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The below pasted from Investors Chronicle, suggests that project finance is available for gas projects in Africa...I am not sure how the Chariot asset compares with Etinde. Any insights there would be appreciated.
Aim-traded Chariot Oil & Gas (CHAR:6.48p) has received two non-binding expression of interests to provide development funding for the company’s Anchois offshore gas discovery in Morocco. It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources.
The fact that two highly regarded institutional lenders – African Finance Corporation, a Pan-African infrastructure institution, and a well-known multinational bank – have endorsed the project underlines its quality. It’s also significant given that capital expenditure of US$300m to US$500m needs to be funded to bring the development on stream. Chariot is also engaging with potential off-takers both within the domestic Moroccan gas market, and through the Maghreb-Europe pipeline to the European gas market.
Fairly obvious response, Hamz - Morocco, with its proximity to Europe, is not the same market as Sub-Saharan Africa. However, plenty of institutions are willing to invest in Sub-Saharan Africa if the project economics are right. Gas development in Nigeria is being pushed by their government (see SAVE who have 10% of that market currently). Electricity development is being pushed by the Cameroonian government, and too for the wider CEMAC region (Business in Cameroon is a good website). Key for Etinde will be the development of a power station or two at Bekoko (Aksa) and/or Limbe. I doubt the Etinde project will be attractive to funders until one of these power stations gets the go ahead.
"It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources."
Etinde consists of IM and IE fields, with post the IM-5 drill, the IM field was estimated to have in place 155 mmbls of liquids and 1.05 tcf of gas with an external audit in 2019 ascribing 185 mmboe to the IM field and 60 mmboe to IE recoverable, with BLVN being a 20% partner alongside Lukoil and New Age with 30% each
If the FID allows for exports, perhaps the power stations will be less important?
That was the interesting discussion in the Conference Call, Hamz. Export or domestic? - BLVN do have options. I get the impression that they favour domestic; but that is dependent on the go ahead for power stations (and the Limbe fertiliser plant would also be useful). I think this largely explains the delay on FID to now 'sometime' 2021'.
I have 6 or 7 O&G legacy 'write off' holdings and look in on sundry boards from time to time and, if VO&G recently is anything to go by, am all for seeing HS involved in them !!
This one I actually have good hope for still and consider it about the best of my dog 'write off's' .. indeed to the extent of me topping up at plenty lower and not being that far off b/e here now.. so here's hoping.
PS: my absolute mongrels of the bunch are the Z brothers: Zenith and Zephyr. I dare you to find something good enough to buy into in either of those HS, please :-) Extraordinarily low Market Cap 's might make hard core gamblers want to have a flutter in either granted.. but many might say they're so low for a reason, of course and absolutely DYOR
Hi, N2M; and thanks for the compliment. Paths keep crossing, so must be of like minds on most these oilers. I think you'll be OK with BLVN here, but just a question of when, and what's left for shareholders after development (there will be a placing at some stage). May pick up some shares here in the Spring. On the watchlist for now.
Meanwhile for me VOG is more of a risk/reward play that I think will play out in the next 3 to 6 months.
You'll be pleased to know I took a small punt in SAVE a few days ago, on news of new customer before xmas; but there still waiting on more clarity as to 'Trade Receivables' before I'm putting in much - so again a matter of timing - perhaps 6 months from now? Interesting article though about Calabar maybe getting sold off - that would certainly help imo.
PPC I think will be in a trading range for some time; TRIN too, unless they buy out TXP's non-Ortoire production.
On the Z's - Zoltav looks very interesting, but I think I've missed the boat on that one. Agreed, Zenith and Zephyr are 'bargepoles'.
My main holdings are TXP and JSE; and I don't think you can go wrong on either (even at these prices - check out the ADVFN boards on these two) - though I use to say that about SAVP where I was 70% invested!
VOG remains a punt, but after the good news still kept the bulk of my holding there (next news Matanda licence renewal before Dec 17th) - the CEO seems top drawer.
Also a few in GBP (licence renewal Dec 3rd - important day for them).
Hope you have some luck soon, N2M.
Fingers crossed.
Much appreciated on the below feedback happysparrow.. and very interesting to see you've dipped your toe back in SAVE That remains my biggest bet but also remains a very tricky/annoying share. I did indeed pay attention to that sale of Calabar next year news.... but I haven't seen any detail on that so far and so, for now, will sit on fence re deciding whether that's good, bad or indifferent for save...but interesting/refreshing that your instinct is it's good.
I'm big in PPC and small in Trin and agree with you that they could be range bound for a while yet ( the reason I'm small in trin now is that I actually dumped most of my holding to take some profit .. so a chance it may rally big somehow now of course :-) )
My two biggest metals resource holdings are TSG and KMR btw
As this is a blvn board I offer : If this goes back to 3's p i'd so a small top up. it may not of course.. and fine by me if it rallers into 5's p soon !