Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So they have prioritised this road during this year, taking into account lessons learned during Tamraz.
David…..
“We have had multiple approaches - there is substantial interest in Petrel as a Shell – never mind the operational activities, because of the low number of Shareholders and of which a very high % of it is under control of the Board”
“we’ve been concentrating on looking for an Investor that brings Cash, who will have less than 30%, and that is a story that can be told in a way that in turn is attractive to new Investors”
“So there is interest, it’s a clean vehicle to use, and we WILL do something, and we HAVE opportunities to do things.
“The share price should rise substantially”
Personally my gut feeling is that they are in reasonably advanced negotiations with Investors that want to take say a 30% share in the Petrel LSE vehicle.
PS: according to David – oil demand will grow for another 20 years
From ADVFN f31:
Last year I left the AGM with a feeling of a complete standstill and not much hope for anything any time soon.
Yesterday I came away a lot more positive, and in fact I feel rather optimistic that we will see some positive developments coming up for Petrel – and in a not too far distance.
Summary of the AGM:
GHANA:
I would say – forget about Ghana for the moment.
As per David in AGM…….
“There is a deal to be done, but the expectation on the other side is for pay-off’s - which we can’t do”
They have also been asked to consider alternative other acreage than the current one, perhaps with better chance of title, but we might struggle to find farm-in, so not attractive.
For the moment they are therefore hanging in and insisting on their current acreage “agreementR21; and see how it all packs out.
But I would say – don’t gamble on any Ghana development any time soon.
IRAQ:
Stumbling block has always been the fiscal terms.
But David on the new TOTAL Contract…..
”Not seen official details but media reports suggest that up to 30% of produced oil may be available for profit sharing, which means that the game could be up again.
And as a result of that we also re-established contact with Itochu”
PS: the current world-wide boss of Itochu Gas, was previously a 1 year intern with Petrel in Dublin !!
David….
“We have a very good local representative, politically involved, who had made considerable progress and wanted Petrel to submit a very specific proposal.
So they have submitted a proposal for Merjan, and they have been told to be available in September for meetings on the proposal.
David:………
“It will all depend on which terms can be negotiated.
If it’s not sufficiently attractive, we won’t be able to farm it down – and if the rate of return is not sufficient, we won’t be able to fund it independently”
So basically, we’ll now have to wait and see what will develop in September, and if negotiations can be successful.
As of February this year, no other competitors had (yet) submitted a bid for Merjan.
GENERAL:
As per above, I feel we MIGHT get a reasonable shot at Merjan, so that’s good.
But in addition to that ………;
(and this is the reason why I feel rather optimistic ………;..)
First off: David stated that their priority is now to increase the share price, and he could not have been clearer that this was not only in the interest of us as shareholders, but obviously also in the interest of their own large shareholdings and that of their family.
As you know, altogether they have a very large combined shareholdings, so yes, a good share price is very important to them as well.
The quickest way to achieve this goal is to use Petrel as a liquid LSE trading vehicle, very much like the Tamraz model
(David:……; “The Tamraz model in itself was a good model, but unfortunately Tamraz could ultimately not deliver).
So they have prioriti
From ADVFN
Merjan share price
The value to Petrel if we were awarded Merjan-Kifl-West Kifl and it got developed into a 100,000 bopd producer, then that alone would be company changing.
According to the article in my previous post:
"In the hybrid revenue-sharing model, for each barrel of oil produced, 25% would go towards the Iraqi state as a royalty, while the remaining 75% would go towards reimbursing shareholders for capital and production costs and be distributed as revenues".
Assuming Petrel JV'd with Itochu on a 50/50 basis with Petrel as the operator (37.5% each), and after our 'capital & production costs' we had 10% profit, then at 100,000 bopd, the calculation is:
100,000 x 365 days x £50pb x 10% = £182.5m profit per year.
£182.5m / 178m shares = £1.03 eps.
At PE of 6, this would support a price of £6.15 per share.
And a market cap of £1.1 billion.
From Oilman Jim:
PETREL announced results for the year ended 31 December 2022. The future it says is in the emerging economies. It claims that Australian brokers and investors have profited through the liquidity of Petrel's sister company, Clontarf Energy (CLON), and are now pressing Petrel to open its books for greater Australian and Asian participation. The board says it may be worthwhile to accept funding, hopefully at much higher share prices, as it rolls out high-potential new projects.
I highlighted PETRELseveral times in 2019 at around 1p and it went as high as 26.5p thereafter. Back at around 1p again, might it be ready for an encore?
The sweet in Diet coke right now comes from a substance called aspartame which appears to be carcinogenic. This has been headline news this week but apparently in the world of science it has been known for a while.
Yes talking to Coca-Cola.
Opti have now scaled up and are testing different samples from different runs which are liquid or freeze dried and should have results back over the summer.when we can start partner application development and launch plans.
Sweetbiotex 250 X sweeter than sugar and bulk sugar replacement is 3X the sweetness of sugar
From TW
With the recent equity raise allaying any current cash concerns, the income potential of deals with multinationals and the various products potential particularly from Croda, we continue to consider the risk/reward here highly attractive and look for the noted catalysts to spark the shares back to 50p and then beyond. Fill Your Boots as this is a STRONG BUY.