Member Info for highlandmatt

Actually, i got the sum slightly wrong, as my calculator that i had to hand didn't have enough digits for 161m!
It's 11.3% dilution, so 48.7p.
Sorry.

Emphasis on "minimum"?
Also, $9m @1.3 = £6.9m
@38p = 18.2m shares.
161m shares, so this is 13% dilution.
13% drop from 55p = 48p.

Sooo. not disastrous, just annoying. Should be a good investment if it accelerates Chinook and Royston (cash had to come from somewhere). Do we assume events are moving faster than Heritage (or anyone else) were prepared to move to pre-buy the Coho gas?

I know this is back of envelope stuff, and requires a few assumptions, but just thought I'd have a go at working out a rough future market cap, based on what we know already. Feel free to add to this or correct:-

1. Current oil production c.1700 bopd covers overheads and a certain level of either declines or developmental drilling. Turns a small profit of a couple of $m / year. = not much value, and probably the £20m mcap that we sat at last year.
2. Coho. 12mmcf/d gas. Based on selling gas for around $3, maybe income of $7m / annum. PB states this goes straight to profit, as no infrastructure costs.
3. Cascadura is twice as big, as tested so far, so another £14m / annum, just for the gas, ignoring the condensates.

So, even ignoring the underpinning oil production, condensate byprodust from Casca (!) using a p/e multiple of 10, the two new gas wells will bring in $21m/yr in profit, so are worth $210m on their own.

That's £157m. Current mcap £89m, so another 68m to go, or 76%. 93p.

That's without the upper zones tested at Cascadura, without the condensate, and without Chinook and Royston.

Looking forward to the rest of 2020!

...then a similar size negative delayed trade from yesterday, followed by a £1m sell. Can anyone explain the relationship between these 3 trades, if there is one?

...but that is a chunky buy! Not often you see £250k spent in one go on the open market.

This major Capex has been known for a while. It costs a years worth of EBITDA, and even if it goes smoothly, seriously dents cash available for shareholders. I suspect folks are thinking that their money is better invested elsewhere for the next year, and then come to KMR once the capex is out of the way and there is a few years run with anticipated dividends.

Hi Tanzania.
I hold both (AEX and TXP), and Solo. I was merely responding to a question from a fellow investor for any prospects. I thought these boards were for sharing info?

But yes, once AEX get the licence, they will have a free carry to 25% of a 2TCF (and rising) field. So similar to TXP's 80% of 0.5TCF, and the SP there has suffered from the loss of its own 10mmcfs well, which was bringing in around $800,000 a month.

Best wishes and greetings of the Season to all investors (of any company), whatever their views and strategies (excepting shorters who then unfairly slate a company).

Have a look at Touchstone Exploration (TXP) operating in Trinidad and Tobago. BOD invested and seem cautious, competent and communicative.
Producing c.1800bopd, cash generating, relatively low debt of $15m. No licence issues.
2x recent development success (1st gas - 0.5TCF at 10mmcfs and easy tie in to refinery 3km away, and 2nd oil - hundreds of feet of net pay, requires testing in Q1). Current MCap £35m, but in my opinion should be £100m in 12 months (based on connecting the gas discovery and proving up the oil find).
I hold, but DYOR.

Makes you wonder. Options appraisal.

https://www.mining.com/web/violent-protests-shut-down-key-rio-tinto-mine-in-south-africa/

But what caught my eye was the $460m expansion. Makes our capex seem cheap.

@MJ. How long has the UK spent looking at HS2? Matters of national importance take time. Just because we want it done quickly, doesn't mean Tanzania should rush themselves.

That response seems plausible. Trying to predict what shares need to be issued at what price, when you don't know for certain what you will have bought in 3 months time.

What I would like is a low offer price to existing shareholders, say, 3p. And then an opening price of 10p! :) I suspect we'll be offered higher than the former (to reduce dilution) and achieve lower than the latter (I'm not that lucky!). The questions will be, minimum and maximum buy quantities in the offer, or whether it will be prorata to existing holding.

Apologies if this has been mentioned before. Not much extra, just a couple of observations (I've highlighted these with '):-

"The company shortened the flow-back period due to equipment limitations and environmental considerations 'such was their confidence'. 'This is a seriously good result' for Touchstone who will now shut in the well for an extended pressure build up test. It is also worth noting that this should come onstream during 1H 2020 and that Coho-1 is the smallest prospect on the Ortoire Block.
https://www.malcysblog.com/2019/11/oil-price-jadestone-touchstone-petrotal-and-finally/

Frank. I don't think anyone 'told you the licence would drop in October'.
Plenty of folk 'expected' it to drop, or 'hoped' it would (including myself), but that is not the same.

Just to advise I had the corporate action through this week. Accepted the offer, and will put the funds in solo/Scirocco. Much better prospects going forward.

Wow. Market didn't like that RNS. Income down, debt up - easy to jump to superficial conclusions. But another top up opportunity for those with an eye to the future. Still generating operating profit and lots of development underway.

Cheers Bagman.

Was there a closing date stated in your offer pack for accepting the offer?

Interesting. I've not had a corporate action through. I'm with Iwebsharedealing (part of Halifax).