Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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to be fair, i suppose it might be hard for a CEO to post
something about a company’s cash position if they are
right in the middle of trying to arrange a fund-raising.
Spikeyj, this is classic ADME deflect, smoke and mirrors move. It is sad
… nope, it seems that ginksy has nothing to say about
ADME’s current cash position. (not terribly surprising tbh.)
anyone even remotely considering investing in ADME should be
aware that its cash situation is absolutely dire right now, and imv
they are in urgent need of a fund-raising to remain a going concern.
londonfish it might shock you but large oil companies such as shell actually plan ahead decades at a time . They like continuity of supply to feed there large lng plants that cost tens of billions to build. They like to keep fields like bosi on the shelf until the cuurent gas fields begin to deplete and then these fields will be developed to keep gas supply going for their lng plants. its not that these fields are not worth developing in fact the value of these fields increase in value with time and secures the future of shells lng plants for a further decade or more. as demand exceeds current supply for nigerian gas there is a gap to fill where smaller fields step in like aje can step in.
Ginksy, Bosi field with multi TCF (6 to 7) of gas is close to Lagos, non developed, OML 96 with 2.4 TCF again close to Lagos (onshore), undeveloped. I agree Nigeria has lots of undeveloped Oil and Gas but developing it is another story. Aje is a marginal field, sloping water bottom, mixed carbonate and sandstones, no FPSO, if the multiple onshore and offshore larger developments are yet to be developed, why would a small difficult operation get developed? Keep pumping
nothing to say about ADME’s current cash position, ginksy?
Londonfish your a couple of decades out of date ... these days nigerian gas is big business ..more so now with europe moving away from russian gas has led to a gas shortage in nigeria..
{Global LNG prices have risen sharply in recent months and have remained consistently above oil prices in energy equivalent terms since mid-2021.Meanwhile, a number of European countries are pressuring Nigeria to ramp up its gas production and export to Europe, a source in the know told THISDAY yesterday.
Already, the Minister of State, Petroleum Resources, Mr. Timipre Sylva, was said to have held meetings with the countries which are desperately in need of more gas as the war between Russia and Ukraine rages on.
However, it was learnt that the capacity to increase production was almost non-existent, prompting Nigeria to call on the United States recently to invest massively in the country's gas infrastructure before the request by the countries in Europe can be met.}
notice how they also drop a hint in the results RNS that they will
try to distract pis with some kind of shiny-shiny nonsense prospect
of a renewable energy asset in europe. until the plug is properly
pulled on ADME, they will always keep switching from one jam
tomorrow story to yet another — but nothing real & genuinely
profitable ever emerges. … all these years they’ve already
had that stake in aje, but not one single cent of profit or dividend
has *ever* come shareholders’ way. cornhill received a million
quid success fee at first aje oil, while the BoD extracted huge pay
and perks for years, but now the two aje wells are depleted
and failing, the FPSO has departed, with adme still left owing
the project partners a seven figure amount of debt re aje!
Spikeyj, this is classic ADME, ignore the facts, obscure the truth to spin an alternate realty that suits their agenda which as you stated is to feed the trough for the BOD. I would suggest, they are similar to Trump but unfortunately it appears this concept of an alternative realty to feed ones needs is now common place. Aje has been looked at by several major IOC's including CNL, they all walked as they know it is non commercial. Time is not depth in this field, i would like ADME to show a commercial field in the Benin Transform Basin- the only other field is Seme which is not stellar.
ginksy is completely ignoring the cash crisis for ADME right now, in 2022.
pie in the sky stuff for 2023 / 2024 / 2025 doesn’t produce cash for ‘em now.
MXO then ADME, always the same, potential jam
coming day after tomorrow to fund BoD lifestyle.
spikey , 9000 boep at $110 amounts to 360 million per annum and and at 24,000 boep amounts $960 million per annum in revenues . should be enough cash to pay off drill and other costs pretty quickly and pay a big divi to adme shareholders
Accounts were always going to be poor
We know there is zero cash in ADME right now - placing will be required but unsure how to do this without a consolidation or they do it at 1p but other a ton of cheap warrants to smooth it over
we really need to wait for Thursday - two RNS's hopefully (AJE is main one) as this is really where the progress of AJE has been held up
As I said, production on next phase has great potential - its what i bought in on the back of ( wish I had waited for a better price as I am well down) but (when / if) AJE goes into production on phase 2 next year - we will be at a lot higher price than we are now
as you well know, ginksy, ADME has very immediate and
severe cash flow problems which threaten its survival as a
going concern. rising nigerian gas prices make *no* difference
whatsoever to ADME’s current cash balance and its cash flow.
plans for future aje development in 1, 2, or 3 years time don’t help
ADME at all in the short term. just means that if the partners ever
get their act together with a field development plan etc, colossal
amounts of money will then need to be raised for further drilling
and infrastructure and ADME’s share of the project level debt will
balloon ever higher. (- but i expect ADME to be wiped out long
before that, with its interests in aje being taken over by others.)
at a broader level, anyone who has watched MXO then ADME
over any length of time will know not to take seriously claims
such as your “production will increase to 9000 boep in phase
two due next year and to 24,000 in phase three due in 2024/25”
— since the track record of ADME ever actually doing and achieving
the things that its BoD claims will happen is remarkably poor, both
on timescales & any eventual outcome. e.g. just take a look back at
stuff osa said before about 3 deals a year, marginal oil field bids, when
barracuda CPR was meant to come out, when drilling would commence
at barracuda, etc. just spinning the plates while they cream pay & perks.
spikey you also fail to mention nigerian gas prices are increasing by the day
" The National Bureau of Statistics (NBS) on Friday disclosed in its report that the average retail price of cooking gas increased by 83.62 per cent from N2057.71 in March 2021."
spikey for some reason you never mentioned production will increase to 9000 boep in phase two due next year and to 24,000 in phase three due in 2024/25
“… cash flow loss from operating activities increased
by 40% to £2.1 million (2020: £1.5 million loss).”
cash and cash equivalents at 31/12/21 of £110,000.
they then raised £561,000 in january 2022. that’s a
gross amount, so call it circa £500,000 net in jan 2022.
cash is king, and ADME have b***** all,
zero coming in unless they place again.
but the shares are trading well below their paid up value of 1p, so ADME
cannot place more shares below that price, unless it is made conditional
on some kind of further share capital reorganisation/ consolidation etc.
30/6/22 meant to be the long-stop date for petronor.
30/6/22 also the date when the ADME / KONH dispute
with NHNL dispute is meant to be back in court.
… RNS coming pretty soon.
(sorry, should have read, *1117* bopd for 2021, not 1118)
oil production from the aje field continues to decline badly year on year.
2018 3100 bopd
2019 2967 bopd
2020 1909 bopd
2021 1118 bopd
they have lost their previous FPSO. zero revenues
coming from aje until they pay up for a new one.
“In the short term, the Group will require further additional funding in order
to meet its liabilities as they fall due & continue to operate as a going concern.”