Member Info for mick2020

I have mixed feeling about this. On the one hand I fully support the focus on cutting costs and simplifying the structure of the organization, on the other hand I think this could have been done in stages, to avoid reducing liquidity even further. We will certainly lose a significant number of investors in Norway, which is a shame. At the same time though, while liquidity is practically zero at AIM, it is also low in Norway, so the company needs to change something radically here. You almost wonder if they have some "other information" that we don't know yet, why they announced the delisting at this moment already.

WRL remains a medium to long term investment though, and as they have announced the plans now to delist from OSE, the damage is basically done. A drop of 8-10% from a price that is already way too low is not something that keeps me awake, especially which such low volumes.

Time to look forward now. Hopefully Monday will bring some good news already, and I expect the H1 report to build on that further. I'm also very much looking forward to Eskil's plans to grow the company. Solid numbers, growing production, some marketing from a new UK CEO and a new batch of Norwegian PI's trading on AIM, and I do expect that liquidity in London will grow soon.

Indeed, trading has increased quite a bit recently. I had a lot of fun with this share in the past (a decade ago or so), due to its predictability at the time. Is it the right time to buy a few again? Without knowing the ins and outs, it still looks a little bit high to me somehow (2.5p would feel better)

To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM market provides sufficient liquidity and ease of trading for all shareholders.

The Directors are mindful that the Company's members include a number of non-institutional shareholders located in Norway and it invites shareholders, in the first instance, to engage with the Company's management should they have any questions on the aforementioned. Â Email contact details are set out at the base of this announcement.

Bob McBean, Executive Chairman, said:

"The Company is focused on moving to a simplified corporate structure and corporate governance regime that will increase liquidity, reduce overheads and allow the new UK based management team to drive the business forward. Furthermore, the benefits of being in a similar time zone to our assets and key partner Maurel et Prom, in addition to London providing a critical centre for M&A and capital solutions with respect to the African Oil and Gas industry, are well known. We believe a redomicile to Jersey and, a delisting from the Oslo Børs will help meet these objectives. We would welcome engagement with any shareholders to discuss any issues arising from the proposed changes and, of course, we will seek appropriate shareholder approval for the proposed changes before they are implemented."

Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, provides the following corporate update.

Chief Executive Officer

Further to the Company's announcement dated 15 January 2018, Mr Eskil Jersing has today joined Wentworth as Chief Executive Officer. He will be appointed to the Board with effect from 27 June 2018 at the Company's Annual and Special Meeting.

Redomicile of the Company

As previously announced, in line with the head office relocation of the Company from Calgary to London, the re-domicile of the Company to the British Isles is progressing on schedule. Having considered various options, the Company is working towards a "Continuance" of the Company into Jersey, Channel Islands (the "Continuance"). Â

The Continuance is a legal process whereby, following shareholder approval by way of a special resolution, the Board of the Company will apply to:

The Registrar of Corporations in Alberta to grant a certificate of discontinuance; and
The Jersey Financial Services Commission for their approval of the Continuance.
Upon such approval:

The Company will cease to be a company registered in Alberta, Canada and will be registered in Jersey, Channel Islands;
Shareholders will continue to hold one share of the Company for each Common Share currently held. The principal attributes of the share capital of the Company will be identical, before and after the Continuance, other than differences in shareholders' rights under the new Articles and under Jersey law as compared to the current articles and Albertan law;
The Company will adopt a new Memorandum of Association and Articles of Association (the "Articles");
The Company's shares are expected to continue to be traded on AIM and the Oslo Børs; (with an Oslo Børs delisting application being submitted shortly thereafter); and
All property and rights to which the Company was entitled immediately before the Continuance will remain the property and rights of the Company post Continuance and the Company will remain subject to all criminal and civil liabilities, all contracts, debts and other obligations and all legal proceedings, to which it was subject immediately before the Continuance.
Full details of the Continuance process and its implications will be provided, in due course, in a Continuance Circular.

Delisting from Oslo Børs

The intent behind the redomicile is to reduce costs and simplify the Company's corporate structure. The Board believes the redomicile process will provide a positive long-term benefit for all of its shareholders and improve the overall liquidity and risk profile of the stock.

To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM mar

Fully agree crudetrader! It will be interesting to watch when trading springs back to life. Production will grow a lot further in the comng months (130 MMscf/d this time next year?), and with money coming in consistently, it is only a matter of time I would say!

Cperkin, My last one on this, it is getting repetitive. The key problem is not AEX, but TPDC’s NPV (also compared to other options TPDC has, such as not building the EPF, but waiting on the final pipeline). As mentioned, TPDC’s margin is small, and I suspect they will screen against 1C volumes, so the 25.5 BCF. I very much doubt that that 8” pipeline will be build anytime soon, but let’s wait and see.

Cperkin, I think you get it now. The next well could certainly give some some very positive surprises (from new layers?), but at the same time, you can’t rule out a disappointment either..... The 80.6 BCF is just the current prediction.

Cperkin, OK, I’ll have to adjust my last statement a bit: this is not my personal expectation, this is what the company predicts.... And note that the 153 BCF was Aminex’ expectation (before drilling NT-2), for the volumes developed with NT-1 + NT-2 only.... I hope you get the real message here: the expectation was 153 BCF pre-drill (company expectation), post-drill that was reduced to 80.6 BCF (and after a 3rd well, but now independenty verified). A big reduction therefore.... the increase in the other volumes are far more uncertain, and based on future successes in the wider area. My personal expectation is that this estimate of 80.6 BCF is conservative, as they always are, and should be. So if the next well is a success, then the the volumes will likely be increased somewhat.

Correct

Crusty, While it does’t really matter much, I meant DCA, or decline curve analysis, which can be done once the well flow. Drilling C1 (and analysing the logs / well test results) will certainly not be enough to move the 2P reserves to 1P. So once again, if C1 comes in exactly as expected (and all the licences are sorted and pipelines build) then the company will have 25.5 BCF 1P reserves and 80.6 BCF 2P, with another 682 BCF in the books as 2C resources (all 100%). Not like you said: “The 80 BCF of NT1,2 & 3 would be 1P assets“. Oh, and vike, you should actually be happy that there are people posting different views, so at least you can compare it to your own.... And If you don’t like my comments, just ignore them!

Certainly a great dream willow, but a tough bet (eh... investment) I think. My guestimate: a 10% chance to hit the jackpot but a 90% chance that you gradually lose your money. Also, Solo’s other assets won’t act as a safety net in my view and the share is not sensitive to sentiment anylonger I would say (I would buy UKOG for that). Too risky for me at this stage still. But hopefully things will work out for you and your dream comes true, good luck!

Willow, The horsehill well test is one to watch. No doubt there is oil above the Kimmeridge, and if there is a seal as well higher up, with enough connected volume, it could get exciting. A make or break test, and if they are still trucking out oil after several weeks, I’d consider buying shares. Is somebody keeping a tally? A potentially high reward project, although most likely, with a low POS.....

Cperkin, This project will only go ahead if it is NPV positive (at, say 10%) for all parties involved. Obviously, TPDC wil also look at their NPV, and unfortunately they will earn very little (< 2.00 $ MmBTU?), while they have to invest a large sum, laying a 30 km pipeline plus some separation facilities (incl. power generation?) close to the wells. I expect that TPDC will screen against 1C volumes only, and I very much doubt that will be NPV positive. I think that TPDC will demand that AEX drills more wells first (2-3 more wells?) and increases 1C volumes, before they will commit to investing in a pipeline.....

That’s actually a good question Cperkin, Aminex should have been a bit clearer about this. Contingent resources can be divided again in 4 categories: “development pending”, “development on hold”, “development unclarified”, and “development not viable”.The Ntorya 3 well development (81 bcf) fall in the first category, the remaining 682 BCF fall in the 3rd category. The third category is far more uncertain even than the first, and significant further appraisal may be required. Attached a good presentation about this (start at slide 16) Overall, if the next well is exactly as what is predicted (and all the licences are sorted and pipelines build) then the company will have 25.5 BCF 1P reserves and 80.6 BCF 2P, with another 682 BCF in the books as 2C resources (all 100%). A very modest amount, if I may add.... https://www.gljpc.com/sites/default/files/Understanding%20Contingent%20Resources_1.pdf

Hmm... almost Crusty. To classify volumes as proven 1p reserves, you also need a 90% probability that these volumes indeed exist and will be recovered. The 80 BCF are currently in the 2C category, so a 50% probability. The 80 BCF reserves will therefore initially fall in the 2P category, and with further analysis (I.e. DCA) moved to 1P

Fully agree Matherdj, Neil has a truly amazing job: spend somebody elses money and get paid for doing so.... you can’t get it any better I would say. If you are truly cynical you could say that he only bought shares in Solo to be in a much stronger position to defend himself in court, having bought a real stake in the company with his “own”money, in case the company goes bust. Unfortunately all David Lenigas companies seem to be paetly based on misleading shareholders with future profits that never materialise. Did DL ever return any money to its shareholders, over a longer period? I doubt it. Trying to get in at the high cost, high risk part of the project cycle, without having any money is truly difficult. Solo needs to invest in multiple project at all costs, in order to keep up the smokescreen of future profits, and not become too transparent.

Thanks Matterdj, I fully believe that. My only point was that Cperkins original post made it sound as if 30 mln BOE were developed with only two wells, which is obviously not the case. Overall, my expectation regarding Solo remains unchanged though: I don’t think that this company will ever return any money to its shareholders. The only way to make money is if to follow the sentiment: buy low and sell high. A very dangerous game.... Cperkin can tell you! ;-)

Hmm... “it is calculated that solo currently own over 30 million barrels of Oil Equivalent with their 25% share of the proven reserves with the 2 drills so far”. Currently owns 30 mln BOE with the 2 drills so far.... that’s something very different Cperkin. If Solo develops about 3.4 mln BOE with 3 wells, than the company needs to drill about 26 wells to get to 30 mln BOE.... Obviously something totally different than what you were suggesting!

Well... I’m not sure unfortunately, I thinks that is not so easy to say at this moment in time. If the next well turn out to be a dud, then the value is zero. If TPDC does not agree with the early production system and doesn’t build the pipeline in in the next few years, the value is close to zero as well. Even if that is all OK, what did you assume for prodction and operating costs? Tax? G&A? And how much will drilling cost? (4 mln to Solo?) When do you think production will start? 2020 already? All very uncertain, and without any income, Solo will struggle the next few years.

Vike, Indeed, so about 3.4 mln BOE for Solo (sold at a price of ca. 18$/BOE by the way), for a three well development, so including the next drill, assuming obviously that that well is successful. What the wider Ntorya acreage will deliver in the long term remains to be seen, but let's hope there will be lots of exploration successes.