Member Info for Kheldar

I think we get the divi if they get the money for the sale of the boat. If not , then I don’t think there is any money to give.

I can’t believe they have been sat in their hands the money coming in has been spent on unsuccessful work methinks. I don’t actually mind this if only carver would say that in the rns. It’s the fact they don’t tell us anything is what annoys me.

I am holding but will not buy or sell until I see information that gives me confidence we are on the right track.

Take this company registered in Seychelles islands. Seychelles gives you two advantages from normal jurisdictions. 1 you don’t pay any tax on overseas investments and 2 you don’t need to declare who the directors are. This info courtesy of google.

Read my previous comments on CE. It has a contract for $15m next year and with the money spent on CE makeover it’s reasonable to assume other contracts will follow.

Whoever owns that company has hit jackpot as they will be taking 50% of the profit.

Why make such a deal as more than likely we would have got that money in contracts next year and still own 100%?

Oil exploration is a risky business so having set backs is not uncommon. For me the rns does not tell us what they have been doing the last 5 months.

Look at the explanation about 142 - it says we’ve been concentrating on this well and then it says we’ve now moved back yo 802. Surely it’s not asking too much to tell us what was the outcome of 142. When will it go into production?

Can someone explain how we have gone from 2400 bopd to 2000 bopd. It isn't anything to do with wells 141 and 142 as the December operational updated stated "Production without any contribution from shallow wells 141 and 142 or from deep well 802 remains at approximately 2,400 bopd". According to the June investor presentation 7 wells were operational and two offline (141 and 142?). Have we lost a well or just a natural reduction across the wells?

After reading the rns I feel less informed than before. lol

Leveller wrote: LLP " BNG LTD " (BNG Ltd) announces a tender: For the provision of work on the construction of production well No. 155

They had a tender in February for well 155. Looks like nothing came of that and they’ve put out a new tender. Note to myself not to read too much into tenders on bico smh

Even with a glass half full outlook this is one useless rns.

How the feck do you go from "Approximately 100 meters remains to be drilled to complete the side-track." to "Work at Deep Well 802 on the Yelemes Deep structure was suspended awaiting additional equipment," or better still "The current production from Deep Well 802 brings the total production from the BNG Contract Area to in excess of 3,000 bopd." to "Recent production volumes at BNG have been approximately 2,000 bopd.".

At what point was work suspended on well 802? They released an RNS saying production increase by 25% leading to a rise in the share price. They should have released an rns immediately when they suspended as a 20% reduction in production would have a detrimental impact on the share price.

How about telling us what happened to the production volume at 802? I'm no oil expert but I did read that there are production wells on an 'open hole basis'. Did they just close the 'hole'?

We have bico tenders for wells 150 and 155 but no mention of them in an update.

If they are waiting for equipment for deep well 802 - why the hell are they working on a new deep well 803?

Only mention of well 142. no mention of 144 and 145. Seriously all that time and they have been working on 142? Whatever they did must have failed as we saw the tender this month for well 142.

This company that's taking 50% ownership they had better not be getting 50% of the profit on the contract already agreed or any subsequent contracts from the same customer. I can't get a companies register for Seychelles so have no idea who owns this company. Although whoever it is have done well for themselves, buying into an asset that will well exceed what they have paid. Satay are making customised changes to CE costing $100ks. Nobody does that for drilling one well.

Basically this rns doesn't tie up with the tenders we have seen. They are only telling us half the story.

Still holding as I honestly believe they are only telling us part of the story. I fear by the time they get around to telling us oil flowing in the deep structure most of the PIs will be gone.

This will get taken out for sure but will we realise the full price for a world class asset.

An irate glass half full.

@smartyp1 said: They were meant to be doing remedial work on 141/142/145 so a new 142 well ? nobody knows but that suggests remedial activity hasn’t worked.

I think it's logical to assume that remedial activity hasn't worked. Maybe Badgernator is right and the reason for failure is an incompetent workforce. The new tenders for well 142 and 150 enforces the assumption for me. My guess is the work is being given to Baker Hughes to manage. It will be interesting to find out where the money is coming from? Very likely the shallow production will still be 2400 bopd.

The only success we have is where Baker Hughes have been assisting and that is the oil flow at deep well 802. I keep drumming on about this but with tight CF there is no chance the company would be drilling a new 803 deep well unless there has been some positive outcome on 802.

The rns for 802 well said the following:

The well had an original planned Total Depth of 5,200 meters targeting oil in the easier to drill Sandstone rather than Carboniferous rock, with an initial target at 4,300 meters below a salt layer between depths of 3,580 and 3,860 meters.

Oil was encountered sooner than expected at a depth of approximately 3,900 meters and before the well had been completed, leading to a decision to drill a new side-track from a depth of 2,416 meters to approximately 4,100 meters, targeting the oil at the higher level previously encountered.

In the June presentation it states the following cost for production of wells:

Shallow: 2,000 – 2,500 meters @ typically $2 million each

Deep. : 4,500 – 5.500 meters typically @ $10 million each

803 well cost is around $6.7m - I'm inferring from the above they are targeting somewhere between 2500 meters and 4500 metres? If my maths is right $7m will get you a drill to depth 3750 meters.

@Somm - Do you think they are targeting the same reservoir as 802 or higher?

I am a glass half full but in my opinion I think they will be announcing production on the deep well and the reason for the radio silence may just be that they are waiting to see if they can increase the bopd before announcing it to offset the bad news on the shallow structure. Again guessing but the money from here could be being used to fund the new shallow wells.

It's a mixed bag but honestly if you said to me the the only success is oil flow at deep structure then I would bite your arm off. This will be huge news for the company.

My advice as before is to hold and wait for news.

This is just my opinion but for transparency I have been known to get things wrong quite often. As usual DYOR and let's hope we get some good news this week - hopefully Monday.

I thought 142 needed remedial work. £1.6m is roughly $2m which is the cost of a new shallow well.

Confused.com

I wrote to Kuat yesterday morning asking for an operations and dividend update. I’ve just seen an email from him in the spam folder.

Very light on detail but I am impressed he responded on the same day.

His response was “Company soon will provide announcement“.

As Smartyp1 would say tick tock - hopefully not long to go.

The market rules are very clear if there was anything untoward they should have notified us by now. I’m still optimistic that there is some good news coming but as usual dyor.

The problem with what you’re saying CC is that it implies that they do care about what the PIs think of them when we know better.

Only time will tell but there is no reason for them not to give us the bad news. That’s why I’m still hopeful.

Maybe this is naivety on my part but if it was all bad news why hasn’t Clive told us? Surely it makes sense to get the bad new out as soon as possible well ahead of the AGM.

Oil drilling is a risky business and if they have hit issues then so be it. Yes there will be a short term hit to the share price but we go again.

There is either a corporate action which is stopping them from releasing the news or they think they will have some good news to report at the agm imho.

Like I said glass half full.

This is another glass half full message.

Link https://uk.practicallaw.thomsonreuters.com/6-101-7488?transitionType=Default&contextData=(sc.Default)&firstPage=true details the disclosure obligations for public listed companies. I've copied snippet below of a couple of the rules which are pertinent to our current situation.

Rules:

9.2 A company must notify a Regulatory Information Service without delay of all relevant information which is not public knowledge concerning a change:

(a) in the company's financial condition;

(b) in the performance of its business; or

(c) in the company's expectation as to its performance;

which, if made public, would be likely to lead to substantial movement in the price of its listed securities.

.

.

.

9.35 Decisions by the board of directors of a company on dividends, profits and other matters requiring announcement must be notified to a Regulatory Information Service without delay and not later than 7.30 a.m. on the next following business day

In the January RNS Clive told us that daily oil production has increased by 25% from 2400 bopd to 3000 bopd plus and on the back of this news the share price hit a year high of 8.4p in March. Rule 9.2 is very clear that the company has to notify without delay any change which could impact the share price. If well 802 had stopped flowing or they hit any issues then this would have to be communicated without delay. The fact that they haven't must mean it's still flowing.

Rule 9.35 - says if any decision had been made about the dividend then this needs to be reported the next business day. The fact we have not heard anything means it is still in play.

Casp board may not care about the PIs but they have to play by the rules. There are stiff penalties for misleading statements and creation of false or misleading impressions. The maximum penalties on conviction of a criminal offence under section 397 of the FSMA are seven years' imprisonment and/or an unlimited fine.

@smartyp1 - not sure why you think they are stalling operations. Bicotender seems to suggest otherwise. We have seen tender for well 155, seen tender for transportation of oil for yelemes, seen tenders for ‘water utilisation / disposal’ increase 3 fold - no idea what it means - for both yuzhny yelemes (shallow) and north west yelemes (deep). This seems to cover the work they said they would be doing. In addition to this they have a contract for deep well 803 and also requirement for a pump for north west yelemes. Seems to me they are doing more than they said. What we can’t tell is if any of this work has been successful.

Clive said in the FU they normally ask to be forward paid for some of the oil when drilling a well. It all depends on if they have been given this money or not.

Also in the invest presentation for June 2022 it states they normally get paid 2 months after the oil is delivered.

Like others have said it’s all conjecture cause by the silence by the board. The investor presentation contains emails for Clive and Kuat. I have today emailed Kuat asking for them to update the market so we all know where we stand.

The strategy put forward in the last FY accounts by the board was to prioritise production from the shallow structures.

I invested on the back of this strategy and Bicotender contracts in the main seemed to back this up. But then in May there is a contract for a new deep well 803 when the strategy outlined in FY2021 accounts states that unless they got one the existing deep wells into production they will not be drilling any new deep wells.

The pertinent question is not whether we will get a dividend or not but why are they drilling 803. It appears they have changed strategy and as usual PIs are left in the dark. The FY 2022 accounts are for period ending December 2022 and will have probably been with auditors for last 2 or 3 months so I doubt they will explain the change in the strategy. We need an operational update telling us what has happened in May to change their mind.

I hate the radio silence but still remain optimistic.

… this city team look formidable. Going to be a lousy weekend methinks for us Utd fans.

Not worried about Casp at all … some PIs having jitters but it looks like others are mopping up so all good.

Still glass half full.

Kudos to those who picked up shares at 5.7 I was told the ask had changed so my order couldn’t be filled.

Those hoping to sell and get in at a lower price might find no shares available.

ATB

Good news is they will publish the accounts for June because I don’t think CC wants to pay a fine :-). They have to file the accounts by 30/06 - see companies house

Duties of a director:

One of these is to ensure that the company's accounts are filed with Companies House on a timely basis. If you fail to do this, you could be held in breach of your duty as a director. This could lead to a fine or even imprisonment.

Unc,

Fair point but if you had received this rns in the past would you expect the share price to be still above 6p as it is at the moment?

@Somm - I did think maybe they have used the dividend towards the 803 deep well costs but they can easily release an rns and say this is the reason why no dividend will be paid. I don't think anyone would care at that point if there was potential to realise the riches in the deep structure.

If everything had gone pear shaped I am sure they would have told us as although the price would tank doesn't really matter to them as the only way out for them is a sale.

It feels imho that there must be a sale for this total silence. Although uncertain thinks it might just be due to the board being incompetent.

I'm a glass half full person so I'm going with the take over.

My only worry is they are at the beginning of the deep exploration so what price? £500m?

Shevek, if we are taken over then we are not getting any dividend lol.

I have to be honest not fully happy as I did buy the shares for the dividend. I guess the most important thing is what price though? I hope it is well north of here.

Something is going on behind the scenes which means they are not able to give us an operation update.

This smells more and more like a take over imho but dyor and ATB.

If people do sell then hopefully will be a large enough movement in the share price so the company is forced to make a statement. They can't keep quiet forever.