Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
The blm approval for 16-3 was on the back of the permit application for 16-3 which would also need approval (if not already done). This is to drill the overlying C9 layer as an exploration well. This is because state 36 was so prolific and already has infrastructure that it was better to move the exploration to state 16. Very unlikely that this will be done in the first half of this year and maybe not until 2025.
Not to bothered about the pipeline at state 16. It’s small fry compared to getting state 36 and federal 28 going. It’ll happen at some point but not fretting if it’s a further 9 months down the line.
Don’t worry I’m still here. Just sat watching. Laughing at the FUD posters and not wasting my breath on them.
Plenty to look forward to. Not expecting a re drill until late February/ March at earliest but it’ll be done. There was snow in Utah end of November so I’d rather they wait for the better weather window than add any further risk.
Plenty more to come.
They are currently installing a new pump on state 28-11. Hence no output fit a few months. A well that is already connected to infrastructure. They could in future also look at drilling further laterals there and frac to increase output.
There is also the salt wash farm in that’ll be drilled (possibly) after the state 36 drill or in parallel. They may negotiate a single rig for both though…
If they find helium there that will provide a lift off in more ways than one.
And as everyone has been mentioning the current production with the addition of the Slawson wells is now providing the funds to do all this.
I won’t disagree. There is plenty more to do and put in place. 2023 was supposed to be transformative but I think 2024 definitely will be.
Ignore my assumption of YE 2023 debt being $24m. I think it’ll be slightly more. Loan payments are made as required by the agreement so these will continue this year and 2024 to bring overall debt down to $25m by YE 2024. Either way it’s still heading downwards from the Q3 results.
I was looking at TXPs overall debt.
Currently as of Q3 it is just under $30m and that includes the $7m revolving debt facility. In the latest TXP presentation they have a planned debt of $25m YE 2024. That is even with the increase in revolving debt facility from $7m to $20m.
So you could assume that year end 2023 results will have overall debt down to around $24m to allow for the extra $1m of debt they envisage in 2024.
So as I said yesterday revolving credit is to cover ups and downs in expenses throughout the year that they cannot cover with production income. But overall debt will only increase by $1m in 2024 but be down for YE 2023.
I think the increase in revolving credit limit will prove its usefulness more in 2025 and beyond. And they will still pay off their existing loans.
The increase in credit facility is to facilitate any upfront costs for drilling or purchasing equipment for the production facility.
They have said they need $33 for 2024 of which $32 will be provided by production income. However that is a steady monthly income and to deal with the ups and downs of costs they need a bigger credit window so that they are not restricted. Otherwise they would have to sit idle for several months while the production income built up the balance sheet before moving to the next step.
Did Colin mention anything about the Federal 28 workover in the presentation last night? I haven't had chance to watch the full thing yet as started watching this morning and had to do other jobs.
It looks as though the workover rig is being broken down at state 36 (as of yesterday) so could be heading over there shortly.
Https://x.com/ZephyrEnergyPlc/status/1714529480151101488?s=20
Ever since they drilled 36-2 and expected it to be prolific they canned 36-3 well and applied for 16-3 well. That is for overlying C9 reservoirs. Permit has been outstanding for over 6 months now.
The BLM application is more recent and maybe something that has arisen from the other permit request.
Income from El Romeral (Spain) is being kept to fund further developments there. Be that drilling or the solar expansion.
“ Surplus funds generated since acquisition are being retained in the joint-venture vehicle (Tarba Energía) to fund future development and diversification.”