Member Info for mrc_mrc_mrc_mrd

Hi Chris - you've mentioned a 25 year development licence a few times. I admit I am not up to speed on the process - I thought we got 1 year rolling extensions? At what point can SCIR apply for the 25 year licence?

I guess my point is that something needs to change soon to avoid dilution. Asset sale, farm out, non dilutive finance, cash generating asset.

Ideal would be a transformative cash producing asset that lets us hold Ruvuma and HE1 shares.

Yes I absolutely agree - I assumed you were advocating sitting around for 2 years before selling ( in my defence you did say we should hang on to what we have until after drilling, which doesn't sound like a farm out)

Your scenarios I believe to also be verging on fanciful given BOD performance to date but let's see! That is the gamble.

AA, I don't think you are living in the real world. With no income dilution is inevitable IMVHO. Invoices will be coming in to the operator throughout the year and SCIR will have agreed to pay at an appropriate interval.

Hi AA - the cost is the problem. How much more dilution will there be? If we wait 1 year then there will be 50% more shares in issue presumably as all this funding will be converted to support the $5.7 mill work programme.

That is being optimistic in my view as it assumes a stable share price and does not account for any share gifts the BOD make to themselves, or salaries they draw, fees they pay each other's companies, failed deal costs etc etc

Sale now removes the jam tomorrow that has got us where we are today. SCIR in my opinion are too small to operate successfully in africa on such a large development project.

Dividends are a long way off. Money needs to be:

1. Used to pay off debt until this can be refinanced at a better interest rate. Really I think it should be cleared completely. Debt was accumulated on bad capital projects. We should not just roll this over indefinitely.

2. Reinvested to grow production.

Thordon,

I guess the market is pricing in a quick low value sale, or a protracted and expensive road to realising a higher value.

Like you, I say just get out but I have a very low average and would probably double my money if that sort of cash value was backing up the market cap.

Very difficult for LTH who need the 5x or 6x to make any decent money.

We are really stuck because if we are to hold on to Ruvuma then we need a producing asset to pay for it and also support our directors lavish lifestyles.

Chilting - yes I could have written that 3 years ago and I would have been right then. It all depends on oil. A decent bull run and ENQ are sorted.

Chilting - growth is not the story here at present. It is all about the debt. If we get to 3 years time and have zero debt and a slightly lower production rate then that is massive upside from here.

If POO plays ball here the gains here will be magnified.

Yes it's about as good as a guaranteed quick buck as you can get.

I am for selling HE1 in it's entirety IFF we are following a wait and see strategy on Ruvuma and not looking at deals for production. The convertible loan is dogpoop.

The chart is starting to look interesting here now.

Surely we should exercise the option for 1 million HE1 shares at 2.7p?

Any opinions?

Steve - I expect general oil and gas bullishness will lift SCIR. Could easily get back to 2p in the next couple of months for starters.

I hate to be contrary (not really!) But I think we could be coming out the other end here now. I am more optimistic than I have been for a while. Glad there is now a healthy dose of realism on the board and feel this can only be a good thing for pressing the BOD and eventually removing them if they don't pull their socks up!!

The asset is good, HE1 backs up the market cap somewhat.

Still here prime - piled in my profits from a quick in out trade on BPC.

Feeling very positive about ENQ.

Good one Brutal!

Looking positive for tomorrow. GLA

The bird will do very well for Valentine's day this year the way the portfolio is going!

Fair one twalbyoff!

You are right, nothing we didn't already know ref drilling.

I was sort of hoping that the topsides bottle ecks might be holding back some of the well potential and it might be longer before we saw declines. But hey at least it is out there now.

RCF the first hurdle looks good. Drilling Q4 would set us in good stead for getting the bonds paid down. But I think it will be Q1/Q2 2022.

$10 million between 2 assets.

They have 20% of catcher so if you assume 60/40 capex split kraken will get $6 million.

So total kraken budget is $20 million - $14 million cost to ENQ.

Not going to get much drilling done for that.

Yes there is nothing in cairns budget for drilling at kraken.

There will be no drilling this year IMHO. We could see declines of 10-15%. Sooner we get this RCF refinanced the better IMHO.

Yes would love to see the competitive process used to award this work. BOD need to be much more transparent about where the money has gone. Really need to be whiter than white with this sort of thing. Big stain on The BOD IMVHO.