Member Info for CrustyPete

They need to reach and complete incremental milestones along the way to justify further expenditure and fund raising for the next stage of the development. For example no-one would fund an EWT of Itumbula if Itumbula had been another Tai3.... No-one will fund a production facility until they know there is something there to fund and provide them with an ROCE.

Oh and excuse me, I forgot to add - In my opinion! ;0)

The cost of £50 -£100 million cost is the estimate of the cost of any future production facility - that is the purpose of bringing in JV and / or offtake partners - to part fund that facility. Something that the company themselves has said can only be progressed after the EWT has been completed; i.e. once they can confirm Itumbula as a commercial discovery.

In the shorter term they will have to raise funds for the EWT and a follow up appraisal well - which is likely to follow the completion of the basin modelling and revised resource estimates.

Why have they not released another RNS - simply because they have nothing new to say that justifies the publishing and the cost of an RNS! RNS's are there for price sensitive news..... and there is none

They will need to complete the EWT before being able to confirm a discovery.

Yes, to be announced with a forward work programme. Though whilst I hope these are released before any capital raise these could well come out at the same time as a funding announcement. We saw with the last raise the effect of telling the whole world that we need more money well in advance of confirming that we had secured it..... I think that as soon as they have an idea of the basin model, resource estimates and the future work programme they will have Liberum and others out and about looking for the necessary money to fund it - the shareholders might be the last to know.

RJ, yes indeed, we are singing from the same hymn sheet and have been doing for sometime....

So that is where the bloody money is going! We NEED to hire this out just to cover the costs if we are not going to be using it for 4 - 6 months!

I also question why the BoD have the Rig "hot-stacked" with no no prospect of the rig being used at Itumbula, Tai3 or elsewhere until after the Q3 EWT (Q4)? It costs money to have it hot stacked and we have advertised of r a Drill Manager to start in April. Surely this indicates that we are about to hire it out to a third party. Might this provide sufficient capital to cover the costs of the EWT?

I must point out though that I have considerable reservations about them doing this, if indeed they are. Is it worth risking damage to the rig and potentially compromising or otherwise delaying our own drilling programme?

Because that raise may well come after the completion of the basin modelling, revised resource estimates and both the determination and announcement of the future work programme; if so, there could be a significant rise in the sp ahead of that raise.

Aminex is more of a comatose "dog" mjapac... ;0)

But es, let's hope that is all about to change! Looking forward to April and the return to action of the Tanzanian Govt; well maybe not a "return" but any action would be good!

Yes asimpleinvestor, the $14mn is $AUS as skippsy pointed out and I acknowledged. I also pointed out that with our own rig He1 drill costs should be lower (Tai3 style debacle notwithstanding).

I am interested in your figure for artificial lift as surely that would be peculiar to each and every situation and difficult to predict; indeed is not even guaranteed to work?

For goodness sake gents, enough! Don't start this bloody nonsense again, please....

Yes skippys, quite right, apologies and stand corrected.

14mn? I think it is $14mn if you take the read across from Noble - but that is only £10mn. Moreover that £14mn was for EWT and drill on two wells and of course we have our own drill, which should reduce the cost. Plus with a rig sitting around "hot-stacked" and doing nothing until at the very least late Q3 and likely as not Q4 - maybe we can get the money in for the EWT in the meantime?

Though I would have grave reservations about that strategy - we saw what can happen to our rig with Tai3 and I, personally, would rather we did not suffer the risk of rig issues and associated damage and delay that might put our own drill programme back further.

Ditto, Dreamingfor gold, ditto. 0.90 -1.00 raise I would envisage and not a heavily discounted raise as before - the circumstances are hugely different.

I follow the logic John2015 but then some were saying the very same thing yesterday with a supposed floor at 1.20p. Me included. But they will want to keep that floor above the raise price.

Similar point of view Zinc; if it get's down to 1p and / or if we have a discounted raise in the coming days or weeks I will buy more. Conversely if today marked the bottom I will be more than happy to sit with those I have already.

Well if the CP reference that you gave this post refers to me and not CPerkin, then I certainly do not recall it and if there was one I certainly did not take offence - after all chaps, it is only "banter"! It just gets a little tiresome when it is repeated all day every day....

Lot's of heavy selling in the first 30 minutes RJ which caused an early drop, after which very much like yesterday; very close spreads and an awful lot of SELLS above mid price with next to no "real" spread. Groundhog Day but within a new trading range.