Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Games being played with RNS updates:
WEN put in a silly bid and spent some cash with legal to do so and SCIR rejected it
WEN will not over pay to protect shareholder value and SCIR will not sell out without obtaining value for Shareholders
WEN feel they have strong position due to cash pile and SCIR have confirmed they will go to the next stage and drill if value not released (and worry about the next stage later -if a positive drill or even positive 3D they will raise cash off the back of any increase in SP)
I guess the same can be said re WEN and AEX, but AEX has the free carry on their side!
Time is ticking and there must be a line in the sand already drawn out - decision to either jump in before the drilling or risk paying a far far higher price if successful. If it is WEN, and they're interested, my guess is they do the deal before drilling as its a big gamble to wait for the drilling results. If results are good the value may rise substanitally and price them out completely. Then where would they go for new assets as there's not too many options available and they clearly stated they prefer to focus on what they are good at i.e focusing on Tanzania!
If WEN had bit of excitement with drilling exploration and appraisel wells on the go, on top of the the safe and boring (albeit profitable) company it is now, I feel it would attract a lot more investors - some of which have probably never been paid a divi before!!
Good Luck
Well BG if you read CP's report on his and BD's meeting with the SCIR Board on Monday it would appear that any offer that they may have made for SCIR's 25% was considered insufficient for SCIR to accept it; which probably means that it was less than $20m.
Indeed any offer that they may have received was self-evidently insufficient to warrant being proposed to shareholders.
What a surprise..... Zubairs the only game in town? Surely not? ;0)
and, "Our goal for the next year will be to focus on pursuing the right growth opportunities both within our existing asset and beyond that to support our existing stable operations."
they are looking to buy into either Aminex or SCIR ???
The Mnazi Bay partners will hold talks with the government on plans. One potential point of negotiation will be around extending licence terms. The licence currently expires in 2031.
The second part of Wentworth’s plans are a potential deal. “There are limited options” in the onshore Tanzania space, “with a small peer group and only one other producing asset”, Roe noted.
Wentworth did spend money in 2020 on legal costs as it explored a “couple of specific growth opportunities”, chairman Robert McBean said in the statement.
https://www.energyvoice.com/oilandgas/africa/ep-africa/316636/wentworth-roe-tanzania-spending/
"Offshore gas will be for export. Onshore gas will be for domestic use."
where did that statement come from PoC ? I have seen it mentioned by some of the big companies involved in the project, as you would expect, though that was some time back now. but that decision lies with the Tanzanian Gov, and i have not seen any reference to that affect from them.
Offshore gas will be for export. Onshore gas will be for domestic use.
yes, i kind of agree Crusty, every thing is up in the air at the moment, with developing the deep sea gas fields via the LNG prosses, obviously it would cost a fortune to get the gas to shore by a pipe-line, but at the same time they (Shell) needs a production license to produce it. Tanaznia will want the best deal they can get, so i suppose it depends on how much on-shore/near-sore gas is or can be made available for their own domestic market plus that which they plan to export to neighboring countries going forward say the next 20 years. i've often thought when they first put in the large (3ft) Natural Gas Pipeline from Mtwara–Dar es Salaam, with a capacity of 1,000 million standard cubic feet per day, they had envisioned using gas from the vast reserves of the large off-shore fields. either way, if it does come ashore, it is many years down the road.
Ntorya Gas would become less valuable?! Really? When it is likely to be only 5% of the costs of production?
I strongly believe think that the costs of production of offshore gas will preclude it ever being used for domestic consumption. To provide the catalyst of economic growth for the Domestic economy and to give Domestic Industry a "leg up" the authorities will need to provide them with very cheap energy and hence will need to buy it in a as low a price as they can. There speed to market on onshore gas, the cost of production and the vast capacity will mean that by the time offshore gas is available they will not even need it....
" It is time to know if the project is viable or not"
i think it would suit Aminex if they decided it was only viable being processed at sea on LNG processing ships next to gas fields. like i've said before if the off-shore gas (of which there's 40 trillion cf) is piped ashore then some could be made available as natural gas for TPDC use, and Ntorya gas will become less valuable. i have a feeling it will end up being processed at sea, i'm pretty sure that is what Shell would like, but at least the talks will be on again.
TPDC draws strategies on LNG project pace
https://www.thecitizen.co.tz/tanzania/news/business/tpdc-draws-strategies-on-lng-project-pace-3352552
The most interesting para for me...
"The LGN project is likely to become a National Anthem, because we have sung it for a long time now. It is time to know if the project is viable or not and understand who is blocking it,” she noted.
Those hindering its progress, she said, must be pushed aside.
“Don’t take long negotiations. If the existing investors are not willing, then you (ministry) must find others because they (investors) have a lot of projects they implement out there,” she said.
Ms Samia said that when she was the Vice President of Tanzania she tried to intervene, but her power was not enough to push the agenda successfully at the time.
Hopefully the new president - who now has the power and gives her first speech to Parliament tomorrow , can push the energy agenda...