The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
They’ve explicitly said that the are actively participating in a couple of deals which is a step in the right direction.
They also mentioned it would be good to buy more of Statfjord ost if the opportunity comes up.
It wasn’t thrilling I’ll give you that but I did like how James mentioned that they had been engaged with the Malaysian government regarding shallow water discoveries! A nice new snippet
Indeed. Currently at a yearly revenue of $19.7 million with the current prices and $27.9 million at 850 boepd.
I’ll continue to top up throughout the year. Fact is that when all wells are online and we’re spudding the well in q3 we’ll be sitting at mid 30p in my opinion.
Of course this is just my opinion
From the initial production pre new wells vs production guidance now. The average rate of each well is 2500 boe, suggests with the upcoming 2 wells that longboat will be at 850 boepd with all wells online. Call it 900 with optimisation of liquid rates and gas lift rates
Definitely not rose tinted. I agree 17 million isn’t great, infact it’s really poor but unfortunately that’s the nature of the beast. Sometimes things go well and sometimes they don’t. Similalry, that 17 million is not for 600 boe because you’re neglecting the fact that two additional wells still need to be commissioned.
Either way, the payback will be longer but I’d rather the production which runs until mid 2030’s than nothing. The production is a spring board.
Ash, stop being miserable. The company is producing. 600 boepd and has a Mcap of what? 9 million?
Two more wells to go, nobody is drilling a well for less than 2000-3000 boepd and we have two more to go. so minimum another 200-300 additional boepd.
I’m happy enough right now but clearly something else is coming.
Close to 800-900 boepd is cash that’s coming our way.
Really curious to know what the flow rates are.
Last update 350 boepd - 7.6 million revenue at $60 (66% Mcap)
Expected flow rate with all wells online 750 boepd - 15.2 million in revenue or 132% Mcap
Absolutely nothing priced in right now
Staggeringly inept is abit harsh.
It’s not been phenomenal here but they have pulled in £100 million finance. Pulled a project into a development concept (ringvei vest), focussed the portfolio in Norway into a few hot blocks with synergies and a clear development option, got a free carry this year. Got us a potential monster in Malaysia with huge equity to farm down.
Yeah I’m not exited by the 700 to 1000 boed acquisition but it brings in some cash and Japex were obviously similarly happy to go along.
Personally I think something is being worked (the podcast 3 months ago stated they were already reviewing several assets) it’s the frustration of waiting (which typically takes months to agree) that’s the difficult part.
As shareholders we’re never happy, the could do a 10,000 boepd deal and after 6 months we’d be asking for the next one! Nature of the beast
P.s. I’m no different! I want it right now
Have to agree. Get a move on! £200 million with of acquisition finance is pointless if it’s just sitting in an account!
Share the news on assets being reviewed, early commercial terms, potential takeovers, production guidance (why wait for all the wells to be brought online… given we only have the two minority stakes, an additional well being brought online is major news), Sarawak partner progress… have we invited companies into the data room.
Give us something
200 Mboe of tight gas.
Fish bones technology is a potential solution to take the recovery from 10-30% upto 30-50%
https://www.fishbones.as/ been proven by equinor, Aker etc.
The mini frac delivered 2.3 MMscf, fishbones could take this to 20x the well rate.
Get after it LBE
All the below plus free carries on drills off Norway starting in 6 months. And a possible extension of the carmen discovery off Norway in the block adjacent. Plus Carmen possibly leaks over to our block.
Mental value to be had if you see the wood through the trees
Folks… let’s see what 2024 brings. We got cash available to buy assets, JV partners that have joined and keen for production ading acquisition hence they are willing to pay upto $100 million at their initial expense the for them.
We’ve got Menzies who seems to be one of the most ‘get after it’ and industrious people I’ve seen presenting on aim in the last 5 years.
The story is building month by month! We tried exploration which didn’t bear significant fruit and hasn’t been desirable with investors for a decade, particularly in old basins. We’re now moving to farm outs and free carries on exploration. We’ve got our first slither of production (personally I can’t get excited about a few hundred barrels) and now we’re in the market for more in Norway.
We’ve then got a monstrous block in SE Asia which has more potential reserves (and solid indicators that the gas is there) than most mid cap companies have! It won’t be long before a major (possibly shell) comes in,50 million is small risk with massive reward for a major and they are all looking for LNG gas assets because they make a fortune trading it around the world.
Longboat genuinely has the most potential I’ve see on AIM. I just hope it’s well managed and we don’t get snapped up by some other company that will dilute us to with an already huge market cap.
Easily a 10 bagger on a decent production deal and a >50 bagger on a find in Asia