Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video 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.
Ops, sorry, mixed my investments up, probably due to be sidetracked with deliberating over my choice of menu item for our Xmas party to celebrate reaching +500p/s although little disappointed not having been given option of lard sandwich ( For all you youngsters out there, don't know what you are missing !!! )
... should read:
As for 'SQZ' ... would be nice to invest outside of NS, if nothing more than to highlight to Rishi the failures of the WFT.
atb
Serica's Xmas party menu made me chuckle, NewK ... sasa.
sasa, "we all know how SQZ are not keen on 'overpaying' for anything...."
Bet their Xmas parties are a scream. Bring your own booze, food however is provided .
MENU:
Cheese n Pickle sandwich
Pickle n Cheese sandwich
Cheese sandwich
Pickle sandwich
Or my favourite , Bread n Butter.
As for CHAR ... would be nice to invest outside of NS, if nothing more than to highlight to Rishi the failures of the WFT.
Hi NewK - given that Serica is over 4 x the size of Chariot (current mkt caps) a share offer + cash top up could be quite easily arranged if SQZ so desired.
E.g A 1:7 share offer by Serica + £100m cash would equate to around 50p (at 280p for SQZ) and represent a sizeable premium over CHAR's current price, as things stand. However, a best case CPR validation of their gas resources could materially change that to possibly bring Total Eren into it, given their co-operation on the transitional power side and we all know how SQZ are not keen on 'overpaying' for anything.
If Nth Eigg delivers, that's the most cost effective way for Serica to double its 2p reserves and leave ample CoH to fund a 'farm in' to Chariot's gas assets if they're minded to, where they'd welcome that financial assistance at this development stage for them on good percentage terms, too, I'm sure...
All conjecture at this early stage for Serica, anyway - sasa.
sasa,
As I said, news to me regarding Serica's previous approach towards CHAR too.
One thing Jimmy posted was "with their strong share price, I think they could try again...." That implies any transaction would be share based, either full or partial payment. SQZ have the ability to issue up to 10% equity without shareholders approval, some how I would have thought any deal may require considerably more than 10% (~£75 m). A merger of the two would be an intriguing scenario given CHAR exposure and experience / knowledge in transitional power.
https://www.chariotenergygroup.com/operations/transitional-power/
Alternatively, simple farm-in to expedite the Moroccan gas extraction would my preferred route so as we retain the upside of NE should it prove commercial. It could of course, swing both ways, that is, offering CHAR an equity share in one of our fields as payment. That would allow CHAR to possibly self-fund Anchois to production with little to no additional dilution. Interesting times for both companies atm for different reasons.
aimo & dyor
Have just seen Jimmy's comments on the CHAR BB re: Serica's possible involvement with it after their previous interest, apparently; didn't know that, either, tbh...
Don't think SQZ will be doing anything, however, until Nth Eigg is determined one way or the other. If, as we hope, it's successful, then they'll probably line up Sth Eigg next door as it looks a very similar prospect on the seismics, although smaller, of course.
If it's non - commercial in the event, then they might possibly look at a CHAR 'farm in', post their PCR, if it's really impressive as implied, for they'd certainly look an appealing prospect to be involved with (a huge Moroccan gas resource, near shore, on the EU's doorstep) but anything more than that, would be too great a 'step change' for them, I'd say...
Just my take on it, fwiw - like NewK, I hold both, so 'fair disclosure' and all that - sasa.
Could explain recent SP weakness outside of the current market woes and recent WFT, should SQZ want to t/o Chariot's Moroccan assets then either RBL will be required or an equity raise / offer. Our current ~£420m cash will not cut it esp as we have ~£150m presently lodged with counterparties as security, I would much prefer farm-in.
Of course a merger could always be an option, esp as of today ACW has stepped down as Executive Chairman, leaving just two Directors that are non-exec of our board. Both share prices are struggling to gain traction of any sorts recently too and CHAR long awaited CPR that was said to be issued 'shortly' has yet to be released.
Takeover of CHAR would be a massive departure from SQZ path of steady organic growth and certainly very high risk compared to that of BKR but equally could prove to be very high rewards too.
aimo & dyor
Interesting comment about Serica and Chariot, not sure about how factual Jimmy's comment actually is !
"I believe that Serica previously approached chariot about a takeover, with their strong share price, I think they could try again..."
With US markets closed on Monday causes unusual opportunities on Friday. You can see drops in the index such as SPOG and ENGY that both closed down. I had to check the UK upstream gas price, like here:
www.theice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5253322
Echo that, re: CHAR, NewK - on both counts - sasa.
"Maybe Chariot's Anchois developmnet would be tempting......"
Agree, we have discussed that very option here before. As a farm-in for sure as there is no way CHAR would let that go for less than $1bn imo once CPR has been released.....
Also hold CHAR so would be no complaints from me.
aimo & dyor
Serica were in both Foum Draa and Sidi Moussa in Morocco 8/9 years ago. Maybe Chariot's Anchois developmnet would be tempting....
Couldn't agree more, NewK - 'value always outs in the end', as they say...
Interesting that MF is now considering other acquisition / 'farm in' areas as well as the NS, presumably if Nth Eigg doesn't deliver. Such a policy revision looks commendable, imv and if Serica announced a decent deal, either domestic or elsewhere, it would surely wake up Mr Market and get the ball rolling at last! Hope springs... sasa.
Used current DA average @ 160p/therm
How did you work out your conversion NewKOTB?
NBP sat at ~$114 boe, Brent ~$111 with NBP futures for winter 2022, ~$268 boe.
I make it £1.25 therm = $100 boe, think I took that from Harbour's results in April? That would make it $200 now and over $300 in winter.
Sasa, "Bear mkts are invariably indiscriminate", sure are !
NBP sat at ~$114 boe, Brent ~$111 with NBP futures for winter 2022, ~$268 boe. OK futures are just that, but it does signal prices to be much higher than current $114boe imo. SQZ was a mega cash machine before WFT now it's just a great cash machine. Mr Market will see what's right in front of them .... eventually !!!
aimo & dyor
as most seasoned investors on here will know.
The present inability (for now, anyway) of Serica to reflect anything near its true value owes more to peeps securing gains on the few remaining profits they'll have on the likes of this one to offset growing losses elsewhere. It's human nature to lessen the pain of it all by doing so, regardless of value; they just want to get into cash for the duration as they're scared, especially those who've over extended themselves / borrowed money to get on board the earlier 'gravy train' when it was so inviting...
Seen it many times before in my time but many newbies haven't and they panic. For the true investor, however, it's just a 'waiting game' for the inevitable recovery to get going at some point and when it does, the strongest growth situations, will be in the vanguard to handsomely reward their patience.
Serica must rank amongst the best of these, given its financial strength / burgeoning revenues this year and being heavily into the right sector of the energy market with the latest interim divd intention to usefully boost the yield clearly being a testament to that.
Finally, it's worth remembering that bear mkts savagely sort the 'wheat from the chaff' bringing many more acquisition targets / 'farm in' possibilities into view and thus Serica's, albeit frustrating conservatism hitherto, could yet pay off to major advantage.
So, no worries, me - just stick with the healthy 'tortoise' - sasa.