Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Ha ha, its a £3,975 purchase in SCIR!!
I have far more in WEN and a considerably more in AEX when looking at Tanzania. It was just my opinion on what I think may or should happen that I was sharing!
Good luck HighYeild
Now I understand, why you would like WEN to overpay for SCIR assets.
"grsshaw
Posted in: SCIR
Posts: 429
Price: 0.75
No Opinion
RE: At the risk of repeating myself31 Jan 2022 10:27
Only have a few shares in SCIR (under water) so I too have jumped in with 500k purchase!
Invested profit from another transaction, so thought I would try my luck here - finger crossed!"
You guessed correctly. No reply yet. I sent her a remained of my email on Monday as well.
I did respond your post earlier Mick2020, but don't have the time to repost now - it may turn up or it will lost forever - we will never know! Good Luck
Lol… if you think that WEN will pay 22 mln for the SCIR% then buy SCIR and don’t buy WEN! Why on earth would WEN pay so much to a distressed seller? There is no competition, SCIR has tried to sell its stake for years now without luck. Sorry but I really can’t see it happening.
Nice one - bought a few more yesterday as well!
Any purchased under 22p feels like an absolute bargain to me - I will slowly build a nice position in WEN (but I'm not in rush and the SP doesn't seem to be either, so not overpaying for the sake of it!)
If WEN are interested in the SCIR % then I don't understand why they would wait until after the 3D and then pay more. The 2D and current gas estimates have actually increased recently!
I would like to see WEN take a 20% or the full 25% for $12m cash and $10m in shares (locked in for 12 months) I am sure SCIR would be okay with this as they will have cash to spend on their new target assets plus have a good stake in WEN with the added advantage of a nice divi. Would be better if the WEN SP was a little higher to assist with dilution but there would be a nice asset in exchange for this. SCIR will also have a some form of skin in the game for the 3D and the drill results also. Probably way off, but as I now have a nice little holding in WEN I thought I would post my thoughts! Good Luck All
followed your buy and bought a few today as well
No answer from Katherine I guess?
The EACOP corridor may be used as a return gas pipeline to supply gas for Uganda. This project is very important one for this region with USD 10bn that will boost our economy.
https://twitter.com/PAU_Uganda/status/1488479754701492229
Note the TPDC forecast 1BCF per day to supply Uganda and Kenya via export pipelines.
Finally bought a few today and will look to increase my holding over the coming weeks on any SP weakness - would ideally like to be buying at 20p target, but I wanted to make a start to build a position, at least under 22p!
Divi is nice of course, cash on hand needs to be put to some hard work and with the Natural gas noise getting louder I thought WEN would be one of the safest places for some of my cash. I know this isn't going to rise like a phoenix but I like the current set up. They may well just surprise the market in the very near term with some M & A activity, but if not, I will sit back and take the dividend while I wait!
Encouraging news! The commissioning of the Kinyerezi extension should be a real boots for WEN as a higher production rate will dramatically increase profitabilty while it will also trigger discussions about the further development of Mnazi Bay. Will we see 130 MMscf/d in 2023? Once the compression work is completed, it should be possible I would say. Drilling of MB-5 in 2024?
In the absense of an M&A deal (or a significant cost reduction), it may be our only hope to see a higher share price....
More interesting news today. The government of Qutar and Jenkins Energy Group are about to go on a $15bn spending spree of African gas assets.
Some key quotes from the article:
“the move, which is to invest in the huge but largely untapped gas reserves in Africa, will see Jeniks Energy Group leap frogged to a global gas investment firm”.
‘‘Some of the key areas of focus by the Qatar government Investment include the Gas Reserve Acquisition, Liquified natural Gas and LPG projects across the 11 countries of Africa – Nigeria, Ghana, Kenya, Republic of Congo, Guinea Equatorial, Senegal, Gabon, Angola and Tanzania.’’
I can’t see She’ll or Equinor wanting to sell any of the offshore asset now that things are finally progressing for them.
So, which huge and largely untapped gas reserves in Tanzania could they be interested in?
Link to the article:
https://leadership.ng/stakeholders-commend-energy-group-qatar-partnership
With thanks from Ufufuo from the AEX board, a copy of his post.
From Tanesco on Twitter (google translate)
He said work is currently underway to expand the Kinyerezi I station and the original 70 megawatts will go into the grid system by April 2022 and by August 2022 the work will be completed and will move to the Kinyerezi I station which is currently producing
Yes Mikkel, a good find.
I also noted that Maurel state a 1% in aceived gas price, which puts WEN's 2.7% increase in perspective.
Nice find Mikkel. I see the 1P volumes can be derived as well:
2021 Mnazi Bay Gross production: 29.8 Bcf
31/12/2020 -> 1P gross reserves: 240 Bcf
31/12/2021 -> 1P gross reserves: 221.9 Bcf
Reserves revision at year end 2021: +11.7 Bcf
So the 1P volumes are enough for 7 years production at the current flow rate.
Take note Geowiz and stop the idiotic trolling...
Reserves update from M&P (Gross numbers)
2021 Mnazi Bay Gross production; 29,8 Bcf
31/12/2020 -> 2P gross reserves; 445,3 Bcf
31/12/2021 -> 2P gross reserves; 425,1 Bcf
Reserves 'Revision' at year end 2021: +9,6 Bcf
https://www.maureletprom.fr/en/investisseurs/communiques-de-presse
Mnazi Bay Produces Highest Gas Quarterly Performance Ever https://www.oilnewskenya.com/tanzania-mnazi-bay-produces-highest-gas-quarterly-performance-ever/
Good email HighYield, and thanks for sharing.
Well spotted about the operational costs, that's indeed a big increase.
Regarding the OPEX/CAPEX question: I would say that the $12.8 million field operating costs should correspond with the $0.54/Mscf, and the field development work is the CAPEX element (compression FEED work?)
Hope you'll get an answer; please share if you do!
I sent a mail, and hope for a reply. On and off , I get a reply to my questions, but far from always.
"Dear Katherine,
I have some questions following the operational update and 2022 outlook, released this morning.
I am very pleased with the operational update, especially the high production during the fourth quarter. However, I have some questions regarding the 2022 outlook.
First, regarding the gas price for 2022. The update says “The contracted price for gas produced at Mnazi Bay production has increased from $3.35/MMbtu to $3.44/MMbtu in line with growth in the United States Consumer Prices Index ("CPI"); effective from 1 January 2022”
The increase in the gas price is about 2.7%, far from the growth in US CPI of about 7%. Please explain.
Regarding the guidance for opex, “Operational costs of production remain low at $0.54/Mscf”
This is a 12.5% increase in operational costs from 1H 2021 (0.48/Mscf), when production is expected to remain at the same level. What is the reason behind this dramatic cost increase?
Regarding the Capex guidance, “2022 proposed Mnazi Bay work programme and budget totalling $20.1 million (gross joint venture), comprising $12.8 million field operating costs ($4.3 million net to Wentworth) and $7.3 million field development costs ($2.3 million net to Wentworth)”
Could you give some comments what’s behind the wording “field operating costs” (compression?) and “field development costs” (seismic, or new wells?)
Best Regards"
Nikky, I have not. I think I am on Katherine's "ingore list"... she doesn't like my questions I think.
Have you asked for clarification mick?
"the contracted price for gas produced at Mnazi Bay production has increased from $3.35/MMbtu to $3.44/MMbtu in line with growth in the United States Consumer Prices Index ("CPI"); effective from 1 January 2022"
Very surprised to read this. This is an increase of just 2.7% and well below the US CPI as far as I know. A big disappointment, and Katherine should really clarify this better. If we don’t follow the US inflation rate, then the value of the company will gradually evaporate, at the current inflation rate.
Very nice to read that a record production of 91.5 MMScf/d was achieved in Q4. If we need ~70 MMscf/d to break even on costs, then every scuff above that rate goes directly towards profits.
Overall, total capital return to shareholders was $5.9 million in 2021. Net cash increased by 5 mln (17,8 -> 22,8 mln), so in total 10,9 mln of value was "created". Let's see in next month's CPR update how this compares with the loss in NPV… if NPV drops more than 10,9 mln, then the costs of running the company have been underestimated in the CPR…
Not a huge amount of volume, so the MMs are fishing for new buyers/distressed sellers.
WEN is moving in the right direction though, which is a rarity at the moment given global circs, so I am happy to hold and collect the divi.
Excellent share but the spread is just idiotic