Member Info for Edgein

Gerry,

Its currently stacked with potential and the management have shown they're not in the mood for diluting shareholders down here with the Wressle pre-payment. If all works out perhaps they'll get that EG farmout over the line and then arrange RBL for Wressle-2 as Pen istone was tested in W-1, its pretty much a development well. News on Cloughton will have to come at some stage too. Interesting times for sure.

Regards,

Ed.

JO,

He did say we would have drill results within a week or so as they move into phase 2 of the drilling, he also wants to create FOMO to get his hands on that other $2m. So it will be interesting to see what the drill results initially show and the assays throughout the summer. He'll want some positive results for sure as they run up to the IPO.

Regards,

Ed.

Cheers Greg, I was still thinking about it! I probably have enough already though. :)

Good sign, obviously high demand and another £300k in the bank from the sounds of it.

Regards,

Ed.

Bobby,

Thanks for the link, hopefully that meeting yesterday went well and they get permission passed. Hopefully things are as active with the EG-08 talks.

Regards,

Ed.

From December last year:

https://ambeonholdings.com/ambeon-capital-brings-down-nearly-30-fund-managers-from-germany/

"Nearly 30 fund managers from Germany are in Sri Lanka on a first of its kind fact finding and familiarisation visit on an invitation from Amebon Capital PLC (ACP). The delegation on a four-day tour is assessing prospects for list and private equity investments as well as Greenfield Foreign Direct Investments. With Euro 27 billion of Assets Under Management, NFS Netfonds has brought down some of its top performers to Sri Lanka. Yesterday the delegation had a close meeting with Central Bank Governor Dr. Nandalal Weerasinghe whilst during their stay they will be meeting select institutions with high potential for investments."

It makes $10m Redgate equity and $10m debt seem quite achievable. :)

Regards,

Ed.

Smkr,

What kept CMET on my watch list for years was the issues they were having in Sri Lanka. I bought in here months ago, number one because the asset is great and likely to multiply in size on the current drilling, but also due to the change in gov in Sri Lanka. While all of the previous issues are likely now behind them, having a significant local partner and looking to float the subsidiary is a very wise move. They should be able to cut through at least some of the red tape. If they get the terms set out, $10m investors in for 15% of Redgate, it values Redgate at approx $66m. Once fully funded they should trade closer to the NPV, which in itself should increase if we get good grade and tonnage from the current drilling. So all carefully planned out so far, fingers crossed we get through the FID and funding as planned, that's where having a large local partner should help a lot.

Regards,

Ed.

Just,

Agree. While we weren't expecting top Co dilution it does have the advantage, as mention here this morning, of bringing in a significant Sri Lankan partner to the company. That certainly de-risks CMET as foreigners, also Redgate to be listed eventually on Colombo market also makes then Sri Lankan friendly as they will attract local investment at subsidiary level further sharing interest from locals. So that is a big plus for today. It also goes some way to explain why we had such a long silence as they needed to keep the share price where it is. Once this is all concluded its likely we'll start getting more drill updates etc.

All this certainly helps with the MOU in place to get the project to fully funded, if they manage to do that and keep hold of 85% of Redgate as planned then that would be massive for the company. Gonna be an interesting rest of the year here, company now set to be very well cashed up, I really do hope Greg does an interview to explain all that's going on as his comments were very positive today.

Regards,

Ed.

Wressle-1 will decline between now and 2034 as the pressure of the Ashover grit and Wingfield flags declines, so its about 15bopd net to EOG that they're selling. Those reservoirs had about 6m of pay each, the Pen*stone flags had 19.8m of net pay, tested 1.7mmvfd and 77bopd from test even with skin damage. So imo Wressle-2 would be more than capable of replacing that 15bopd or even more! Especially as they'll know the correct mud weight balance to enter the reservoir this time (hopefully avoiding the skin damage). By far the best way to fund wressle-2 is at the asset level, that way they're not diluting EG-08, Cloughton and Inishkea by placing at the company level. Equity placing is likely inevitable (hopefully done after EG-08 farmout), but the more asset level funding the better. Wressle-2 is for an estimate 600k boe net, both EG-08 and Inishkea should be many times that if they get them farmed out successfully.

Regards,

Ed.

Oops $500k! :)

That $500m will come in handy now for EOG and also demonstrates to prospective JV that they have means of financing. That's less than 10bopd and also values the rest of Wressle-1 net to EOG at over $11m gross basis. Quite impressive given their current market cap. Hopefully they'll be able to get the financing for Wressle development on equally robust terms. Hopefully the Canadians will stick around for some more financing deals, if all non-dilutive then a big thumbs up as that was a factor when I bought back in here, would they dilute EG at the company level just to fund UK. All good so far.

Regards,

Ed.

It sure was hard to get a topup on these today, currently like hens teeth at the moment. At least some common sense is returning to the UK onshore now that Reform have control of Scarborough council. Drill baby drill. I got back into these a few weeks ago on the potential for the farmout of EG. A good deal on that one and these will fly. Just need a general election and NS could be back in business again too.

Regards,

Ed.

Smkr,

Thanks for posting that link, very interesting read. Bodes well for those heading for production.

Regards,

Ed.

Jac,

It sure does, increasing interest in KON-16 (their best asset) for little money and then farming out a little bit for a chunk of cash. They certainly have lots of scope to eventually farmout a bigger slice for a more material carry closer to drilling. TRP for example have been carried for 57.7% by Prime Global. So yeah very interesting development indeed for CRCL. Hopefully we'll get a Brazilian update soon too, been some time since they said they were going to be working over that second well.

Regards,

Ed.

He'll also want people to stick around too, not just until June and the possible deals worth $22.8m, but the hint at the possible future listing or sale of Pleiades and windfall special dividend was a clever move. As some will now think hang on this has more potential on completion of these deals that just the deal themselves. If there were firm plans in the future for Pleiades to list then that would also turn this one into a long term as well as short term prospect. A distribution of Pleiades equity to shareholders would be an interesting scenario.

Regards,

Ed.

Jan 10th Transformational farm-out agreements signed

January: "submitted the TRCSA-Prime farm-out agreement documentation and the request for a year's further extension of the First Exploration Period of the Thali license to the Cameroon Minister of Mines, Industry and Technological Development ("MINMIDT") for approval in January."

7th March: "The Company's understanding is that the matter is now with the Office of the Presidency and awaiting formal Presidential approval. As with the Namibia farm-out, the Company remains confident that the approvals will be provided, and still hopes this may be around the end of March."

Regards,

Ed.

"It has been three months since the farm-out deal was announced"

The "Transformational farm-out agreements" announcement was made on the 10th January, not 10th of February.

Regards.

Ed.

Yup the 90m UT is showing over on advfn timed at 11:00:05. Always nice to see someone pocketing some cheapuns.

Regards,

Ed.

Nomad,

Absolutely, eyes peeled for sure. We've seen recently how quickly TRP can rise on expectation of approval and TRP are ready to go, hiring in preparation of drilling.

Regards,

Ed.

Charles,

Yes the Gulf of Guinea is prolific for Nigeria, Cameroon and Equatorial Guinea with hundreds of discovers of oil gas and condensate. TRP are very fortunate to have a block surrounded by commercial discoveries and will hopefully be adding to that list this year. My post focused on the relevance of the Njonji geology as its been historically drilled.

TRP's assets in both Namibia and South Africa are at an early exploration stage with only 2D seismic lines. While some can draw valid comparisons to other exploration wells in Namibia or even to the prolific nature of the Albian/Aptian carbonates offshore neighbouring Angola, or the large discoveries by Total in the adjacent block in South Africa. It'll probably be best to wait for the completion of the modern 3D seismic to be collected in due course for Namibia and South Africa. They'll need those to mature drillable prospects from their multi billion barrel prospective leads that they have identified. But again that will be after further farmouts of both Namibia and South Africa. I'm sure you'll be eagerly awaiting the results of the seismic reprocessing and identification of the straigraphic potential around those large structures as your posts discussed, oh hang on other peoples posts have discussed I mean.

But you'll find that the geology of Cameroon is of much greater significance at the moment with the drilling potentially as close as Q3 this year.

Regards,

Ed.

Some seem a little confused as to what TRP are set to drill this year so a little summary is needed for some. TRP are planning to drill NJOM-3 in Q3/Q4 this year. The well is estimated to cost $15m for a tested well, with the potential of a phase 1 development of $48m (in debt discussions currently) for 6-10,000bopd. That gives massive upside, if successful, on our approx £7m cap (we have 57.5% wi significant when you look at the farmouts ECO and SNDA have done for example).

Why did TRP get an effective free carry on NJOM-3 with Prime Global carrying the $15m well costs and offering $4.3m ontop of that in cash? Well that's quite clear when you look at the geology of the target. Multiple stacked reservoirs that have oil or gas pay in NJOM-1B and NJOM-2. NJOM-1B: identified 2 oil payzones, NJOM-2: 2 gas and 2 oil payzones leading to the 25mmbbls of contingent resources in the NJonji structure. There is also an exploration element of this appraisal well and that gives 28mmbbls of P50 Prospective resources. Since the two historic wells encountered multiple identified payzones (TRP presentation page 5) and the seismic also has several flat spots often associated with liquids in a reservoir, OWC etc, it certainly adds some weight to the deeper formations too. Little wonder than why Prime Global came along with such a strong deal in a relatively weak farmout market. I too can't wait until TRP drill this appraisal well, bring it on.

That's enough for some to consider rather than going into the similarities between Dissoni North (25mmbbls just north of TRP's Block) and Disonni South the large structure on TRP's block.

Regards,

Ed.