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The potential buyers are an unknown to us Crusty, they are the words the BOD are using in the interview and RNS "several interested parties" This could all of course be negotiating brinkmanship. The value for me is hard to pin down, is it worth more than the AEX deal now it's 75% funded to production and with a competent operator? I believe so, what that number comes down to I honestly don't know but my expectation would be north of the $20 million per 25% that AEX secured.

Over to the BOD

Unfortunately there is a reasonable chance that the asset will be off the books long before the 4th drill on the licence, never mind the next one, drill3.

Might touch, penny target seems like a good round number & upside on the first of 6 drills alone is significant..

I don't seem them going beyond C-1 and 3D without a GSA and 25 year development licence matherdj and then it's value shoots up.

AEX had no possible option to finance their then 75% without the Zubair offer of $40 million, $5M cash and $35 mill carry. SCIR now hold 25% of the asset with a well financed and competent operator, valuing the asset over the AEX deal.

The Government of Tanzania and the East African Crude Oil Pipeline (EACOP) have officially signed the Host Government Agreement (HGA) today. This will pave way for the project Final Investment Decision (FID) & the construction of the pipeline.

https://twitter.com/abdulsamadz/status/1320730190310461442

Q1 for me

Waste of time contacting them. Until the Zubairs publish their development plan and spud date for C1 then the minor partners in the JV, AEX and SCIR have no news to tell shareholders.

Still the fact remains that the market loves a drill and AEX are funded (carried) for 6 drills, 2 recompletions and an EPS + 3D

2nd November?

That's a tough one Chris, SCIR have spent around $20 million on the asset over the years and the AEX/Zubair deal is $20 mill per 25%. In saying that the asset is now well funded with a capable operator so worth more than the $20 million AEX deal imo.
It also depends on how any deal is structured, straight sale or carry etc. So it has to be over $20 mill to gain any interest from shareholders here and that would only cover sunk costs so would be no return at all.

No beans to spill to be fair, just a comment from someone in the industry that backs the BOD's position to sell/farmout.

We might hear more on the 2nd or at least confirmation of stratergy.

To reflect the name change, the Company will be hosting a webcast forum for shareholders to coincide with the launch of the new website (www.SciroccoEnergy.com) on 02 November 2020 at 11am GMT. The webcast will provide an update on the Company's plans and activities and will include an open Q&A session. Shareholders will be able to submit questions before the webcast by emailing Scirocco@buchanan.uk.com. Shareholders wishing to participate in the live Q&A can request the dial in details from the same email address.

Webcast Details

Live link - https://webcasting.buchanan.uk.com/broadcast/5f8eb6b0c4d0076f2b9424e6

Morning Chris, cperkin99 @ gmail. com

Cheers

A spud date for C-1 will do just fine.

GL

Well a spud date will sort that out I would of thought Thordon, the kind of news that just never happens at WEN and the kind of news the market likes...drilling in a prolific gas basin.

Exciting drill C-1

Costs to EPS are good & with the Zubair funding and operator experience (that alone has value) it's a valuable asset to have on the books, certainly one worth more than the current cap.

GL

$35 million is the full field development cost, all 8 wells producing, be a while of course before we see that. In the meantime I am still not clear if the BOD will go for a full sale or a minor farm-down like you say Thordon.

I still say the asset is worth more now de-risked to the tune of $105 million to production.

Lets see

Maybe they will reveal more on the 2nd in terms of intentions?

Yes that was the AEX sale price but now the asset is substantially de-risked to production and probably FFD through the 75% funding to around $105 million. You don't believe that adds value SCIR's 25% then Thordon?

@ Thordon, AEX have a $35 million carry as part of the deal+ $5 million cash & back costs.

As for SCIR, my opinion is they are sitting on assets worth at least 1 multiple or more of the current SP prior to any C1 drill, after all, the primary asset is 75% funded to production to a tune of $105 million.

The market loves a drill and AEX are funded (carried) for 6 drills, 2 recompletions and an EPS + 3D and are currently owed revenue (even post new taxes) by the Government.

What's happening next here HighYield? Maybe WEN want a slice of the pie, SCIR have 25% for sale.

The bod are no more than passengers on the new Zubair bullet train ;0)

I expect we will see some fast movement from the new Operator now all the legal has been completed.