The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Androcles
Was glad to be out of sound by then - my biggest worry here was always ending up with similar never ending promises but think PG is rather different to how James P turned out.
Ibiza28
Not the longest straw, multiple wells could be drilled in to a larger field and agreements between parties reached on a licence fee for extracting an amount above their agreed production/extraction levels.
The upfront payment is in the high tens millions/low hundreds because of CNG cost it isn't to sell entire business
Shortshrift
He may not be the messiah, just a very naughty boy.
A great quote from great film if you know it.
Donalb
France generally does whatever France wants and protects its dodgy export markets over international order at times. Whe Iran was sanctioned in 80s you'd always see Peugots etc cruising about when the news was on as they kept selling into them and always have. Understand much of the ceramics and hardware for reactors over the years have come from French companies.
Macron kept trying to be the go between with Putin as well. They're an ally of course but I'd always keep a watchful eye.
If we had done more of the same we'd have more manufacturing left and probably still be in EU as there would have been less resentment.
Que sera sera
Sefton82
It's often the case with founders, hubris can come too easily and from their lofty perch feel there is no need to converse with/look out for the 'little guy'. Robert Trice was similar with Hurricane he wanted to prove the big boys wrong and was headstrong.
Like yourself believe there is commercial gas there but the more deadlines are missed, the more credibility can be damaged/eroded and if they need to come to market the harder it may be.
For those that say PRD hold all the cards, if they did the GSA would be signed by now.
Hopefully, any wrinkles can be resolved and who knows his highness might deign to share via RNS when they do commence testing.
Just to be clear, being annoyed/frustrated with management obfuscation doesn't preclude one from believing in the asset.
This kind of misinformation goes to give junior shares the bad name they have with so many and stop institutions buying
Short shrift
Whe running a beauty parade for a 300m refinancing, we wanted to tie in a partner but we spoke to multiple lenders as equity it was the best way to create competitive pressure and model the outcomes to project potential gain.
Speaking to one person and not testing to give them exclusivity is not the way to create such pressure and get the best deal in my view. Unless, govt in country want a GSA done on favourable terms to serve the local market before allowing wider interest to come to the fore.
The GSA was well advanced when the fund raising was done - that is 2 months ago.
While I'm not selling as I think there is commercial gas there worth multiples of current SP - the disregard for prior statements and shareholders is ultimately disappointing.
From a cash standpoint if the cash raised for drilling/testingnis being used for T&T that is a serious issue (not withstanding fungibility of cash resources if you have plenty).
Short shrift et Al
If you raise the money to test, what is to stop you from testing. Unless they have concern around how OHNYM will react after results then I see little reason to delay. If they are going to blow the doors off, that should bring more people in rather than constrain options.
Fail to see the issue here (unless they have concern about govt) and want to establish contractual ownership to flows with gov as signatory
You're not playing chicken if you've raised the money specifically to do, you are (or to all intents and purposes paint yourself as) the chicken.
This is where NOMAD or listing body should be censoring directors as timelines matter.
We all get judged on deliverables and it seems PG doesn't pay them any regard.
GRH alluded to people holding on to shares in order to experience the best returns - lots will have set levels to top slice at to lock in gains if the results are good.
Whe PG talks of a sale and a result wonder if this is partly what he alludes to. Package MOU-1 and MOU-3 as a deal with a special divi then move on to prove up further value if there in MOU-4. If the testing in 1 & 3 cam prove up 1.5 TCF plus then there is decent value there obviously to package for sale and development without bogging down the company.
OHNYM may also be pleased to see new players entering the market in country to stimulate development.
Obviously need results to be positive for such eventualities to be possible.
chesh
with cessation of trading i hope it also marks the cessation of your pish and drivel for at least 60 hours or so.
testing is being planned or under way - for my money it is under way. the activity on the drillnsites from satellites seems indicative of that.
yes we get you'd rather an rns so you don't **** the bed but the company has indicated they'd update if there was a change and there has been no update.
we will all make our own inferences, we just don't need to make them 15x a day if you could aim for something more constructive and less repetitive/facile.
The off take can work in multiple ways. My feeling is PG would prefer to avoid debt - particularly if looking to sell part of the fields reserves and prove remainder.
Hence, the GPA/GSA price would adjust price per mcf to reflect the NPV cost of CapEx required. They'd need to be pretty confident gas is there but it seems that may already have been the subject of much discussion and the proof if in the process of being acquired (if indeed its available).
This may then release funds to drill and text other targets including Jurassic.
Get the impression PG would just like a big bang sale. What does it take to achieve that is the question and don't think pressure testing MOU-1 and MOU-3 is quite sufficient without some sort of Jurassic drill.
May also depend how he defines Big Bang
Interesting to hear chatter about pressure build and time required being 2x 2 weeks taking us to mid November. Not far off as it goes and should have more knowledge sometime next month one would imagine.
Shakeyerbooty
Thanks was referring generally to exec pay packets but should have mentioned junior explorers not AIM. Cheers
He (PG) is a founder and barring loans to company don't think has sold (m)any shares over the piece so his fortunes are aligned. AIM CEOs are overpaid in cash terms but doesn't strike me as a lifestyle kind of fellow.
Get the impression he wants the CNG flow proven to negotiate funds for this to allow quick drill and appraisal of Jurassic thus allowing a swift sale there also.
Seems not keen on stub equity - if flow rates are what is expected or better, expect CNG deal done this side of Xmas based on advanced negs already.
Drilling Dec/Jan (unless weather an issue) for Jurassic then the fates are again dictated by volume flow but dare say there may be parties interested. They may already have a virtual data room and be discussing options.
Interesting times.
Hi Mav
16-32° API from a quick Google., so a mix but they were know for it bejng heavy. Heavy oil is still needed and Venezela and Russia (Urals) haven't had a problem selling it.
For Orinduik - take the Aoka Miza (HUR) 600k barrel FPSO - can it be one third filled with lighter sweeter crude from a carrier then the heavy sour stuff pumped in? 400k barrel cargo is still very valuable and you get the funds back paid for the 200k light sweet in the market.
The working life of the lines from seabed and pumping pipes is shorter but by how much? From the Hurricane days I recall this was only a small part of the CapEx raise. Alas, the website is no longer up so I can't check.
Perhaps not attractive to a major but for Eco very accretive and for a cash player they could possibly extract an excellent return they wouldn't get on other fields.
Smaller FPSO and crude carrier could do same and fields could produce for several years.
If 400m barrels doen there then it is $25bn plus gross at $61 oil
Venezuela has enormous oil resources of its own but due to their totally corrupt and inept government are unable to exploit them.
It's not the oil they are jealous of, its the international companies coming to Guyana to explore and produce and the fact Guyana isn't sanctioned.
There are clearly hundreds of millions of barrels under there but Total et al cam afford to wait Eco out. The other question is cretaceous light and sweet - Gil says it is but who knows. Does it need to be from a different 'kitchen' to Joe/Jethro to be light sweet instead of heavy and sour.
The oil could be easily mixed and there are solutions to do this on FPSO - it would burn through Xmas trees and pipes quicker than a normal solution and thus higher CapEx/OpEx but from Hess deal it is clear longer term confidence in Guyana production costs is there.
Hess transformed by their fortunes in Guyana and has seen share price treble despite being worth 11 figures before the first drill.
Amazing what a big find can do
JohnHenry
I'd imagine many are now positioned how they want to be for testing results come good or bad.
Normally, there would be more of a run up with late entrants but without a definitive timeline there is perhaps less hot money coming in for a quick flip - that maybe is no bad thing.
On news imagine lots who are in have levels to top slice and de-risk on good news.
If Upland can do what it did this morning, then good news here on CNG being feasible and a sale at wellhead for more drilling to prove up other resource then there is potential for even bigger re-rate here.
All depends on the geology.
Interested in any developments being seem from the satellite imagery.