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Good shout Zengas,
Long story short, it's easily doable. Repsol, Source, Var, Shell (reports) are looking to either sell up or refine their portfolio in Norway so opportunities are around. Helge, for his lack of charisma has been in Norway for decades, has the connections and managed to convince JAPEX to join us and fund us.
Happy to be wrong btw Mommur. I'm always please to see other investors getting mega returns.
I'd just rather LBE aren't bought out by SQZ because I don't see the Ring Vet Vest being a big priority for them. They seem more contempt with draining every inch of BKR regardless of the diminishing returns they receive with each cycle.
I'm just not sure on SQZ in terms of their desire to truly branch out of the CNS, that's why I originally sold out.
They should, in my view be a 100,000 boepd company by now but they seemed too contempt and focused on BKR. Outside of R3, which was a plan that came with Rhum on the sale of the field. I'm just not sure what they've achieved. The last Tailwind acquisition seemed insane from a synergy point of view. SQZ had touted itself as a company focused entirely on gas production to then acquire a company focused entirely on oil (and fairly low rates).
Mitch Clegg IMO was the downfall of SQZ and it was crazy to save him from his failed time at Circle Oil, once TCW stepped aside as CEO the company has stagnated, in 2021/22 they we're given a miracle from the bull run in Nat gas prices and they still failed to do anything meaningful with the profit. I don't see them doing anything meaningful in Norway unfortunately.
The marketing documents seen by Reuters state 53 mmboe reserves and 29,000 boepd
Helge has stated that Longboat have potentially $200 million available in financing between the JAPEX intracompany loan and additional supplementary financing.
Repsol assets would be valued at around £420 million at $8 per boe as per the recent benchmark acquisition price.
6 months of production backdating between acquisition announcement and closing of the acquisition would come to $160 million at a conservative 30$ per boe of production. N.B. current production is 29,000 boepd.
Reserve based lending for the remaining $60 million.
Hopefully this is the reason HH has moved directly over to the LBEJAPEX JV full time. That would launch LBE into the stratosphere, set the stage for the Ring Vei Vest project development, fund a continuous drilling campaign in Norway and set the stage for Malaysia development.
I personally think this set up just allows Helge to focus on his domain (Chairman of Norway business) and building up that sector. James (Chairman of Malaysia business) can focus on Malaysia since it sounded like there is a fair bit of news to come out from Malaysia recently.
Nick can then get the stick from the shareholders that we aren't moving quickly enough.
Let's see what the next few months bring! Upcoming free carry drill in Norway too so should be fun.
Aye Kertang is a game changer here: Kasawari is 3 TCF, Kertang is estimated at 9 TCF. KasawariIt is expected to produce 900 million standard cubic feet per day (mmscfd) of gas and 3.5 million barrels of condensate per day.
The Kasawari gas field is expected to commence production in 2023.
Currently we're 50% holders. Imagine the value here even if farmed down to 5-10%.
Agree Mommur,
Like I've said previously, I'm all in on LBE based on the current trajectory and plan. I was never sold on it pre-JAPEX, exploration is like waiting for a lottery ticket to come in but once JAPEX was onboard with $100 Million to fund acquisitions, the potential prize here is far too tempting from my standpoint.
Add in the fact that Helge has mentioned we could extend this for a deal worth unto $200 Million then the Mcap is looking a little silly in my opinion. These guys could spring out an acquisition anywhere between 6000- 15000 boepd at any time.
The initial acquisition has worked out v.well for us at 1000 boepd (we're not there yet but come June we will be). A further bolt on acquisition of similar magnitude put's us in a very good place and yet the board have expressed a desire to achieve a much bigger deal.
I'll continue to acquire shares whilst we're in the teens because the Mcap is just silly at the minute. If nothing else happens between now and the Q3 well spud, I'd put a dead cert on us approaching 30p by September which is 76% increase from todays price. Even then at 30p a share the Mcap is tiny... £15 million's. Mental
I'm not sure who quoted this but 'everybody wan't it right now...nobody want's to get rich slowly'
and my other favourite quote by Peter Lynch - It takes remarkable patience to hold on to a stock in a company that excites you, but which everybody else seems to ignore. You begin to think everybody else is right and you are wrong. But where the story is promising, patience is often rewarded
As per Reuters - LONDON, March 1 (Reuters) - Spanish oil company Repsol (REP.MC), opens new tab has launched the sale of its Norwegian subsidiary, Repsol Norge AS, according to a marketing document seen by Reuters.
Investment bank Rothschild is running the sale of 10 assets located in the Norwegian Continental Shelf consisting of seven producing fields with net reserves of 53 mmboe (36% of them gas) and 2024 net production of 29 mboedp.
The project, code-named Hemera, will include all employees, asset tax and asset tax histories, lease liabilities and decommissioning guarantees and obligations.
The line I'm struggling to interpret is whether these assists are being broken down or sold as a package.
Either way the assets are
Gudrun - January production net to Repsol = 5500 boepd
Mikkel - 2000 boepd
Visund - 8300 boepd
Tambar - not sure nothing on the Norwegian site
YME - 12500 boepd
Other assets but smaller volumes and some discoveries. TBH, with a market cap of just 11 million, even Mikkel would multibag us.
ATB
LONDON, March 1 (Reuters) - Spanish oil company Repsol (REP.MC), opens new tab has launched the sale of its Norwegian subsidiary, Repsol Norge AS, according to a marketing document seen by Reuters.
'Investment bank Rothschild is running the sale of 10 assets located in the Norwegian Continental Shelf consisting of seven producing fields with net reserves of 53 mmboe (36% of them gas) and 2024 net production of 29 mboedp.
The project, code-named Hemera, will include all employees, asset tax and asset tax histories, lease liabilities and decommissioning guarantees and obligations.'
Time to strap in?
Think you may be right Mommur!!
Its habit of an echo chamber here at the minute. They've gone from several updates a month to nothing for 2 months. Surely they are due to release the end of year? surely they know what Statjford is producing, surely they have a deal lined up the feels interesting.
Aye agreed.
Garbage company - could have been merged into one of the largest net producers in Africa alongside Tullow but instead... they got shafted my share holders wanting a large one off payment.
Wasted potential and now it has nothing worthy of note
Happy to sit around and wait. The longer this goes on, the more chance that Jadestone progresses Akatara and decisions around Vietnam. Less opportunity for the market to manipulate us down.
really frustrating this was pulled down so much ahead of being suspended, more ground to make back up but oh well! Lots go good news on the horizon.
Looking forward to the future plans for Longboat SE... there was talk around using the same model as Longboat Norge to bring in a JV partner with deep pockets, Menzies has the credentials to attract such partners.
Slow burn here but it has the potential for something major!
In a typical 'I told you so' style... I called this 28,000 boe acquisition on the 15th November.
Admittedly, the share price was manipulated down unfortunately.