Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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"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.
"Despite how busy everything has been we have remained close to the market and have been testing potential opportunities and we continue to be active in that process. What's important is we have broadened the target criteria to include assets within the wider energy complex so that Solo remains relevant as Europe goes through the energy transition. So not just gas production but assets which include power generation and infrastructure within the energy complex.
"The market seems to be open for those raising capital, and we'd be open to a combination of capital and debt, particularly if we were looking to acquire cash generative assets. The priority is always to look for sources of non-dilutive capital. Seller finance would be one such option."
https://www.lse.co.uk/media/solo-ceo-re-engaging-with-prospective-tanzania-gas-stake-buyers-in-the-coming-weeks-solo.html
Sorry for the delay trimme same issues as cp with the site. Quote below from RNS - but agrre anything material will be announced via another RNS - its just this is the only clue SCIR have given so far, probably because they ( like all of us ) are waiting for the OMC "shortly" another undefined variable courtesy of APT this time. Its almost as if they want the sp to stutter.
"To reflect the name change, the Company will be hosting a webcast forum for shareholders to coincide with the launch of the new website (www.SciroccoEnergy.com) on 02 November 2020 at 11am GMT. The webcast will provide an update on the Company's plans and activities and will include an open Q&A session."
IMO nothing.
Sorry having trouble with this magnificent web site and it's cache....
Indeed Chris, if they had anything material to update, it would have to be done by RNS just prior.
Clarity on their intent with regards to Ruvuma and estimated timescales + Helium-1 IPO progress will do.
Agreed Chris, they would have to RNS prior if they had anything material to say.
Will try my best to log in on the webinar, I hope we remind them what they've achieved in the last year or so....won't take long.
GLA LTH's.
Trimme, I think he's referring to the conference call.
Hopefully we will all know on 02/11.
Meanwhile we've got 5 more trading days to weather.
Hoping for the best, GLA LTH.
Have you forgotten the Board got rid of all the “deadwood” where cash calls could come so that they had the resources to “protect” the investment in Ruvuma so why don’t you think the Board could find further funding if needed – do you not remember the substantial funding mechanism that was found for the potential North Sea purchase that did not progress?
The potential buyers are an unknown to us Crusty, they are the words the BOD are using in the interview and RNS "several interested parties" This could all of course be negotiating brinkmanship. The value for me is hard to pin down, is it worth more than the AEX deal now it's 75% funded to production and with a competent operator? I believe so, what that number comes down to I honestly don't know but my expectation would be north of the $20 million per 25% that AEX secured.
Over to the BOD
The potential buyers are an unknown to us Crusty, they are the words the BOD are using in the interview and RNS "several interested parties" This could all of course be negotiating brinkmanship. The value for me is hard to pin down, is it worth more than the AEX deal now it's 75% funded to production and with a competent operator? I believe so, what that number comes down to I honestly don't know but my expectation would be north of the $20 million per 25% that AEX secured.
Over to the BOD
Crusty FWIW spot on, for once I agree completely. Delay and uncertainty the enemy and AEX and SCIR are now waiting on or reacting to others decisions. The SCIR announcements on 2/11 are likely to be the first indication we'll get of what comes next.
I agree that SCIR are in a better negotiating position than AEX were however the Zubairs still hold all the cards and would have to agree to any new JV partner. Moreover as I have stated for a long long time CP unless SCIR can come up with sufficient cash to fund seismics, CH1 drill and maybe more than the one drill they too are in a "forced sale" position.
I seriously do hope that the BOD manage to get shareholders good value for their 25% but I do not and never have shared your view of its value nor the number of potential "buyers". I still think it is 50:50 on APT being the purchaser and at a price of their choosing. I also think that any chance of there being a meaningful dividend for long suffering shareholders has long since passed. Personally I would swap any dividend for some meaningful carry - "tick" or no tick. In my opinion $10-15m of "tick" would be preferable to $5 -7m of cash as I do not think cash will translate into pro rata sp rise but "skin in the game" for the CH1 and subsequent drills almost certainly would.
Time will tell - and hopefully we won't be waiting long
Tweedledum and tweedledee posts within a few minutes of each other, once again.
And then two turn up,
Like buses,
Spouting same old historic dross.
Unfortunately there is a reasonable chance that the asset will be off the books long before the 4th drill on the licence, never mind the next one, drill3.
I hope you are right. Hopefully the market cap will be in better place if additional funds are needed and it will certainly be worth holding in there by then.
I don't seem them going beyond C-1 and 3D without a GSA and 25 year development licence matherdj and then it's value shoots up.
New name - Same Old - Nuff said
OG, they'll likely want to drill again after seismic results and I'd expect that to be before production begins. So scir may need to fund more than just the current work planned before money is coming in. There is also kn1/ks1 that may get approvals including seismic there too.
AEX had no possible option to finance their then 75% without the Zubair offer of $40 million, $5M cash and $35 mill carry. SCIR now hold 25% of the asset with a well financed and competent operator, valuing the asset over the AEX deal.
IMO the AEX deal in no way reflects the true value of our 25%. The deal was so biased in favour of the Zubs because of their 30% ownership of AEX.
The gas plant is relatively close, and NT-2 will flow at 50+ mmcf/d once reworked so together with NT-1 (20) and CH-1 probably 50+, they should be able to get approval for production from these 3 well alone. So anything between $10m to $15m investment from SCIR (or buyer) would get us to production. Do not be fooled by $140m investment total. Not required. We did the numbers a couple of years ago.
IMO a full 25% sale will be in access of $40m which would still give a payback in less than 5 years.
Oh and just one thing - you cannot "spend" "carry"... so there won't be much to pay out by way of dividend if the SCIR BOD accept "tick" as part of any deal and from a buyers perspective "tick" is cheap -
As regards the sale value of SCIR's 25% - I learnt my lesson once before on this very valuation. Many here and on the AEX BB talking of £100 -200M for AEX's 50%. What a bloody laugh that was - we got $5m and some "tick"...... moreover AEX had spent far more than that on the original license and the development / drilling of the area subsequently and yet that held no sway at all; indeed just to add insult to injury we then end up paying CGT on the sale proceeds. Lol!
If you didn't laugh you would cry.
So, if as I read below, there are shareholders out there expecting £hundreds of millions for 25% they should start to prepare for disappointment.
My expectation FWIW? I will be happy of we receive anything over $25m but would not be surprised if it were less.