The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
IN BRIEF: Aminex, Scirocco note approval of Ruvuma 2022 work programme
Fri, 22nd Oct 2021 16:33
Aminex PLC - Tanzania focused gas project developer - Notes that Ruvuma joint venture has approved the 2022 work programme and budget which is expected to meet all work obligations under the terms of the licence extension, and further advance the appraisal and derisking of the existing gas discovery on the licence.
Work programme will focus on shooting 3D seismic on the licence area and drilling the Chikumbi-1 well. Associated project budget is USD25 million, and the well is expected to start drilling in the third quarter of 2022.
"This is another positive step in the development of the Ruvuma project, following the extension of the license and the award of the seismic acquisition contract. These developments demonstrate the professionalism and capacity of the operator and the significant progress made on the licence by the JV partners. As we enter this important phase of activity, we would like to thank APT for the significant progress made," said Executive Chair Charlie Santos.
Scirocco Energy PLC, which is a part of the Ruvuma joint venture, also noted the approved work programme.
On Wednesday, Scirocco has made a further closing under its investment facility with investor Prolific Basins LLC. Prolific Basins has made a further investment of USD1 million into Scirocco through a prepayment of shares under the facility.
Aminex's current stock price: 0.68 pence, down 3.0% on Friday
Year-to-date change: up 19%
Scirocco Energy's current stock price: 1.11 pence, down 3.2% on Friday
Year-to-date change: up 9.1%
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Before Dan wets himself 2023 ;0)
Well dave I am sure your friend agrees, as in Dan but to say No money is clearly wrong. But if by that you mean do they have $30 to $35 million for FFD, then no not at this stage of development. If you mean do they have the ability to fund the current agreed work programme, then probably yes. They have cash + at least another $3 Million available not including any sale of the remaining HE-1 shares.
Surely everything depends on any offer and the price? The BOD have been clear that they will fund Ruvuma to production if required (expected 20230 and I am sure they have the means and contacts to deliver especially post production.
My question was what would shareholders agree to and vote for?
$15 Million
$20 Million
$25 Million
$30 Million etc
Or some % retained and farm out?
Yes AD - one might say we are a distressed seller.
This old dog of an asset has been on the go forever. Probably 2030 before 1st gas (if ever) IMVHO.
given that SCIR has no money, what else can we do but approve a sale?
If you had of posted that last year and under the old Government then I would have agreed Aimster. However, we have seen huge strides forward from the new president and Energy minister, LNG talks with Shell etc start next week, Farmout approved with Ara/AEX, 2 year extension licence granted, Tax dispute settled, the new Gov seem to be in a rush to get this gas monetised whilst they still can. I would expect an almost immediate approval, if indeed it will not be pre-approved.
The question for me is what might be offered and would shareholders here broadly approve?
IMO If a Buyer for the Tanzania assets is announced in November, the sale will not get approved until after the CH-1 drill in-line with Tanzania government approval timeframes. Then the BOD will want more money because of the increased resources. So a sale may never happen, like the One Dyas deal. Ie. BoD stating that they want fair value for their shareholders.
A small percentage held or free carry maybe?
$26-$30 million Vike is my call and a year down the track will seem bargain basement or the SCIR LTH’s Shareholders been robbed and STH’s will make a killing take your pick :o)
Forgot the $35 million for 8 Wells etc.
Been so many years waiting I'd forgotten.
+ $5M cash.
I agree SCIR should get more than $20M equivalent for their 25% share now that the project has been significantly de-risked. But not sure they will.
For the amount of expenditure involved they may want to wait until seismic is done at least. Of course the value of their Ruvuma stake should increase many times and if held until drilling results even more. Its when APT want paying may have a bearing on the boards decision to sell given they want to grow the biogas business.
If a nine month wait means increasing the value of Ruvuma many times then I don't mind waiting.
Not quite, AEX have a $35 million carry all the way through to production which should cover all 8 wells producing and the Full field development steve.
I agree the asset is in much better shape now and worth more, 2 year extension licence, clear pathway and work programme, upgraded resources and 75% funded to production.
All adds $$$$
? steve58. I would rethink that entire post.
So basically aminex have given up 50% of Ruvuma for $6.25 million up to drilling and I think they have to repay any advances they have had from APT. We are in a much better bargaining position regarding selling.
It does steve :) The closer we get to the drill, the less inclined shareholders here will be willing to accept a sale imo.
Time dependent offer....
Reading the rns looks like the $6.25 million Includes the ch1 drill.
Morning all. It's significantly less than was first proposed when AEX were operator :)
If $6.25 million includes the drilling then that seems good value considering the potential upside in reserves.
$6.25 mill is around £4.5 mill , when would that be payable?
Morning Chris.
Nothing to say they are selling.
Maybe they will spend $6.25 million and sell after seismic but before drill. They will of course be able to get a higher price but still have to find the $6.25 million from somewhere. Maybe the rainy season will be a short one and they will get more done before Xmas.
So the first phase of 3D starts 15th Nov.
Newsflow picking up.
Tanzania Operations Update
Scirocco Energy (AIM:SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, is pleased to provide the following update on the operational activities in the Ruvuma PSA, where Scirocco Energy owns a legacy position of 25%.
The Ruvuma JV has approved the 2022 work programme and budget, which is designed to meet all work obligations under the terms of the licence extension, previously announced on 18 August 2021, and further advance the appraisal and de-risking of the existing gas discovery on the licence.
The work programme will concentrate on shooting 3D seismic on the licence area and drilling the Chikumbi-1 well (CH-1) and Scirocco's estimated share of cost, net to its working interest, is US$6.25 million.
ARA Petroleum Tanzania Limited ("APT") has confirmed, further to the award of the seismic acquisition contract announced on 24 September 2021, that mobilisation of seismic team has commenced and the first phase of the seismic shoot will begin on 15 November 2021. The team will complete the second phase of the seismic shoot in Q1 2022 after the Tanzanian rainy season.
The JV then plans to drill the CH-1 well in Q3 2022.
The seismic acquisition and subsequent interpretation will seek to refine and confirm the exploitable gas resources of the Ntorya field. As previously announced, through a re-interpretation of the existing 2D seismic dataset, APT's revised mapping and internal management estimates suggest a gross, mean risked gas in place ("GIIP") for the Ntorya accumulation of 3,024 Bcf (8,236 Bcf unrisked), in multiple lobes to be tested and a gross, mean risked recoverable gas resource of 1,990 Bcf (5,419 Bcf unrisked).
Tom Reynolds, CEO at Scirocco Energy comments: "This is a positive update for the Ruvuma JV partners, following the recent award of the licence extension and the award of the seismic acquisition contract. This further demonstrates the quality of the operator and the significant progress made on the licence by the JV partners as we enter a key period of activity."