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Either that or sell.
Disappointing for long term holders particularly, now we're getting to the business end of things.
The big money want a piece of the pie for sure, but only at silly prices.
I'm just going to ride it out as it's a far more viable proposition now than when I originally bought in more than a decade ago. I'm having to re-imagine £1+ per share for surr. Bugger!
The NR tells us that Tennyson Securities have been effectively asked to stand down after little more than six months in post. They were unable to deliver. It's a statement too by the Board that outside the US there's no appetite for projects like the Beetaloo.
BS and his partner have given the Board sufficient money and time to sort out its exit in an orderly way and I expect there will be a lot more focus in the next 12 months or so on bringing on board private equity and/or family funds who are based in the US, and are more credible partners than the 3 minnows to Daley Waters. Meanwhile It's very easy to judge who is going to come out on top in terms of the Beetaloo. in the next couple of years. The Falcon board with its emphasis on an an exit will win hands down over TBN .
Meanwhile it's very nice that our close friends/partners will give us so much cash for an ORRI in the 51,000 acres in the pilot project. It bodes well too that they are willing to step forward to acquire shares before the 90 day result on the SS1 well is announced next week.
Hopefully I can meet some of you again at the AGM in June.
If only 1 person, and a very smart person at that, wants to buy something, they won’t pay top dollar. This will sell at a pittance. It was a long shot all along….it’s over…..
It all boils down to the next two 3000km wells. If they prove out BS will try and buy out/merge before any other suitors are involved -- but if other suitors are sniffing around it may go much higher. My guess is no one is offering at this time other than BS and after the next two wells -- we will see more. Anyone have an update of how much BS owns from all three companies now?
And this is just for the costs related to the next two wells and related costs in 2024.
When we dropped on the announcement of the “stellar” results, I started to really question if there’s going to be a positive ending. I felt it was possible the market didn’t like the 500m horizontal results being extrapolated to 3000m. Still, thought we’d be higher. We ran up significantly 8 years ago on the back of lesser results and the impending stop work of the Pepper Inquiry and real risk the development would be stopped. As such, I don’t know why we are here, but it would appear the headwinds of environmental, government regulation and location are having an impact on valuation. The only thing that gives me comfort is the entrance of Brian Sheffield. That is likely a mixed blessing in that if he sees value, he’ll work hard to get it as cheap as possible and unless we have another interested party, likely will.
glad it was only a stellar find. we could be in the **** if it was stupendous. came into shares late, retirement, and really wish i hadn’t bothered. we put a lot of faith in someone we don’t know on the most bent of markets aim. honestly the horses less bent. maybe the gurus here can see an advantage and if so please share. i’m a gambler / investor by nature but this share will the last i let someone make decisions on my behalf. no point selling. lol prob worth topping up. but no faith anymore.
Especially with the good performing test production currently. How can you sell so cheap with this good well test results?
This is becoming so predictable and incredibly disappointing. I speculated a financing was in the works after the last call where we were told “there’s no need to raise” only to have POQ announce we’re reducing our participation in a “masterstroke” move to sit out having to dilute our investment. Today we find out a financing is indeed being done at near our 5 year average low and giving up an additional ORI for a very small raise!! So disappointing that we can’t believe anything POQ says directly to shareholders. Looks like he just wants to ensure there’s enough cash to continue to collect his salary for the next few years. I’m in agreement with Longknife and by the time this is sold we’ll be looking at a buyout much lower than hoped for.
I’m waiting for some of the regulars here to proclaim a “master stroke!” by the Slick Irishman for diluting us at 50% of the pre-results share price.
Gonoles,
With all respect, we have NOT always said the real value is in the buyout. (Although the ultimate value was in the buyout) We all thought that good drilling results would bring a substantial uptick in the share price. We couldn't have been more wrong. Since the GREAT results, we are now offering shares for half the price we had BEFORE the great results. This business is definitely rigged to benefit the big players. The company can't do anything without outside help (money) and they'll "money" is dictating the terms- and they don't benefit us. If there was ANY sort of competition for FOG maybe we would see better results but clearly there isn't at this time.
I think the master plan is to make one company after the next couple of wells are proven out. Smart bets will probably buy and we will see some value. But as we have said all along the real value is the buyout not the sp. you have to prove it out first.
Oleo, He's certainly working towards that goal! I said it and was basically laughed at but I see him taking over this company for well under $.30/share OR I see us sitting on the sidelines for years until there is actually some major revenue that people can't ignore. To get there though we will have to keep diluting. I reiterate, there is no reason to buy Falcon any time soon for a premium. I hope I'm wrong.
"it turns into a love fest for Bryan Sheffield."
Gonoles, yes especially when he can take over FOG for 6 pence per share.
It is what it is: POQ does not work for us long time share holders.
Grant of Overriding Royalty Interests
Alongside the Fundraising, Falcon Australia has entered into agreements (the “ORRI Agreements”) granting certain overriding royalty interests over Falcon Australia’s working interests in the Beetaloo Sub-Basin exploration permits.
Under the terms of the ORRI Agreements, Falcon Australia has agreed to grant:
to Daly Waters, in consideration for a cash payment of US$3 million, an overriding royalty interest of 6.0% in respect of the area around the Pilot development, measuring 51,200 acres, in which Falcon has a 5% working interest, and an overriding royalty interest of 1.3333% in respect of the Remaining Area; and
to a major US-based energy services provider, in consideration for a cash payment of US$1 million, an overriding royalty interest of 2% in respect of the area around the Pilot development, measuring 51,200 acres, and an overriding royalty interest of 0.4444% in respect of the Remaining Area.
Completion of the grant of the ORRIs is subject to agreement of final legal documentation and to submission to the Northern Territory Government, Australia for registration.
Daly Waters is a wholly owned subsidiary of Sheffield Holdings LP, a vehicle controlled by Brian Sheffield, a highly successful investor who has made significant returns in the US unconventional energy sector. Brian Sheffield was Founder of Parsley Energy Inc. (“PE”), an independent unconventional oil and gas producer in the Permian Basin, Texas and previously served as its Chairman and CEO. PE was acquired for over US$7 billion by Pioneer Natural Resources Company (“Pioneer”), itself a leading independent oil and gas company.
end
Details of the Placing
The Placing will be managed on the Company's behalf by the Bookrunner in accordance with the terms and conditions set out in Appendix to this Announcement. The Placing is not being underwritten by the Bookrunner. The Company reserves the right to issue and sell a lesser number of Common Shares through the Placing and to settle certain of the Placing Shares by way of a direct subscription with the Company. The Placing will be conducted in accordance with the terms and conditions set out in the Appendix. The Bookbuild, to determine demand for participation in the Placing, will commence with immediate effect following the release of this Announcement and is expected to close no later than 6.30 p.m. UK time on 19 April 2024. However, the timing of the closing of the Bookbuild is at the absolute discretion of the Bookrunner. The Bookrunner and the Company reserve the right to close the Bookbuild earlier or later, without further notice.
The number of Placing Shares and allocations will be determined by the Company and the Bookrunner following the close of the Bookbuild, but the number of Placing Shares and Subscription Shares will not, in aggregate, exceed 133,333,333 Common Shares. The Placing Shares will, when issued, be credited as fully paid and will rank equally in all respects with the existing Common Shares, including the right to receive all dividends and other distributions declared, made or paid in respect of such Common Shares after the date of issue of the Placing Shares.
As detailed in the Appendix, the Placing is conditional upon, inter alia, Admission becoming effective and the Placing Agreement not being terminated prior to Admission.
This Announcement should be read in its entirety. In particular, your attention is drawn to the "Important Information" section of this Announcement and to the detailed terms and conditions of the Placing and further information relating to the Bookbuild described in the Appendix. By choosing to participate in the Placing and by making an oral and legally binding offer to acquire Placing Shares, investors will be deemed to have read and understood this Announcement in its entirety (including the Appendix) and to be making such an offer on the terms and subject to the conditions in it, and to be providing the representations, warranties, acknowledgements and undertakings contained in the Appendix.
cont.......
This is in line with results demonstrated at the Tanumbirini well (0.51 – 0.56 psi/ft), providing confidence on the ability to replicate or exceed the commercial flow rates achieved at the Tanumbirini location. Stimulation activities which included 10 stimulation stages within the Amungee Member B-shale over a 500-metre horizontal section was completed on 7 December 2023.
In February 2024, the Company announced that the SS1H well achieved an average 30-day initial production (IP30) flow rate of 3.2 million cubic feet per day (MMcf/d) over the 1,644-foot (501 metres), 10 stage stimulated length within the Amungee Member B-Shale, normalised to 6.4 MMcf/d over 3,281-feet (1,000 metres), significantly exceeding pre-drill expectations and achieving what Falcon and its partners believe to be above the commercial threshold required to progress the Beetaloo to the Pilot development during 2024, subject to funding and key stakeholder approvals.
In March 2024, Falcon announced that it had elected to reduce its working interest in the proposed Pilot project from 22.5% to 5%, optimising its interest in the Beetaloo, since Falcon will only have to pay for 5% of the costs of the two wells to be drilled in 2024 as part of the Pilot development, but still retaining a weighted average 10% working interest in the enlarged area of circa 72,000 acres around the Pilot and a 22.5% working interest in the remaining 4.6 million acres (together, the “Remaining Area”). Shortly thereafter, the Company announced that the SS1H well achieved an average 60-day initial production (IP60) flow rate of 3.0 million cubic feet per day (MMcf/d) over the 1,644-foot (501 metres), 10 stage stimulated length within the Amungee Member B-Shale, normalised to 6.0 MMcf/d over 3,281-feet (1,000 metres).
Reasons for the Fundraising
The estimated gross capex for work to be carried out on the Pilot development and other Beetaloo related costs in 2024 is c.US$82 million. Under the terms of the Farm-out Agreement, Falcon’s net cash contribution is estimated at c.US$9 million, including contingency.
The net proceeds of the Fundraising, together with the Company’s existing cash resources of c.US$4.3 million, the balance of Falcon’s net carry of A$3.75m due from Tamboran and the consideration payable in respect of the grant of the ORRIs, if finalised, will primarily be used to fund Falcon’s share of estimated capital expenditure in respect of the work to be carried out on the Pilot development in 2024, including the drilling of two wells and the stimulation and flow test of two wells in the Beetaloo Sub-Basin, Australia and other related Beetaloo costs. The net proceeds will also enable Falcon to fund its share of the cost of the planned 330km2 of 3D seismic survey around the Pilot area, which it is expected will be acquired during Q4 24 with processed results being available by Q1 25
Company Background
Falcon is an international oil and gas company focused on the exploration and appraisal of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Its corporate strategy is to explore unconventional oil and gas basins; following successful exploration, continue with appraisal programs to determine commercialisation options; and subsequently monetise assets prior to production.
Falcon Australia owns 22.5% of three exploration permits in the Beetaloo Sub-basin, located in the Northern Territory of Australia (the “Beetaloo”) being EP76, EP98, EP117 (the "Beetaloo Exploration Permits") which represent total gross acreage of 4.6 million, or 1 million acres net to Falcon Australia’s 22.5% participating interest.
In 2014, Falcon Australia farmed-out 35% of its participating interest in the Beetaloo Exploration Permits to a subsidiary of Origin Energy Limited (“Origin”), and 35% of its interest in the Beetaloo Exploration Permits to Sasol Petroleum Australia Limited ("Sasol"), a subsidiary of Sasol Limited, pursuant to the terms of a farm out agreement (“Farm-out Agreement”), in a deal worth A$200 million (c.US$143 million). In 2020, Falcon Australia farmed down a further 7.5% and Origin agreed to increase the gross cost cap of the work program by A$150.5 million (c.US$97 million) to A$263.8 million (c.US$170 million).
In November 2022, Origin completed the sale of 100 per cent of its interest in joint venture to Tamboran (B1) Pty Limited (“Tamboran B1”). Tamboran B1 is the 100% holder of Tamboran B2 Pty Limited, with Tamboran B1 being a 50:50 joint venture between Tamboran Resources Limited and Daly Waters. As part of the transaction, Falcon Australia was granted an additional gross carry on future well costs up to A$30 million (net A$6.75 million to Falcon) and the introduction of drilling spacing units ("DSUs”) on sole risk operations providing optionality to Falcon Australia on future wells to be drilled.
To date, the JV has drilled eight wells in the Beetaloo region. In December 2023, Falcon announced the successful flow test at Shenandoah South 1H (“SS1H”). SS1H was drilled to 4,300 meters TD, including a horizontal section over 1,074m intersecting ~90 meters of the Amungee Member B-shale, representing the thickest section seen in the Beetaloo Sub-basin depocenter to date. Logging of the Amungee Member B-shale formation indicated potentially higher porosity and gas saturation relative to offset wells Initial evaluation confirms reservoir continuity of the Amungee Member B-shale over 150 kilometers between Amungee NW-2H and Beetaloo W-1 wells. Diagnostic fracture injection test (“DFIT”) results demonstrated an over-pressured regime at the Shenandoah South location, with a pore pressure gradient of at least 0.54 psi /ft. This is in line with results demonstrated at the Tanumbirini well (0.51 – 0.56 psi/ft), providing confidence on the
18 April 2024
Falcon Oil & Gas Ltd
(“Falcon”, the “Company” or the “Group”)
Proposed Fundraising and grant of ORRIs to raise gross proceeds of approximately $8.5 million (£6.8 million)
Falcon Oil & Gas Ltd (AIM: FOG, TSXV: FO.V), the international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, is pleased to announce a proposed placing of new Common Shares of the Company (the "Placing Shares") at a price of 6p per Placing Share (the "Issue Price") by way of a conditional placing of the Placing Shares with institutional investors (the “Placing”) and proposed direct subscriptions for new Common Shares of the Company (the “Subscription Shares”) by certain new and existing investors at the Issue Price (the “Subscription”) in order to raise gross proceeds of up to US$4.5 million (c.£3.6 million) (the Placing and the Subscriptions together, the "Fundraising").
Alongside the Fundraising, Falcon Oil & Gas Australia Limited (“Falcon Australia”) has agreed to grant Daly Waters Energy, LP (“Daly Waters”) and a major US-based energy industry service provider overriding royalty interests (“ORRIs”) over Falcon Australia’s working interests in the Beetaloo Sub-Basin exploration permits in return for cash payments of US$3 million and US$1 million, respectively, as further detailed below. Completion of the grant of the ORRIs is subject to agreement of final legal documentation and to submission to the Northern Territory Government, Australia for registration.
The net proceeds of the Fundraising, together with the Company’s existing cash resources of c.US$4.3 million, the balance of Falcon’s net carry of A$3.75m due from Tamboran and the consideration from the grant of the ORRIs, if finalised, will primarily be used to fund Falcon’s share of estimated capital expenditure in respect of the work to be carried out on the proposed Shenandoah South Pilot Project (the “Pilot”) in 2024, including the drilling of two 3,000 km horizontal wells and the stimulation and flow test of two wells in the Beetaloo Sub-basin, Australia. These proceeds will also enable Falcon to fund its share of the cost of the planned 330km2 of 3D seismic survey around the Pilot area, which it is expected will be acquired during Q4 24 with processed results being available by Q1 25.
The Placing is being conducted through a bookbuilding process (the "Bookbuild") which is being managed by Cavendish Capital Markets Limited (the "Bookrunner") and will open immediately following the release of this Announcement and will be made available to eligible institutional investors. The Bookrunner is also acting as nominated adviser (for the purpose of the AIM Rules for Companies) to the Company in connection with the Placing.
Certain directors of the Company have indicated that they intend to participate in the Fundraising.
cont.......
18 April 2024
Falcon Oil & Gas Ltd
(“Falcon”, the “Company” or the “Group”)
Proposed Fundraising and grant of ORRIs to raise gross proceeds of approximately $8.5 million (£6.8 million)
Falcon Oil & Gas Ltd (AIM: FOG, TSXV: FO.V), the international oil and gas company engaged in the exploration and development of unconventional oil and gas assets, is pleased to announce a proposed placing of new Common Shares of the Company (the "Placing Shares") at a price of 6p per Placing Share (the "Issue Price") by way of a conditional placing of the Placing Shares with institutional investors (the “Placing”) and proposed direct subscriptions for new Common Shares of the Company (the “Subscription Shares”) by certain new and existing investors at the Issue Price (the “Subscription”) in order to raise gross proceeds of up to US$4.5 million (c.£3.6 million) (the Placing and the Subscriptions together, the "Fundraising").
CONT.....
So at about 13:30 seconds of the earlier reported RAAS group interview with Empire, https://www.raasgroup.com/live/asxeeg-empire-energy-group-raas-interview-8-april-2024/ it turns into a love fest for Bryan Sheffield. I own shares in Tamboran, Empire and my largest is in Falcon. I think the final intent of Bryan Sheffield will be to consolidate all there companies under one roof upon further proof of the resources. Or possibly before that time if he wants it at a better price. I was upset with POQ for not proceeding with the initial next set of wells. But if I look at it now -- and not aware of any backend conversations -- he may realize the real value is in not diluting the company and maintaining our percentage of interest and then let everyone else pay to prove it all up -- and as the Empire board today stated --
------
So Sheffield & Liberty each get approximately 48,125,000 shares (I.e. AUD 7.7m ÷ 0.16 / sh) and there are 243,750,000 shares issued. Like to know who else shared in the balance of 147,500,000 shares.
by my calculations Sheffield's holding increases from 5.27% to 8.74% (i.e. 40,793,270 sh pre CR + 48,125,000 sh from CR ÷ 1,016871,148 TOTAL SOI (post CR)
He holds 12.98% of Tamboran. A merger is quite likely
------
If I'm not mistaken I think he owns more with Tamboran and Daly Waters as a 50/50 partner on the Beetaloo of Tamborans portion with our 22.5% up for grabs by someone.
I think it would be smart and cost effective to consolidate corporate overheads and manage the whole process under one roof. I wonder if any other company is interested too?????? LOL Interesting times. Still think it is a good investment.
DR SCRIMGEOUR: At Warrego near Tennant Creek Northern Iron have commenced construction of a plant to process the tailings there to produce magnetite.
NEWS: Are there any mines for rare earths and other critical minerals needed for electricity generation or storage?
DR SCRIMGEOUR: Arafura at Aileron are close to making an investment decision for the Nolans project.
NEWS: How much does the department spend on exploration and makes the results available to the industry at no charge?
DR SCRIMGEOUR: The Resourcing the Territory Program is funded at $9.5m. Of that about $3m is for competitive grants for the exploration industry. The remainder is focussed on generating the new data to stimulate exploration and we give all that away for free.
NEWS: The total value of mineral production in the Northern Territory was $4.4 billion last year. In the 2023/24 Budget royalties amounted to $367m. Apart from this, how much of the mining money stays in the Territory?
DR SCRIMGEOUR (at right): I don’t have the figures on that. The $4.4 billion is just the value of production, the value of material sold [not the costs].
NEWS: What was the best news from this year’s AGES?
DR SCRIMGEOUR: The diversity of opportunities and new discoveries of graphite and rare earths have been the main highlights.
NEWS: In Central Australia?
DR SCRIMGEOUR: No, the recent graphite and rare earths discoveries are more in the northern half of the Territory. However, we are seeing very strong interest in rare earths exploration here in Central Australia
end
https://alicespringsnews.com.au/2024/04/17/beetaloo-gas-to-change-nt-forever/
Beetaloo gas to ‘change NT forever’
17 April 2024
By ERWIN CHLANDA
The Territory’s $40 billon economy by 2030 “won’t happen without the growth of this sector” said NT Minister Mark Monaghan (at right), addressing more than 300 members of the extraction industry yesterday.
The other target with the same deadline – 50% renewables – never crossed his lips when he opened AGES 2024, the 25th annual conference in Alice Springs.
Mr Managhan said gas from Beetaloo is “on the cusp of changing the Territory forever” as Empire Energy and Tamboran Resources are expected to make their final investment decision on pilot production activities this year.
The Beetaloo Basin, about half way between Alice Springs and Darwin, controversial because of the fracking there.
According to Ian Scrimgeour it is believed to contain more gas than the Ichthys field which is estimated at more than 12 trillion cubic feet (TFC).
The value of a one TCF contract delivered over a several year term would be $9 billion to the purchaser. That would put the value of the Beetaloo gas at $108 billion.
Dr Scrimgeour, head of the Northern Territory Geological Survey for more than 15 years and recently awarded a Public Service Medal, is the highly respected organiser of the AGES conferences.
He gave an overview of the mining industry to the Alice Springs News.
Which new mines, gas or oil deposits have the money and are ready to start operations in the The Centre in the current year?
cont.....
A fair raise by EEG to the tune of $47m. It's certainly an expression of confidence