Member Info for happysparrow

Given that we are operating at about breakeven, cash cannot be thrown about willy-nilly. G&A has been reduced considerably. Thus the company must be very confident that they have a market for that gas - as is New Age / Bowleven, working on the Etinde FID, and have gone for a domestic solution (sell to Cameroon) rather than export.

Jed - agree about dilution. About 22% ? (from 257m to 313.4m). I don't like the B Loan notes ($4.2m convertible at 7.8p). Too, they give YF Finance 35.3% of the company. However, they are a FACILITY. Hopefully we will never call on this facility! However, we do need to get Matanda financed somehow; and a farm-out is also asset dilution. A West-med / Kemerkol sale + a power deal (Eneo or Aksa?) might give us the finance to go it alone; if we wished to do so? We would not regret the dilution if the Matanda drills are a success.

Danno - I think what this might imply is that the legacy issues will not be allowed to sink VOG (which wasn't the case a year ago). Perhaps they already have an indication about how the RSM arbitration will go? And we know the CHL litigation is now resolved. And Matanda licence extended.
Today I think we can say that VOG is in firm recovery mode, is financially viable, even robust, and that we now have a highly competent CEO and CFO that are backed by its major shareholders. A bright future beckons. That's outlined by today's RNS. The market may be slow to get it - but perhaps Malcy will help to elucidate.

Note that this might too have some bearing on our success with Kemerkol?
Worth re-posting this article:
https://www.occrp.org/en/paradisepapers/kazakhstans-secret-billionaires
'...Ownership stakes in Meridian Capital Limited as of 2006.
The document shows that Mynbayev was the second-largest shareholder, with 18.75 percent. His other co-owners in 2006 – by this point there were six – were Askar Alshinbayev, Yevgeniy Feld, Nurzhan Subkhanberdin, Nina Zhussupova, Azat Abishev, and Ian Connor.
This was a veritable “bankers’ club” – all seven shareholders had occupied top positions in Kazkommertsbank, the fourth-largest in the former Soviet republics....'

Similar to the recent loan with Hadron Capital.
Our two main shareholders are very supportive, and happy to increase their stake by way of warrants and convertible loan notes. (easier than attempting buy in the market).
Perhaps of concern is that these two shareholders will own close to 50% of the company?
YF finance = 106,843,390
HC = 37,857,629
# of prospective shares in issue: 313, 413,945
Thus YF + HC = 46.17%
YF + HC + Forest Nominees = 48.65%

Do not forget that YF Finance's original stake was at 13p.

If either of the West Med / Kemerkol items come in, it looks as if we will have enough funds for the Matanda drill without a farm out? Whether we would want to do that is another matter.

Those dots were B i t c h ute

This was not meant to turn into a vaccine thread, but given the disturbingly large number of upticks to scott and ghhgdd posts (who I'm sure mean well) I thought I would add some research for you to consider:
https://lockdownsceptics.org/2021/06/15/vaccine-safety-update-5/
(the Government's safety data is at the end. Note: these figures are often substantially under reported. There is also a note by Eudravigilance to EU vaccine deaths. US deaths are over 5000. Note too, that these are adverse reactions in early days. There could be a huge number of deaths from antibody dependent enhancement come winter - we don't know. These vaccines trials are not due to end until 2023 therefore they are experimental, and have no longterm safety data. They are a new gene-based technology.).
https://b3d2650e-e929-4448-a527-4eeb59304c7f.filesusr.com/ugd/593c4f_b2acdef3774b4e9ca06e9fae526fd5cd.pdf
(This is a preliminary report. She wants the age data to be made available by the Government. This is not a reason to dismiss her findings.)
Here are 2 articles giving a little further background to this report - read the comments also:
https://ukfreedomproject.org/resources/open-letter-to-dr-june-raine-chief-executive-mhra/
https://www.conservativewoman.co.uk/doctors-damning-evidence/
Here is another article from Conservative Woman:
https://www.conservativewoman.co.uk/this-untested-vaccine-should-never-have-been-released-the-truth-will-out-and-heads-will-roll/
If you want to know what the once Chief Scientific Officer for Respiratory Research at Pfizer thinks then listen here:
https://www.*****ute.com/video/eqzgyTMssFvn/
or his colleague at Doctors 4Covid Ethics Professor Bhakdi thinks then listen here:
https://fos-sa.org/2021/06/07/full-interview-with-professor-bhakdi-professor-emeritus-of-medical-microbiology-and-immunology/
-
I hope this is informative.

Yes. Much. See the 'newsflow' thread of 4th June.

Last week I advocated independent thinking and doing your own research, both on investment and health. I gave the example of my decision to not have a vaccine. That decision has been vindicated by this report and letter of the 9th June (Note penultimate paragraph):
https://b3d2650e-e929-4448-a527-4eeb59304c7f.filesusr.com/ugd/593c4f_b2acdef3774b4e9ca06e9fae526fd5cd.pdf
Take care all.

I ask questions, Mr B, regardless of whether I hold a share or not. I believe investors should be informed, and that is the main purpose of bulletin boards. I like to look at all aspects of an investment. [I use the same scrutiny when it comes to government advice on my health. It is fair to say that I would not go near these new unlicenced experimental vaccines, for example]. I wish more people would use critical intelligence in their decisions on life, doing their own research, rather than following the opinions of others. That's the person I am. We are not all the same.

We at Save are use to investing in these countries.
Nonetheless, security will be an issue for some, and i think more so for an investment in a pipeline. Thus, it's necessary to keep an eye on, and invest eyes-wide-open, on this security issue and regional politics.
https://dailypost.ng/2021/05/18/buhari-suggests-late-chad-president-idriss-deby-was-murdered/

(Business in Cameroon) - According to the Pipeline Steering and Monitoring Committee (CPSP), the Chad-Cameroon oil pipeline, which allows Chadian oil tanker to be exported, has provided the Cameroonian public treasury with revenues of 11.6 billion euros. FCFA between January and April 2021. This envelope represents the transit fee for Chadian oil on Cameroonian territory.

This financial windfall was generated by the removal at the Komé terminal in Kribi, in the southern region of Cameroon, of a total cargo of just over 16 million barrels of crude from Chad's oil fields, learns -we. This quantity is down 5.6%, since the cargoes removed from Komé during the first four months of 2020 peaked at just over 17 million barrels. Mathematically, this slowdown in kidnappings led to a drop in revenues from transit rights for the benefit of the Cameroonian public treasury, during the period under review.

As a reminder, after a tough battle with Cotco, the company that manages the pipeline, Cameroon has already been able to obtain the revaluation and then the updating every 5 years, of the right of transit of Chadian crude on its territory. This has made it possible, in recent years, to substantially increase the country's revenue from this infrastructure for the transport of petroleum products.

BRM

https://www.investiraucameroun.com/energie/0806-16476-le-pipeline-tchad-cameroun-a-genere-au-tresor-public-11-6-milliards-de-fcfa-de-recettes-entre-janvier-et-avril-2021

And this was from the Q1 2021 update:
'
· Sales. Average daily gross gas sales rate for the quarter of 5.2 MMscf/d (Q4 20: 5.1 MMscf/d) of natural gas plus gross 5,473 bbls (Q4 20: 3,109 bbls) condensate was produced safely and sold to industrial customers in the Douala area.
· La-108 Performance. The well continues to supply the base demand, topped up by well La-105...'

Catiche - I've not been through all the RNS's, but this was from Q4 2020 update:
'La-108 Remediation work was completed mid November 2020 and during initial testing the well flowed at the 19 to 20 MMscf/d limit of the surface equipment, with a Flowing Well Head Pressure (FWHP) of 3,580 psig. The full potential of the well is highly likely to exceed the capacity of the plant, which is 20 MMscf/d.'
We have 3 more Logbaba wells producing gas. You'll need to go back through the RNS's for your calculation - but this above gives you a minimum capacity to use.
We are planning drilling Matanda that has over 1 tcf of gas.
We could also take a cut from Etinde gas (Blvn /New Age) if we transport it through our pipelines.

My view on the Hadron Loan was that it was useful, but not necessary. It was more to enable Hadron, one of our major shareholders, to get an extra chunk of stock without having to buy in the market.
' Pursuant to the terms of the Loan Note, the Company has granted Hadron warrants over an aggregate of 10,416,667 ordinary shares of £0.005 in the Company's share capital ("Ordinary Shares") (the "Warrants"). The Warrants can be subscribed for at any time prior to the third anniversary of the Loan Note.



· The subscription price of each Warrant is 6.0 pence per Ordinary Share, representing a premium of 20% to the closing mid-market price of 5.0 pence per share on 7 April 2021.

Annual report and accounts this June - should give some indication.
My guess is that we are already at breakeven with 0.56 mmscf/d added recently, (and 0.95 mmscf/d to be added this summer).
G&A has been reduced considerably, 110 employees in-country, less than half of 3 years ago.
Roy's salary is about 15% less than Ahmet Dik's.
We pay less monthly under the CHL Liability than we would have on royalties.
However, we have an upcoming drilling programme, and too, have been actively settling issues which will lead to large lawyers fees etcetera.
Eneo's $5.1m + valuable tax credits will help; and I think we had about $5m net cash when last reported last year.

Noticed this comment on page 5 of Eneo's stakeholder bulletin : https://eneocameroon.cm/index.php/en/actualite-communiques-en/communiques-communiques-de-presse-en/3091-stakeholder-bulletin-first-quarter-2021
'Major work is underway on generating units at the Limbe and Edea power stations.'
The last news I had on this was:
https://www.energymixreport.com/cameroon-seeks-new-partner-to-build-limbe-power-plant/
Presumably there is now a new partner (not Eranove) for Limbe?
Getting ready for Etinde gas?

Noticed this comment on page 5 of Eneo's stakeholder bulletin : https://eneocameroon.cm/index.php/en/actualite-communiques-en/communiques-communiques-de-presse-en/3091-stakeholder-bulletin-first-quarter-2021
'Major ?work ?is ?underway? on ?generating ?units ?at ?the ?Limbe ?and?
Edea ?power ?stations.'
The last news I had on this was:
https://www.energymixreport.com/cameroon-seeks-new-partner-to-build-limbe-power-plant/
Presumably there is now a new partner (not Eranove) for Limbe?
Getting ready for Etinde gas?

VOG is clearly getting better all the time under Messrs Kelly and Collins who are proving to be adept at everything from debt collecting to asset disposal and becoming highly proficient at the world of ESG. It will come as no surprise to anyone familiar with the area that getting the cash in from Eneo and closing the deal is in itself worth lauding but to fund GDC with the $5.1m, worth more than 2 months of turnover is the real deal.

The SGI sale is still live but KC and the sunshine band have kept the sale open without getting too over-excited and we may have more to hear from this in due course. Maybe the best news for growth going forward is from Matanda where the ESIA Report on its planned activities on the Block has been approved. The certificate of environmental conformity permits the progress of drilling activities subject to the implementation of an approved Environment and Social Management Plan. With canny changing of the previously first ranked prospect and with careful appreciation of the art of local diplomacy, Matanda is becoming the poster boy of the portfolio. Stand by for a CEO interview with Mr Kelly before long.

Very interesting, jRich, particularly on Kemerkol.
Also to add to the list, a new RNS just out:
'The Company expects to publish and circulate the 2021 Annual Report and Accounts to Shareholders before the AGM' (30th June)