Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Pretty much as expected.
Entered into a conditional sale and purchase agreement to acquire Schlumberger Rustaveli Company Limited ("SRCL") including Georgian onshore licence blocks IX and XIB
· Implementation of prudent cost-cutting and cash conservation measures in response to COVID-19
· The Group held cash at 30 June 2020 of US$2,258,000
· Proceeds from sales of crude oil from its West Rustavi, Norio and Satskhenisi licences were US$313,000 during the six months ended 30 June 2020 (2019: US$nil) and US$568,000 following the period end in August and September 2020
· Early production facility ("EPF"), including a gas processing unit procured during the period and commissioned in September 2020
· Commencement of construction of the gathering line between the EPF and WR-38Z during September 2020
· Shut-in of the West Rustavi field's production at wells WR-16aZ and WR-38Z to conserve valuable gas resources until the gas sales pipeline is complete later this year
· Early results from fully migrated 3D seismic processing are providing insight into the full potential of the West Rustavi XIF licence area
· Engaged EPI Limited ("EPI"), a leading independent geoscience and geophysical consultancy
Only tidbits imo.
Roger McMechan resigned wasn’t fired, that wasn’t clear in previous announcement.
State approval of the Schlumberger sale and purchase.
Bago is still in permit process for pipeline. But still within plan for completion by end of year.
Looks good to me.Nothing bad.Maybe things are looking up.Stay positive,our day is coming
No surprises here, it just demonstrates how undervalued we are, the potential for shareholder value is huge.
Not bad results, i expected lower cash reserves so i think the market may see this news as positive.
MP
one point to note, which is not unexpected seeing as they are taking on more acreage and will need to fund development.....
note 2 interims...
The Group's forecasts, taking into account the applicable risks and the stress test scenarios, show that it may have a shortage of cash to fund its development plans within 12 months from the date of approval of the 2020 half year financial statements.
The directors note that COVID-19 has had a significant negative impact on the global economy and oil prices have fallen significantly, which may mean it is harder to secure additional funding than it has historically been. The global pandemic may also bring practical challenges to the timetables for the construction of the gas pipeline and the consequent sale of oil and gas from its West Rustavi licence. The directors are confident that current capital projects are funded based on current timelines and have a reasonable expectation that they could secure additional funding, if needed, to fund additional capital projects. However, these conditions are necessarily considered to represent a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern. Whilst acknowledging this material uncertainty, the directors remain confident of making further cost savings when required and therefore the directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern.
What's interesting SEA is that Schlum will be aware of the state of the balance sheet and they are still pushing forward with the sale and taking a percentage in Block. So you have to ask yourself was this the best possible deal for Schlum? To me they are too big to do a firesale on what really is a small asset so there has to be potential in the deal for them to recover more in the long term with Block rather than taking a bath with the asset. So no matter how or ultimately whom gets it out of the ground they want their finger in the pie. Hold for me.
maladoni
yes, definitely. There is more they know about and are not saying regarding the schlum deal... they indicate it here...
Block continues to work with Schlumberger on completion of the acquisition of SRCL, which was announced on 26 March 2020. Some conditions necessary for completion have been fulfilled, such as the receipt of approval from the State Agency of Oil and Gas, but, owing to COVID-19 travel restrictions, an agreed shadowing period has not yet been possible. We look forward to updating the market in due course. In the meantime, sub-surface technical study work on the SRCL assets continues, yielding economically attractive short and medium-term opportunities that will be presented to the market following the completion of the acquisition.
...........
as you can see, they are planning to shadow the guys on site, which will ensure they have a good handover - it also indicates that schlum are keen to see it in good working order after handover - they obviously value the asset despite it not being a core asset for schlum at a higher level.
....
when we talk of funding - there is of course the possibility that schlum will loan block cash against the reserves in the field.
schlum do have a lot of debt that exceeds cash and receivables, however, they hold over $2billion in cash and have $8billion in receivables due.
there is plenty to think about here - should block get the schlum acreage up and running successfully, schlum may come back and buy up block energy to obtain the asset back, further down the road, as georgia is a very strategic country from a gas transit view and also they are aiming to change from importer to exporter of gas - schlum will want to be involved and having a stake in block keeps them in country, just off their own balance sheet at this time.
I'm also in PRD and we've just proved CO2 EOR to extract 20 bopd for 50 days from an old well in Trinidad that was no longer productive using conventional extract methods.i.e.99% flow improvement.
Be interesting to see how it would improve low volume producing well such as Norio or Satckt.
Sure Jon F is aware of Predator and may well know our CEO, Paul Griffiths. He led on the merger between BPC / CERP as the latter was a had a partnering contract with PRD in Trinidad.
Certainly worth trying, if it can breathe life into non producing wells in Trinidad, it can improve the flow rates for low volume producing wells in Georgia.