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Agreed on the KN South proposition CP, far better ROCE, but again all other hurdles need crossing first and , of course, KN South requires considerably more by way of capital investment too....
KN south probably looks to be a more favourable investment target to feed songa.
That presupposes it is "sortable" steve. I am not sure that it is - or that it will provide sufficient ROCE. Even if it so, who would pump more capital into KN1 remediation all the time the TPDC are withholding $7m of unpaid invoices? Even then it would need TPDC approval for any work programme to commence.
KN1 has been the achilles heel for all JV partners for years now - it would require a change of attitude and approach on the part of the Tanzanian Authorities to get this moving.
We can but hope :0)
So the kn1 already has a development licence but no gas extracted for three years.
Needs sorting.
Under the conditions of the current licence steve,
Acquire 200 square kilometres (surface coverage) of 3D seismic (min. expenditure of US$7 million)
· Drill the Chikumbi-1 exploration well (min. expenditure of US$15 million)
· Complete the negotiation of the Gas Terms for the Ruvuma PSA with the Tanzania Petroleum Development Corporation
· Using the data gathered from Chikumbi-1 and the seismic acquisition, prepare and submit an application for a Development Licence for the Ntorya Location area.
So a new application based on what they find @ C-1 more gas or + oil?
Not sure if I’m correct but I thought the development licence was applied for in September 2017.
I seem to recall Jay at Aminex saying production within a few months.
Maybe confused with Kn1 which has dragged on for three years without any production or income.
Our share of that is about 8.25% due to Bounty dropping out.
I honestly don't see the BOD securing a great deal steve, they should secure one at least over double the current mcap, but a 25 year development licence is needed to hit the sort of numbers that NR once talked about and the $100 million + valuation
Is been nearly eight years so I had completely forgotten.
The asset is definitely worth many times our current market value.
How many times is the worrying bit given the current economic climate.
We know that about 20 million has been spent on Ruvuma so we really need at least treble that to make a fair return on our investment.
Different ball game, been a second drill since then, over a 10 times increase in resources and now 75% funded to production with a competent operator owning 50% of the asset.
Chalk and cheese.
It just concerns me that all those years ago we supposedly had companies lining up to farm in and it came to nothing.
As I have said the board are good at talking and making promises. Until something is finalised the sp will drift lower due to the almost total lack of confidence in the board.
I’ll probably back track on my words next week if a good deal materialises.
Let’s hope so.
lol steve, that's some huge leap to a conclusion, nothing much being traded volume is tiny and of course a complete contradiction to,
"We have identified a list of companies who would be a good fit for the asset and earlier in the year they carried out initial technical and commercial due diligence. There has been a hiatus whilst we have been waiting to see what happened with the Government approvals for the Aminex-ARA deal, and we are just at the point of re-engaging with that community of prospective buyers over the coming weeks."
Still dropping.
Maybe they have no buyers for Ruvuma.
1.5p.
Cheap or what.
Back to a 11mill mkt cap with a asset worth at least double, yeh madness describes it.
Afternoon steve, they have secured a debt facility to cover the money they wasted ;0)
At this point in time I have to agree with you.
Lots of talking and promises.
In reality they have achieved nothing and spent millions in the process.
All the assets we have were purchased by nr many years ago.
Find out on Monday joel.
Shareholders need to see the BOD are progressing on both Ruvuma and Helium-one...
I have little faith in this board now Steve, and will take actual news until I change my view on that.
I think anyone looking for anything of substance on the 2nd will be disappointed.
Absolute madness on here.
I know the markets are falling but becoming a joke.
Farm our complete and yet we still fall.
I just hope the board can get themselves out of this mess by 2nd November.