Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
beatroot, although Brent is pushing $80, our oil is priced at the WTI rate which is only at around the $70 mark, then we get paid for most of it in TT$ not US$ and finally by the time royalties, SPT etc is taken out we get significantly less than the nominal value. I can't remember the actual discount that LK quoted a while back but the figure of 45% sticks in my head ( but could be wrong). So although any oil price rise is good news for the companies coffers, it's never as good as it seems at face value..
offerman, there is no fixed date, but it almost certainly won't be before 10 days-2weeks into October to give them time to collate the figures, as you say. This time last year there was no actual RNS on the subject, the figures came in a media if my memory serves.
However the H1 interims are due any minute and have to be published before the end of September, i believe.
Jon, I think you are being overly optimistic re newsflow. Given LK's dislike of RNS's and the fact that he is talking of H1 next year which doesn't even start for another 3 months, I wouldn't expect any SWP drillng news before Easter at the earliest.
I know he's said it before, more than once, but yet another RNS emphasing the "bang for buck" approach.
"The combined entity will then have six fields on production, providing a more robust production profile and with more options to determine where best to invest our funds to obtain the best "bang for our buck". "
The RNS for these came out on 13th September last year, so maybe this coming week?
Fishsheds, I need the same sort of SP as you to break even, so I know how you feel. This 'averaging down' thing is a bit of a smoke screen IMO.
What you've got is what you've got and you can't change it except by selling and making a real, as opposed to paper, loss.. Better to forget it for now and decide whether you want to invest in CERP here and now with a separate pot of money which will make a profit in it's own right. It changes nothing in real terms but you can see a profit growing in one pot and a loss diminishing ( hopefully!) in the other, so win-win.
Tonybaby, I think that Goudron is by far the biggest of our producing fields and is ISPC, whereas not all of the others are and I think that some of them area mixture which would be laborious to spell out in detail.. So I think that "Goudron" in this instance is simply shorthand for "Our ISPC production".
Certainly nothing to worry about.
Count, some of the SWP rights are sellable on the open market, ( when we've drilled for it) but this Petrotrin business doesn't affect that either way, and what we get from SWP at the mo is pretty negligable.
Yep, I've been here since the old 7p days as well and I'm a long way under water ( think I'll be able to start offshore drilling soon!), but there is no point in getting jittery and no point in grabbing every item of news and either going into terminal decline or assuming all our troubles are over. What will be will be and all we can do is wait and see.
Peter, as I said, I agree that it would be nice to get something, however, this bit from the Petrotrin press release pretty much says that we can't expect anything definitive for several weeks at least:
"Petrotrin will be meeting with all of its stakeholders during the coming weeks to discuss how the proposed changes may affect them.""
In the meanwhile, what I said about IPSC contracts is correct and will remain unchanged unless those legal contracts are changed and that couldn't happen quickly anywhere, let alone in T&T!!
Count, although I agree that something from CERP would be a good idea, I think you are wrong to expect us to be able to sell on the open market.
CERP does not actually own any of the oil in Goudron, or any other ISPC fields. That oil all belongs to Petrotrin and we merely have a contract to extract it for them and they pay us in TT$ for what we manage to get out..
Since it is 'only' the refinery that is closing ( and I feel for all the guys who will lose their jobs) presumably the commercial side of the business will still run the production contracts as before and it will be they who sell the oil on for USD at global rates.
ptrotter,
Somewhat short on facts there?
from the British Geological survey website:
"
How often and how large?
A magnitude 4 earthquake happens in Britain roughly every two years. We experience a magnitude 5 roughly every 10–20 years. Research suggests that the largest possible earthquake in the UK is around 6.5."
http://www.looptt.com/content/68-earthquake-rocks-trinidad
Lets hope that LK's new self contained generators showed their worth.
Peter, The problem is that this is AIM. It is a place for the gathering of chancers, players and short term traders. Long term investors inevitably come off 2nd best in the short term and even medium term. Not talking about the inhabitants of this board specifically, but many, if not most, AIM players will do anything for a short term few % profit , buying quickly and selling even more quickly for little more than beer money.
If there is sufficient 'good' news then buying pressure will push the SP upwards, until the bubble bursts ( as we've seen so many times in LGO/CERP) and it dives as fast as it rose.
Until and unless there is a sustainable step change in the company's production, then why would anybody buy into CERP long term atm, apart from faith in the BOD and their hoped for ability to turn a sows ear into a silk purse?
Like you, and others from the LGO days, I'm locked in big time and tbh I see no prospect of ever getting my original investment back, however good LK & Co are. On that basis I've mentally written it off and just watch this almost as an academic exercise until comes the day that I am forced to sell to get back what little I can, assuming that I'm still alive by then! I'd advise you to do the same, and not hang on every tiny twist and turn in the SP. It's going to be at least a year or two yet before anything significant happens.
I'm not being negative or deramping, I'm just being realistic. As it happens I do have faith that the company will prosper, but in a much longer time frame than most on here assume/expect.
Predator Oil & Gas ( Innis-trinity ) RNS this morning. Deferring their new drilling in favour of the CO2 EOR
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=PRD&ArticleCode=std942i0&ArticleHeadline=Operational_Update_Trinidad_and_Ireland
Garnheim, yes, you are probably right about Staur. I remember when LGO looked at Trinity Innis, the Rex involvement/ ownership/investment in Fram and various other bits and pieces was incredibly complex, with entities owning parts of each other.
However, a major but unarticulated part of this deal is that whoever the actual Norwegian owners/investors of Steeldrum were, they chose to 'sell' it for CERP shares rather than taking their cash out and doing other things with it.. That says to me that not only do they have confidence in their own original company but they also have confidence in the CERP board to improve things.
Garnheim, from a press release in 2015:
23 Nov 2015
Rex International Holding has announced that Rex Caribbean Holding (RCH), an indirect wholly-owned subsidiary of the Company, has entered into an investment and shareholder’s agreement with West Indian Energy Holding (WIEH) and GELCO Energy (GELCO), to merge the parties’ respective assets in Trinidad into a new entity, Steeldrum Oil Company.
WIEH is a Norwegian company principally involved in holding oil exploration and production assets while GELCO is 100% owned by the key local management of the Merged Entity.
So it looks like WIEH is the investor
Columbus ERP
@Columbus_ERP
1h1 hour ago
“We’ve got access to rigs, we’ve got cash, so nothing is stopping us” Leo Koot on the #SWP, #Steeldrum Acquisition, #Goudron and the AGM. https://www.youtube.com/watch?v=QFUeJ3UODJQ … #CERP
0 replies 3 retweets 6 likes
For an aerial view of Trinity Innis field, try this google link and zoom in to see the tanks etc.
https://www.google.com/maps/place/Trinity+Inniss+Field/@10.1535304,-61.2740585,2111m/data=!3m1!1e3!4m13!1m7!3m6!1s0x8c4a791cfcf3a03f:0xe41e2a3c24a5ef21!2sMoruga,+Trinidad+and+Tobago!3b1!8m2!3d10.0891098!4d-61.280564!3m4!1s0x8c4a7148f4725625:0xeae5b93c9c8c71d4!8m2!3d10.1935718!4d-61.2303364
As always, read the RNS not off-the-cuff commenst/answers on media.
Quote: " In addition, the acquisition SPA grants Columbus a first priority use of two rigs at market rates, with one of those rigs being suitable for the Company's planned exploration activities in the South West Peninsula ("SWP")."
Note " at market rates", so no mega advantage financially except that we can have the use of them when we want them, so no delay or mucking about making do with whatever happens to be available at the time.
One thing I noticed in the RNS which doesn't seem to have been commented on was this:" New technical work on the SWP has been commissioned involving specialist exploration consultants to develop a technical roadmap for de-risking 2019 drilling locations. "
Now I've always been under the impression that with all the soil chemistry, seismic, Arkex FTG, etc, surveys, plus the stated fact that they have identified prime drilling targets, that it was mainly logistical prep work left to do before drilling could start. So why the sudden need for outside consultants?
When we were last trying to buy Trinity Inniss, it was owned through a complicated series of percentages by Rex Holding International, and they are still heavily involved in Oildrum ( which hadn't been formed back then). Rex have involvement in some specialist 'derisking' technology:
"Rex International Holding Limited is a new generation technology driven oil company that owns a set of proprietaryand innovative exploration technologies, Rex Technologies, developed by the Company’s Swedish founders. These include the liquid hydrocarbon indicator Rex Virtual Drilling technology, which can pinpoint the location of oil reservoirs in the sub-surface using seismic data. The Rex Technologies allow the Company to de-risk its geographically diversified portfolio of onshore and offshore exploration and development assets.
Wholly-owned subsidiary Rex Technology Management Ltd (“RTM”) provides Rex Virtual Drilling screening services to partners and clients, while Rex International Holding has been using the Rex Technologies to grow and de-risk its geographically diversified portfolio of onshore and offshore exploration and development
assets. Its joint venture company Rexonic AG (“Rexonic”) offers the Swiss-developed Rexonics ultrasound
technology that is used for well-bore cleaning which allows for significantly increased oil production in wells that
have issues with clogging and deposits." (Taken from http://infopub.sgx.com/FileOpen/2Q%202016%20Results%20Announcement_V5.ashx?App=Announcement&FileID=416428)
All of which sounds highly relevant to both Goudron and SWP, Qu. is this a hidden benefit of the Oildrum deal I wonder?