The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Following article shows that the President in Ghana is prepared to remove officials in oil industry if not transparent:
https://citinewsroom.com/2018/08/mines-and-energy-committee-welcomes-boakye-agyarkos-dismissal/
Also this body within Parliament, Mines and Energy Committee could be the ones that may review and approve any Petroleum Agreement, following consulting Ghanaian National Petroleum Commission.
According to this link on another PA:
https://www.ghanaweb.com/GhanaHomePage/business/Experts-punch-holes-in-newly-proposed-Aker-Petroleum-Agreement-823348
"Some energy experts and Civil Society groups have described the proposed amendments to the Aker Energy’s Petroleum Agreement (PA) as illegal and inimical to Ghana’s interest..... the new proposed amendments currently being discussed by the Mines and Energy Committee of Parliament seeks to illegally amend the Petroleum Exploration and Production Act, 2016, (Act 919) and its regulations L.I 2359 (2018)."
If GNPC raise no objections to CLON PA (and according to CLON they are fine with the PA, just some fine tuning required) then technically this should be approved by this body in cabinet as per law and transparent regime.
Specifically - the Chairman of Mines and Energy Committee of Parliament led by Hon. Emmanuel Kwasi Gyamfi,
https://energynewsafrica.com/index.php/2019/04/12/mines-and-energy-committee-of-parliament-visits-atuabo-gas-plant-others-next-week/
Flights to Ghana now operational, Ghana parliament is in session including the Mines and Energy Committee for discussion of PA approvals.
Ghana boarders remain closed until further notice. Only cargo flights arriving at the moment.
In a couple of weeks is fine - you can go via Istanbul for example Jun 16th to Accra
I don't see how the closed boarder has anything to do with our contract thats currently at Parliament waiting to be signed. There's other ways to conduct meetings!
Just a couple of snippets from the last RNS in case anyone missed them.
During 2018 the Group resolved the outstanding issues with the Ghana National Petroleum Company (GNPC) regarding a contract for the development of the Tano 2A Block. The Group has signed a Petroleum Agreement in relation to the block and this agreement awaits ratification by the Ghanian government.
In the period since 31 December 2019, the emergence and spread of Covid-19 has not had a significant impact on the Group's operations. Although some high level discussions originally scheduled to take place in March in Ghana, Europe and Bolivia in relation to the Group's projects were postponed due to the Covid-19 pandemic, they are expected to be rescheduled over the coming months. The Group continues to progress its interests in Ghana and Bolivia and do not believe that its prospects will be negatively impacted by Covid-19.
My guess would be that the "high level meetings" put on hold due to covid were about what happens after ratification. It's easy to have an in-house meeting with people you know and have prior influence over/with but to conduct business with people who may be from a completely different culture whom you have never met before....well, suffice it to say, it might just be worth the waiting!
MassiveRay I can confirm from my correspondence with the company the meetings can only happen in person. I have suggested video call etc. The answer I got is has to be in person as government procedure.
Riseandshine and Massiveray what sort of MCAP are you expecting once signed and after ratification? More than the years high of 1.80p? I’m in with as much as I can now with an average of about 0.44p so currently blue which is nice to be able to say and I personally think this is the bottom!
David Horgan will never use "meeting" if he can use "high level meeting". The man didn't kiss the Blarney Stone: he made love to it.
Not sure Sam, but many multiples from here
For me it’s a waiting game now, I’m locked and loaded ready for the news flow that is due as soon as restrictions lift
Like M/Ray I'm not sure either Sam and I don't usually lean too much on that when assessing things. What I do know is that when PET. were linked with billionaire funders their SP went into the high 20's in pence. If and when ratification is confirmed I would expect similar spiking to take place. Whether it would keep rising of fall back would depend on what news flow followed the announcement but I wouldn't be surprised if this was what the "high level meetings" were about; i.e. what happens next. People like Bridges who are in for the very long haul reckon that this will continue to rise right into the drilling phase and if their is a discovery then we all know what that will mean. I'm sure Bridges would be willing to elaborate if he is around. For me, I will be happy with anything 5p or over GLA and DYOR :)
Thanks riseandshine, it’s knowing where to take your profit and where you continue to hold, if I target 4.5p as that’s a 10 bag for me do I take any profit on the way up or do I hold until my target is reached but then say it gets to 2p and drops back will I regret not selling, that’s the risk when your in at head low levels and want massive gains, if only I could now switch off for a year and not even look where all my shares are and come back in a year I personally think I’d be extremely happy with my portfolio! It’s also setting yourself a target and sticking to it!
Top slice and free carry a chunk. Best of both worlds.
Hey Rise thanks for the mention, I am fully invested here and own 2% of the company 30% up at the mo but as you know I don't care about the short term when dealing with clon. I am here for long term and particularly interested in the Tano basin where the black gold is in plentiful supply. I have had a break from posting here as most of my time has been spent recently on the main market and oil futures. I still have a few positions open in the oil futures market looking to complete the gap and currently 2000% up. I don't like putting a value on a future share price as we don't know what is going to happen with shares in the future. As for market cap, I am looking for 200 to 300 M on a ratified block. Whether anyone agrees this is realistic right at this moment I doubt it but I am convinced that given the supply cuts and the postponement of projects next year we are at the bottom of a spawning oil bull market that could give rise to a significant increase in oil sp next year that could tie in nicely with farm in or BO. Given this probability I would still expect on ratification of 2 blocks a value of 100M and sp could spike to mid 20s. PIs have been given a good opportunity to buy here cheap, courtesy of the unfortunate global situation. GLA
200-300MC on two ratified blocks on interest farm in and exploration
100M on initial ratification of 2 blocks
Thanks Bridges, I had a hunch that you would have a better informed take on that question and thanks for reading through the posts and responding....the only way is up :)
2.5mn would be hard to resist on initial
Bridges thank you for your detailed reply, you really have to look longer term here and not worry on day to day price movements you obviously know your stuff being 2000% up! I have topped up as much as I can here for now, may be able to top up more if my other shares perform well, looks like we have great assets just need ratification and then start producing imagine if we get a similar mcap as Tullow Oil has!
Massiveray hope your well and been able to top up here at these low levels! I see SNG has dropped in price recently hope you’ve done well trading it, looks like my investment at 8p at GGP was a good one! Haven’t topped up there though unfortunately as didn’t want to up my average, what do you think of ORCP atm as know you were invested there previously seems to have more interest now
Hey Sam 2000% up on oil futures not difficult trading up from 20usd risk to reward ratio v good ; ) just have to exploit those massive dips and go long.
Hi Sam, wasn't in orcp for long and haven't been following it. Still very much holding in ggp and can see 20p plus comfortably by year end... keep an eye on bmn.
Bridges hopefully we will see 1000% rise here from these low levels!
Massiveray yeah I can see 20p plus by year end easily too, may top up if a share I has multibag massively I think GGP is a less risky investment compared to a lot of other shares, thank you will look into BMN as well
Sam imo at least 10 fold. My value on ratification given the amount of shares in issue now would be 12p and in the range of 12 to 23p or higher. MC 100 to 200 save for and depending on demand.
That’s perfect Bridges, that gives me a great target to aim for, and looks like you know your stuff being 2000% up, the key for me is not to sell too early now I’m in at these really low levels (normally end up buying in after at least a 50% rise) got to go long term whether it’s worth trying to trade the drop backs I’ll have to see but you can then miss out on the big rallies as it usually goes NT to buy! I’ll see if I can top up at anymore below 0.40p where I can, have no spare funds atm could potentially move profit here though after a month or two if were still at these levels.