Assuming the wells are producers, has anyone a guess at how much from here in £ terms it would take to get to production?
The initial drills and now tests must have cost quite a bit already. Am I right in assuming that the cost to get to EPS would be less than we've already spent?
Great posts. Thanks.
The Corcel website says that at Kon11-Tobias historic production was 29 mmbbls. And it suggests that unproduced prospective oil resources are 65 MMbbls.
https://www.corcelplc.com/project/onshore-kwanza-basin/
With the recent RNS news that the reservoir may have been recharged, how much (if any) of that 29 mmbls can we expect to have been recharged?
JAllis. You said "The note goes on to describe how attempting to raise the full $13.4M from a farm out partner will be too dilutive and this approach has previously been decided against by TRP:"
That isn't right if the alternative is 50% dilution to the shares. Giving 70% to the farm-in partner to fund the drill would be cheaper!
The funding offer Mr Karam provided was generous at the time and is probably a major reason our share price is where it is.
However, if the company further draws down on this it would in effect be selling 1.4p shares for 0.8p. That is a stupid thing to do if there are alternatives.
I do hope that he will revise any future loans into a higher conversion price, because otherwise he is plainly exploiting the fact that he manages Corcel.
But most of the funding isn't taken yet and there is no obligation for the company to take any more from it.
Why would an independent company not look for the best funding option when its circumstances allow?
I know that there is an existing agreement for funding to Corcel via Antoine Karam's company for up to $8m at 12% interest which are convertible to shares at 0.8p.
The current share price at 1.3p is 62.5% higher than 0.8p. An Open Offer or even a share placing would offer the company a much better and cheaper way of raising money now.
This conflict of interest and the future chosen funding solution may show us the integrity of the BOD.
Maybe we shareholders should let the BOD know this?
If they can get back to those sort of production figures then I make our 20% to be over a million barrels per year.
What does that net after brownfield taxes? $20m+ per year for 10 years??
There is upside on the block and elsewhere too.
I assume the "APEX" (Atlas Petroleum Exploration Worldwide Limited) that sold us the Angolan assets and the "APEX " ( APEX Geoscience, Freemantle, Australia) now working on Canegrass are completely different companies?
Reminds me of Shoezone who only employ accountants with foot-related names!