Member Info for cperkin

I expect for the same reasons he has not reported on his meeting with JB from Aminex 2 weeks ago, waiting for the news to be released?

quick, get the defib!

Happy to back my statement up BD

Wed, 21st Nov 2018 07:00

RNS Number : 9621H
"The Company expects to post the Circular to shareholders by the end of November and convene an extraordinary general meeting to approve the Farm-Out in December."

End of November is this Friday.

"The Company is moving forward with its planning and preparations for the Ntorya operations, including the Chikumbi-1 well and 3D seismic acquisition."

Lol thats funny, strongest cash position and strongest management team and strongest asset base this company has ever had.

3 days away to get the ball rolling again over the main asset in Tanzania according to Aminex and the production well remediation not far behind.

Just let those shares wash through, not many after all.

GL

Interesting you expect a buy out. In fact after talking to the Board of Directors on Thursday they have positioned themselves and the cash position of the company to absolutely prevent any such low ball offer. I think with the shareholders action group here and the Board and Management team that any "Theoretical" attempt to buy out solo for less than many multiples of the current market cap - say at least 10 times would fall flat on it's face.

As discussed with the Board, there is nothing to prevent a company buying 30% on the open market but then we would see lots of TR-1 and a decent hike in the SP

Personally I expect no BUY OUT but do expect a farm-down or complete sale of the Ruvuma assets post C-1 drill.

GL

We are expecting the Farmout circular from our JV partner, maybe the extension licence over the main asset and we are also due an update on KN-1 remediation.

fingers crossed the JV gets it over the line this time!

Next poster please change the Header to 3 days ;)

Outstanding results!

Excellent, & thanks DM2000 - so the brakes should now be off and the price allowed to move naturally and we can move past talk of shorts and back to oil :)

Good to see you in Chesh and the same go's for you regards entry price, ya git :0)

Circular due (again) this week...lets hope the JV delivers and this can get moving again!

GL

Most welcome Janeplumb, it was a great way to meet the board, Management team and the cofounder of Helium-1 and hopefully useful to some.

Good luck with your investment, seems you got a much better price than many of us!!!

Not kidding GL lol still we could see even that circular before Friday , now that would be a surprise!

Best of luck!

cash that is completely wrong,the COS for matd was 25% so 75% certain not to hit oil @matd - they were never likely to hit oil with their wildhorse drill, quite the opposite in fact,the cos here is 90% so 90% certain to hit oil on the first Horizon.

Never invest in a drill if you don't understand the COS.

The COS was 25% cash so a 75% chance of failure so no surprise, thats the appeal here 90% COS for the first horizon so only a 10% chance of failure and even the larger second Horizon is odd on to hit Oil.

Good luck

Ho Ho Ho :)

Close that short!

https://www.iea.org/newsroom/news/2018/november/world-energy-outlook-2018-examines-future-patterns-of-global-energy-system-at-a-t.html

The International Energy Agency - Expects continued growth in global demand for oil to lead to shortages in 2020 unless more oil projects get the go-ahead

(published 17th November 2018 in the New Scientist - source The world Energy Outlook 2018)

https://www.iea.org/newsroom/news/2018/november/crunching-the-numbers-are-we-heading-for-an-oil-supply-shock.html

Part 2
Kiliwani North solo own 8% . Currently 1.9 billion cubic feet 1P pre-remediation
Development Licence in place till 2036 and Gas sales agreement in place.

Re-mediation work has begun and the perforation of the deeper target is still planed to be completed by end December. Kiliwani was previously tested @ over 30 million scuffs per day and has produced over 6 billion cubic feet in production so far. The new proposed perforations are over a max 15M section which is larger than the original perforation area. If the perforation is successful and placed back into production early 2019 then revenues would expect to be between $100,000 to $200,000 a month to solo or $1.4 to $2.9 Million per year, easily more than covering the running costs of the company with plenty to spare.

Helium-1 solo own 13% They have 3 prospects with Rukwa having a CPR for unrisked prospective recoverable resources of 99 Billion cubic feet. Current global demand = 6.3 billion cubic feet per year. Estimated production revenues from Helium-1 are between $150 to $600 million per year once in production with an estimated production target of 2020

I talked to Josh Bluett, co founder of Helium-1 he is expecting to IPO early 2019 and also drill Q-1 2019. They expect to drill 4 to 6 low cost wells. The plan is to sell directly to end users and become a dominate source in global Helium supply through a low cost, high volume production process.
They are currently obtaining conditional offtake agreements and plan to use debt finance for most of the capital expenditure required for production.

UKOG shares - The company are still holding shares but did not/would not confirm the size of the holding.

My short term outlook & summary
With work progressing on KN-1 well and the JV farm-out over the main asset, fair value at double today s Share price looks easily achievable with significant upside beyond if KN-1 flows achieve 30 million scuffs per day or more and the C-1 drill proceeds 1st half 2019
Helium-1 IPO Q-1 will provide a read across valuation of solo’s stake with further potential upside with drilling Q-1/2
It will also be interesting to watch UKOG with the K4 results and the sidetrack drill early 2019 providing potential profit from sales of shares.

A very different company in place with the new BOD and Management with a professional and measured approach, no more hand to mouth placings as per the old regime but a clear plan and budgeted approach and stronger management of Jives and as mentioned significant sums of their own money invested into the company.

Solo have all the right elements in place to deliver in 2019, strong Board and Management, Strong cash position and all underpinned with some very strong assets/resources that companies with market caps 10 times larger would be proud of.

Good luck Shareholders the rest of this year and 2019 looks very exciting and all eyes on the JV partner for KN-1 delivery and Farm-out.

Part 1
Background
MCAP £11.84 million
Open market Asset value risked = £22 Million and Unrisked = £25 Million
Debt free
Cash and receivables approx 7 million +
The Board hold 10% of the shares in issue, 12% when you include the management teams holding

The below are my thoughts based on the shareholders meeting held on the 22nd November. They are my interpretations after speaking to the Board and the Management teams from both solo and Helium-1 No investment advice is given and do your own research.

Strategy - The company has a strong & robust cash position with a budget and a clear line of site to spend set over 2019. The main focus is monetisation of the primary assets to deliver returns to shareholders but also to ensure those returns are maximised.
The days of sweet shop asset buying and diluting shareholders to feed the buying (NR days) is no longer part of the DNA of the company. There is a sharp focus on the current assets, including not spending time or money on the historical deadwood which are being considered for disposal.
As pointed out the company is well funded, however any potential spend above the 2019 line of site budget would be considered to be funded through either monetisation or no dilutive funding

The Main assets

RUVUMA - 25% of 5 Trillion Cubic feet Gross in place with 2 Trillion feet Gross in place assigned to Ntorya & including 763 Billion cubic feet 2C resources (126 million BOE)

The board are clearly aligned on the focus of monetisation of the primary assets and Big D in particular made it very clear that the monetisation of Ruvuma,whether complete or partial would need to be at a significant premium to the Aminex deal as the total spend although listed as £14 million on the books is closer to £20 million when considering the historical costs of raising money and funding the old BOD.
The Jives Farm-out circular is expected by the 30th November and the board see that on completion of the EGM vote in December that the direct read across of a minimum asset value for Ruvuma of $20 million can be associated to solo’s market cap.

Extension licence - Dam Mailing was recently in Africa and it appeared then that the licence extension would be signed as both JV partners attended a meeting with the Government. This is still expected for delivery possibly with the circular next week or post farm-out vote. Note a new CPR is expected with the circular.

25 Year development licence. It is still not clear if this will be issued pre or post C-1 drill just as it is not clear if the drill will be Q1 or Q2 2019 and is dependent on the JV partner negotiations and farm-out.

C-1 drill - No date confirmed and dependent on the JV partners circular EGM vote December and farm-out. Solo currently have the cash & equivalents to cover any drilling costs.

Part 2 to follow