Member Info for panda1

If the loan notes are really being issued 'to take advantage of opportunities that we anticipate to become available to Pembridge in the near term', surely it would have been better to wait for the opportunity to actually become available to PERE and arrange the fundraise on the back of it.
If the 'opportunities' are attractive enough then you would have thought the financing could be done on better terms for the company

It sends out a very poor signal to the market when the company has to resort to borrowing funds at such a high cost of capital.
Larger investors are unlikely to buy shares in the open market when convertible loan notes are offered at a 14% interest rate plus the right to benefit from any uplift in the share price

HUM looks set for a decent re-rate from a very oversold share price, especially given the recovery in the gold price.
the share price has been trashed by a large seller but they should be completely out by now or very close (see TR1 RNS) which should allow the share price to recover quickly to a more sensible level of at least 40p

The 14% interest rate on the loan notes is extremely high.
Perhaps they should have used a higher discount rate than 8% in the PEA to reflect the true cost of funding the company

From the diagram holes 5 & 6 look like they have longer intercepts of copper mineralisation which start from a shallower depth than the holes reported today.

According to the NTOG website the company holds 1984 acres in Mesquite.
Presumably the company will have renewed its efforts to find a farmout partner for Mesquite given the increase in the oil price and the success of the recent Pine Mills farmout

The Mesquite Field Development plan, which covers 1,384 net acres, Mesquite is estimated to have a US$21,600,000 NPV10 valuation at US$53 / oil barrel and a US$28,600,000 NPV10 valuation at US$60 / oil barrel, once fully developed. The respective estimated IRRs are 34% at US$53 / oil barrel and 46% at US$60 / oil barrel

Given the improved oil price environment I expect the company is looking to drill a well on the Mesquite property which should be fully permitted according to this RNS:

Mesquite and Corporate Update



Nostra Terra (AIM: NTOG), the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, is pleased to provide an update on permitting at the Company's Mesquite asset, as well as a general corporate update.

Highlights

·; Completion of leasing 160-acre standalone asset within the Mesquite asset

o Lease is surrounded by commercially productive wells on all four sides

·; The lease provides an excellent opportunity for horizontal drilling

o Well design complete, and well permitting currently underway

·; Production from existing assets remains in line with that reported in the Company's 30 June 2019 interim results

·; Company continuing its evaluation of potential acquisition targets

Leasing Complete, Permitting Underway

Leasing of the 160-acre standalone asset within the Mesquite Target Area ("Target Area") has been completed. The target area covers over 30,000 acres in the prolific Permian Basin of which Nostra Terra now has approximately 2,000 acres, within which the 160-acre standalone lease is surrounded by production wells on all four sides.

The lease provides the Company and potential partners with the opportunity to drill a minimum of two horizontal wells, each with approximately a half-mile lateral within formation, or approximately eight vertical wells based on 20 acre spacing, in a single formation. Additional wells could be drilled in other formations.

The permitting process is now underway. The Company is permitting two wells; one in the standalone 160-acre lease, and the other in the core Mesquite acreage. Well design is now complete. Both wells have been designed with optionality to drill a vertical well first that could be used as a pilot well to core and test the target formation, to help make further determinations on the lateral portion of the well. The wells could then either be put into production at that point as a vertical well, or kick-off horizontal drilling into the lateral from the original vertical wellbore.

Drilling permits are expected to be received by the Company in the coming weeks.

I find Level 2 of very limited use on quote driven stocks i.e. small caps that are traded via market makers and not SETS.
For example at the moment the Level 2 bid is 13p but you can only sell 5,000 shares at that price. If you want to sell any more than that the price is 12.50p

Thanks GP. I was just doing some research on the production sharing agreement.
As well as the 82.1% of profit that the government takes, there also appears to be a 10% royalty taken on gross production:

"Royalty: 10% of Gross Production. It is borne and paid by the Egyptian General Petroleum Company (EGPC, a State-owned company) on behalf of the Contractor Group. "

Unfortunately the Covid situation is rapidly deteriorating in Sri Lanka which is not surprising due to its proximity to India.
I wonder what impact this will have on the project timelines?

https://www.wsws.org/en/articles/2021/05/17/slco-m17.html

Someone mentioned earlier that the Egyptian government takes 60% of the production.
Could someone provide more details on the terms of the production sharing agreement?

Thanks jono44.
So my calculation was incorrect. Larkin's base salary has actually increased around 50% from the amount paid in 2020 and by 88% from that paid in 2019

What was the euro/tactic?
In the annual report the remuneration is stated in $ for both years.
In 2019 Larkin earned $155,724 and 2020 it increased to $409,828
It also revealed that his base salary has increased by 21% for 2021.

If the warrant holders expect the share price to rise what is the rationale for exercising them now rather than wait until closer to the expiry date of 31 July 2022?

Now you can see why Gati has been so quiet about costs of production at Minto and has not included anything on costs in the quarterly production updates. This unusual for an operational mining company which normally should include information on AISC etc.

Check the notes to the accounts. The vast majority of the cash was in Egyptian Pounds. It's not always easy for companies to transfer this out of the country due to government policy

I think it was done out of necessity as the company was short of cash and obviously didn't want to do a placing.
The warrants had plenty of time left before expiry so if all was rosy there wouldn't have been any reason to exercise them now

According to the recently released accounts most of the company's cash is tied up in Egyptian Pounds. It's not always easy to take money out of Egypt so this warrant exercise is perhaps being done as a way to bring cash into the company

Would anyone with access mind sharing today's article in full:
BREAKING: Infrastrata – The CEO History the Company Forgot to Mention: its a share price killer omission!
By PETER BRAILEY
Back in October 2019, I commented about Infrastrata (INFA) making the apparently bizarre move to acquire the Harland & Wolff shipyard in Belfast. I could not understand why the company made that move as it made no sense to me at all. However the full background of the CEO perhaps provides the explanation