Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So VF a JV partner up to end of year and C78/79 by Jan 23 are facts because there wasn’t an imho added from your side. I have been in your position many times with Oex/Syn and today I am conservative because I got burnt and learned from experience.
Forget a JV investor before we succeed in removing the condensate column and determine the regular free flow for at least 15 days without diminishing. After that a data room will be set up for potential JV investor. If their are investors a decision will be taken by the board of directors and an mou signed. Last time round when there was Magna interested GOI didn’t approve. What will happen this time is everyone’s guess. Don’t forget that GSPC sold their 55% share for 2.3 m usd.
77H is not a depleted well it only produced a limited amount of gas and condensate and for a number of months ( check past announcements)
We are still in the phase of clearing the gas condensate which is still at the lower end of the bore, Roland said 450 to the bottom 1950m deep. That implies also that the horizontal section is still flooded with condensate. In fact he mentioned mechanical lifting. Please bear in mind that we reduced the choke and used nitrogen.
Also even if the cost of fracking additional zones is not proportional you still need to lengthen the horizontal drill ( which is not that cheap).
In my opinion the re fracking of 77H was a partial success and let’s hope that the additional info and experience will entice more investors to consider a joint venture. Gla.
I admire your perseverance Steve. Hope you aren’t investing money you can’t afford to lose.GL.
Why only 370 million shares, it should have been 750 million according to the original RNS.
Problem is capacity of low pressure pipeline.
In Aug 2013 Magna valued 15% of Cambay 6 million US$. Eventually they bought indirectly a 15% stake in Cambay by buying Oex shares. So on the proviso that there is a working JV the value of Oex 45% equates to US$ 18 m. (13.85 GBP) which is equivalent to .04p/share. If we sell 15% to our new joint venture and use the money for the next drilling campaign then the new JV partner has to fork out GBP 20 million upfront before we have to contribute our 30% share.
How much would I bid for 55% share of Gspc today?
Considering the market value of Oex and deduction value of Australian/U.K. assets, it works out at approximately 4m.
55/45 of 4m is 4.89 m. Subtracting the 3 m owed to Oex as liability equates to 1.89m. Bearing in mind that If I am successful I have to negotiate with Oex to get the go ahead and maybe buy a further percentage , I would bid in the region of 750 to 900k no more.
So my point is that the market value of Oex at the time of bidding might have influenced any prospective buyer .
Min. 3.5 million
I think that Doriemus is being used as an Spv by Oilex on Aus.assets. If the transaction go s through Oex will own 33% of Doriemus . So Doriemus will be a subsidiary of Oex with BrAd Lingo as chairman and Joe Solomon as a director. Doriemus is in a better position to raise money on Asx to develop Cooper basin. If funding of min. 33% is secured Oex will have a free carry of approx. 16% on Australian exploration with no dilution. Brilliant.
I will be increasing my position . DYOH..
I have been invested in Oex since 2008 and I think that today we are in a very good investable position.
Three years ago the concession had only one year left. Today, after the extension of the concession there are eight years left.