fact!
The trouble is his post are posted as factual. When they are far from that. See how the question is avoided again . 8 figures payment really????
Starbuck, you seem more interested in scoring cheap points than answers to your endless questions. I find sharelock's posts consistently too positive to be a normal holder affected by recent share price decimation, however, he goes to the trouble of posting solid arguments and research.....pitted against arguments such as 'you waited until 7.04 to post that' I know whose posts I would rather read.
So it took you till 7.04 to write that post .
The truth is you was expecting some news so was going to wait for rns. Then it didn't come do posted pre drafted response.
Previous question still stands .
So for the record Sherlock and I'll keep this .
On signing of the first project you believe that NUOG will be fully funded?
Wrong.. 500k is seed finance in MFDevCo to tie them over until they get the first upfront payment.... the upfront payment could be an 8 figure sum, certainly a 7 figure amount at least.
In terms of lead time we don’t know yet.... but we know it will be a lot quicker than a conventional play as most of the infrastructure is there and the wells have already been producing. It needs final fdp sign off, closure of the deal, conversion of the platform to a power plant and laying of cables to connect to nearby grid. 12-18m maybe....
But we get the upfront payment on closing the deal that is short term money in the bank... value in our Mcap will come immediately it doesn’t need first production for that.
They will have been working with the OGA along the way. Remember they want this to happen. I am certain they will prioritise resource to make this happen as soon as possible so that other projects follow.
NUOG will benefit from seed finance in MFDevCo and upfront payment in near term which could repay the loan, and they will benefit from greatly increased mcap from acquiring a revenue generating project. It is also extremely likely that further projects will close during the lead time to first electricity bringing further upfront payments in.
Any attempts to play down the significance and the impact a deal will have will soon be put to bed I believe.
I asked a question previously that has not been answered or avoided.
I'll elaborate.
According to Mcadder a deal is days from announcement. Where this information coming from I have no idea?. I urge caution as we have seen these confidence levels before, with no deal arriving.
He states MFDEVCO would get upfront payment of 500k and a further payment for management of the project.
What we don't know is the timescales to future revenue.
SBP has pointed out the various red tape surrounding any projects , particularly with the OGA and Environmental approvals.
Any deal signed tommorow could be many years from being revenue ready.
So how does that benefit NUOG and funding requirements. In a nut shell it doesn't initial. Yes the working capital will be significantly reduced. But with only limited funding available at present it doesn't address working capital needs, over the next few years before revenue positive position of any project is achieved.
So with a deal on the table it is a start of a journey. However it's only the beginning of quite a long voyage.....
No hint of a deal..... what about the fact they have released an RNS saying they are setting up a project financing facility at the same time as concluding negotiations on 2 priority assets, and now releasing a forum ready to discuss such deals when it completes??? Don’t you think that’s more than a hint???
Infapound - according to half yearly report they had 211k cash left in Dec yet they didn't do a raise until 4 months later at end of March for 250k plus OO money on top.
This tells me their cash burn is vastly reduced otherwise they would have been doing a raise back in Jan imo.
We know there is 500k on the table upon completion of SPV plus this....."MFDevCo will receive up-front payment for projects and will be further paid for managing projects from the point at which any transaction with the SPV is agreed." ..... " MFDevCo would earn three sources of revenue for each project the SPV purchases: the initial sales price; payment for services to manage projects; and project revenues as a result of its proposed 30% equity holding in the entity."
Obviously this is subject to securing a binding deal but all the signs are that the first one could be anyday when you consider all the progress made to date for GTW and the sheer need for it for energy security as well as govt support.
“Who in their right mind would invest new money here” However you mark your opinion as a strong buy! Confusing to say the least.
My investment here is no where near as much as others but it is significant in my world.
I’m concerned that there is monthly cash burn and that we must be running out of funds with no hint of a deal being closed! How can the BOD even consider another placing imho! Who in their right mind would invest new money here?
Just saying it as it is with everything crossed!!!!
GLA
Sharelock I admire your enthusiasm.
Genuine question how long in the future will it take to put these projects into fruition ?
The news we are waiting for is a deal encompassing a project on proven resources with infrastructure already in place, for assets that are no longer wanted by the current owner, with a FDP designed by MFDevCo, consortium partners already lined up as suppliers and technical and operational support, project finance, seed finance, upfront payment, service contract, equity in the SPV, relative low capex outlay, low operational cost, deals with governmental and company finance decommissioning and security of energy supply problems, is a cleaner energy source which can bridge the transition to cleaner energy and the 2050 government targets, deals in supply of electricity via an existing offshore grid and is an energy source that even the majors are looking to for the future security of their company and will be the first project of its kind leading the way with the GTW initiative.
Assuming this gets announced all together, can anyone give me an example of any AIM deal in history that has gone from nothing to a complete project to this extent? A lot of the successes I can think of are a much more of a step changed process or driven by a large discovery.
The real exciting thing from an investment point of view is that this can repeat over and over again for multiple projects over the next few years.