1) all shareholders just gave permission to the board to dilute by 200 million shares (that's a rip to 7p if they do it tomorrow) 600 mill shares to 800 million
2) when asked about todays cash position dm quoted a 4 month old bank balance? why not quote todays balance? very very dishonest for a shareholder meeting. what are you hiding ? Q was, what is todays bank balance? if you asked your wife how much we have in the bank and she told you last Decembers bank balance would you not have an argument on such a stupid reply? ridiculous.
3) the chairmen stated "IF THEY CAN FIND A RIG" slip of the Tongue or telling the truth? the 2 main companies they were talking with are now fully booked until 2023 drilling. so this rig in Texas is a wildcard and of course there is positive talk otherwise they will be in deep trouble. but If they don't secure this rig, that's it, game over for 2022. who is the drill partner ? are they competent to drill for helium? hmmm no talk of that. Texas to Tanzania is also 9,000 miles apart as the crow flys... so What's that 2 days for delivery?
4) They keep saying fully funded but that is making them sound incompetent as they have been dithering for 6 months on this rig, and its still not booked. They missed the chance to order in 2021
5) if they drill 3 holes it will cost $4-5 million a hole maybe more now
6) all this billions of helium is bla bla bla.. it has got everyone's eyes off the key issues. IT COST SO MUCH MONEY TO GET IT, it will be another $20-40 million for just drilling and YOU the shareholders will have to pay for it NOT the bank, YOU are the free cash bank, they can't borrow money, they take money.
before you think im deramping i did hold 1.4 mill shares and took the lot out before results in 2021 as i smelt a rat... now im wise to the fact they need a ton more cash to do this and they desperately need the sp to go so much higher before they hit everyone with an almighty placing. it happened to 88e shareholders a fat 30% rip in a blink of an eye.
investing £150k to be ripped 30% on placing isnt what i call fun when its not expected. you now have to read through the lines of deception.
They didn't talk honest today, just the illusion of the prize with the presentation that we have all seen 100 times, and not real honest talk on how expensive it will cost now and key issues/challenges. I own shares also in tullow, the Rig market is so super expensive at the moment and its effecting everyone exploration costs, it will be the same for HE1.
Will i invest in HE1? hmm maybe...after they have booked the rig.... and only after the placing... but even then i'm concerned. why would someone in texas want to ship a rig all the way to africa when they can drill in usa? if you think HE1 are 100% drilling in 2022 then slap yourself because its not true. The honest answer is its a good chance 50/50 however 50/50 also means 50% chance this going back to 6p if they dont book and its delayed to 2023. reality check nee
I'm expecting a ton of people arriving with the build up of drilling.
Hope Alex talks more on Upside and potential so it clear to all.
Looking into the Shareholders is nice to see Alex the CEO owns 11% 20 mill shares.
David is one of the best geologists around and Corporate also, He helped Helium one get listed and after several months it sky rocketed on drilling. I will invest because David is in this. Drilling in 2 months ? Gold super high. Get in now.
https://www.eaststarplc.com/team
POG actually sell all the Gold production to the Russian Government, its not sanctioned, there is no disruption at the moment. If there are no problems the upside sp recovery is huge. There is tiny Explorer called East star resources (EST) only 4mill Market cap. they are drilling Gold in 60-90 days in Kazakhstan. worth a look as Gold is so high
anyone know much about the newly listed £4mill mk cap East Star ? is David's time 50/50 with He1 and the Gold drilling project at East Star ? I just ask as they are drilling for a ton of gold in 60-90 days.
https://www.eaststarplc.com/team Dave is a Non Exec Director
if there were no hedging then the share price could be at £1-2 as these high oil prices would be smashing the debt. but they have put Floors and ceilings in place for the majority of future oil sales at crazy low prices until 2023 75 % and 2024 $50. so we ain't making hay while the sun shines. infact the Hedging cost us so much money because of the increase of oil price. They kinda messed up at the casino it seems.
I agree its slightly oversold, this result was kinda obvious SP would tank, Tullow Stock is a hold for 1y year. We (all tlw shareholders) know it will go back over £1 end of this year and i would say in 2023 will be £2 but because of the hedging unwinding, but 2020/2021 hedging delayed any boom for 2022. Most of us have been through a lot of stress because of it !!... If you hold this long term, it will pay off for sure. Today is a disaster but I would say the Pain has happened and the SP has reflected the problems.
West Africa-focused Tullow Oil lost out on $153 million in revenue due to hedges.
Oil prices have soared in recent months, with current benchmark contracts at around $130 a barrel, but Tullow hedges most of its output with price floors and ceilings to shield against price volatility.
The company, which had a market capitalisation of around $1.2 billion as of Tuesday and net debt of $2.1 billion, said on Wednesday it had it lost out on $153 million in revenue due to hedges.
It hedged 42,500 bpd (barrels per day) of its 2022 output at an average floor of $51 a barrel and ceiling of $78 a barrel and around 33,100 bpd of next year’s output at $55 and $75 a barrel, with smaller production volumes hedged into 2024.
The energy group had free cash flow of $245 million in 2021, about 45 per cent down from the previous year and broadly in line with guidance of $250 million.
The firm reiterated its free cash flow would reach $100 million at an oil price of $75 a barrel, while it plans to spend $350 million, mostly in Ghana, forecasting overall output of 55,000 to 61,000 barrels of oil equivalent a day.
Tullow’s 2020 cashflow was boosted by the $500 million sale of its stake in Ugandan onshore oilfields to TotalEnergies. - Reuters
https://www.irishtimes.com/business/energy-and-resources/tullow-loses-153m-in-revenue-due-to-hedges-1.4822177
Director buys for real ? from sept 2021 "Tullow Oil plc announces that Les Wood, Chief Financial Officer (CFO) and Executive Director, has mutually agreed with the Board that he will step down from Tullow."
The adjusted effective tax rate has increased primarily due to there being no UK tax benefit from net interest and hedging losses of $417 million, compared to net profits of $16 million arising on hedging gain and net interest in 2020. Non-deductible expenditure in Ghana, the change in mix of taxable and non-taxable profits in Gabon, prior year adjustments and taxes on uncertain tax treatments are additional contributing factors.
At 31 December 2021, Tullow's hedge portfolio provides downside protection for 75% of forecast production entitlements through to May 2023 and 50% for a further 12 months to May 2024. Since completion of the comprehensive debt refinancing in May where increased hedges for May 2021 to May 2024 (75%, 75%, 50%) were a requirement, new hedges have been placed with $55/bbl floors and weighted average sold calls of c.$76/bbl for the period January 2022 to May 2024. The strong recovery in oil prices allowed the Group to secure sold calls above $95/bbl by the end of the hedging programme implementation.
All of the Group's derivatives are Level 2 (2020: Level 2). There were no transfers between fair value levels during the year.
At 31 December 2021, the Group's derivative instruments had a net negative fair value of $180 million (2020: net positive $2 million).
I meant no wonder CFO left (not CEO on last post)
in 2022outlook
· Full year underlying operating cash flow1 guidance remains c.$750 million, assuming $75/bbl for the remainder of the year. WHO WROTE THIS ????? OIL IS NOT GOING TO BE $75 in 2022 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
"The Group's realised oil price after hedging for the period was $62.7/bbl and before hedging $70.3/bbl. (2020: $50.9/bbl and $42.9/bbl respectively). There has been a strong recovery in oil markets which has led to higher realised prices partially offset by hedge losses, decreasing total revenue by $153 million (2020: increased revenue by $219 million)"
no wonder CEO has left
Its a start.... long way to go...
its actually because of too much buying.
hopefully POG and Evraz will stabilize.
Posted by Kay 786
"The below is from Advn
If anyone is interested, I’ve just had a 30 minute chat with Max in IR. Really frank and honest conversation. He effectively told me that production is continuing as normal, and there is enough FCF for the next 6 months or so. He reckoned the major concern was in refinancing the debt due at the end of this year should the sanctions remain. In addition, there was concern about sourcing any spares for the POX hub, but he suggested the Chinese may be able to help with that. He also mentioned that they had discussed issuing a ‘nothing to see here’ RNS similar to Polymetal, but felt they couldn’t say much more than ‘that’s the situation as of today’. I asked him about delisting, or suspension, and again all he could say was that we keep trading. He thought a major threat could come in the form of a very low ball offer, but the lack of liquidity in Russia might help us on that front as any suitor might not be able to find finance. Asked him about the Russian government seizing the mines and the gold. He appeared taken aback at the suggestion, but he acknowledged it was a possibility. All in all, a very reassuring chat. I will continue to hold, until the dust settles. My view is that these should have been suspended earlier in the week, to safeguard the SP, but we are where we are. By the way, in no way do I want to influence any investment decisions. This could be suspended this evening, but it was good to hear the production continues…..with gold at $1950 /Oz! GLA"
Shorter will be running from the Exit. Evraz is changing Board members and I suspect POG will be doing the same.
Shorter will be running from the Exit. Evraz is changing Board members and I suspect Evraz will be doing the same.