Member Info for happysparrow

Looks like Clarendon got your email, Phoebus :)

https://nation.africa/kenya/news/africa/fishermen-herders-conflict-leaves-12-dead-in-cameroon-3509868

Ray - message noted, and not being unfriendly, but think it best to keep the replies to me 'in confidence'. The answers were forthright, and furthered my understanding of a number of issues; and I wouldn't want to see such communication lessen if the company thought their replies were being forwarded to others. My questions were largely about strategy going forward, and anyone could have asked them; and issues and concerns that have arisen and been discussed on this board over the past 3 months. Thus the questions were not asking for information requiring news that needed to be RNS'd as they are largely about things yet to happen, and thoughts on the direction of the company - it is the kind of thing you might have discussed at an AGM if there. This better understanding should be reflected in my posted comments here.

This seems to be the seller who has been driving the price lower recently - and provided the liquidity for WTE not to jump hugely on this news. I suspect it is Clarendon Trust again, with another TR1 soon. If they are not done, I'm not sure we will see much rise into the Sapote spud. In my view, just another opportunity to pick up more, more cheaply.

Danno - the SP tells me the RSM arbitration ruling is due soon - hence most buys/sells are on hold.

Answers to my questions arrived twenty minutes ago. Thank you. Very useful.

17.5% x 7.2% = 1.26% of 10 billion barrels = 126 million barrels to WTE
Current market cap £12m

Graham Swindells, Chief Executive of Deltic Energy, commented:

"This agreement represents the commencement of a wide-ranging partnership with Cairn, whose successful history of opening up new basins is aligned with our exploration-focused strategy. The partnership will result in a significant investment across multiple licences within Deltic's strategic Southern North Sea gas exploration portfolio, as we jointly progress the next high impact drilling targets. It provides further endorsement of the quality of the portfolio that our team has developed and also our gas focussed exploration strategy, as we continue to supply our conveyor belt of opportunities and attract the best partners to facilitate potential drilling.

We are particularly excited at the prospect of building our partnership with Cairn, a well-funded and highly experienced North Sea operator. Both parties share a commitment to pursuing high impact exploration opportunities in the Southern North Sea and successfully developing these gas prospects."

Farm-in: CNE operatorship of 5 blocks in Southern North Sea. (see Delt RNS):
Summary of Farm Out Agreement

· Under the terms of the Farm out Agreement, Cairn will acquire a 60% interest in each of Licences P2428 (Cupertino Area) and P2567 (Cadence) and a 70% interest in each of Licences P2560, P2561 and P2562 which are located between the Breagh and Tolmount Gas Fields.



· Deltic will retain a 40% interest in licences P2428 and P2567 and a 30% interest in licences P2560, P2561 and P2562.



· Cairn will fund 100% of an agreed work programme for each of the five licences up to the point of making a drill or drop decision on each licence, which will include the shooting of new seismic data over Licence P2428.



· Following the Farm Out Agreement becoming unconditional, Cairn will pay Deltic an up-front consideration of USD$1 million by way of contribution towards historic back costs incurred by Deltic across the licence areas.



· In the event that a drilling decision is made on either of P2428 and P2567, which contain the most advanced prospects, Cairn will fund 70% of the costs of whichever well is drilled first, subject to a gross well cost cap of USD$25 million.



· Completion of the farm out is conditional on the entering into of a Joint Operating Agreement and obtaining standard regulatory consents from the Oil & Gas Authority, subject to a three-month backstop.



· Cairn will become Operator of all five licences following completion.
Summary of Farm Out Agreement

· Under the terms of the Farm out Agreement, Cairn will acquire a 60% interest in each of Licences P2428 (Cupertino Area) and P2567 (Cadence) and a 70% interest in each of Licences P2560, P2561 and P2562 which are located between the Breagh and Tolmount Gas Fields.



· Deltic will retain a 40% interest in licences P2428 and P2567 and a 30% interest in licences P2560, P2561 and P2562.



· Cairn will fund 100% of an agreed work programme for each of the five licences up to the point of making a drill or drop decision on each licence, which will include the shooting of new seismic data over Licence P2428.



· Following the Farm Out Agreement becoming unconditional, Cairn will pay Deltic an up-front consideration of USD$1 million by way of contribution towards historic back costs incurred by Deltic across the licence areas.



· In the event that a drilling decision is made on either of P2428 and P2567, which contain the most advanced prospects, Cairn will fund 70% of the costs of whichever well is drilled first, subject to a gross well cost cap of USD$25 million.



· Completion of the farm out is conditional on the entering into of a Joint Operating Agreement and obtaining standard regulatory consents from the Oil & Gas Authority, subject to a three-month backstop.



· Cairn will become Operator of all five licences following completion.

Victoria Oil & Gas Plc announces that a General Meeting ("GM") to receive the Annual Report and Accounts to 31 December 2020 will be held on 12 August 2021 at Scott House, Suite 1, The Concourse, Waterloo Station, London, SE1 7LY at 11.00am.... we are also inviting questions from Shareholders in advance of the Meeting. A response to these questions will be issued before the Meeting.

Thus here waiting for an email before 11am.

Now, what chance of JHI being taken out soon? - I'd guess, a lot more than my granny.

https://www.westmountenergy.com/download/2021-06-07%20Westmount%20Corporate%20Presentation./?wpdmdl=1137

Regards WTE, news just in: https://www.kaieteurnewsonline.com/2021/08/11/exxon-gears-for-new-12-well-drilling-campaign-in-canje-block-epa/
Early bird catches... and all that.
Good luck.

These days I tend to cull the junk much more quickly. For me, Vog could go 100% either way this month depending on RSM arbitration. Other holdings likewise, depending on drill/funding news (WTE, EME, UJO, LBE).
Currently taking a position in CNE (165-170p) - seems a near certainty for £2.50p+, and probably soon, in my frequently wrong opinion. Worth a look?

Q2 update:
Roy Kelly, Chief Executive of Victoria Oil & Gas, commented:
"We are very pleased that the team has delivered another solid quarter during which some customers increased organic demand, although we are conscious that we are now heading into August which is usually a slower month....'

...This new episode provides information on the seriousness of Cicam's problems. Indeed, despite the signing in 2015 of a CFAF 13.2 billion plan-contract with the State, its sole shareholder, this public company is struggling to get out of the turbulent zone in which it finds itself. For years. A situation following in particular the invasion of the local textile market by imports and contraband products.

In fact, while it was still the flagship of the textile industry in the Cemac zone (Cameroon, Gabon, Congo, Chad, Equatorial Guinea and CAR) a few years ago, Cicam now only controls barely 5% of the local market. Blame it on fabrics from China and West African countries, especially Nigeria.

This stiff competition from Chinese and West African fabrics, sometimes smuggled in, had major consequences on Cicam's finances. According to official financial statements, this state-owned company shows cumulative losses of 13.4 billion FCFA over the period 2018-2020, with a peak of 5.3 billion FCFA for the year 2018 alone. Its turnover meanwhile fell from 13.2 billion FCFA in 2018 to only 9.9 billion FCFA in 2019, before falling to 7.3 billion FCFA in 2020, a decrease of almost 50% compared to the fiscal year 2018.

Brice R. Mbodiam

Perhaps this should have been in the Q2 update?
FCFA 630m owed to us. (1US$ = 555 XAF) = $1.13m owed to us.

https://www.investiraucameroun.com/economie/0508-16704-textile-deux-usines-de-la-cicam-a-l-arret-apres-des-pertes-cumulees-de-13-4-milliards-de-fcfa-entre-2018-et-2020

(Business in Cameroon) - The turbines of the two factories of the Cotonnière Industrielle du Cameroun (Cicam) in Douala, the economic capital of the country, have not been operating since July 21, 2021. The two units, respectively specialized in the production of printed fabrics (loincloths) and towels, have been stopped since that date, due to the suspension of the energy supply, we learn from sources internal to the company.

'Indeed, Gaz du Cameroun (GDC), a local subsidiary of Britain's Victoria Oil & Gas (VOG), which operates the Logbaba gas field, has suspended gas deliveries to Cicam because of unpaid bills of FCFA 630 million. Eneo, the concessionaire of the public electricity service, also accumulates with this public company invoices of more than one billion FCFA. " It will be difficult to pay salaries in the current context ," observed a Cicam executive, commenting on the implications of this cessation of activities in the Douala factories......'

Took a punt on this @ 1.60p. Think this will move a lot higher tomorrow. Target £2.50 - £3.00, and soon.
DYOR

Thanks, JRich - well worth watching whole video, particularly at end where they perhaps suggest they may just buy gas from Etinde rather than drill more at Logbaba.
Regards RSM: if the claim is just about their share of payment (which will clearly have been set out in the signed agreements) then I don't think they have a leg to stand on. If they can prove fraudulent overbilling (which I thought this was about) then we are in trouble.

Thanks for the reply, Ray.
A little better understood here now.
It seems to me that RSM will need to prove criminality (fraud) on VOG's part if they are to win their case, though perhaps the evidence bar isn't set so high in a civil arbitration?
Yes?