The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The loan and the 29% acquisition shares are not linked. The shares are conditional and will be issued to Valkor once funding for the plant is agreed and drawn on, the loan is a separate matter and is to be repaid to Valkor, various options for repayment were laid out:
“The Loan is repayable by Greenfield through a number of potential options, or combination of such options, at its sole election, such combination adding up to the US$1.5 million principal amount of the Loan, plus any applicable interest or fees incurred. The repayment options include granting a share of potential net production revenues to initially offset the principal amount and for a period of five years thereafter from any oil well(s) planned to be drilled on the Lease Area, but for which the requisite further funding and permits have not yet been secured; and/or straight repayment of the principal amount plus interest and fees amounting to 15% of the principal amount of the loan, payable on the maturity date“
Would actually consider a share of production revenues from the planned wells more likely than a straight cash repayment, but will hinge on the detail in the long awaited financing package.
Feeling rather positive in the back of the recent Heavy Sweet Oil presentation, though perhaps we don’t see any financing until the approvals for the well programme are obtained…
Looks like this was clarified by the Malaysian authorities recently.
Suspect the dividend announcement is incoming.
https://www.thesundaily.my/home/taxation-of-foreign-source-income-the-saga-continues-HH9494786
Also enjoyed the "new things under wraps' snuck in at the end, I'm hoping that one of these new things is a massive trial in Mexico and that he's basically unable to say anymore currently due to NDA's. Panama sounds promising, would be interested if anyone is aware of the opportunities there before I do some research. Morocco Q1....I'll believe it when i see it, but at least it's definitely still active. I also love that they're talking about multiple opportunities in Utah.
Big year ahead folks, hang tight.
Can anyone remind me of the throughput of 1 MMU?
Is it 1000 tpd? so like 6.5k bopd?
“When there’s blood in the streets” springs to mind…
Have to agree with the majority of your post Pharoah, kept us in the game and now multple projects on the near horizon.
Utah, MSC and Mexico are all massive opportunities and Morocco will give us a steady income stream and a great demonstration to larger scale industrial partners.
On Utah, it does look like Tomco is getting its ducks in a row and they seem confident of financing early next year. I would encourage anyone who hasn't to listen to the latest Directors Talk interview and read the Pro-active research report, Valkor have their backs and they're already talking about multiple 5-10kpbd sites in the Asphalt Ridge area. If Quadrise gets the customers lined up for MSAR/BioMSAR over there it's going to be very lucrative, and importantly a huge improvement on the carbon emissions front.
Indeed, would be far more frustrating to have held shares for 10 years only to bail out months before commercialisation begins and watch the share price multiply from the sidelines.
Despite the endless delays I'm genuinely very excited for the year ahead with Quadrise, I honestly feel massive success is far more likely than failure, here's hoping we're all celebrating a year of contracts and growth at next years AGM.
Depends when you jumped in swamp I suppose!
We also didn't have a planned trial with the worlds biggest shipping company a year ago...
or multiple institutional investors on board...
or an NDA with the Mexican National Oil Company...
Out of interest what contract are you hoping for by Friday?
MSC LONO agreement to be signed Q4
Morocco site B trial to be undertaken Q4
Secure Utah fuel clients Q4
These are the latest projected timelines given by the company so nothing due by Friday that I'm aware of.
I fully understand everyone's frustrations here but I personally am willing to give them until at least the end of the year for news on at least one of the above.
SP was sub-2p a year ago, so +50% for the year not too bad is it?
Perhaps the Moroccans continue to be over cautious and aren’t allowing third-parties on site? (as was the case previously, even including their own staff/contractors). Not a lot Quadrise can do in this situation other than prepare as much as possible, which is what they’ve been doing.
They’re obviously rightly concerned about keeping their operation running, let’s just hope they’ve relaxed enough to allow this trial to get going.
I honestly think this is a possibility, by buying out these two small companies, even if it costs you £2bn, you are basically buying the key to unlock 2 trillion (yes, trillion) barrels of oil equivalent which is the worldwide estimated oil sands reserve total. I'm watching the Petroteq situation very closely.
They can have mine for £1.
Well I didn't expect to see sub 3p again, seems like a good opportunity to add when the general sentiment is low, I'm banking on a Mexico MOU before the end of the year to re-ignite the share price. The MSC trial will be ready when its ready, Mexico and Utah (in fact all tar sands worldwide!) will be massive markets for us, keep your eyes on the prize(s) folks.
Should be good support below 3p and especially around the placing price,
Inclined to agree around using an arbitrary PE for valuation - but you have to start somewhere! I believe Tesla's PE topped 1000x earlier this year.
I prefer to be conservative and then pleasantly surprised.
However there's so much going on here that valuation methods could easily go out the window when things get going on multiple fronts. As you mention the addressable markets are huge and growth could be rapid given the right circumstances.
(For reference I assumed a PE ratio of 15, on 10% of Mexican HFO production of 240kbpd, via a tolling business model.)
Hi All,
Feeling positive after last weeks call, lots to go though and much to look forward to.
Getting increasingly excited by the prospect of MSAR roll-out in Mexico, the more I research this the more it feels inevitable. (which I understand is a dangerous word to use when investing on AIM).
After some very rough numbers, conversion of just 10% of their HFO production to MSAR could add 20-25p to the share price here. They appear to be screaming out for a solution to their supply glut of HFO, they are also in my view desperately in need of the potential ESG benefit MSAR could bring.
If news of a trial there is announced I expect fireworks, especially if it comes amidst other positive news flow from the current suite of projects.
GLA