Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Re-rate price in case of any deal will depend on multiple factors. We don't even know the terms. We will have to raise debt and dilute if we want to buy a productive asset. That's for sure.
I would not raise expectations that are really difficult to fullfill.
No. I don't think it refers to the initial expression of interest. Because according to Sonangols timeline it would go like this:
1- The bidders present their offers in closed envelope
2- Sonangol open the envelopes an select the preferred bidders.
3- Sonangol let the current partners in the blocks to exercise their preemptive rights
4- The preferred bid for each block is selected and they enter into negotiations (on the terms of payment/delivery of assets I must understand)
5- If they agree they sign the deal, otherwise back to point 2, and the next in line will follow.
My understanding is that we are in the point 4
"We are pleased that we were selected by Sonangol to negotiate for Block 3/05 and Block 23 in Angola, and have been working diligently to find a mutually attractive outcome for both parties."
For me this means that we are the preferred bidders. So if we reach an agreement the blocks are for us. I'd find ludicrous from Afrenta to issue and RNS to repeat what we already knew (that we are one the bidders for the blocks).
It looks really good to me.
And it's great that the board keeps looking for other quality assets. Patience will pay off.
Interesting info on Gabon. It seems that it's getting harder and harder to buy assets in Africa. For each company willing to exit you have many willing to buy. I don't think AET has many chances Vs existing operators Perenco and Tullow. I keep fingers crossed for our options in Angola
First of all. I agree, our hands are tied. We rely on Sonangol's diligence in getting things done. And giving the size and number of assets and bidders, my guess is that we will not know anything until February at least . The proposed timeline from Sonangol was way far from being realistic.
Re-admission price will depend on the deal (if any), of course. The asset (production or/and exploration) , the size of asset, at what cost, and the payment terms.
With a very good deal , SAVE share price has increased by 40% after readmission last week. AET best case scenario (blocks 3/05 + block 23) are no way close to the size of SAVE deal.
My only concern is that it seems that all the eggs are put in Sonangol basket, there has not been any other news, or rumors , or developments, about interest in other assets. That worries me. As it will be now 1 year since Afentra re-branding and now (with increasing oil prices) short term success of the Company depends on the outcome of the Sonangol bidding process. Afentra Board may feel pressure from stakeholders on closing any deal. I remember McDade commit to land a deal in 1 year, so I hope that does not lead to rush a bad deal.
Block 23 is exploration, only 2 bidders , one of them Afentra
Block 3/05 more bidders, because is already producing oil
Very difficult pitch process
https://www.sonangol.co.ao/Portugu%C3%AAs/Not%C3%ADcias/Paginas/Not%C3%ADciasHome.aspx?NewsTitle=Conclu%C3%ADda%20fase%20de%20avalia%C3%A7%C3%A3o%20de%20propostas%20do%20processo%20de%20Aliena%C3%A7%C3%A3o%20Parcial%20de%20Interesses%20Participativos%20em%20Concess%C3%B5es%20Petrol%C3%ADferas
1 month of pitch and after 8 of November Sonangol will decide the "winners"
The assets in Angola are magnificent, but too much (and experienced) competition