Member Info for cperkin

Have to wait and see if the new Bod deliver LTEL, certainly the market valuation of one of the assets is almost double the current market cap as per the current Ruvuma Aminex Zubair deal.

I am not so convinced trrime, the SP went up when the placing was announced and has held, but I guess it would be prudent wait to see what the SP is just before date for requesting withdrawal of Basic Entitlements and Excess ?

Either way, I have my cash allocated and waiting to see what the Portland flow test results show and any Kimmeridge initial results.

April the first?

The 2.25p will be the placing shares and the directors certainly have taken up their allocation + their full allocation of the "open offer shares" I guess the 2.27p however stands out a mile for 124.85k

Alastair Ferguson 2,353,527 placing shares + 4,313,140 Conditional (note: in addition to the 5,714,286 shares already owned)
Jon Fitzpatrick 643,297placing shares +1,178,925 conditional (note in addition to the 16,833,777 shares already owned)

Skin in the game as they say.

I note the last placing shares never really hit the market, it seems these ones might not as well?

Nice to know whilst you are sitting sipping your favourite tipple whatever that might be, the drill bit is turning and reducing the distance to the first target :)

Best of luck!

No never drilled a well in my life dunder, been invested in a few drills but I guess the very high pressures that seem to charge the Ruvuma basin are an additional challenge for conventional on shore drilling.

Oh I think you might be underestimating appetite for a multi target drill for gas in a thicker part of the sands and the additional deeper liquid target dunder and all with a very competent operator this time round a you pointed out.

It could well become as you say "Mental Central" over here.

Nope shares issued @ 2.25p

As a result of the issue of the Fee Shares, the relevant Directors' salaries are fully paid up to date and for a period of at least 6 months, removing any potential call on funding until 2019.

So if the SP goes down they are diluting their salary, if it goes up they make profit on their salary.

Very little operational risk and 0 exploration risk for R1/R2

Hi Hardnose, I agree with Tarry and Crusty, in essence the project has been massively de-risked for aminex and also the future costs taken care of, at least for the foreseable.

The vote is guranteed imo
The licence the same imo or the Zubairs would not be investing a truck load of cash.

Not much to do iother than sit back and wait for the Zubairs to do their thing from here on in and KN-1 flows would be a bonus.

Best of luck!

Yummy 🥔

Yes thats how I read it OG and it will be interesting to see what news is released between now and then and what the SP will be ;)

I know froggy, either the new bod do the deal and sell the asset or fund to production. I think the fact the new BOD are taking shares as salary is aligned with shareholders myself. Much rather that than have placings to fund the BOD like the previous merry go round. It also means they are effectively performance related paid, they increase the asset value and they will make money, the decrease the SP and they will lose their own wages.

I would agree Pecten £212.36k at the placing price. Interesting that the placings are not under written and so they must be confident in having buyers for the full amount. Much better than those naff placings in the past with the likes of epsilon pty.

Good news they are paying off the YA loan in full as well, clears the decks.

Quite right smudge, not sure that it would be positive for any potential buyer if solo were to regain income from say KN-1 for example?

Thanks for your investment advice froggy, the new BOD are taking up their full allocation and taking their salary in shares. Seems they might have a better grasp of the situation to me.

Like I say, all the time the market value of the assets are multiples of the current market cap, it seems fair game and the opposite to something like UKOG where the market cap is multiples of the current asset value for example.

You know that for a fact trrime?

Like I say Horse Hill Portland flow testing will be complete by the time the shares hit your account if you take up the offer and it looks like on current flow rates that solo will have another declared comercial asset to add to Ruvuma and the Kin flow testing should be yielding initial results,

Take your position either way, I have stated mine.

All the time the mcap is significantly less than the proven market asset value - it's a strong buy for me.

4.5p Without the C-1 drill and a licence gaf, you can multiply again significantly with either of those and that does not take into account Horse Hill which is testing right now and could be declared comercial or the value of any additional assets.

Don't forget the Zubairs have in effect agreed to spend $105 million on bringing the ruvuma asset into production, seems that should also be included in the new valuation.

Lets see what the new Board of directors do with it.

Sorry I missed to answer, if they keep some or all of the asset then production is forecast to start in Jan 2020 and produce revenues of $12 million in the first year, moving to $35 million a year 2 or 3 years later. Solo would need to find $15 million to get to the $12 million earnings and around another $20 million to reach the $35 million.

Hence most shareholders (not me) would prefer a sale.

Hi mushty, we don't know if they will move it to production or sell the asset.

They have half a Trillion cubic feet of gas and Aminex just sold the same amount for $20 million to the Omani Zubairs so that is the current market asset value. It is low in my opinion but still worth almost twice the current solo market cap today.

So the big question is Sell it or fund it and if so how? A bank loan would be the only possibility.