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Complete lack of communication from the board is dreadful.
So much for strategy. Even some sort of update would be better than nothing.
Imo ruvuma will be sold once the farm out is complete.
That is probably what is holding up any future deals.
I would not think a large deal such as the aborted one will happen as another suspension
would not go down well with shareholders at the moment.
Even a small deal bringing in 50k a week will do.
We have no income cash diminishing.
Doesn't give me much confidence in the new board at the current time.
What about a proportion of salaries and other company admin costs? I would say figure would be closer 25-30 for break even
No worries Paul. AEX only manged base cost recovery in their deal but the upside is the carry to production and a good proportion or even all of full 8 well field development. If solo sell 25% then they have no upside so need to account for that in the price and after all, C1 drill is likely to add significant CPR'd value to the licence area.
I would think anything north of £50 million would be a reasonable amount.
We could of course farm out half receiving a smaller sum including half of our costs so anything north of £25 million. A free carry of 10 to 12.5% would be ideal. £10 to £15 million for further investment and £10 to £15 million by way of a special dividend.
Not asking for much but after all these years of waiting I think we deserve some return on our investment here.
Cheers Chris. I trust the bod takes this into account - they bloody ought too!
I estimate around £14 to £15 million spent on exploration and appraisal, not including placing fees. £20 million if you include all gross costs to date.
Any deal below £20 million for a full sale is a loss.
I have a few grand in .............!
not a patch on some................ :(
All the best (never drilled or seismicated............ ;()
Drilling/seismics etc? Surely any full sale should far exceed these costs?
Ah thanks Crusty, I found what seemed to be conflicting statements in the ARA and agree it is as you say, CGT for the farmout and the same amount again for 2013 to 15.
"The capital gains tax (“CGT”) payable on the Farm-Out amounts to US$2.2 million"
"As disclosed in Note 24, the Group received a tax assessment from the TRA of US$2.2 million in relation to a prior period audit related to 2013 to 2015"
Oh and CP, please ignore my statements regarding the 2014 - 2016 CGT issue. I was confusing two things - it seems that there may be the possibility that AEX owes another (by coincidence) $2.2 million for a potential tax claim relating to 2013 - 2015. Which if called upon to pay it this current financial year would result in them having to find additional funding to cover it.
I must have missed that Crusty, 2014 to 2016, that could only be Killi could it not? Shame Tanzania are not so creative when it comes to acceleration & development of their "Nationally important assets"
Apparently the CGT related to an event (s) between 2014 - 2016. Besides which the CGT rules in Tanzania are somewhat "creative" I think you will agree and so cannot be taken as any sort of proxy in my view.
NO but the Fram-Out does provide some element of "certainty" that did not exist at the time of the AEX Farm-Out and may therefore make a potential investor comfortable (APT aside).
TS
Morning Crusty, I think we have done this one before. Well clearly the Tanzanian Government consider the $35 + $5 deal that Aminex have just completed as a Cash Equivalent and hence the CGT tax AEX have had to pay....rightly or wrongly.
The farmout completion adds additional value imo as the project is already 75% financed to production. Anyway over to the BOD and maybe the Zubairs?
CP - you say "The base value is already set @ $20 million, don't see anyone voting for less."
Well not quite CP - actually $2.5 million and $17.5m of never ending credit - you cannot spend that.
So in my view that would equate to a lot less; in cash terms. Though that maybe offset somewhat now that the license has been extended and again once the Farm-Out completes.
bearing in mind most believe the board is a good one for Solo and they know how to run a good ship, hopefully lack of update since 2/3 suggest they are tying the loose ends up on a deal which one, we just don`t know if any deal, but there has to be a reason quite Frankly good or bad for the delay and 20 Million is cheap in my view GLA !!!
Ha I always find it quite amusing when people postulate the theory that, "because the Board are saying nothing it suggests that something is going on behind the scenes"....! Believe me after over 10 years in Aminex and almost as long in Solo a period of silence typically indicates exactly the opposite - there is nothing going on the the background; at least nothing worth reporting.
If the CEO of Helium-1 is to be believed they will be drilling in the 3rd/4th quarter trrime. International flights are now back open in Tanzania and with no Quarantine on arrival.
https://twitter.com/mtanzania/status/1262795849844903947
https://twitter.com/mtanzania/status/1262991302406348801
Morning steve, hope all is well. I certainly hope they are working on something steve, the radio silence is deafening post One Dyas. Lets see what happens once the AEX Zubair farmout is completed and lets hope the BOD have taken note of the CGT liability that AEX have just paid on their $40 million.
Morning Chris.
I would expect much more for a complete sale.
The silence from the board is uncanny.
IMO must be working on a substantial transaction.
However, another prolonged suspension is not something anyone wants at the moment.
I’d rather have a small investment and have some income coming into the company and build on that.
The base value is already set @ $20 million, don't see anyone voting for less.
I’m expecting SOLO to announce a sale of its Ruvuma assets soon after the farmout is finalised. I give it a 95% probability it goes to ARA. I’m also expecting the sale price to be lower than many here have suggested. Only upside is SOLO will have cash in hand to pivot quickly on a deal aligned to their strategy.
Thanks for that.
Maybe the board need a gentle reminder that shareholders expect a lot more than just promises.
Even an update of some sort would be a start.
IMO their strategy is dead in the water at the moment. It is just not good enough.
Over a year and one aborted deal.
That just about sums it up.
Agree.
Agreed. Awful to say the least. Lining up for interviews last October.
Since then nothing.
Even nr have more time to investors with interviews even if he did go on about the seed investment in Morocco.
We have him to thank for all our current investments and nothing of note to thank the new board for exempt disposing of horse hill.
Lets hope they sort something out and soon. They have had plenty of time to do so
Even a small deal would be a start.
It could be that the monetizing of ruvuma is the only thing holding it up.
Hi AA, fully agree. The lack of communication around the strategy and the delivery of that strategy has been appalling post the One Dyas - no deal. Lets hope it's because of something significant about to be delivered, either on the producing asset gaining front or the partial/full disposal of Ruvuma front.
20,000 boepd…...long way to go from 0!