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Hi Gordon
Depends what the money is for if Cambay they may be able to make a charge against a free carry. If they get a cc licence award they will need finance and I would think be able to use some of that. Also as a last resort short term overdraft until pump up and running etc.
Hi Gordon
Capital gains tax or Indian equivalent is a different type of tax and nothing to do with profit or loss. It is to do with asset value and whilst a free carry to increase asset value by an incoming JV partner would be tax free. A cash payment would not be as it would be deemed a part payment for the asset thus best avoided .
Hi Gordon
I would think like in the uk where any cash payment would be deemed as part payment for the asset and would attract capital gains tax it would attract the equivalent type of tax liabilty in India. Aminex had a similar tax problem in tanz a few years ago which took a year and they still ended up paying. Thus I think a larger free carry is best.
Hi Gordon
I think as operatorship is involved it will have to be at least two wells possibly more doubt if any cash as that could bring in an unwanted tax situation. Aminex ticker AEX may be a good example they seeded operatorship to ARA and they got a free carry which enabled them to cover there share of expenses. This is going to have to be a number of millions and that alone should see a good increase in the share price.
To continue the only way for this not to go over 1p with all the catalysts to come over the next 12 months especially with JV drills in the later stages is continual shorting and in such situations in the past shorters always get burnt thus I think the price will rise above 1p
Hi Zagegypt
Look at all the catalyst to come this is the type of share where in the future shorter's end up getting burned iv'e seen it before. They become over confident that they can keep making money by brining the price down, they are blind to the fact that too many catalyst's within a 12 month timespan for them not to get burnt at some point . Just go back and look at shares in the past with similar situations and see what has happened.
We have I hope 3 near term catalysts cc licence awards hopefully we will get at least one, JV signed, and pump arrival and installed . Anyone of these or a combination I hope will see us at .4 to .7 then in a few months with the right promotion on the run up to next drill from JV agreement which I hope will be at least two drills back into the pence or at least 1p depending how well next drill is promoted.
Hi LahOre
Pleased we agree sounds like we are on the same page regarding consolidation. I have been specializing in oil and gas for about 30 years now. The share price who knows with all the catalysts to come hopefully a good profit for all us long term holders.
Hi Gordon
Thanks for the kind words you and me both at present topping up when I can as I think we have a number of catalyst to come over the next few months.
As an aside a few weeks ago you and espenviking were talking about consolidation Deltic ticker delt have just said they are going to do a 1 for 20 consolidation approx 1.75p to 34p .I think this a mistake I was going to buy on the run up to result for selene drill partner Shell at approx 1.7p I would have expected 5 to 6p on the drill run which is a good profit . I don't think at 34p I would see equivalent of £1.20 thus not investing same as a lot of others. Its one to look at occasionally to see the effects of consolidation in todays oil and gas market.
Hi LaOre
That's why I said in a previous post the words if it is them. Still could be however I still think it is likely to be a multinational if they are considering allowing operatorship to change and we are only talking about 1% - we would gain a lot of advantages in such a deal
Hi Gordon
cairn have had a name change and are now called capricorn If it is them. I don't think change of operator would be a big problem for GOI if it's a multinational. There are many advantages for us shareholders if anyone of the multinationals. Not least the increased in share price when confirmed and then a four or five bagger on the run up to drilling results thus could easily hit 2or 3p
Reading again what little there is in the RNS I am left thinking that this could be a very large blue chip oil company which could be why they want to be operator and we may even get a free carry on more than two wells. Who I am not sure any idea's anyone I can think of at lease two.
Is this one potential JV partner or is there more than one potential partner interested . Is today's buying due to a leak or is there another potential partner slowly starting to buy .. Why suddenly issue a RNS today ? what's the reason I wonder unless of course they had no choice . I think from todays price over the next few weeks we could easily reach .40 or .50
Another point to remember is all those shareholders who tuned in for the only court case we were able to watch and would they really want that ten fold from shareholders and that could so easily happen, there are a large number of existing shareholders who have there lives ruined by what has happened.
Shareholders cannot be excluded from the future of the company be it sale of company or continuation of frr in one form or another . They must know that legal action from shareholder would quickly follow if they so much as tried . Would they wish to loose control of the company to by then a large group of angry shareholders and funding for legal action may not be a problem if required.
Anybody remember my post 27th October2019 when the Sunday Times business section indicated that BP had been using Top Secret firm Plantir. Wonder if they are still using them and if so will there expertise now come into its own. At the time BP were said to be very interested by posters and some even thought there was a NDA in place.