Member Info for CrustyPete

Of course Steve but if, like trrime, you have several hundreds of thousands of pounds worth it is unlikely that you will have all of them inside a tax shelter like an ISA or a SIPP. All of mine are in ISA's so I have no issue either way but some are not so fortunate....

Yes it is taxable as income IF you take the income.... You might be recommended to sell the shares a day or two ahead of the x dividend date; effectively taking the "capital gain" in lieu of the dividend..... Of course it may not be a "gain" but you are creating a capital event rather than an income event.

I don't know if it fully answers the uestion but at NT2 they identified that there was the possibility of a "liquids" play at lower levels but decided against drilling deeper or perforating at lower levels because there was a distinct risk of that liquid being water..... The suggestion being that it isn't worth the risk unless you are confident that the liquid in question is not water.

Yes. But it would complicate the extraction process and be costly.

The point being trrime that UNLESS there is a "Special Dividend" there is NO guarantee that it will be reflected in the shareprice. Whenever has the sp truly reflected the value of the balance sheet? Never!! If Solo has $100 million dollars on the balance sheet will that Market Cap be a minimum of $100 million? NO!! But if that $100 million was to be paid out to shareholders then the MC would definitely be $100 milion - at least until the Dividend and been paid or gone "X Dividend". Got it now ?

Tammy, I know that others will shoot me down here but it is my contention that Solo's 25% of Ruvuma is by far and away the most valuable constituent in Solo's portfolio followed at some distance (subject to the outcome of the IPO) by Helium 1. I do not think that HH would be worth very much execpt as a replacement income stream for Kiliwani, until KN1 is remediated or AEX drill Kilwani South. The problem with these asset is actually establiching a market value for them. It is the lack of the BoD's ability to deliver this - the "proof of concept" for their "Investment Company" methodology - that has been crippling the share price (that and the never ending dilution). Fortunately with the IPO of helium1 in the coming months and the Farm-Out of Ntorya that AEX are in the process of negotiating both of these assets will soon have a bench mark to value them a gainst. Or in market jargon they will be "marked to market".... a recent and reasonably bona fide fix on the perceived value of those assets. This in itself should create good reason for the sp to more closely reflect the value of the underlying assets - though of course we will still be lacking that for the UK assets, in particular. That value should then be directly reflected in the sp when Solo themselves sell up their Ruvuma Assets or liquidate some of the Helium holding (via IPO) and pay it back to shareholders as a special dividend... If we can stop Neil Ritson spending the bloody lot before he realises the money. And pigs might fly :0)

I would very much doubt that as the three well development that forms the EPS under the IO Commercilaity study was an intrinsic part of the "self funding", "full field development" that you refer to. That is, it will be the three well development that funds the construction of the second pipeline. In addition until the NT3 / C1 well has been successfully drilled there is no guarantee of it being commercial so a short term production license would seem incongruous. Presumably the partners would be required to drill NT4 if NT3 failed....? So "full field development" would account and accomodate "failed" drills a well specific production license would not - it would only be agreed after a successful drill programme. Moreover having a 25 year development license may not automatically include a PSA over the area - that is likley to have to be agreed on a well by well, or group of wells, basis....?

Circa 7.6 billion - that is 20 times what there were before the recent dilution.....

Well BG as I said before - just because you belive it doesn;t necessarily make it so! I believe that both AEX and particularly the Zubairs would be arguing for the Development License being approved before commiting to a farm-out. Both viewpints are perfectly justifiable and understandable. If I were AEX I would be arguing that I cannot drill C1 without a farm-out.... therefore give me that approval !! I do not know which viewpoint will prevail but I am arguing that because of the above "standoff" there is no guaranteed outcome or, therefore, timescale..... And this is the very last time I am having this conversation as ultimately only time will tell.

Well I would bet that the 25 Year Development license is the pre-cursor to the Farm-Out so if you are right MAX-P we will be waiting a bloody long time for that farm-out. And that would be problematical with the BoD's target of drilling C1 before the year end. So I suspect that we will get the License approval sooner rather than later. In any event we will definitely need to see the License extensions in pretty short order if farm-out terms are to be revealed pre AGM as many are suggesting. I also fear that the increase in the ceiling for available share issuance to 20% of current issue is, possibly, an indicator that the BoD are looking for a "Plan B" for fund raising.....? This would sit comfortably with the idea of a "consolidation" too. So are the TPDC and Energy Mnister insisting on C1 being drilled before agreeing to 25 yr Development License? It would be totally understandable if they were. Hence 1) License extensions 2) Rights Issue / Placing 3) C1 Drill 4) Development License approval 5) Farm-Out....? That said the quickest route to EPS is to have C1 drilled asap and I would therefore expect the TPDC and Tanzanian Govt to enable a process that would speed this up (with gas demand curve rising steeply in 2019). And that would mean granting the 25 Development License approval sooner rather than later and thereby facilitating the Farm-Out , funding and C1 drill - and also the early development of Nyuni and Kiliwani South as AEX will not be able to raise enough via a placing / rights issue to cover all of that lot.

Be realistic!! Until and unless there are any proposals to be approved they could hardly put them on the agenda...... The agenda can always be modified. That said, I am NOT expecting it.....

I have just re-read my last post and it is a little ambiguous; to be clear "I do not expect them to have to pay (directly) for the priviledge ".... by which I do not expect AEX to have to pay directly to get the Development License sanctioned. And with that I am signing off until sometime next week. Havde a good weekend one and all.

I have just re-read my last post and it is a little ambiguous; to be clear "I do not expect them to have to pay (directly) for the priviledge ".... by which I do not expect AEX to have to pay directly to get the Development License sanctioned. And with that I am sogning off until sometime next week. Havde a good weekend one and all.

And to your comments about giving it away for nothing? I fully expect TPDC to "back-in" to Ntorya Development area but I do not expect them to have to pay (directly) for the priviledge and any suggestion to the contary is equally speculative and there is NO precedent to suggest otherwise - so purely a product of your imagination.... That said I do expect that AEX will have to pay for the "new" license for Lindi area and therefore by hook or by crook there may be some form of payment passing between them for the final Ruvuma "solution"....

"speculative" and "uncertain" definitely mick but it puts the Bowleven offer into perspective and your "one eyed" perspective. Yes $3.6 million may have seemed derisory but a lot of water has passed under the bridge since then mick - and there is every reason to think that the Bowleven offer will be dwarfed as a consequence. For you to suggest the $3.6 m figure as being respresentative of what Solo shareholders are likely to receive now is both ridiculous and disingenuous and you know it.

Apologies one and all; apalling maths of course that should have read $3.6 x 2 x 12 x 2 = $172.4 million for 25%.....

Yes Mick Solo managed to farm out 12.5% of Ruvuma for $3.6 million (your figure not mine) or thereabouts and as you also know since then there has been a 12 fold increase in the resource at Ruvuma added to which a 25 Year Development License will largely de-risk that project. So for the 12 fold increase in resources you could multiply $3.6 million x 2 (for 25%) and then by 12 for a rough comparison and then a multuiple of what? X2 (and it could be argued a lot more) for the derisking and time to market reduction brought about by the 25 yaer development license approval = $73.5 x 2 or $147 million...... Thanks for reminding us all how much our asset should now be worth mick. Just as well we didn't sell out in 2015 or before eh?

Well mick you may well recall that since the middle of last year and the application for the 25 Year Development Licnse and the commissioning of the CPR, Neil Ritson has consistently maintained that the Fram-Out will not happen until both of these milestones have been completed...... So what ever may or may not have taken place up to that point since the middle of last year there has been no serious attempt at Farm-Out negotiations. This has, to some extent, been forced by the Acacia Mining debacle and the fact that no-one is consequently any interested in Tanzania but that has been in Solo's favour to some extent because it has forced the BoD's hand in waiting for Dev License to optimise asset value. To my mind there is no doubt that had Solo been able to farm-out in previous years they would have done (they would have received a proportionate farm-down as part of the Bowleven offer) but that in no way reflects upon the likelihood of their doing so now. With the assets having increased 12 fold since the 2015 CPR (and Bowleven offer) and with the 25 Yr License providing a "route to market" there will have been no better time to extract good value from the assets. I am very glad that Solo have failed to conclude a farm out in past years as we would have receieved anything but "optimal" value from those assets. So whether Solo have previously failed to monetise their assets by design or by default (default most likely) it is to shareholders good fortune that they have done so. It is simply a great pity that, in the intervening period, NR couldn't keep his hands out of the sweetie jar and has continued to spend the proceeds of any future farm out before the proceeds were in the bank....

8 - 9 months after successful drill of C1 for complete Pipeline and EPS....

"more ginly" would be a very good description of Mr Ritson himslelf amd presumanbly he got even more "ginly" as the day wore on.... Though by the look of him I would wonder if that was possible.