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Agreed Bluf, the good news is that all the current operators are getting paid on time and have been for some time. Check out the latest WEN financial report.
Not being funny... even if the well is drilled and gas is supplied what good is it if we don't get paid!
There is always something with this stock and tanz govt!
"Moreover the head of state assured Ugandans that Tanzania will not hesitate to sell them natural gas & the gas pipeline could be could be constructed alongside the oil pipeline."
https://www.dailynews.co.tz/news/2020-09-145f5effda6f736.aspx
1BCF per day demand according to the TPDC. The current Ruvuma 8 well development wold only supply 14% of that total with all 8 wells.
#MUSEVENIMAGUFULIWAKUTANA We will soon return to talk about gas, Uganda needs gas as there is little there, we thank the President
@MagufuliJP
for his offer to allow a gas pipeline to pass through the pipeline. That is the brotherhood - President Museveni
https://twitter.com/TZMsemajiMkuu/status/1305101054602817537
His Excellency President
@KagutaMuseveni
presiding over the signing of the Host Government Agreement (HGA) for the East Africa Crude Oil Pipeline (#EACOP) project between the government and Total. Witnessed by
@Total
CEO
@PPouyanne
https://twitter.com/abdulsamadz/status/1304779550744891393
Hi Paul, all resolutions passed would be my guess, unless they come up with something significant by the 11a.m. BST on 25 September.
Yep, honest delivery is everything. Just take a look at the poor HUR holders today and an all to common small cap story.
I think I have finally learned a lesson the very hard way. Solo/Sirocco along with AFREN, LGO, OEX, MSMN are just ways for CEO's to live the life a la Gleneagles and we get nothing. Be very careful because talk/chat is cheap.
0.10 on the bid - (especially on such a low volume) after the various efforts on AEX today although that looks as if it may close even.
Hanging in there GLA LTH
$16-$20 million is good if you bought this stock in (March), nice return on SP hopefully as it would rise at least 50% or more, as you can see on the other side there is always winners and losers and catching the falling knife is the name of the game in small caps and big pockets of course, best to forget this week in having afew beers and get ready for whats install next week, maybe the tide is about to turn in our favour !!!
Views?
Agreed CP, AEX received a derisory sum. Only $5m and a load of credit that could only be spent on one thing.... and that is not the same as $40m. The point being that I do not believe that Solo are in any better position to negotiate a better deal that AEX were at the time and nor that there are any more potential buyers.
Who knows Crusty? I imagine that some of the large shareholders would rather dilute and drill C1 rather than see the asset sold for a song like at @ AEX and we all thought $40 mill for 50% was exactly that. Why sell the asset at cost or loss, might as well see it through the next drill post AEX/Zubair FO.
The reality is CP that we do not know what value the Tanzanian Govt taxed AEX on; was it $40m? Where did you get that information? AEX paid $2m (from memory) in tax but was that calculated on a supposed gain of $40? I don't believe we know that. Moreover whatever the Tanzanian Revenue based it on is absolutely no reference point for whatever a potential investor will base it on..... As for the shareholders, I seem to remember being here once before. Are you suggesting that Solo shareholders will refuse the first offer that comes along? There may not be a second one.
I don't disagree Thordon, but WEN will have to raise cash either through a placing or a loan to achieve a large stake in Ruvuma.
Not much different than the solo position at the end of the day, the difference being that solo already hold 25% and WEN 0%
First half year is always bad for Wentworth as Hydro is used to produce electricity in the first six months , the second half is where the profit is made and also that if you look at last years accounts Wentworth made a loss in first six months.
Solo are in a no win here as cash strapped and fleeced by consultant fees , which seems the norm.
Wentworth may not engaged but are clear runners.
Well Crusty, it's my opinion of course and probably that of most of the shareholders here who would have to vote on any deal. $16 mill would barely cover the money already spent by solo shareholders on the asset.
$20 mill is the current deal and the amount that the Tanz gov taxed AEX, so they clearly see it as a cash equivalent.
Anyway my point being, WEN may well have $16 mill cash but they only made $1 mill profit for the first half, so how are they going to pay for the drill and development?
WEN will need to raise if that were the case.
"$16 mill is not enough to purchase 25% of Ruvuma" really CP? In whose opinion? I think $16m is about par for the course. $16m is a lot better than the pro rata AEX equivalent of $2.5m cash and $17.5m credit - $17.5m of credit hypothecated to a single project is worth no more than $10m of cash.
over double my investment $16 million who suit me knowing what effect all these delays are now having on the SP over the other side, I do hope the board are working on a game-plan and another asset in this difficult market, we will get some sort of indication hopefully soon !!!
We already did that once ian. It's a matter of letting the current Ruvuma game play out here. I am expecting Tanzanian consolidation like Thordon, just not on the same terms that they suggest
Take a look at Prim Rns that is what we should consider only need 5% shareholders!
Exactly my point Thordon. $16 mill is not enough to purchase 25% of Ruvuma and with WEN having $1.3 mill to pay out in divy and $5 million G&A per year it will leave them short of enough money even to operate.
12.5% of Ruvuma is the max WEN could afford without dilution to shareholders, unless they give up some of their producing asset in exchange.
Wentworth Res have 16 Million Dollars in cash , Solo have no cash left and made deals to borrow .
First phase is $10 million to invest for the 25%
Operation? That's some way off unfortunately Thordon, they need the Zubair/AEX FO to complete first and then drill C1, which I believe solo can cover through current financing arrangements +
I think WEN would need to borrow/dilute their shareholders via a placing to get their hands on 25% of Ruvuma or maybe even some deal with Aminex regarding asset pairing with AEX adding Nyuni into the mix for a portion of WEN production.
Till the AEX/Zubair FO completes it's all dead in the water either way.
Wentworth Res have already commented that they would not divest out of Tanzania , as for Ruvuma they would want a better slice then 25% and may be consulting with both parties.
This is guess work but Wentworth Res staff can not buy shares as in "Closed Period" unless the operation they are running at present is being targeted for buyout which would not fit as too close to the government and charity work.
solo have not the cash to carry out Ruvuma operation , or a mass dilution of shares to raise capital.