Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Last note of the night. "SeaPulse" is simply an entity backed by Seacrest and I-pulse. They signed up Maersk and Enquest and others to provide a "complete drilling solution". But they've done nothing in the (approx) two years since SeaPulse was created. The only deal they have even announced is with Azinor.... (Wait, does that name seem fishy?) Which is another subsidiary of Seacrest/Azimuth. It's just an incestuous little circle with Seacrest at its centre. Aznior was supposed to drill at least two wells in 2020 with SeaPulse but none have been announced. Could be coronavirus-related? Potentially. But more likely balked by a lack of funding within the group. I wouldn't hold out hope for SeaPulse swooping into Namibia to drill wells for GBP-Azinam... I may be wrong and am happy to admit that. But the whole Seacrest/Azimuth edifice seems to be swaying on slippery foundations these days. When ZER wrote down its investment in Seacrest by c75%, that action was based on valuations received directly from Seacrest.
Further to my last post, if you have any doubt about the dire funding situation in Seacrest/Azimuth/Azinam just read the annual reports of Zeta Resources (ZER on the ASX). ZER provided the bulk of Seacrest/Azimuth's funding when it all kicked off. ZER originally valued each of it's shares in Seacrest at $1/share, which rose to >$1.30 in the good years...but then dropped back to approx 25c/share in its last annual report. Which confirms that Seacrest's strategy has not yielded positive results and suggests that it will be hard for them to raise additional funds with such a spotty track record.
If you have any doubt about Seacrest/Azimuth's poor performance, just spend a few minutes on gooooogle and search for "Azipac", which was an Indonesian subsidiary of Azimuth that suddenly disappeared last year when Seacrest (presumably) couldn't fund it. Seacrest/Azimuth's assets in Ireland have not been advanced (see Azeire), nor have their assets in South America (see Azilat).
So while you may be right that an Azinam-GBP merger is on the cards (I couldn't possibly comment on that at all) it's not necessarily a good thing for GBP. Seacrest/Azimuth obviously couldn't raise the money to advance their own assets...so now they are trying to jam them up the rectum of GBP? A suspicious strategy, to be sure ;)
Hi Jimarillo. Your notes about Azinam are intriguing. As you pointed out, they have walked from the block they shared with Chariot (PEL 71) and they were kicked out of the M&P blocks (PEL 44 and 45) for non-payment***.
Azinam has spent a ton of money on seismic in Nambia so far, possibly >$80million. See interesting analysis on Hotcopperrr: https://hotcopper.com.au/threads/ann-annual-report-2018.4477651/page-2?post_id=36283086
Azinam tried and failed to raise $60m to list on the Oslo exchange in 2013:
https://af.reuters.com/article/energyOilNews/idAFL5N1VZ256
Seacrest/Azimuth/Azinam were previously very bullish about Namibia, so if they are even contemplating an RTO then it means they were unable to raise money anywhere else and are getting desperate.
Given that Azinam is a private company that has spent (possibly) c$80m on seismic in Namibia, it will be interesting to see what level of pre-money valuation they would hope to achieve if they merged with GBP. (ignoring their south africa assets, which may or may not be included).
All of Azinam's remaining Namibia assets are also held by Eco. So the merger of Azinam and GBP would merely generate an "Eco-Lite". I am not saying that it won't happen... But it wouldn't make it any easier for GBP to raise funds because investors who want access to Eco's Namibian assets can gain that access via Eco, which is already reasonably well funded...
So, interesting times ahead!
620k max to sell
At 16.20 max is 300k shares same price
Any change to the limits ?
Nai/DYOR
On AJ Bell this morning you could buy 250k shares on auto trade but not 500k. Price was 1.07 pence.
Will test that theory later, still 600k max currently.....mm's looking for forced sellers
Eventually if they cannot find the shares by dropping the price they will have to go the other way
I wonder if we have an American buyer of stock ? Could sell 1.5m in one go yesterday afternoon later on so suggests something imo
Interesting to see what the online bid is this afternoon as that might give us a bit more insight !
Nai/DYOR
It ticks all the boxes in my opinion and apparently Namcor's in the respect of a consolidation and then there is the farm out deal, which I have high hopes of Exxon & Galp farming in or AOI and Seapulse
Exxon and Galp spent millions on 3D in PEL44 and walked. The 3d info is on an Azinam presentation, but the walking of Exxon from PEL44 you will not find anywhere, but I had it confirmed by MapStand. Then later we find out from an M&P presentation that Azinam no longer feature in PEL44 & 45. Azinam are said to be looking at blocks with deepwater plays, I can only imagine Exxon are doing the same or more likely Azinam are following Exxons lead
Time will tell
Your money on a Azinam RTO/deal Jim ?
Nai/DYOR
I agree, this morning 600k is the maximum sell, which is higher that yesterday at this time, this may increase as the day goes on. It is easy to take out the short termers, but the bulk of the shares are held tight
If there is an Azinam RTO they will bring their own followers/investors, with up coming wells we will be very much on the radar, daily volume will no doubt increase. Recon have three wells onshore Namibia in November. Total with Venus year end in the Orange basin, Azinam have assets on the S/A side of the Orange Basin, which is a discovery already and Totals three S/A wells are close close to another two assets Azinam are involved in.
The Deepsea Stavanger is due to be in the Walvis Bay, tomorrow for a quick pitstop after its epic journey from Norway and before heading to the drill site in S/A
Never known mms to be bidding more than 250k and even 150k at a time to be honest so either a big buyer or news coming.
Nai/DYOR
Mulunga on fuelling Namcor's engine for 5 years
https://www.namibiansun.com/news/mulunga-on-fuelling-namcors-engine-for-5-years2020-08-03
So currently ......can sell 1.5 million shares in one hit online @1.002p
Never seen that before.....normal market size 20K
This was just posted on Linkedin by Namcor, it is basically saying why Namibia is a place to invest
Page 22 for Oil & Gas and says very little, on the Upstream, which is as expected as they cannot print insider info
However the sub-title is quite interesting .......
"Consolidating and growing Namibia’s upstream and downstream activities"
https://www.forbesafrica.com/wp-content/uploads/2020/08/FA-2020-NAMIBIA-28pags-FORBES-vONLINE_00.pdf
The point of any companies listing is to raise capital when required. GBP have been lucky as they had asset sales in the passed, which preserved the shares in issue total
An RTO is a cheaper way to a listing but effectively it is like an IPO and the suitor will want to raise capital, hence reducing the shares in issue by way of a 2 for 1 as is the norm, but set at, at least double the sp at the time
Potentially we will be in an RTO situation and also a farm out deal. There will be no placing before either of those deals, as it will dilute the Peters and the company coming in.
The question is, will a placing come during an RTO or after a farm out deal ? Both deals will put us in a significant place, adding considerable value and hence increasing the sp
I know companies, where there has been a consolidation, because there has been massive dilution over the years with masses of shares in issue and effectively the company can start diluting all over again, with the same old assets.
This is not that type of situation, the Peters have not shown that type of mentality and the suitor will be adding significant assets to our own. plus the farm out potential and 2 wells in prospect.
Obviously this is my take and others have their own, that's the beauty of the market ;--))
Very interesting research Jimarillo, thanks for sharing.
When I read the biographies of Peter Taylor & Peter Blakey, I get the sense that Global Petroleum is their swansong. After 25 years + I see them being absolutely determined to negotiate farm outs & drill.
The short term GBP issue for me is, will there be a capital raise? If there is a capital raise, what will the terms be?
GLA.
Perry RIP.
I thought there would be a few comments on Recon and how they came to being .........but hey ho
So Recon (1163631 B.C. Ltd) started of as a privately held company and did an RTO with Lund Enterprise Corp, worth following the process, the bottom link shows all the announcements. Note they did a 2 for 1 share consolidation, which is common with an RTO, but adjusted the price up accordingly.
My point being, if a certain private company mentioned here on many occasions, decides to do an RTO with GBP, we effectively become that company with our combined assets. Don't forget they have many licences and one that is a discovery.
Eco before their Guyana discovery were bobbing around 30p for a while giving a M/cap of £55m, current M/cap is £40m. Prospect wise we would outscale Eco by some margin
In addition to that, an RTO would be the event ahead of a farm out conclusion with a major or AOI whatever, which would even further boost the sp and add cash
https://www.canadianminingreport.com/company/news/Lund+Enterprises+Corp.+Signs+Definitive+Agreement+For+The+Acquisition+Of+Reconnaissance+Group
https://www.canadianminingreport.com/company/press-releases/len
Currently I can sell 1 million shares online, it is evident there are buyers in the background. If the above is anything like what may happen and I think it likely. Buying now, as with the period of de-listing, will be the last chance to pick up on the cheap. The upside potential will have increased massively and Panmure will make sure with a broker note that the market is wide awake to it
You pays your money and makes your choice ........;-)
Must be a buyer in the market if the mms are bidding for 1m shares in one go in a usually illiquid stock like GBP.
Either that or news is coming !?
Nai/DYOR
Online can sell 1million @ 1.03p
Here is an interesting recon interview, current M/cap around £30m. They hope to spud early November and Total looking to spud Venus offshore by year end. Recon have 8.7m acres and GBP have 2.8m acres with a M/cap of just over £2m
https://www.resourcestockdigest.com/archives/interviews/reconafricas-tsx-v-reco-craig-steinke-on-the-world-renown-reconafrica-technical-team-the-unprecedented-opportunity-at-the-kavango-basin-in-namibia/
Indeed an interesting possibility and if correct will have worked out that issue. There would have to be much activity here ahead of that possibility, with our own deals.......not long to find out
Interesting possibility Jim, especially as Peter Taylor is on the board of both companies. GBP would however have to find US$6-7m.
TRP are waiting for their second farmout deal and Art Malone is due to hand over his part of the cash in the TRP famout. He is probably also waiting for the second farmout deal to show before concluding the deal. Seems to me as this stretches out and the second farmee, could possibly be GBP. As JA said before potential farmee's may need time for other deals to complete before they can commit.
TRP are looking for Art's cash to be confirmed between now and mid August, with a possible back stop to mid September. If we were in the deal, that would require some serious GBP news flow between now and then.
GBP......"Maintain a geographical focus on Africa and the Mediterranean whilst remaining open to opportunities elsewhere"