Member Info for Greg25

Doubleup,

Simon Gorringe, CEO of Andalas Energy and Power PLC said: "We are very excited by the Betun Selo KSO opportunity in Indonesia. This provides Andalas with the potential to earn direct access to oil production and revenues, "

Hi Guys,

This is a completely different prospect, than what's gone on here before.

It's a service agreement, whereby ADL carries out a comprehensive workover of 4 wells (possibly 5th well for gas conversion & 6th well for water disposal) payment would be from revenues generated above the current 70bopd (from 3 wells)

ADL also has an option, to become a "participating interest" and if they take that, they would receive payment in shares (of CAV the biggest shareholder in KSO) and minimum of 20% revenues above the 70 bopd.

ADL have stated, the workover could improve the bopd from 70bopd to 150bopd.

There is founded speculation, the actual bopd could be as high as 250bopd.

There has been people suggest, that the financing used by ADL, to cover this workover, by means of CLN facility, is coined the phrase " death spiral financing"

But, the people fail to mention, that death spiral financing can be averted simply by generating revenues.!

Now, I for one am very happy, to let the numbers from this workover do the talking.!

It doesn't take a genius to work out, that 70bopd from 3 wells can be improved just by a fourth well being in comission.!

Therefore revenues are guaranteed as long as they get the fourth well working.

Exciting times ahead here.

Hi Mike,

I've sent you some research, (twitter direct message, click the envelope) which will confirm my theory of the 200-250bopd target range.

Exciting times ahead

Just to be clear,

If there is another drawdown on the CLN facility, then it will be for an asset

Next two sentences, show's that:

"The proceeds of this further loan note issue will be used for general working capital purposes"

Simon Gorringe, CEO of Andalas Energy and Power PLC said: "We a very pleased to accept this subscription from an existing shareholder, which is in addition to the first drawdown and completes this stage of the funding of the company for the Betun Selo KSO project."

Even if ADL was to complete the workover as per RNS (150bopd) the revenues alone would cover the working capital drawdown. (20% more than drawn down EVERY MONTH)

Exciting times ahead here

Hi Guys,
Not at all, you're assuming that ADL will use the entire facility and at this share price at this range.

They will be generating revenues within 3 wks as the should have already commenced.

"Andalas may also terminate any commitments under the Convertible Loan Notes Facility and make repayments of any amounts drawn down by the Company by way of subscription for Loan Notes, at any time(s) of its choosing, without penalty."

Mike,

I think I found you on twitter, you'll have to follow back for me to message you.

Hi Mike,

The main thing, is that all the infrastructure is there and we can pump straight to market.!
Revenues from the increased bopd will come quickly.

Are you on twitter.? I can send you some of my own research and you can see where I'm coming from.

Exciting times ahead :)

Hi Mike,

They are under promising and will over-achieve regarding the "upto 150 bopd"

I don't want to give too much of my own research out at the moment, but looking forward to having the results of the first well worked over .

Good Luck All Shareholders :)

Yeah ,needs must.

An existing Shareholder took another 6.5% , going to get interesting here.

Hi Mike,

Well done for getting your average down

I've looked, in detail, at the podcast/workover/current infrastructure and believe that they are targeting 200-250bopd range for the four wells. Which is achievable near term.

Good Luck All Shareholders.

Hi Shareinvestment,

Yes very true, I'm specifically interested to see if we will get (in time) a TR-1 with the name " PT Celebes Artha Ventura (CAV) " which would seal a major change in the fortunes of ADL.

Exciting times ahead here.

Hi Guys,

You'll need 29,319,109 shares to hold 3% here.!

Will be very interesting to see, if we get some, in the next few weeks.

Good Luck All Shareholders

They are most definitely going to take the option, (in my opinion), they can take the option upto 6months after the workover, so the shares security in CAV would reduce as the 90% profits are paid.

In the podcast, Simon clearly says "co-investors" that's the path ADL will almost certainly take.

If we take the option and have participating interest, we no longer get 90% profits from over 70bopd , (until workover repaid) we would get shares in CAV , to cover the remaining workover costs and at least 20% continuous from profits. (Above 70bopd)

Hi Mike,

Currently they are producing 70bopd from 3 wells.

After workover, anything above the 70bopd , from 4 wells , 90% profits to ADL until the cost of workover is re- paid and ADL can take an option to become a participating interest.

So Anything above 70bopd.! Example 100bopd ADL = profits from 27 barrels.

Quick example:

They want to increase bopd, by on average just over 60% for each well. (For the top end of their estimate)

They are going to fit casing gas compressors, to each well.

Casing gas alone can restrict bopd flow by upto 85%.

We know that they are doing a lot more work than that.

Hi Mike,

The re-rate I was referring too, was from the 0.15 range. After the workover, with potential achievable bopd results 0.45 could well be the share price, just from this one part of the project.

I've been researching the project history, what they want to do and the infrastructure already in place. To get a real idea of what is achievable.

Like I said before, it looks very much like they are under promising and will over achieve.!

Simon had resisted offers from other entities, I believe this is because he was looking at a much bigger picture of multiple opportunities already in the pipeline. Eagle Gas Ltd is just being one of them, (which will happen definitely happen) lots of RNS updates for next several months to come.

Good Luck All Shareholders, Exciting times ahead

Hi Mike,

"Participating interest" legally defined as at least 20%.
If ADL just fulfill it's 150bpod expectation, the revenues would be around £1 .2M. There's 8yrs left on KSO , which could bring revenues upto £9.6M for a company with MCAP of £1M.

Re-Rate Happening Here

Hi Guys,

Doubleup is correct with yesterday's two big trades.!

I'm not surprised by the trades today though, this is happening and the re-rate has begun.!

We'll be producing revenues in 4 weeks.!

On the podcast they said "currently producing 70bpod from 3 wells"

We're working on the 4th well first, so they'll be producing more than 70bpod throughout the workover.!

Good Luck All Shareholders.! (There's still time for Doubleup to buy in too ;) )

They are drawing up plans, to tackle Colter South & Purbeck.

Reportedly 15mmbbls at Colter, ADL has 8% which equates to 1.2mmbbls X £10 (profits per barrel) = £12M, ADL mcap is £1M.

ADL are carrying out a 4 well workover, the first well will be completed in around 4 weeks time, the infrastructure is already in place, ADL will be generating revenues as soon as first well is completed.

I'm more than happy with the Risk / Rewards ratio here.