Member Info for JRich20020

Well, we can't be sure about that. Couldn't see anything in the numbers published to suggest that. A JV is like a marriage - for better or worse. No cherry picking.

We have partner with 25% and SNH can take 25% off both. If that happens we end up with 56.25% - less than logbaba.

It's profit share. RNS from 2016 when RSM started participating spells it out. It's a JV - share revenue and costs.

I suspect the original gas rate had an element to cover installation of infrastructure, given that it was a proof of concept and had no guarantee of renewal. In any case it wasn't double before.

Possibly, But I would have said that was a heads of agreement.

Dik's a lawyer. I doubt it would have been that loose, particularly as payment is the key consideration here.

We can argue the toss all day. A final signature will, I'm confident, eventually be put on a document.
The delay may also be in part due to a decision on Bassa, if they want a comprehensive deal.

From the Dec RNS

'The Board is pleased to confirm that a binding term sheet was signed on 21 December 2018 between GDC and ENEO for the resumption of gas sales. '

Presumably this includes payment terms.

The final signature may be a ministerial one when there a diary slot.

A signature doesn't guarantee payment.

It was a confirmation update to say that the power station was now up to full power.

Don't knock it. One of those every 2-3 weeks could settle a few nerves.

You're assuming it was a rig. Probably a miscellaneous assortment of surplus parts.

I don't believe anything was paid, or will be. Nothing in the accounts. Glencore were keen to get shot of it. They had problems of their own, and I believe were after the condensate and had no outlet for the gas once flaring was banned.

VOG took on the work programme with their partner as a condition of the transfer. SNH can back in for 25% which if they do will leave VOG with roughly the same % as Logbaba.

This seems a reasonable assessment of the situation. No major commitments in the near term.

I would say this month is likely to be the lowest point for cashflow. After that Eneo revenue will kick in. Min take or pay is worth over $13m a year gross and it will be higher than that in the earlier months.

While I accept the update was an operational one, when cash is tight cashflow is really an operational issue and should have been commented on if only to reassure. Failure to do so just leads to speculation.

They're presenting at the proactive oil capital conference on 31st. Wait for the video. Hopefully someone will ask the leading funding question. They have a deal for the rig but whether money or a percentage cut is involved is unclear.

Even if they have a successful drill I think they are optimistic if they are expecting first oil in 2019. I'm sure they have to be granted an exploitation licence and get a presidential decree first. Late 2020 is my guess based on other companies approval experience. We shall see.

Given that there could be ongoing negotiations on West Med, IPO's, Bomono etc. all going on currently, they would still be prevented from dealing. Really only possible in a steady state situation. Well, that isn't the case is it. I guess signing a major customer for thermal or local power would be ok as it's part of the normal business but otherwise I think they are hamstrung until a result is known on the others.

Not purchasing shares could be interpreted as a good sign since they are not permitted to buy (or sell) if in possession of price sensitive information

'Directors, like any other shareholders must comply with Market Abuse Regulation (MAR) 1.3.2 on inside information. This regulatory mandates that Persons Discharging Management Responsibility (PDMRs) i.e. the company statutory directors in this context cannot deal when they are in possession of price sensitive information, i.e. information that when released to the public is likely to have a material impact on the share price of the stock in question.'

I would have thought there could be plenty of that atm. At least that's what we're hoping for.

Aren't they the outfit that supplied a duff rig which required extensive remedial work before it would work?

Maybe VOG made a wise choice.

Mel,

It's a stuck gun not drill bit. No idea how difficult it would be to extract it but it's only 90 m down. When they first mentioned it no depth was given giving the impression that it was stuck way down. I don't think there's any immediate need to do so and in the interests of conserving cash it made sense to leave it. Plenty of room for gas to flow round it as it has to fit in the narrowest liner at the bottom. Of course it could prevent other activity. I'm sure it will be dealt with over the next few months now things are easing a little.

has been posted before.

https://www.orrick.com/News/2018/11/Orrick-Advises-ENEO-on-Extension-of-Electric-Power-Concession-with-Republic-of-Cameroon

Difficult to judge timescales but it implies ENEO contract extension negotiations have only recently been concluded.

I'm sure they would have publicised their involvement as soon as possible.

For clarity. The date on the CH website is the date the accounts were approved by CH and made public. It is a 2 stage process. submit and approve.

If you open the accounts pdf you will find there is a submission stamp from CH dated 28/6/18. So the accounts were filed on time.

If you are 1 second past the filing deadline you will be fined. I can vouch for that as it happened to me - 1 minute late due to website problems. I think the fine was 200.

Some of this stuff is in the accounts over the last 2-3 years. CNG decision deferred until after wells drilled. Obviously it has been taken now. Savannah is an independent Cameroon business. Any VOG interest would have to be disclosed. The main man is on linked-in. One of the others has his profile available on the website. Non disclosure of what? You don't know what they were told in their prospectus. ENEO's cashflow problems were mentioned back in 2016. Any business that issues promissory notes is likely to have continuing problems. The risk of a dominant customer was highlighted in the risk section. Any investor would have read these documents and been aware of that. Your question is assuming permanent loss. THe SP here goes up and down like fiddlers elbow. Who knows where it be in 3 months time. Normality could revert at any time (or not).

The last AGM I went to a couple of years ago he said he hadn't actually recovered his money at that point. In any case his interests are for approx. 78%, the balance is a Cameroon interest. The royalty deal, whether good or bad, was approved and RNS'd back in 2009. It was a significant risk and I doubt anyone would have had any sympathy if 105 had gone the way of 106 and it had been game over. Most entrepreneurial types lending to a struggling business in desperate need of funds with such risk would have driven a much harder bargain.

The bomono agreement is conditional on govt approval which hasn't been given yet. After that, build a processing plant and lay a few km of pipe to connect to VOG's pipeline. Assuming approval is given by the hoped for date I guess you need to allow 6-9 months before gas starts to flow. The 30th June deadline suggests they want to get things in place for the start of the next dry season. After that revenues will be customer consumption based on an averaging basis across the whole network. I doubt any figures will be reported until after the end of Q1 2018 at the earliest.