Member Info for highlandmatt

Thanks for the steer to this FabPhil. These bits jumped out at me:-

Q7: As you are trying to partner with gas purchasers to fund mou 4 and 5 but without any gas coming to surface what chance of success do you apply to these two drills?

As will be revealed in today's webinar presentation the chances of success have increased significantly following an evaluation of the MOU-1 results. This takes time and cannot be done in 24 hours. As we move to further drilling we need to manage expectations but focus on the fact that this is a new exciting gas basin undrilled for 35 years until we took a leap of faith which is being highly rewarded. In the context of 35 years we have made instant progress, This is what interests end gas users. A new basin with unknown potential for potentially "big" gas and a management team committed to Morocco over many years with a proven track record in delivering.

MOU-1 has increased significantly the COS (of MOU4/5)

MOU-1 came in right on prognosis and opened up a new gas basin. Drilling the Jurassic in the new prospect would take things to another level in a success case and be more cost effective right now than 3D - which will cost more than the cost of a well.

Lonny forego significant termination benefits to join us from SDX

The 5p placing came about after the MOU-1 results on the basis that the results gave us the impetus to increase the potential drilling programme and fund the move to AIM.

With Lonny on board now we have some fresh blood, new energy and different options. Should be interesting how this works out over the coming months.

Clarification - 6. EAG - no immediate repayments to Scirocco. Obviously there will be income in time, but Tom wants EAG to make more purchases, so doesn't see it efficient to take the money out, just to write another cheque.

I've just listened to the interview Frank set up with Tom. Well done Frank, getting an interview with the CEO. A short summary of what I picked up.

1. OneDyas - A good explanation of why the deal fell. Basically as the gas price dropped, the finance offer was withdrawn.
2. Gneiss - a different function to BOD. Already involved in Ruvuma process. Good network of contacts. All companies have brokers / financial advisors.
3. Ruvuma - funded for seismic. Awaiting details of work program. Seeking to maximise value. Will consider different deal structures. Looking at future performance as no-one knows quite how big it will be. A number of tests over next 12 months.
4. Broker note - expected once have more detail of Ruvuma costs.
5. Kiliwani - packaged with Ruvuma. Seeking buyer for all TZ assets.
6. EAG - experts in AD field. Repeatable process - buy/optimise/add technology to improve. Buy another. No repayments expected to flow to Scirocco. Plan to keep funds in JV to invest in other purchases. EAG has a list. Next one hopefully early 2022.
7. Could do similar JVs / projects in other fields.
8. Wish to minimise dilution, but balancing cash requirements.

MJ - it's a Caribbean island, which are renowned for the relaxed pace of life. The whole areas is a holiday destination for a reason. If you think this is slow, try Africa. I think TXP is doing astounding well in getting things moved along, although I think PB has sometimes been caught out expecting progress to be a little quicker. As others have highlighted, nothing like this has been done in 20years. There is potentially no-one left in the key departments that remembers how Carapal Ridge was done. As PB has said, the main risk is time. It will be better for your health if you just chill a bit.

Thanks Frank, appreciate it.

Thanks Frank. For those of us without Telegram, could you put it somewhere we can see it? Facebook? Google drive, twitter, Reddit? Will the company put it on the Scirocco website?

Sorry, not sure how 'strong buy' got in. It's a 'hold' for me.

Agreed.

Thanks 44RJ. I agree that work has costs, and realise these hourly rates can be significant. I also agree that the RNS states it is cost effective and in line with norms. My concern is that not be backed up with evidence.

Frank - I think all holders would be interested to hear a justification for always using Gneiss. How do their rates compare? Has benchmarking been undertaken to demonstrate value for money? How much is the retainer and what do we get for that? There is a concern that any income just goes automatically to Gneiss.

Hmm. Why do we need Gneiss to find deals, when we have just JV'd with EAG for that purpose? Unless this is more about the disposal?

I disagree Scott. I think Coho hookup is significant. First gas from Ortoire is symbolic, and the boost to the bottom line will be welcome. That $6m net profit goes a long way to paying drill costs. Even better if a second well is done within the year. It's not just Royston flow rates, but the initial resource size that is eagerly anticipated. 'Bigger than Cascadura' is the expectation.

Hi Smasher - A month ago PB was saying that Coho and Cascadura were 'moving forward, going through various stages of construction and processes'. I also seem to remember a comment from the minister stating Coho would be online in a couple of months. I would agree progress is excruciatingly slow, and stop/start, but it is moving in my view.

Shell is closer than the pipeline to Coho. It was the quickest route to market.

Coho - is moving. Cascadura - T&T government asked TXP to submit an application for the whole field instead of well by well. It's happening. Patience.

https://en.wikipedia.org/wiki/Short_(finance)

Tom - you bought at 15p odd, believing PRD to be a good investment, and you are attacking MEM for suggesting folk should buy at 5p?! Doesn't that seem a little strange.?

Figures are from the last presentation.

Unfortunately the GSA for Kiliwani is a fixed price.

Glad to hear you are recovered. Yes, I've used the last 6 months to increase my holding, adhering to Buffett's principle of buying discounted quality. I am also holding long term - revenue will be impressive once all the discoveries are hooked up.