Member Info for InJamesweTrust

Matteales
That is *******s debt and bonds are subject to covenants and strictly worded Facility agreements governing the action of either party in event of a multitude of eventualities. They cannot just decide to call a debt in because they feel like it

EAS10
What's your problem with that as a cash allocation strategy exactly for those sitting on cash? This isnt about existing positions, it is about the current market state.
Interested to hear your actual thoughts instead of just spewing bile.

A poster on Twitter indicated if you can hold long and not be impacted by events, dear boy, events then recognising panic and using it as an opportunity to add is a very sensible strategy.
When the madness ends who know but drip feeding cash by 10/15/20% lumps every 2/4/6 weeks into which ever investment you think has tanked and will recover is a good way of capturing the lost ground to date and any future lost ground and not lumping all in at once and sitting on a chunky loss immediately.

There is nothing but blind panic going on just now with everything getting hammered. Alas, it is from these levels majors may be tempted to start M&A activity.
No sign of it getting better in short term - when was last time FTSE had a 9% initial drop or 560 points!

Colonel drake
There are no traditional cash flow based covenants and the board has made clear the covenants which do exist (reserve based) are in no danger whatsoever.
If you dont have a clue dont post.

This is essentially a bit like time travel. Go back to early 2018 (I think) when we were 22p and starting to be mentioned as an interesting new prospect with upcoming CPR and a few good holes next door.
Well, there is a bit more meat on the bones today than 3 years ago with drilling data incorporated into CPR and significant info to build targets such as the stacked ones mentioned by Noix.
The opportunity to get in at this level for the drills as and when they happen in 2020 or 2021 is (to me/in my opinion) an excellent one and I look forward to the new ISA season if these levels hold.

The PPP cannot take unilateral action without endangering the Exxon contract revenue streams. An injunction against Exxon making payment to Guyana to cover losses arising from government expropriation of contract rights could see Exxon assets seized anywhere in the globe if they refused to abide by terms.
I've seen this done when seizing a Venezuelan tanker that had been expropriate and docked in Dutch Antigua for fuel and was seized.
A small commercial tweak may be likely but not such that harms the terms of the contract materially for the non government party.

It is currently 15m barrels gross on our side, although maps lookike more. That is 2.3m barrels net. At $8 a barrel and with cash on balance sheet it fully underpins a price of around 18p a share.
However, the real key is Exxon believing the heavier crude found in Hammerhead is commercial.

That would be the heavy field as attested by John Hess, dont think they have released figures on it yet but clearly they deem it commercial.
Worth noting in relation to our own position.

Pro
Always good to have an eye on the downside, hence top slicing at 172 and 154 on my part. However, the heavy oil was a Black swan event few envisaged and the Tullow debacle well least said about the complete mess they have made of things the better.
When drilling comes then it will bounce in anticipation. If successful the it will do very well.

Proselenses
Everyone can interpret information in their own way. With a significant discount, Tertiary may be viable as it is considered highly mobile in high quality sandstone. This is from Tullow announcement but the headline of heavy and high sulfur grabs the attention with too few looking at context.
There remains a better than reasonable prospect of a H2 drill here in my view which may take a few by surprise. However, think these levels may be with us for a while until the Coronavirus appears to have turned the corner.
US market is curiously over valued so is due more of a correction than many others but as ever, America sneezes and the world catches a cold.
6c a barrel of 2c in such a prospective area is clearly nuts when Total has paid $2 only recently.

Monica
You're obviously well researched when cash on deposit is around 10p per share. Perhaps try reading up on an investment.

Clearly the markets are all over the place and this is being dragged down. It is anyones guess where the markets get to and what the turning point will be.
There is a point where cash on the balance sheet and the fact the 2C is only valued at 6c on the barrel currently.
Transactions in the market value higher once it begins to be proven up so for now, wait and see.
The rudderless nature of Tullow is certainly no help.

EAS10
Depending on view of relative value, buying as it falls may be perfectly reasonable approach/advice.

Tullow dont have covenants relating to cashflow.

They may actually be reserve based which increases the need for drilling.

The near term news on Namibia is the drilling activity of other operators not farm in for Eco. Success around the licence may generate interest/indicate value exists.

Maverick
Total and Eco can proceed on their own and in a success case, that field is theirs and Tullow lose out. For Total itnis probably useful to have Tullow on board to do the admin etc of organising a drill.
However, note Total are taking on operatorship of Suriname acreage after next 2 drills with Apache so will soon need a greater presence in the area.
I'd like to think Africa Oil can bring the right experience to bear organising drilling logistics and funding but has to be worth their while.
FWIW- this area in time will likely be seen up by Exxon/Total, we are in Tullows vortex from their meltdown.
Eco has the funding to hang on for the prize but is beholden to the big boys games for now.
If I was Eco, I'd give Africa Oil generous terms to split fund a drill, pick a spot and get AO/Lundin to drill it. Total and Tullow can buy back down the line if they choose but it will cost significantly more than the drill does.
Not sure Eco will do so though.

I wonder if this is some sort of award Dorothy is going for as the apparent inertia since the announcement is astonishing. With some remarkable opportunities in front of them they've really screwed the pooch.
$28m on a wild goose chase in Peru, signed up to just as the **** was hitting the fan and just when they were aware of the need to get some good news out which looked like Guyana was the place to do it.
Definitely up there with the cheapest bosses to run a company, destroying 80% plus of its value.

They're not shooting new seismic and then.processing that, they are incorporating new info to the existing seismic models. This doesnt take a year but Tullow are so screwed they appear to be kicking the can down the road to a late Q4 drill that would mainly come from 2021 budget.
It is up to Eco now if they can persuade Total to drill as a duo on one of the prospects.
Fundamentally, when they drill I believe they will successfully prove the light sweet oil and I'll be adding at these.levels and below/above between now and then as much as funds permit.

I think even proselenses for all his predictions of doom would have an expectation of a much higher price pre drill whenever that transpires.