Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I wonder how comfortable AP is with AA now above 7%. Is this just an investment in Chariot or will he look to takeover on the cheap? I think he does have history with takeovers, perhaps it was him that made the informal approach that AP mentioned. IMHO, DYOR.
I think the continuing delays to Anchois first gas, plus the perceived risk / uncertainty is probably the major factor in the SP decline, rather than the other pillars IMHO.
That said, I would like management to be more transparent about when will start seeing earnings from the renewables and what value they will eventually bring to the business.
Hi Fernan,
Looks like they are being very conservative in their resource estimates for the LNB-1 lower, due to the lack of log data.
If the original Anchois resource was upgraded tenfold by the latest processing techniques, then they must believe they can achieve similar results in Loukos.
IMHO
I think that the Energean decision on the 10% option / carry will depend upon finding more gas in the new sands of the new Anchois drill. They still have Soc Gen in the background to fall back on for finance if the option is not taken up. We can’t be that far away from some revenue streams from the renewables, otherwise, what is the point of the other pillars of the business. At the moment the SP is priced for the uncertainty / risk on Anchois. Let’s hope success with on-shore will change things.
DYOR
Thanks GreyPanther,
I actually received an email from IR this morning confirming that the existing hole will be plugged before the new side track drilling.
Where they have stated that the new side track should not have the same issues because it is only 100M in length. Do we know what was the length of the existing side track? Surely it was similar in length? Just trying to assess the risks.
thanks.
It would be nice to know why the sand jetting failed. Was the formation damage greater than predicted? What will they do differently to ensure the same problem does not occur in the new proposed side track. Will they plug the existing side track or leaving it producing in parallel? They should give more info IMHO.
I think Predator had trouble perforating the zones during testing because of formation damage by the drilling mud. Hopefully we have better luck with our on-shore drill & test. Not sure if we could encounter the same problems though at Anchois during testing. Jimmy maybe able to advise.