Member Info for in4cedros

Briggsy - nah - but RNS make good reading - how about the BOD turning a >$100 million legal claim into an aggregate value benefit of $9 million, including $2 million near term cash from sale of Cory Moruga ( a non producing asset! ) then there’s the $1.1million from the other asset, 35 bopd lost production.

What about the saving in expenses - over $1 million PER ANNUM ?

Billy - thanks for your post - it’s refreshing to see a post on here from a longer term holder that’s not disgruntled- excellent points - good luck !

Max - hear what you say but imo PRD are very keen to run a project in Trinidad using their new tech where they can operate on their own and potential is very good for that site for a quick win if all goes well. They know exactly what problems are there from due diligence.

PRD knew the financial position before they concluded the deal. Note directors of PRD have large holdings, Paul had more than 50% not long ago so it’s a hobby as well as a job.

Druid - calm yourself!

Don’t know for sure - Bonasse produced 7 bopd in November , bulk of balance very likely from Goudron and TI as these 2 are the new focus of attention from strategic review. TI could be one to watch with good infrastructure and work over potential plus EOR collaboration from our new BFF PRD!

Recent RNS re asset sale suggests CEG will be losing 35 bopd production for 2023 onwards but as mentioned previously this is trade off to save over $1 million pa expenses and trousering > $3 million near term cash.

Briggsy - tut tut - ‘ barely producing/selling any oil ’ - have you not seen quarterly updates, not to mention February RNS from which production could be deduced at 350 bopd .

Plenty of areas for haters to hate without minimising production - 350 bopd might not seem much to a mogul like yourself but its significant for CEG!

there not their !

Gibbo - great PMA - hope it works out for you - at least your eyes are wide open about the risks here !

I always try to look at it from POV what would I have done differently - I certainly believe their should be more payment by results for BOD but that will be forgiven by many if they pull off Uruguay.

Max - it was NIL.

Potentially it’s way over 100 bopd but there were technical problems, particularly water cut, that made development problematic. PRD are paying a good price for it so they clear believe they can deploy their technology/ cash to achieve an effective result.

I’m assuming they’ll need some large tanks to deal with water cut on site.

Re 100 bopd trigger yes I’m sure they’ll be wary for the $1 million but if they can get significantly more it’ll be worth paying the price at current WTI.

Madmax - I would certainly be interested in a detailed evaluation of the measures taken to increase production and how successful they’ve been. As you rightly indicate they are old fields and it’s a feat to maintain overall production because success in one area is often matched by gradual decline in the round.

Having said that they seem optimistic on TI field which has good potential and except the PRD involvement has had little CapEx for many years. infrastructure is very good at TI and PRD are on board to assist.

Briggsy - CONT - regarding the Uruguay opportunity looks like a binary issue - if they succeed in farm out, as CEO suggests, within 12 months, SP progression will probably exceed most shareholder expectations - if it fails - another disappointment- that’s the deal on a high risk Exploration and Production Oilee! No one obliged to invest DYOR!

Briggsy - CONT- They’ve also stated they’re in negotiations to sell other assets in Trinidad so watch this space - BTW an aggregate sold value of $9 million regarding Cory Moruga with buy back option looks like it was worth holding out for!

Briggsy - CONT -strategy has evolved in Trinidad from production to profitability and even die hard disgruntled ex- shareholders would probably accept BOD have done well to exchange 35 bopd from 2 recently sold assets for an annual saving of over $1 million plus near term cash exceeding $3 million!

Briggsy - thanks for your honesty- I agree that was the stated aim - we still haven’t had a full report of the measures taken and the effectiveness but I suspect that they’ve only had modest success - nothing to write home about or RNS. That said they’ve managed to keep up production to around 350 bopd so can achieve useful cash flow and cover Trinidad expenses.

CONT…

Briggsy - what was the stated strategy 6 months ago ?

Madmax - strategy is now very clear - I’m very concerned about the future health of your feet!

Nice one BillyRay - good to hear the strategy outlined by CEO - seems like some of the disgruntled won’t like the idea of more cash rolling in from additional ‘ non - core ‘ asset sales but existing shareholders are the ones to be pleased now!

Gazza - you’ve sensed the mood of inner turmoil from the disgruntled!

Druid - would you have held on to those assets to save face, for the benefit of the disgruntled ex-shareholders?

Gazza - have at look at recent RNS - 2 strategic sales of assets it was uneconomical to develop bringing in over $3 million in the near term - what’s not too like - it will certainly keep them afloat whilst they titillate the Uruguay holding for the big boys!

Briggsy - I gave the example in my post of a possible scenario if they had to Place to fund working capital from a position of relative weakness - perhaps it’s difficult for disgruntled ex- shareholders to understand.

If you were in charge would you not have sold them for those prices - they both needed lots of capital and some expertise CEG lack and even with a fair wind no guarantee of success?