Member Info for gordon1237

jv details

Thanks for your thoughts Conger. I myself was thinking that if everything went well, the asset could turn out to be worth around 100 million. Dollars or pounds, take your pick, we are talking ballpark here. Lol. I have no reason to doubt it when you say that the expected price was 25 million, which values the asset at 45 million. Anyone paying that would presumably be hoping to make a few multiples of that ultimately. Of course whoever it was would be aware it could conceivably go the other way and be worth naff all. That's the gamble and may be the reason why the price Oilex get will be lower. Impossible to know, until we see the details of the jv.
If it all goes well, it could give a Oilex the breathing space to develop the other assets, and then who knows where the sp could get to. That would be years down the line and probably a bit long for me.
Going to wait and see. Doubt if the next news of GOI approval and finalisation of the sale will will move the sp much. The rns with the jv detailer will be the next biggie, followed by drilling results, maybe late this year or early next. Atb. Gla.

Hi Conger. Nice to see a return to sanity and some more realistic numbers being quoted. Still been twitching over the but button. Atb.

Qs. You sound like a judge on the x factor. "I'm afraid it's not good news. It's great news, you're going through!".Lol.

Jasper. I think you'll find Beadle's comments were tongue in cheek based on previous experience as an lth. For example, after the court case in November 2018, we were told that discussions with gspc were ongoing with agreement expected in early 2019. That took until Sept 2019. I could go on, but I'm sure you get the idea. I don't think anyone is expecting that sort of delay now, but especially with the Covid situation in India, it eouldgnt be the biggest surprise if the timescale slipped. Atb.

All good fun though!

https://youtu.be/GJ2X9SANsME

Just doing my best to support a struggling sector Steven. Lol.

Have had 4 meals in pub gardens so far. Varied from pleasantly warm to bloody freezing. Atb.

Didn't know Adam was invested. Lol.

Must admit I am tempted VF. Lol.

Not news. Part of the raising previously announced. Gla.

Hi Jack. Don't see that it matters too much who the jv partner is provided they have the cash to fund drilling etc. Obviously, be better if it is someone who Oilex know they can have a good relationship with. Could be someone like RIM, or someone we've never heard of. Atb.

So Jack where do you suggest Oilex get the cash to drill a couple of wells plus general running costs until say the end of the year? Atb

Good call Conger. Atb.

Agree Espen, it eould be interesting to know, but doubt we ever will. The long running cash for calls, saga is over. Any further finance will need a partner in whatever form. The question is how much will they give up to get it? Gla.

Don't really buy that VF. I think the most likely explanation is that in September 2019 the deal they reached was that Oilex would receive 25% of whatever the sale price was, probably up to a maximum of the owed cash. Conger, previously said he thought the sale price might be 20 million. Don't know whether thst was right but if so it would have given Oilex pretty much all the cash.
Anyway, the point is, even if in the unlikely event that the cash calls were discounted from the sale price, there won't be any more forthcoming. Atb.

this was probably agreed

Hi Conger. I think there is very little chance of any more from the cash calls apart from the 543k usd previously announced. I said last week that this is was provably agreed at 25% of the purchase price of 2.2 million usd.
I think this is pretty much confirmed by the fact that the the six quarterly reports from September 2019 to December 2020 included this passage.
"The Company also notes that the settlement agreement with GSPC has not waived the unpaid cash calls and, accordingly, the Company maintains its rights under the JOA."
This passage was omitted from the March 2021 report.
Atb. Gla.

Lol.

Can't help but chuckle that some newbies are asking what are the cash calls, when for the last 3 or 4 years, they were the main obsession of this board. Lol.
Anyway here goes.
This dates back to around 2015 and the 77h well on which Oilex spent around 30 million usd which led to the dispute with gspc. Here's a link which shows how hacked off gspc were with Oilex. Rightly or wrongly, it shows how they felt.
https://www.livemint.com/Companies/tcNs2RUmfqs6lFGC5HxhUP/Cambay-oil-field-faces-closure-as-GSPCOilex-joint-venture-t.html
Subsequent to this gspc put its 55% up for sale. Oilex, presumably amongst others, put in a bid. The sale did not take place, presumably because bids weren't high enough. Ironic, when you consider what they eventually sold it to Oilex for.
Oilex considered that gspc owed around 5 million usd. The case eventually went to court in November 2018. The judge couldn't decide who was right and said the two parties should go to arbitration. He also ordered gspc to deposit and guarantee the cash to the court in case arb went against them. This they did just before the deadline. The arbitration was booked but gspc and Oilex negotiated amongst themselves. They eventually announced an agreement in September 2019. This was that gspc agreed to sell their 55% by the end of the year. All legal action was dropped by both sides. Oilex stated they had not waived their rights to the cash calls. Oilex did not bid as they didn't have the cash.
The sale was not completed by the year end. Early in 2020 it was announced a preferred bidder had been identified. We were just waiting for the paperwork and government approval. Then came the pandemic. We heard very little until February this year when we were told Oilex were buying the 55% for a bargain basement 2.2 million usd. Can only assume that the preferred bidder had dropped out. We were also told that Oilex expected to receive 543,000 usd towards the cash calls.
My theory is that maybe the original agreement from September 2019 was that Oilex would receive 25% of the sale proceeds from gspc towards the cash calls. So, 25% of 2.2 million is 550,000 usd. So the 543,000 could be that, less a few costs. Could be coincidence and we may never know for sure. I would be very surprised if there was any more forthcoming. Obviously, not getting the full amount is vastly outweighed by getting full ownership so cheap.
May have forgotten a few things, but that is the gist of it
Gla.