Member Info for cperkin

I wouldn't read too much into it myself, they are only stating that all drills come with risk. The appraisal portion of the drill will have a high COS The exploration portion a low COS, till the drill bit has finished turning you never know what the results will be.
Appraisal of 2TCF and 763 BCF 2C
Exploration target of almost another TCF in the deeper Jurassic.

I for one hope SCIR still hold 25% for the drilling.

Summary from BD and myself.

The meeting was over an hour long and heated at times.

Strategy – The BOD confirmed that they aim to deliver their new strategy as published and it is not dependent on the sale of Ruvuma. No expected timelines given beyond what has already been announced but weeks were mentioned not months.

Ruvuma – Several interested parties but obviously no offer that would be acceptable to shareholders or the BOD has been made (otherwise we would have seen an RNS)

The BOD are prepared to fund Ruvuma as required and if no offers made then CH1 will be drilled with SCIRS full 25% participation. There are concerns that should the drill not live up to expectations that could leave the company in position where it really would not want to be.

HE1 21 million shares and options. The BOD intend orderly disposal when and if the time is right and expect at this stage to be holding some (undetermined amount) of shares during drilling.

KN-1 licence area – Due to the outstanding tax dispute, no development or remediation expected till this is resolved. Note that the new President has highlighted Tax and disputes as an issue for foreign investment and has committed to resolving issues.

Quite some time was spent on venting shareholders frustration with the BOD (BD did not mice words) and their failure to deliver shareholder value over the last 2 years, this was acknowledged. Communications and promotion were discussed at length and the example of HE1 used. The BOD have agreed that they will put together an interactive webcast for shareholders, this will be dependent on the timing of material announcements (no timing given)

GLA

Hi steve, all.

The meeting only finished a few minutes ago and lasted over an hour and I can assure you the BOD are very clear about how shareholders feel, Simon was far less restrained than I was!

We covered a lot of points, far too many to report back on tonight but BD and I will put a summary together for you tomorrow.

Chris

If they are in any doubt that's the case, I am sure they will not be after joelt.

.

SCIRS 21 million shares now back to £2.8 million and climbing....

Quite agree, will suggest it Monday joelt.

1 year is just the standard automatic renewal steve as far as I am aware, drill should be all over by the time they get to next April and then they submit the 25 year development licence application.

See Helium is now over 11p despite the 10p placing announcement, the market just can't seem to get enough.

Morning steve, well another great lesson for Aim investors, always take profits along the way.

I don't think the BOD could justify buying more at what is basically the same price that we already have the shares at, 7p maybe but not 10.

All down to the drill bit here on in, if they do make a discovery then as you say they are funded to move straight to appraisal.

Yes make no difference now Frank, SCIR hold 21 million shares, what matters is the SP and what they are worth, so back down to around breakeven @10P

Lets see how the market reacts.

https://www.londonstockexchange.com/news-article/HE1/placing-and-subscription-to-raise-ps10-million/14939923

Seems everyone is now at the SCIR breakeven point.

https://www.londonstockexchange.com/news-article/HE1/placing-and-subscription-to-raise-ps10-million/14939923

Also true, but with a 25 year development licence in place and a GSA along with an updated CPR post CH1, reserve based lending as an example becomes available. I don't think funding post those 3 events would be an issue.

Maybe vike but you don't know that.

I don't expect they will drill more than CH1 without a 25 year development licence and GSA in place matherdj? Of course once those two pieces are in place the asset will be worth a fortune compared to today.

EPS is in the brokers note from the other week Vike. $35 million is the full 8 well production which includes the cost of CH1.

Quote

"The Ntorya gas discovery is the most important asset within the Ruvuma PSA. The joint
venture partners are committed to progressing the Ntorya gas discovery rapidly via an
early production scheme and then to full field development. "

Hi Vike, I agree there are risk, however.

1.0 they have the funding for this years budget already, which includes the 3D + drilling prep for CH1
2.0 They also have additional funding that they can draw down from the loan with the potential to increase.

The issue I have with the "Green" energy space is not the sector but the 5 years + to see the ROI and the cost for the first 4 deals alone is £10 million with the 5th costing another £10 million.
Based on their numbers Ruvuma is cheaper and is just as likely to be in production before their ROI and pay back based on even only the 3 well EPS is very fast.

Thanks Ufufuo, this would most certainly be timely and welcome for AEX.
The new president is certainly making all the right noises to clear the path and bring back international investors trust with the Uganda/Tanzanian Oil pipeline signed at the weekend and now she has requested that the LNG project be given priority, she has also mentioned the Helium-1 project. Will it be Ruvuma next?

"I think whats closer to reality is that Scirocco is stuck with Ruvuma"

I hope so SS!

https://articles.cruxinvestor.com/helium-one-he1-seismic-acquired-and-drills-turning-in-may?utm_content=162157475&utm_medium=social&utm_source=twitter&hss_channel=tw-1055427799618674688

https://www.rt.com/business/520604-smart-money-betting-helium-boom/