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They will trade under the same name when they resist but the price is unknown. If they get the asset for a reasonable price we could see a nice rise. Also the price of oil has gone up so the Exxon asset in theory should be making more money
Hi, sorry to sound a bit naive, I have had SAVE shares for some time now. Will they be trading under the same name ? Also what do you think the price will be approx ?
Exxon are also what I would call a desperate seller - you must be if you've been trying to sell this for years - and this means they will be open to more flexible payment terms.
Tier this is well reasoned, in transactions I've done with large organisations there can be scope to step the payments e.g 5% on exchange, 15% on completion of the sale and purchase agreement then 20% on a yearly basis until the full amount is paid. Any purchase I make I try and keep these percentages as low as possible. It stands to reason that a cashed up company like Exxon with easy debt access and a need to "smooth" (rather than have choppy) revenues over accounting years would be amenable to such terms when it is selling off its assets. With SAVE's $100m + and growing in cash I would not be surprised if such a deal was done.
Doesn't sound thick to me, seems sensible and plausible. Could well be a combination of financing options including deferred payments, bonds that convert to equity when the share price reaches a sensible level, cash & maybe some equity fund raising (though you'd assume that would be limited e.g to attract a shareholder for strategic reasons rather than purely raising money now).
I'm fairly relaxed though somewhat intrigued to see what's in store . My biggest concern is that my shareholding is smaller than I wish it was!
Payment terms - is it likely we pay some now, then the rest over the next year or next few years from the revenues generated from the acquisition? No dilution this way… sorry if I sound thick :)
The Hub - ster - indeed brings back memories.. nice guy and wrote well in his blog but his tips were VERY hit and miss, alas.. but commodities stocks are very cyclical and duck or no dinner type plays.. so timing is a big thing, in fairness... Thanks for the tip but I'm actually gently pivoting away from Oil plays into key metals plays instead and so I'll pass on afentra thanks.. ...I have no idea whether it'll be good bad or indifferent as and just did a quick glance at it now, but good luck with it..
Yes HUB used to get a good following back in those day lol
One for you afentra think that will 1,3 bag on a deal plenty of cash ex Tullows management
ATB
between approx 2011 and 2016 I did indeed post on the II board - only - dusterinmong.. Then moved over here and post only on here since.
( You're long enough in the game if you remember back there then, and experience is a very useful commodity in this game i feel ... so it's reasuring that you think this is a good bet too.. It's one of my bigger positions and has been a far from smooth journey so far... but never boring :-)...thankfully I have a 12p ish average here and it's not as big a position now as I had when felt I had to average down hard in the 9 to 6p range... and so I'm not very focused on this these days... I have lots of other AIM bets ongoingly in play too .. and I try and make sure none gets to more tha 15% of my overall AIM p/f these days.. as anything can happen in this game... and very often does :-))
Brokers big boys ect will dictate how many bags it rerates to not pi selling in that scenario happens
NTMU you used to post on Ii I believe?
Thanks for all the insightful posting here. This is a very high quality BB, no doubt.
So hopefully out of suspension sometime in July (I'd guess) Great if yes as the reality will replace the guessing.. which saves ongoing time wasting imho.
All the bullish sentiment here doesn't surprise me in the slightest and doesn't change any of my bigger picture views either. But absolutely great if you're all very correct in your bullishness here. I wish I was even 50% as sure as most of you all, but I'm an optimist by nature so why shouldn't this come back to market at 30p or more.. etc..
Generally, I do expect AK to get at least a good deal - why do any deal otherwise etc - but I feel he may need a very good to great deal to get this s/p punchily up: There a strong green / country progression story from current core Nigeria Gas to Grid business, with a yet to be developed Niger Oil discovery bolted on as a potentially decent future secondary business. But now we clearly look to be pivoting back towards a hard core company oil focus.... can't say i'm in any way surprised with this, in fairness , as it was a well flagged strategy re a big acquisition(s) in this Africa Oil space .. but, whatever spin you put on it, the greenness of our credentials will altogether be considerably less after this acquisition completes - assuming it does and I expect it will - and as this share price performance is still most all about II's actions in my mind, all it takes is no new II's coming on board post suspension and one existing II deciding this no longer meets their green criteria and dumping hard and fast, married with the then induced panic selling from a few big position PI's here and this could go to 10p again too. On the other had, if the deal is so compelling that new II's feel they have to come on board off the back, then this could of course roar back. Altogether, this could readily go either of those ways in my mind.. but here's very much hoping the bulls are right for a change here..
( Btw I have attentitively read and taken on board the many potential positives that have been - well - outlined at great length here, so no need to fire them out again on my behalf... because you think I'm not reading posts here or just thick or such like.. I especially say this in the context of many of the same uber bulls here being completely wrong the Seven time round .. and indeed some here have sounded familiar to me from my years on the Amerisur BB, a BB where I reckon I've never seen so many brilliantly fundamentals analysis posters be so completly - totally and utterly - wrong before or since.. although this one has run it a little close :-) ( and indeed that expereince was an ephipany moment for me where I decided I needed to look at oil in a far broader and balanced macro way in the 2020's, versus the 2010's )
ExxonMobil has almost completed its departure from Chad. Its disengagement from Equatorial Guinea is proving more complicated, thanks largely to obstruction from the ruling Obiang family.
It is now more than two years since ExxonMobil unofficially put its Zafiro field in Equatorial Guinea on the market. After various failed attempts to sell it to Trident Energy, caused mainly by the fact that its managers are French, or to Marathon Oil, the boss of state-run GEPetrol, Antonio Engonga Oburu, is still hoping that the state will be able to take control of it via financing from traders. His aim is for GEPetrol to use its right of first refusal if ExxonMobil gets a firm offer (AI, 16/12/20).
Zafiro has huge symbolic importance for Equatorial Guinea. It was once one of the poorest countries on earth, but the oil field helped it reach one of the highest per capita income levels in Africa. The meteoric rise has been reined in since 2016, with GDP halving due to falling prices and reduced output. But Zafiro remains a symbol of national pride for the Obiang family, who have been in power since their country won independence from Spain in 1968.
There is no longer any question of letting the jewel slip into the hands of a foreign investor. Production nevertheless continues to fall slowly but steadily and currently stands at around 30,000 bpd. Engonga, who was for many years an advisor to President Teodoro Obiang Nguema, argues that this decline lends credibility to GEPetrol's plan, as the field is becoming more affordable. Two years ago, the figure of $1bn was bandied about. Today, it would be difficult to find an investor willing to pay more than $300m. If a firm does make an offer for Zafiro, GEPetrol is prepared to leverage partnerships to make a counter-offer. As it is already in the field, it would have the possibility of preemption, but would need to raise the required funds quickly.
ExxonMobil in a holding pattern
The oil major has done all it can to try to speed up the sale of Zafiro, including applying direct pressure on the government and getting US ambassadors involved, including the current envoy, Susan N. Stevenson. Nothing has worked. Covid-19 has since early last year brought the price down, and offers have become rarer, despite yet another unsuccessful attempt by Trident Energy last October during a meeting in Dubai with officials from Gabriel Obiang Lima's oil ministry (AI, 04/03/21).
ExxonMobil has however been able to find a buyer, Savannah Energy, for its interests in the Doba basin in Chad, which has also been in decline for several years (AI, 04/06/21).
Seems like the Exxon acquisition is completed. Should receive some news this week on re-admission. https://www.africaintelligence.com/oil--gas_state-strategy/2021/06/21/gepetrol-favourite-to-snap-up-exxonmobil-s-zafiro-interests,109674292-art