Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
it makes complete sense to drill saffron and grow the company and by doing it this way is much less risky than going for one of the other targets first. It’s about building capital building potential but slowly rather than going straight to the potential pot of gold that may not be there on the first deep drill.
Look at the deals that have been made by TH which gives extra security and collateral for future deals and financing of potential future debt order to expand more rapidly.
Aimho of course .
Hello Peter
I will try and answer your question.
Leo joined for SWP. We have GS to thank for this after Leo was shown data including previous seismic . The seismic then became more advanced with 3D and FTG.
Leo new massive potential in SWP.
He also had huge plans to radically increase bopd using a skill set unique to him and the team with stimulation and rejuvenation.
However it’s very common to hit hurdles along the way but it’s how you deal with those hurdles and continue the race.
It’s good to have a plan BC and D.
So after an extremely excitable presentation back in 2017 showing huge increases in percentage in so many Wells needless to say that all fell a bit flat due to massive sand problems which hindered BOPD and revenues. So in my mind there would have been no doubt that had everything going to plan that we would have drilled one of those deeper targets.
But there still is the potential for those wells on Goudron to greatly increase BOPD but the fiscal terms did not suit and to do that it would’ve been a waste of time and resources had the company continued continually having to revisit these Wells to clear the sand issue especially with the oil-price where it was and still is. This could all change with a re-negotiated deal with heritage.
That initial setback did affect quite a lot the amount of revenue and short-term prospects. So what they did was take the hit, re-evaluate and continue with other excellent deals which TH did.
This also allowed and will happen where we will be able to work over rejuvenate and infill our other assets across the SD prospects.
Then there was a tweet of some seismic data which the team became excited about which was not from my understanding part of the original 12 identified targets. To me this seems like a late discovery late addition what a very excitable one at that.
So to go for saffron first makes complete sense as it’s in a non-province with oil signatures on the surface. The COS is very high for a drill. There are three zones three rolls of the dice with one of those zones being of particular interest.
If saffron is a success and it is a much shallower drill and much more cost-effective than targeting one of the deeper drills then we will have a raft of options to get this developed and quickly as it is also brainier current producing assets so would not take too much to link it in to existing infrastructure.
So we didn’t make as much money over the first couple of years as we wanted so it seemed no point to raise so much money and some companies do to drill a more wildcat well and then there is three or 4 million down the Suwannee.
If saffron is a duster it won’t break the bank yes it will have cost I think 600 to 800,000 But I would much rather do that than 3 to 4,000,000.
What saffron is if it’s a success is the key to unlock to much larger targets and at less risk easier to offset when you have some good arsenal in your locker.
So
Good evening GRQ
Really sorry to hear that, I can totally sympathise with you .
I wish you all the best and hope everything works out for you in order for you to get back in .
Take care
OM
Hey Faz,
Nice to conversed with you once more hope you’re keeping well my friend . Equally I like reading your posts as well and having met you in person and the genuine guy that you are .
Yes it’s a bit of a shame about the Drop today and the last few days . This just goes to show though power of the M&Ms ( bit multicoloured aren’t they !)
On very low volume They can manipulate the price so much . Personally I think they know there is a large corner behind the scenes and my guess is it’s Schroders still And so with that they are keeping the share price is pretty low . I have seen it many times before when they get wind of a seller they lower the price collect them all up then sell back of my higher price so I think any with a good news they will rocket the sp be selling them off at a much higher level . Of course our resident large seller will probably be offloading which will The SP unless we can find new blood and equally large buyers to offset then that way we might be able to create higher support levels .
What would be bonus Is that we get the 11.8 on LC but one or two surprises within the other two zones would do wonders . Let’s hope the topology within the fractures are solid and allow easy extraction of the black gold .
Evening GRQ
I agree with everything you said there. Good post.
We have a class team but we need class RNSs discoveries to match the team. Hand in hand.......
Also today’s action on SP proves mms can do what they want on very little action . These modern days are very very different than yesteryear with punts and explosive SP action upward .
We have a great COS even if only in lC but maybe MC UC surprise too.
Hello,
An early indicator could be trade patterns either way. A sudden splurge of buys COULD ground workers tipping off friends family etc. Splurge of sudden sells could be other way .
Look for a pattern may be the way as early indicator .
News always leaks people will always talk on the ground in the bars etc too.
They may text folk and gets the ball rolling either way.
Aimho of course.
Finally had a few minutes away from other matters to read and digest the recently released report from CERP and I like it a lot.
Columbus latest presentation key points and possibles from my perspective.
- On the drilling on stream timeline there may be a chance Clove won't be drilled if saffron huge success but instead go after one of the other larger prospects than clove . The timeline for saffron and the " Follow on opportunities " do align . With the word optional used against Clove. Aimho.
- innis trinity injectivity Co2 and full pilot show deep in to 2020. I'm hoping the end of Q1 after inject test and if successful would then be the potential 4.1 to CERP ? If not then could be some time for that payment .
- I notice the WF is ongoing so as yet is not a failure and abandoned but looks like they are going to continue pumping water in for the whole of 2020 as it's an unknown .
- Snowcap ( Cory ) is still a potential despite initial disappointment . Only 11.4k bo produced from reserve of 1.1mbo plus further exploration potential and on anticline to boot.
- I really like south Erin , already 1.4 mbo rec booked and only 0.3 produced BUT the 1.4 is only 10% of the S.E area. So who knows how much more is capable from the remaining 90%. and what levels zones too.
- All these are going to receive stimulations and some will have infill too. With more favoured fiscals in the licences even at 60PB makes more sense than Goudron.
- The 2.9m required in the event of Saffron success large range of funding options and forward sales in there too which is good or a combination of options zinc F.O
- Love the fact the Columbus personnel are experienced with Surinam too. A big plus .
- Wow , out of 24mboIP approx 20-47% is recoverable , that's impressive for WNZ.
- EOR shouldn't encounter same sand issues at WNZ so the skills deployed at Goud should work to better effect here.
- Phases 1-3 are generous both in terms of time granted to execute requirements and also very respectable with outlay/capex. I think Leo and team will work well within these times though such is the teams desire to progress rapidly .
- Nice Stats on the management alignment /salaries and thanks to them.
-
Well said Vmax.
Now with regard to all these trolls , why doesn't everyone try something just for a week or two and filter them all. Just try it and stop getting yourselves worked up over them . Life's to short to entertain them .
Use the filter. Simple as that. Chesh in4 and others I like you folk but just try for one week filter and don't respond. Just focus on the company that we are invested in . Balance and questioning is healthy but not such as black pointed out about trolling. I agree there is bad blood from yesteryear and imho as vmax is where this stems from either they have heavy losses from before or work on behalf of a Corp or someone .
Said my bit , I just ask filter them for one or two weeks make this thread a decent one again and attract new investors but not in to a school playground.
Have a nice weekend .
Thank you Neon.
I took a break because of family issues but also because at the time all I would see would be 14 red messages the odd black in old GUI screen before LSE revamp to sea of green. So it's nice to see other posters as well now.
I'll be popping in from time to time . Did make a couples appearances on other BB but not much so to focus etc.
I think the BOD should be thanked for where they have got us to date ( no not are licking just the truth ).
Why? Look at PVR what a crock massive salaries **** poorly managed by TOR , no pay cut still taking full wedge I think 400 00 pa. I lost a fortune there but so glad I pulled remaining out in 20s and teens and stuck in CERP.
Here we have directors been aligning to SH 50% in shares at 5.1p over last year half or so.
LK sterling job since arriving
GS Sterling job managing finances
TH legendary deal making
Michael Douglas ( does actually resemble Michael
Douglas ) personnel management
SH EOR skills inc heavy oil , so well suited if that's the case in Surinam.
James with his interpretations of seismics and presentations preps too
Along with other office folk
And people out in the field recovering the oil and doing a grand job .
Bloody amazing team if you ask me , honest approachable and decent too . Very rare on casino market.
Forgot to add, Lind debt to be cleared this month too .
Spain dealt with and in time off backs too .
Hello fellow cerpers,
Certainly a lot of excellent news since I last posted in here.
Been off here for a while with major family health issues.
A lot changed since I posted in here.
When I last saw and spoke with LK and GS what they said made complete sense just as discoverer said :-)
I compared Goudron to the printing trade Leo said was a good way to compare.
I.e no point the presses running at only cover costs and salaries when machines break down or service contracts to pay yet no margin for profit.
Print thousands of sheets just to keep machines running for sake of it but overheads to keep equipment running !!
If print charges allowed at higher rate to allow profit on production then different story and worthwhile . But constant stopping for the sands issues even with the machinery brought in but to no avail just made no sense on those SPT fiscal terms. Too much downtime, too many man hours to clear sand and start again, all only at a break even margin . What's the point .
I am interested however how WF is progressing at Goudron how many BOW in and any charge on oil wells?
I did try contact through email Gs or LK but no reply understandably as they must have been stacked with all the recent and upcoming newsflow.
Very exciting times to come and such a great refreshing way to build slowly surely and in a Known Province as spoken to me by GS.
Less risk, great chance of increasing production and cashlow .
As discoverer said built up the cash for the biggy Cedros.
Can you imagine how well we will be doing anyway when we get to drill Cedros with all we have already and potentially Safton, 88m worth on LC and potential from MC UC too. Then Clove.
If co2 then 50/50 share or 4.1 m cash in bank should all go to plan .
Workover on steeldrum assets to increase bopd too.
A lot happening and all positive . It's good to get balance but if people are still posting nothing but negatives still then why don't they just move on to something they find more positive , simple really . Of course there have been the odd setback along the way but look at the positives since LK came in and it's a no brainier for positives far outweighing any negatives / setback. Even the setback will
Improve to a positive once SPT sorted rejigged.
Aimho
Apologies about the typos really difficult on the small iPhone screen and dictaphone does not always get everything correct . Even with predictive off the phone has a mind of it's own !
In summary massive potential going forward .
A lot of news flow to come with M&A imminent , two drills in September . The news as well besides the aforementioned .
Good afternoon Lex,
Not sure you LK will not turn it into a glorified lifestyle business .
I agree with you he is cut from a different cloth completely different than the last management .
Having met him in person I can say Imho want me a more genuine person and a kind one at that . No to some it may sound like a bit of ass licking but I can assure you that's not the case I just tell it as I see it .
LK is a great guy a great leader as is Gordon Tony , I can't comment too much about Stuart or Michael Douglas as I have not met them in person but I'm sure they are equally genuine have the business interests at their hearts as well otherwise I'm sure Leo would have seen straight through them and given them the boot . Gordon and Stuart go back someway to Madagascar days or if I'm wrong there I know they have history .
All I can say to people is if you have any doubts about what and who you are investing in just go along and meet them in person I'm sure it will put a different perspective on things with a face-to-face meeting .
They are very generous with their time during and after presentations .
All in my opinion of course having met them in person Newbies may I suggest do you own research look at the latest AGM presentation look at their website overall .
Of course things haven't been Rosie from day one, I don't think many companies are but it's about learning along the way diversifying and capitalisation on the strong positive part of the business going forward.
Leo and team have played a blinder by reducing output but still getting bang for the buck as opposed to over working equipment and personnel to get diddly squat from high maintenance wells . Sorting out bolt and doing the Steeldrum deal was an excellent move because when the flash floods hit we were still able to have production from the new licenses . Had we only kept with Goudron ( which was severely hit by the floods ) production really would have tanked along with the share price .
Not forgetting as well they improved ( bit of an understatement ) infrastructure with backup generators renewing cabling getting things into tiptop shape in case of disasters which came along with the rain . Can you imagine how we would've gone up the creek had we stuck with old management poor infrastructure no backup generators and then the rains hit.......
So that's just a couple of examples there Of their logical thinking and excellent management .
Anyway , enough from me , as always do your own research have a good look at all the information that is readily available in black and white .
All the best if you decide to invest , If you don't because you are put off by others comments wish you all the best elsewhere in any investments you choose.
OM
Hi CD,
Sublime September .
- M&A lucrative deal to come .
- Co2 pilot commencing soon
- SWP Drilling commencing start September .
Then ongoing work:
- WF
- Excellent managed production in line with SPT / bang for buck
- Ongoing searches for acquisition targets after 3/4 were not in our bidding interests , the tender win on the successful target will extremely beneficial.
- TH will continue continue to look and evaluate other opportunities.
- Big boys are paying huge attention to us and in the event of SWP success FO for further drilling then potential buyout ........? We ARE on their radars .
- Negotiations within T&T and should that be a success then the taps across ALL our acreage will be opened to the max.
A bucket load to look forward to SHORT/MEDIUM/and long if two years can be classed as long.
ATB all who sail in the CERP ship after what looked to be a near sunken wreck is now sailing with flag aloft.
Cheers Chesh
Certainly doing that today with barb,
Camping out tonight up on a hill . Was spectacular sunset yesterday. Have a good weekend and all. Onwards and upwards from here I reckon.
NPs Chesh, glad to be of some help.
All the best ( wishing a stonking scorcher of a weekend)
Ha Ha,
Straight after Leo's presentation as he was walking up the aisle I said to him "where is your purple tie " His reply , I am wearing the Dutch colours today .