Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Day today 2 trades!price shown as 12p all day and 7% down.
open at 12p ! whit!
Are they well fed now? Quiet. Very quiet.
Has anyone got any thoughts on what's happening over at VOG? Huge fundraising, Chairman 'retired', remaining Directors taking salary cuts and FY Finance and ZUG Finance buying lots of shares.
Some of the fundraising to be spent on a CNG Plant. Could any of this benefit Bowleven?
Bowleven has announced its interim results for the six months to 31 December 2018. The accompanying statement reveals that the Company retains over US$15 million in cash and financial investments. This should be more than sufficient to fund Bowleven through to a final investment decision on the Etinde permit offshore Cameroon, when it is due to receive an additional US$25 million from its partners. In the meantime, we maintain our Buy rating and 32p/share price target.
Extracted from Investor chronicle.
On the same basis, investors who followed my advice in my 2017 Bargain Shares Portfolio have banked cash equating to 84 per cent of their original investment and retain shares worth 23 per cent of the capital they first invested.
So, if you have been following my advice, I would continue to run profits on the balance of your holdings given that Bowleven still has potentially a highly valuable asset in Etinde, albeit the FID has taken longer than I originally anticipated. Indeed, analyst Daniel Slater at brokerage Arden Partners has a risked net asset value per share of 50p (98p on an unrisked basis) based on a long-term liquid oil price of $65m a barrel and gas price of $3 per 1,000 cubic ft (mcf). Run profits.
Africa-focused oil and gas exploration group Bowleven (BLVN:13.5p) has updated shareholders on the progress being made at its flagship Etinde offshore gas prospect, Cameroon, in which the company holds a 20 per cent equity interest. The operator is NewAge and Lukoil is the other partner in the joint venture.
The short-term focus is to complete the review of the field development options during the first half of 2019. At the same time, the partners have also contracted a number of consultancies to undertake engineering design studies across a range of development options. Bearing this in mind, they believe the economic value of the Etinde field lies in the condensate and light oil resource base. However, the volume of wet gas (natural gas, liquefied petroleum gas (LPG) fractions and CO2 content) fraction is significant with proven and probable resource of 1 trillion cubic feet in place, so the feasibility of any commercial development will depend on how the gas fraction is utilised.
Bowleven’s management team considers that the most likely commercial development will be based around liquid sales alongside a mixture of domestic gas supply (for electricity generation in Cameroon) and export liquid natural gas (LNG). The LPG component of wet gas would also be sold domestically or for export depending on how and where gas processing occurs. Commercial discussions with potential gas off-takers are running in parallel to the development planning.
In terms of a likely time line of newsflow, expect a final investment decision (FID) on the project by late 2019 or early 2020, at which point Bowleven will receive a $25m cash payment from its joint-venture partners under the terms of the original farm-out agreement. After taking into account the payment to shareholders of a special dividend of £48.5m, or 15p a share, in February this year, Bowleven currently has net funds and financial assets of $15.6m on its balance sheet. This means that liquid resources and the outstanding FID payment back up almost three-quarters of Bowleven’s market value of £43m. Effectively, Bowleven’s 20 per cent stake in Ethinde is in the price for $17m (£13m), a massive discount to the $214m value of exploration assets on its balance sheet.
Of course, nothing is ever certain in oil exploration, which is why, having included the shares in my 2016 Bargain Shares Portfolio and 2017 Bargain Shares Portfolio (at 18.9p and 28.9p, respectively), I advised banking profits on half your holdings, at 33.75p, 12 months ago (‘Hitting pay dirt', 9 Apr 2018). Taking into account the subsequent receipt of the 15p a share special dividend, this means that investors who backed the company in my 2016 Bargain Shares Portfolio have banked cash equating to 129 per cent of their original investment, so have a free ride on the balance of their holdings, which are worth a further 35 per cent of the original capital invested. On the same basis, investors who followed my advice in my 2017 Bargain
I remember FID was slated for 2013 - it's been nudged back every year. LUK and CAMOP will take their time with Etinde and buy BLVN at a price and when it suits them.
It's bad news when your average is like mine, just calculated 37.5p, don't think I'll ever see that back! Still hoping for a sale this year can't stand another year or more of this.
It just never ends... the good news is at least the share price is around 28p old money... so not all bad..
Can't wait for luck counts to come along and tell us how positive this is... As I referenced in previous posts, there was no guarantee that FID would happen in 2019 and today's rns not only mentions the prospect of it taking place in early 2020 it goes on to expressly reference FID in 2020.
Thanks, all the extra info didn't load this morning but I've read it now. There's some positives in there which you've not mentioned, you do seem to have switched position/view on the future.
PRINCIPAL RISKS AND UNCERTAINTIES
The ultimate development of the Etinde wet gas and light oil discoveries is likely to be technically
dependent on our ability to utilise the volume of gas produced by the liquid.
The Bomono PSC reached its contractual termination date in December 2018. The Government of
Cameroon has not formally terminated Bowleven’s licences at the current date. We consider that it
may be possible to find a way to develop the Moambe and Zingana gas discoveries. Hence, we remain
in discussion with SNH regarding the potential opportunity and seek the issue of an exploitation
licence by the Government following approval by SNH. In the absence of any such exploitation
licence, we expect discussions to focus on the termination of the licence, which may give rise to a
potential charge being levied by SNH.
What is negative? How much were you expecting to be left? Why do they need more? The RNS says it's enough
Charge on Bomono, I must have missed that in the RNS
Reduced costs
What have I missed?
More liquids, lower capital expenditure, FID approaching. Surely that is good
Very negative results. Looks like reinvesting dividend was a poor decision. Cant see any upside.
Im now thinking that the Dividend was paid to let COC take15p of the table with out moving the Share price..
Charge may be levied for Bomono
6.9 USD is not a lot... not sure the market will like this.. lets see how this plays out today...
Looks like the SP has now turned and buyers looking towards the news which is expected very soon. I've been adding at these silly low prices and if the news is good or a sale announced the current price will prove to be a bargain. Get in whilst you can I have.
I have always traded through a Stocks & Shares ISA (I am with IG). There is no tax liability on any profit you withdraw, the only limit is how much you can put in, in each UK Financial Year.
You can multiple share trading accounts outside of ISA (as I have), but as long as your drawn cumulative profits in these do not exceed £20k (I believe) you are also not liable for CGT. The next Government
budget statement on these perimeters may change. If at the next General Election, if Labour get in then you can kiss all this goodbye.
GLA
Christoski is correct.
Best to try and move as much as you can of your holding into an ISA if possible. No tax liability then on future dividends or sale profits. I suggest using up any outstanding 2018/2019 allowance before the 4th April deadline and then another chunk up to £20k I think after that.
quite ridiculous when the recent divi was more than the current sp! Some nasty manipulation going on behind the scenes!
How does the tax man find out about your dividend? Does your broker tell him, assuming you don't submit a tax return how does he know about it?