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I imagine the development licence will be in place before we drill C1, hence the November deadline. At that time there is nothing stopping Solo receiving an investment from a third party, for a percentage share of the gas revenues. It does not have to be the Zubs. As long as Solo do not sell any of their 25%, AEX or the Tanz gov. do not need to get involved. It’s just one of the options open to Solo if the Zubs try to get them to roll over.
The numbers put forward by AEX to develop Ruvuma are totally inflated. Most the cost will be from building the 30km pipeline which will not even start until after the C1 drill. Solo have an arranged loan to pay for C1. I think AEX are playing games to flush SOLO out for a lowball offer. Hopefully Mr Fitzpatrick will be working overtime now to get us a good deal.
Tarry....unless the current deal is just designed to force a sale by SOLO and the real deal is yet to be revealed.
You may have hit the nail on the head. $140m to drill C1, build a 30km pipeline and seismics is ridiculous. More like $40m.
$140m to develop Ruvuma!!!! Does anyone have any idea of the estimated cost breakdown? I would estimate approx $40m to drill C1, build the pipeline to connect NT1, NT2 and C1 and start collecting revenue In order to pay for seismics for C2, C3, etc. Ie self-funding. What am I missing?
It was to be self funding after C1 and building the pipeline. At 75%, $30m maximum spend. The income was then supposed to pay for seismics and drilling for C2, C3, etc. Why do we need so much cash. Perhaps the AGM attendees can shed some light.
As the Zubs already own 30% of AEX, I work it out as a valuation of $1m for just under 1%. We could give up approx 10% for a free carry.
Thanks BigDouble for taking the time and effort in gaining the support and arranging the meeting with Neil. Also thanks to Chris and Jetty for using their own time to attend the meeting on Thursday. BD.. I have just over 600,000 shares. I will check and email you the details tomorrow morning. Cheers.
I assume that the objective of the meeting is ensure that at least a couple of resolutions are added to the AGM agenda that basically curbs Neil’s spending prior to any asset sale. If successful, this action will put many shareholders mind at rest. FJones.....The place to vent your frustration is at the AGM.
Cheers Pete....The reason for the question was because I was considering the reason for the transaction being specific to ‭Ntorya and how Solo may respond to a potential offer for Ntorya or Ruvuma.
Pete...How do you see the current difference in value between just Ntorya verses the whole of Ruvuma?
£20m for 5% now, and sell the rest after NT3 would be my favoured outcome.
Email from benr@buchanan.uk.com It was viewed as being non-material by Solo and the news is already on PI's radars (as per your email to me)
Why would Statoil or another just negotiate with Eclipse for up to say 20% of Ruvuma when we have 25% up for sale? It does not make sense?