Member Info for highlandmatt

The only question we need the answer to is "what is the plan?".

Tom indicated the plan was to save up revenues in EAG, then use that to leverage another acquisition in 6-8months time.

Agreed Sefton. We haven't seen any numbers for the link up with LOL. That could add significantly. In time, the potential value is huge, but not there yet.

Mrc - good point re 50% of EAG. I still think Greenan is a good business to have bought. The EAG JV makes sense in that EAG do the work but SCIR doesn't pay for it (unlike Gneiss). The proof will be in the performance of EAG.

There was a previous mention in an AR of expecting $1m revenue from EOR. Another mention of 50% of 350bopd. 175bopd @netback of $20 = $3500/day or $1.2m. I have ascribed $10m value to the T&T EOR business as it stands. Happy to discuss or for others to provide calculations.

No, Greenan has debt, which is serviceable.

Mrc - you state Greenan is low margin. If I recall we are purchasing for £700k. EBITDA is £450k? That's not low margin in my eyes? Remember, repaying capital adds to assets.

Hi Pearson. Read the annual report and accounts. Firstly, the loans were for acquisition of the SASA mine. Secondly, as the company is highly profitable, it is both paying down the debt and paying dividends.

Nigel - links and instructions were provided this morning, around 10am.

I don't know. One for GRH? I thought the dealing costs are taken care of by the placing fees paid by the company to the broker. But I could be very wrong!

Zeus - Yes, if they take 12months. I was thinking of the transaction at 4 months, then it is pro rata. They then have more cash to repeat the trick with other companies in the remaining 8 months.

Unfortunately, large sells instead. Placing shares still working through? Buy at 5, sell 5.2, 4% return in 4 months, no fees, risk free 12% annual returns?

Corpse. This is 75% of my portfolio now. https://www.forbes.com/sites/karlkaufman/2018/07/24/heres-why-warren-buffett-and-other-great-investors-dont-diversify/

I think you need to separate the two transactions.

1. Greenan purchase - pay Gneiss for DD and legal work. Greenan revenue goes up one level to EAG. No plans to take any funds out of EAG initially.

2. Tanzania sale - Gneiss are paid a monthly retainer and then a sale fee.

Money will still be going out the door for a while. Hopefully there will be a decent pay day from the Tanzania sale.

That would generate $600k+ and cover the overheads.

Nowhere near that TM, but enough to make a difference. £4 would allow me to pay off the mortgage if I chose. However, with rates as low as they are, the dividends would give a better return. It might enable me to restructure work / life balance, and so would be life changing enough.

It could be. Or Chinook could come in for oil. Or Kraken. Just don't want folk thinking it will be 10x this year.

Oops 15%.

You might have to wait a bit for 10x. Cascadura could take a year to hook up, then initial flows of 90mmcfd = $50m profit from that. My Mcap projection £450m £2/share. Another year to get full capacity at Cascadura = $100m profit. MCap £800m £4. Which is great, but only 3 fold from here in 2years time. The nice thing will be if £40m is paid in dividends (50% of FCF) that's 20p per share (5% yield at that point). Or 20% income on shares bought today. Wow.

I understand a lot of domestic cooking in TZ uses wood as a fuel. Gas is a better replacement. Save the trees.