Member Info for happysparrow

Understandable, Ezhik; it was pretty exciting news today. Well beyond my expectations - and really important for all the CN wells coming up. If they had found little, this would have gone back to 16p, and put a considerable dampener on the whole 10-well drilling campaign. We march on. Interview today/tomorrow should be of much interest.

ATB too.

I guess it's the warrants, behind the scenes, holding this back. Expecting large late reported trades to be shown throughout the day in the 19.5 - 20p range. We'll see. Maybe there will be a breakthrough later? (Or perhaps when the testing results come out)?

Excellent result - better than expected.

Marshall Abbot '.... Apart from the exceptional technical results, the CN-1 well was drilled on time and under budget. Arrow plans to test several zones over the following weeks and then make a decision on which zone to bring on production....'

However, should we expect large immediate production returns? There does not seem to be a suggestion of co-mingling, but production from one zone then moving on to the next (though perhaps this will vary with results) They'll know what to do for the best, no doubt.

Definitely worth holding for these results - suggestion that all zones are good.

Https://trinidadexpress.com/business/local/gas-production-situation-worrying/article_22596c14-ef98-11ed-9c96-97124bf05467.html (mostly about VAT refund)

It's our government drug pushers you really need to worry about:

2,540 Excess deaths just for the last reported week alone (22% above the 5 year average)

https://www.youtube.com/watch?v=EgubA8BF3CM

Https://www.guardian.co.tt/news/imbert-vat-bonds-will-pay-100-of-arrears-6.2.1703458.68212fd880 (also info on gas prices).

https://www.guardian.co.tt/business/ttma-calls-for-prompt-vat-refunds-6.2.1702840.64049d822e

Https://www.upstreamonline.com/exploration/equinor-and-omv-set-for-key-gas-exploration-wells-offshore-norway/2-1-1406149

https://www.westwoodenergy.com/news/westwood-insight/westwood-insight-uk-and-norway-exploration-and-production-outlook-for-2023

OMV 40% (operator)

Inpex Norge 40% [Nb - Also Japanese. ]

Longboat 20%

https://www.omv.no/en-no/activities

https://www.inpex.co.jp/english/company/branch.html

https://www.lapatilla.com/2023/05/04/colombia-venezuela-security-partnership-puts-pressure-on-eln/

https://newsday.co.tt/2023/05/04/balancing-act-on-vat/

A high COS, I recall ? (sorry, being lazy here today - going out soon.)

@daveri - from the RNS:
Longboat has agreed to a significant investment from JAPEX into its Norwegian subsidiary, Longboat Energy Norge AS, to create an incorporated joint venture to be renamed Longboat JAPEX Norge AS .....In return for a 49.9% interest in Longboat JAPEX, JAPEX will make an investment totalling up to US$50 million (together the "Investment")

There is no mention of paying LBE a consideration for anything. LBE throw their assets (including cash) into the JV; Japex throw in $50m; and the pot is owned equally between the two. That's what I read.

I'll try once more, then give up:
We, LBE, don't suddenly have £25m in cash, this is plain wrong. The Norwegian Joint Venture, THE JOINT VENTURE, now has £25m in cash - of which we own 50%. Our current LBE market cap of £11.2m effectively values us near to our holding company's cash position (which is about 50% of £25m + maybe a little cash in the Malaysian subsidiary).

The confusion seems to be, Rebs, that Japex are putting £50m into a joint venture OF WHICH THEY OWN 50%. (They are not paying us $50m to form a joint venture with them, which seems to be your understanding.) They are also lending the joint venture $100m (likewise, they are not lending us $100m)
https://polaris.brighterir.com/public/longboat_energy/news/rns/story/rd3ll9x

It seems very simple, Rebs. We have cash (y/e 31/12/22) of £12.1m [assuming Nil cash for Malaysia]. We throw it into the JV pot. Japex throw another £12.8m into the JV pot. And then the cash (and all other Norwegian assets) is split 50:50.
Thus £25m / 2 / 56.7m quoted shares for LBE = 22p per LBE share.

Yes, Rebs, I was being lazy on quoted share numbers.
Japex have taken 50% of the joint Norway venture; so it excludes Malaysia.
But, if my shaky maths are correct, effectively it works out similar - about 22p cash per share.

Dilution, Rebs. Japex now own half the company.
My fa g packet calculation is about £25m cash balance, and now with 114m shares (not 57m) = 22p per share cash.
Still a fantastic bargain though, imo

FRom RNS:
'The Joint Venture will pursue a growth-led strategy to create value through the acquisition of development projects, 2P reserves growth and establishing a significant production level within three to five years. The Joint Venture will continue to target the drilling of one to three exploration and appraisal wells per year.'

Nowhere does it say $150m on Exploration. Emphasis is on acquiring production.
Also £100m debt facility provided - no need to raise money.

https://www.japex.co.jp/en/news/detail/20230502_01/
'...Regarding this transaction, we expect to invest approximately 150 million USD over the course of the next three years at this moment, for the exploration, development, and the acquisition of new interests...'

https://www.theguardian.com/world/2023/may/01/indigenous-community-colombia-inter-american-court-of-human-rights