Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Very good point Thordon .
Let`s hope that he unthinkable ~~~ another you know what ~~~ is not what they are thinking .
Just as a note Block energy can only pay shares until the allocated share scheme runs out , so based on that we are looking at 4 months shares till empty.
remember these shares are listed and held by Block energy employment scheme
OK MP you are winning me over. I think for me it’s more that it creates an image of a company that is still really struggling and in my head we aren’t anymore, but I probably need to be patient for a little longer. I’m with AJ - I think BH sort 16z as their first project.
Yes Bobby, looking at £10m for the first year in profits with each year declining by 18.8% which will hopefully be compensated by future wells coming online. Success on both wells should see the share price well above 17p if oil stays high. If we do get $100 oil this year things may get silly here with WR-BA and WR-BB success and the 2022 targets.
MP
So am I right with my basic calculations for the next 2 wells, assuming 1000bopd from BA and BB x $70 = $70k USD per day $500k a week, $2 million a month and $24m a year? Excluding our current break even production. Interesting 6 months ahead I'd say! Bring on the spud BLOE!
Agree with your thoughts AJ and 16az may well turn out to be the joker in our pack. I obviously meant 31 DEC 2020 in my previous post. Bottom line is cash is tight for now.
MP
With higher oil prices the company must be close to break even or possibly even generating a small profit but there's undoubtedly a lag between production and payment for oil. Block had $6.3m in the bank as of 31 Dec 2021, the next two wells are estimated to cost $6m, i'm unsure how much remediation works cost on 16az but money must be very tight. The company is saving around 30k a month with these share issues which is a tiny amount but adds up over the months.
Better to conserve cash till WR-BA results are known, best case scenario WR-BA does 550 bopd which would be around 5m in profits for the first year factoring in predicted decline rates and current brent prices. Sector PE rates are around 16. A PE of 16 on 5m profits would value the company at around 12p with current shares in issue. With this kind of revenue generation and a high share price future dilution will be small, Block may even get creative with BH or farm out some of their future drills. In the long run, I think this small term inconvenience is worth it. I think this stock may be on the verge of a major re-rate.
MP
Not sure I agree - we are selling a load of oil either right now or very soon. PH confirmed that in the podcast. Surely that gives us the income stream to be able to pay the bills. I get the need to be conservative but there’s a point where this needs to stop. If an oil company can’t pay its staff in cash when oil is 70+ then they clearly have little confidence in production stability. I’m trying not to be too one sided here but I see no reason for this to continue beyond receiving the proceeds from the pending oil sale.
Spud, if i was managing the company i'd wait for results from 16az and WR-BA first. No.1 priority is to conserve cash in case WR-BA and/or 16az are duds. I think we're in for more salary shares for the next few months. The positive is that the shares for salary scheme are very small but with this low volume and with some employee's likely selling they probably are suppressing the share price. We need volume and for this we need news.
MP
I hope AGM and July brings an end to the shares for salary scheme. That has to be a factor in the SP action? That and confirmation of flow rates and we have the platform we need for future success!
Oil price $75.24
I suspect this stock will do 20-30% when you least expect it to, the stock seems very unloved right now.
MP
Thought I was on the wrong chatboard for a minute, eyebrows, beard, what next? - dont anwer that!!
Can you post the tweet ... cheers
MM will take 1,250,000 shares at 2.65p in one go.
MP
1m buy just went through at 2.90p
2.75 to buy 2500gbp and 2.71 to sell 2500k
MP
Oil $75.06. Not much going on with level 2 to report.
MP
As well as skin we now have serious eye brows in the game.
Bring
It
On.
Looks like we may have spud news any day from the pics.
MP
Good stuff!
Pictures on Twitter of PH signing baker Hughes mou.