Member Info for orslega

impossible to put a value of this deal as the value of the initial transaction will not be known until Completion - the long stop date for Completion is 31/12/2018 - but only 3 months away.

"Consideration of 19,200,000 Andalas ordinary shares to be issued as follows:

9,600,000 shares on completion of the acquisition of the initial participating interest (“Completion”).

9,600,000 shares on regulatory approval of increase of interest to 49%.

The consideration shares, representing 6.5% of Andalas’ current issued share capital, to be issued at the prior 5-day volume weighted average at the date of issue.

"Letting it just lapse would be poor on the BOD's part."

Agreed but letting it lapse is very unlikely to happen. It's money for nothing. Just a question of how much......

I guess it all depends on the small print of the original agreement.

i.e. how long do Mayan have to exercise their right of participation - it is for Mayan to exercise ("at it's option") - so not ADL to request? - I suspect that window won't last that long (participation value is likely to increase as terms of the main agreement are met)

Eddie will obviously be aware of this situation before todays news - so he will have a plan. imo if there is no RNS from Mayan then he's probably not that bothered - after all he has much bigger catch up issues closer to home.

Mayan (previously Northcote) participation right entitlement:

"Agreement with CEB whereby Northcote will be entitled, at its option, to participate in up to 12.5 percent of CEB's participation in any concessions or other oil and gas transactions that it secures in Indonesia for a period of 5 years (the Participation Right)"

Mayan have participation rights here:

29 August 2018

Andalas Energy and Power Plc

(‘Andalas’ or the ‘Company’)

Conditional Acquisition of Indonesian oil project

Andalas Energy and Power Plc, the AIM listed oil and gas company (AIM: ADL), is pleased to announce it has entered into a conditional agreement to acquire an interest in the Bunga Mas Production Sharing Contract (the “Bunga Mas PSC” or the “PSC”), located in South Sumatra, Indonesia.

Highlights:

Acquisition of initial 25% participating interest in Bunga Mas PSC via a corporate acquisition with right to increase interest to 49% and then 100%.

Consideration of 19,200,000 Andalas ordinary shares to be issued as follows:

9,600,000 shares on completion of the acquisition of the initial participating interest (“Completion”).

9,600,000 shares on regulatory approval of increase of interest to 49%.

The consideration shares, representing 6.5% of Andalas’ current issued share capital, to be issued at the prior 5-day volume weighted average at the date of issue.

Completion is subject to various matters including extension of the exploration period of the PSC.

Andalas to undertake new exploration and development of the PSC as an exclusive operation entitling it to 100% of the cash flows available to participating interest owners under the PSC.

The Bunga Mas PSC is located onshore, near existing upstream facilities, in the prolific producing South Sumatra basin, Indonesia:

Within the PSC, the Bunga Mawar field has been assessed by the operator to contain 2C contingent resources of 0.22 million barrels of oil (“MMBO”) and best prospective resources of 2.09 MMBO (gross) in the Air Benakat formation.

Initial work programme plans to test the Bunga Mawar field and to convert prospective resources to additional contingent resources which will form the basis for a plan of development.

Further details of work programme to be announced on completion.

I am sure the handful of investors who stumped up £850K at 0.60p aren't that bothered. They'll know more.

The volume is tiny - just no interest atm

Great entry price - again, lol

someone wanting out

- 10 weeks + negotiating should see a move this on, either way.

Ducks lining up here.

crossed posts - indeed.

When's September? lol

I see Petroteq edging up in the last 2 sessions - 6% up - closed yesterday at $1.56.

Am (and many others) are expecting the announcement of full production any time - 1,000 bopd.

The grand opening is already set for September - so why have a grand opening if they aren't announcing full production.

Announcing full production will be the key to proving many sceptics in the US that the technology works. Petroteq is already gaining major PR coverage - i.e. Fox Business news last week etc, now why would they be setting themselves for an extremely embarassing step down? Somehow I doubt if that's the case - possibly the very opposite - exceeding production of 1,000 bopd would be the way to make a grand intro.

Good times coming for Mayan investment here imo - it's been a long time but I think could be very lucrative.

Mayan own 3.29% in Block - costing £300,000. All fully paid.

http://www.blockenergy.co.uk/investors/

quietly accumulating again:

500.025

500,026

13M share now purchased - not insignificant.

Shrewd move imo

https://theinsiderstories.com/uks-andalas-energy-looking-indonesian-asset/

Mayan can elect to participate on any ADL Indonesian project - their choice or give up their right for shares in ADL. Plenty of options.

11/6/2018 - Upside says

I have bought a chunk on the market just above placement price.

Today he says

But hey sooner or later I will be wrong then I will have a punt.

Make your own minds up.

yes, we'll see.

PQE will need further substantial investment to move from 1,000>5,000> eventually 10,000 bopd - but that will be over quite a bit of time - possible some of that could come from production, which if they hit their targets will be substantial top line. They could raise debt against the value of proven assets/licence value.

If needed, skimming the top of PQE - top slicing will still leave a huge investment. But he has options now - securitising would be my choice if they needed funds - leaving PQE investment intact. Secured borrowing is so cheap.

Not been following BLOE closely but yes, it looks like some near term news:

RNS this week:

"One workover rig and one drilling rig to be mobilised to West Rustavi targeting 300 bopd from first high-impact horizontal side-track well"

But the ideal scenario imo is Mayan crack on and get their net production close to 500 bopd moving into 2019 - and leave PQE and BLOE investments to grow - and add when they can.

Interesting next few weeks - here we go again, lol

Actually - just read this again - from same Align link - it very much sounds that the 200 is BEFORE the 5 new leases just announced - last sentence "with the addition......key target....500 bopd"

"CEO Eddie Gonzalez was very clear that in the next couple of months a minimum of 200 bopd should be reported (ex Deloro/PQE stake and the commensurate production interest from this holding) with the potential of hitting the initial target set at the beginning of the year of 300 bopd. With the addition of the new recently announced well package, as we move into 2019 the key target of 500 bopd remains an achievable target."

gmcc - forgot that important snippet - so that is the latest comment on current finances. Makes sense.

Another point - since 1/8 - is that they did not proceed on those extra Stockdale leases (there were title issues) - so previous marked cash now also available.

Upside - must try harder, lol

Upside - what about tapping the Petrotrq stock cash then? As I've just explained that is accessible very soon. And a shed load if they need it.

That will tie them over until they kick start things properly (this week RNS says 8 weeks for production on latest 5 wells).

Also the unknown is what about the other FH/Stockdale/Zinc Ranch leases? Do you think nothing is happening there -think again imo

Pretty obvious but also if Eddie decided he want to hang onto Petroteq investment - he can securitise the value and borrow against it. Very possible. Mayan board will have many options soon - with hopefully also catch up on the lost time sorting legals, operators and permitting issues, all now sorted.

Recap before newsflow.

Mayan have 1m fully paid common shares in Petroteq and a further 1m options exercisable at US$0.91 (= Can$ 1.18)

So at closing on Friday (Can $1.51) Mayan investment currently worth Can$ 1,510,00 = £903,000.

The 6m options are showing a profit - in the money - of just under £200,000.

So current value £1,100,00 in value to Mayan. (this is net of stock option costs)

So - anytime soon, expecting Petroteq to announce 1,000 bopd continuous production share - the market has clearly not priced this in - both for Petroteq and Mayan.

Many commentators are saying Can$3.50 for PQE on full production (some think more because of the valuable licensing rights - about to be proved - so that's more than double the share price from here (for starters) - if that's the case Mayan will be sitting on £2.5M in an almost liquid asset. I say almost as there was a 4 month lock in from 22/5/2018 (see below) - so by 21/9/2018, less than 4 weeks time they can tap their investment for substantial cash to really kickstart production and Forrest Hill, Stockdale and Zinc Ranch).

What will PQE share price be then?

"Each Unit consists of one common share of the Company and one common share purchase warrant, with each warrant entitling Deloro to acquire one common share of the Company at an exercise price of US$0.91 per share until May 22, 2021. The subscription is subject to final approval from the TSX Venture Exchange (the “Exchange”). All of the securities issued are subject to a four month hold period from the date of issuance."

https://ir.petroteq.energy/press-releases/detail/265/petroteq-energy-provides-update-on-transaction-with-deloro