Member Info for Bishop190

Sounds expensive Brig!

@Underlay, personally I would hold as a crystallised loss cannot be recovered but of course everyone must do whatever their financial situation dictates.
I am hopeful though that it won’t come to that!

There has been a massive dilution. I cannot remember the ratio but you can find the documents on the Tower website. Presently there are 1.3bn shares in issue.

Yes, this is something I find strange too Underlay. I am wondering what they have done with the $800m proceeds of sale. It is possible that they had large loans to repay or maybe paid it out in dividends. It will be forever conjecture because they do not have to publish financial data.

JA has been in here for some years and owns a very big chunk so I think for sure he will not let it go cheaply whilst it has so many possibilities on a number of fronts. 8p per share is roughly a market cap of £100m and to my mind not inconceivable in the medium term.
This of course is my own opinion and not intended as an influencer, as they say, DYOR!

An interesting article, thanks Underlay.

Looking at the New Age website I see this statement:
“Farm-out process ongoing and seismic reprocessing complete. Application for entry into Second Renewal Period awaiting approval”

The website of Envoi states:
“The NewAge operated Group would now like to find a partner(s) interested in earning up to 50% of their combined 100% interest by contributing to past costs and funding a new 3D seismic survey (estimated likely to cost US$ 5 to 7 million gross).”

Neither of these statements is dated but one would assume that if they were no longer relevant they would have been taken down.
This I find puzzling in view of the $800m proceeds from the Congo sale. It is a private company domiciled in Jersey so we cannot see it’s financial statements but it would be interesting to know whether it has reinvested those funds, repaid pre-existing loans or still has them available.
If still available then perhaps JA is in negotiation with them or are they perhaps both waiting for the “Second Renewal Period renewal”?
All conjecture of course until we hear from the man himself!

Well people, here is one from me to start!
Going back to Tower’s website page on SA it says:
“ Further 3D seismic-led exploration is now planned, to map more accurately and unlock a number of newly defined leads on existing 2D and 3D seismic data. Of these, the five primary leads alone are estimated capable of containing a combined block-wide STOIIP of 1.4+ Billion bbls (and an upside of over 2 Billion bbls STOIIP), with a mean prospective resource potential in excess of 500 Million bbls (recoverable) and a significantly bigger upside, which the new 3D is expected to better quantify.”

So firstly it would seem that there is some existing 3D and some to be done. Secondly, there is the possibility of 500m barrels recoverable. TRP has a 50% share.
With the discoveries close by perhaps we could hope that a major will take a punt on it.
Interestingly my thoughts before I read his post were along the lines of Brig’s lower end of £100m and 7.5 pence per share, although of course I very much like his higher figures!
ATB

£650m would be 48 pence a share Brig, I think I could settle for that :-))
Maybe JA is in negotiations as we speak!
I do think we are sitting on an undervalued asset but time will tell if we are right, I hope so.
ATB

Here is a link to the TRP website page in SA Brig, they own 50% with New Age.

https://www.towerresources.co.uk/operations/south-africa/

I need to get a bigger phone or look at the charts on my pc :-))

I don’t think I’d be arguing with those blokes Brig!!

If SA could bring in that sort of sale proceeds it would take certainly take TRP up a good few levels and, as you say, be able to cover most if not all of its own costs in Namibia.
We could be holding a very substantial asset in our ISAs/SIPPS :-)
It is really interesting to have your detailed knowledge of the processes and costs in exploring and drilling, like many others I imagine, I have learned a lot from your posts today (once the system allowed it!) and previously. If you work in downstream you don’t get to acquire that kind of knowledge!
ATB

The problem with a sale of SA Brig is how do you value it. I don’t think there is 3D of Tower’s block is there?

I think £1 might be pushing it MM, that would be £1.3bn market cap!! 10p would be nice though :-)

:-))

I agree that it is likely to be big, I am at an average of £0.0043 so not keen to sell at a loss. Not sure what else I would do with the cash right now so will be hoping JA can deliver a sizeable Christmas present!
I can understand that you might want to do other things Brig. Keep a few and stay in touch though :-)

A fair rant I think Brig. One can only assume that nothing is said because no progress has been made. Being a late riser since I retired I keep hoping to wake up to big blue numbers on here, but so far am disappointed!

This is my take on it too MM.

Interesting MM, I will take a look, maybe I can upgrade my hope :-)

Exactly, that surely is what a rumour is!
It would be nice if a big offer came but I for one do not hold out much hope in that. I am more looking forward to the company being able to announce the finance for and start of drilling in Cameroon. Hopefully JA is close!

Lol, I keep forgetting that it doesn’t do emojis MM. I agree with your sentiment :-)