RE: Cash burn16 Mar 2019 11:45
Don’t forget Namibia Licence PEL 0094, Global has undertaken to purchase and reprocess the existing available 3D Seismic data and other 2D data, as well as some additional G & G studies.
I personally don't think it is fair to simply suggest 'a lifestyle'. It is well known the oil industry suffered a huge down turn for many years and exploration went out the window. Companies like Azinam took advantage of the situation. They were able to do this as they had large financial backing - Seacrest. Eco has the Lundin group via Africa Energy, we haven’t got anybody (yet). With financial backing you can get things done and progress quickly, without it options are limited.
I think not having 3D on PEL 29 hasn’t helped events, but.. to do 3D on our own would have meant huge dilution. It is worth considering we are aligned as shareholders with the Peters who have a far greater holding in this company than anyone else at over 40%. Many other companies would have happily diluted the hell to take the easy path and not give a monkey's about shareholders. Just look at Aim! So from my perspective, credit where credit is due IF they are successful in getting either a major or some entity in to take on our prospects, that are looking the ever more attractive from this time last year.
What I believe now, rightly or wrongly is that the very events that are unfolding are exactly what the board have been waiting for. The Majors have/are moving back in. Drills are happening and the information from those drills are increasing the potential in prospects on the licences we hold.- i.e Aptian Source Rock now known to run from Angola, through Namibia and round to South Africa – (Our main targets are Aptian/Albian sourced), Oil migration distance issue for adjacent licences which runs/read across into our licence/s. The Albatross prospect in PEL 37 will never get drilled as Sasol's drill in 1995 already proved the wet gas signatures just slightly north of the Albatross prospect, like Cormorant, the oil generated has migrated and again further migration/read across into out licence/s.. If Osprey gets drilled i'll eat my hat! The reservoir being touted as being closer to the source rock? so what!! it's the trap that matters and again yet another positive here.. it’s hundreds of millions of barrels of oil we are talking about..
There are a number of wells to be drilled coming very soon, whether Seapulse are getting involved here or not is our speculation, however it will take just one discovery to open up the west coast of Namibia. The odds of Total, Shell or Exxon achieving that are at least... pretty dam good!
This is an unloved share at basement prices with billions of potential and recent events in the field have pushed us up the radar in the industry. One strike this year and we’ll be a hot potato. Meanwhile, in the background, farm out process continues, work on the licences continues and we wait..
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