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Prosus, which previously made an offer for Just Eat's iFood stake, has raised USD 5.25 billion in debt. There is some social media speculation that this could be used to finance another offer for iFood. Just Eat results this week confirmed their intention to sell iFood at the right price.
The debt issue RNS is here: https://www.investegate.co.uk/prosus-nv--0a28-/rns/issue-of-debt/202201130930013494Y/
7000p seems to be pretty close to the lowest broker price target, even after many brokers have cut their price targets...
https://www.bloomberg.com/news/articles/2022-01-13/food-delivery-giants-enter-new-year-jockeying-for-deals-and-turf?sref=ztUfOWRz
The juice is here: Just Eat’s management has indicated to some investors they’re open to the idea of a sale of Grubhub, one person familiar with the matter said, but advisers are also pitching a take-private deal or breakup, according to separate people. A Just Eat spokeswoman declined to comment.
This was rumoured last week here https://www.bloomberg.com/news/articles/2021-12-16/cat-rock-capital-said-to-boost-stake-size-in-just-eat-takeway?sref=ztUfOWRz and then confirmed with an SEC regulatory filing https://whalewisdom.com/schedule13d/view/cat-rock-capital-management-lp-sc-13da-2021-12-21-grub. So Cat Rock have been steadily buying more over the past few months. I think they would put out a UK holdings RNS when and if they cross 7%, which is not far away.
No hard figures were given though estimates will vary anyway depending on which contractors are used, so you could get a range of quotes and indications. But the point is that the original plan is not now the optimal one. The new plan to export via Equatorial Guinea would involve lower costs for at least two reasons. There would be no need to reinject gas that was surplus to domestic demand in Cameroon, and there would be no need to build a brand new processing plant because the existing plant on EG would be used.
This year it was only possible to attend the AGM physically, and I did. Eli Chahin, Nicholas Brough FD, other Bowleven staff, a share registrar, and the two brokers – Arden and Shore Capital – were at the 2021 meeting, at the News Building in London. Thanks to one of the AGM resolutions. next year it will be possible to join the AGM either virtually or physically.
Domestic power generation projects in Cameroon are underway, asking for tenders with several Chinese parties interested, but it takes years to develop them, so exports via Equatorial Guinea are a faster option.
The hope is to get FID in 2022 and the government seems keen. Bowleven do 6 hour zoom calls attended by at least 10 people from SNH in Cameroon and several from New Age tuning in from different locations, as well as Lukoil. It can take a few meetings to agree on things. Most of the discussions continue remotely even if there are travel restrictions.
The main resource, condensate is very light oil, which is reasonably correlated to brent crude oil prices. The last valuation model was based on oil at 65 dollars. It is now higher than that, though part of the increase would be taken up by taxes. The fiscal regime allows for substantial cost recovery and then taxes the profitable revenues.
The valuation model, which is validated by the auditors EY, could be updated in 2022 if the Equatorial Guinea option materialises. Broker research does not currently include the Equatorial Guinea option, which should have lower costs than the previous plan that involved building a processing plant to split up the outputs, and reinjecting methane. The broker research reports should be updated when and if Equatorial Guinea becomes the official choice. Arden publish reports available through Research Tree, which include recommendations and price targets. Shore Capital is the house broker, but they do not publish recommendations or share price targets on Bowleven or any other house stocks as a matter of policy.
Eli Chahin’s share incentives determined back in 2017 kick in at a range of prices between 45p and 80p. He is sticking around - and so are the institutional shareholders, who have not sold
The bid seems to have slipped again. Is anyone going to the AGM tomorrow?
The fact that the Cameroon state oil company are now open minded about gas exports, does increase the potential upside once a deal can be agreed. Historically, their insistence on the gas being sold only domestically would have reduced the valuation.
Final liquidation distribution should be September 10, and I got a corporate action notification from Interactive investor. Cash has not yet arrived in my interactive investor or Hargreaves lansdowne accounts however. Does anyone else have a different experience?
The US ADRs closed at USD 4.80, which is GBP 3.46. Before anyone gets too excited, there are probably two ADRs per UK share, so that is equivalent to GBP 1.73. Still a small increase on the UK close of 1.71.
https://www.londonstockexchange.com/news-article/CNE/mexico-drilling-update/15081975
FOR IMMEDIATE RELEASE 2 August 2021
CAIRN ENERGY PLC ("Cairn")
Mexico Drilling Update
The enclosed announcement has been reported by Eni regarding the Sayulita Exploration Prospect in Block 10, located in the mid-deep water of the Cuenca Salina in the Sureste Basin, Offshore Mexico in which Cairn (through wholly owned subsidiary Capricorn Energy Mexico) has a 15% working interest (WI).
Enquiries
Analysts/Investors
David Nisbet, Corporate Affairs
Tel: 0131 475 3000
Media
Linda Bain/Jonathan Milne, Corporate Affairs
Tel: 0131 475 3000
Patrick Handley/David Litterick, Brunswick Group LLP
Tel: 0207 404 5959
About Cairn Energy PLC
Cairn is one of Europe's leading independent energy companies and has been listed on the London Stock Exchange for 30 years. Cairn has explored, discovered, developed and produced oil and gas in a variety of locations throughout the world as an operator and partner in all stages of the oil and gas lifecycle.
Cairn's exploration activities have a geographical focus in the North Sea, West Africa and Latin America, underpinned by interests in production and development assets. Cairn has its headquarters in Edinburgh, Scotland supported by operational offices in London and Mexico.
For further information on Cairn please see: www.cairnenergy.com
Eni announces a new oil find offshore Mexico
San Donato Milanese (Milan), 2 August 2021 - Eni announces an oil find in Upper Miocene sequences on the Sayulita Exploration Prospect in Block 10 in the mid-deep water of the Cuenca Salina Sureste Basin, Offshore Mexico. According to preliminary estimates the new find may contain between 150 and 200Mboe in place.
Sayulita-1 EXP, which has led to the find, is the seventh successful well drilled by Eni offshore Mexico in the Cuenca Salina/Sureste Basin and the second commitment well of Block 10. It is located approximately 70 kilometers off the coast and just 15 km away from the previous oil discovery of Saasken that will be appraised toward year-end. The well was drilled by the Valaris 8505 Semisub rig in a water depth of 325 meters, reaching a total depth of 1758 meters ssl.
Sayulita-1 EXP found 55 meters of net pay of good quality oil in the Upper Miocene sequences. The reservoirs show excellent petrophysical properties. An intensive data collection has been carried out on the well and the data acquired indicate a production capacity for the well of up to approximately 3,000 barrels of oil per day.
The successful result, that comes after the 2020 discovery well Saasken 1 EXP, confirm the value of the asset and open the potential commercial outcome of Block 10 since several other prospects located nearby may be clustered i
hTtps://www.energyvoice.com/oilandgas/africa/ep-africa/336970/new-age-cameroon-2024/ was posted on the ADVFN board. The first few lines of the article say New Age is targeting FID early 2022, which corresponds with Bowleven's last statements.
Bid and offer seem to be slipping on no real trading volumes and not much material news?
This report is from 2009. What insights do you get from it?
Slipping on tiny volume and no news
Bid and offer both seem to have slipped by 1p or so, even though volume is very low and there has been no news. Anyone have any idea why?
And of course Woodside might enter the fray - they bought Cairn's Senegal assets so they seem to like West Africa.
Good spot, my reading of this story is that Woodside and Lukoil are also contenders for FAR? Lukoil is of course also a partner in Etinde. They could eat Bowleven before breakfast without noticing the cost.
Shows there is appetite for energy assets in this area of Africa. The buyer was Panora SA, a UK oil company with shares listed in Oslo. https://www.investegate.co.uk/tullow-oil-plc--tlw-/rns/us-180m-sale-of-assets-in-west-africa-to-panoro/202102091543305165O/ One of Bowleven's export options involves Equatorial Guinea.
The Canadian listing seems to have closed at 44 cents, which works out at 25p according to google. About 10% higher than the UK close. Has anyone tracked how tightly the two listings move in lockstep?