Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Https://www.londonstockexchange.com/news-article/WCAT/statement-re-sudan-and-south-sudan/16422159
Assuming the SS deal completes and there is another significant deal being worked on in the background, could the combined combined Gross assets, Profits and Turnover figures that will be reported in the AD, be used in the Class Tests to avoid another RTO suspension?
Share price growth following deal completion and other delayed/imminent price trigger announcements would hopefully satisfy the Gross Capital/Consideration Tests.
2023 Annual Report released on Thursday 6th June 2024 with 21 clear days notice of the AGM.
Admission document issued Thursday 13th June 2024 incorporating the 31st December 2023 results with 14 days clear notice of an EGM held at the same time as the AGM.
AGM and EGM held 28th June 2024, resolutions passed, accounts filed with Companies House on time and SS acquisition completed on the last day of the South Sudan Oil and Power 2024 conference.
It's possible!
Smeddyo: I for one am very grateful for the time and effort RR puts into contacting IR and summarising the conversations on this board. IR are open to questions from all of us but most do not make that effort.
As your most recent post is little more than a rephrased version of your last post on 8th July 2023 Iâll limit the effort I put into this post by simply repeating Komakinoâs reply.
âSmeddyo, nothing IR give out is price sensitive so I'm not sure what advantage you think is being gained over other investors. It can be useful to have them clarify certain things in RNS's or from presentations, and sometimes to confirm published plans are on track etc, so nothing untoward with getting information from them.â
Good to see South Sudan MOP are supportive of at least one small UK based oil company.
ï»żWildcat receives approval from the South Sudan MOP https://www.lse.co.uk/rns/WCAT/wildcat-receives-approval-from-the-south-sudan-mop-wnlxyuy9dykke1z.html
Agreed having only a few II's (amongst other well posted factors) doesn't inspire confidence. The wild fluctuations in SP in the last few years has made this a traders share in the short term. I am of the opinion that the multiple RNS's anticipated this year will provide traction for sustained SP growth.
4p of todays 5p drop is an illusion created by market makers trying to get holders to panic sell this morning by printing an uncrossed trade at 54p after close last night. It worked!
TIL
From the LSE rules for AIM companies link below:
"A reverse takeover is any acquisition or acquisitions in a twelve month period which for an AIM company would exceed 100% in any of the class tests.".
Whilst the Gross Assets test allows a pro-forma (enlarged group) Balance Sheet included in the Admission Document to be used as part of the 100% equation, the Profits and Turnover class tests do not, and the relevant figures in the last published accounts would be used.
It would therefore seem logical that if another acquisition completes ahead of the SS deal the enlarged group would still fail the class tests and suspension would continue.
https://docs.londonstockexchange.com/sites/default/files/documents/aim-rules-for-companies.pdf
The class tests definitions start on page 19.
The following paragraph does however suggest some flexibility:
"Substitute Tests
In circumstances where the above tests produce anomalous results or where the tests are inappropriate to the sphere of activity of the AIM company, the Exchange may (except in the case of a transaction with a related party), disregard the calculation and substitute other relevant indicators of size, including industry specific tests. Only the Exchange can decide to disregard one or more of the class tests, or substitute another test"
Is âapproval of the Government of the Republic of South Sudanâ the same as âreceipt of in-country approvalsâ. Has Government approval been granted and we now await other âin-country approvalsâ?
Perhaps using a SS joint venture deal as a template?
Prior to the FY2022 update that appeared to have been rushed out before the year end, the annual Trading Update was released in the last week of January:
FY2020 Trading Update issued 25th January 2021 , FY2021 Trading Update issued 24th January 2022.
Will we see a FY2023 Trading Update in the next few days?
SAVE has put the following on its website:
HOAX JOB OFFERS
We are aware that a website is falsely purporting to offer jobs from Savannah Energy relating to positions in South Sudan. This website is NOT affiliated in any way with Savannah Energy.
Please be aware that genuine employment opportunities at Savannah Energy are ONLY accessible via the careers page of our website: Careers â Savannah Energy (savannah-energy.com)
Sorry to have raised your hopes!
If you click on the view all jobs arrow in the top left corner, there are 10 more jobs in South Sudan.
Not sure when this was first advertised but if its current an advert for Head of Production in South Sudan is an encouraging sign
https://savannahenergy.applytojob.com/apply/YTSgQgDuJX/Head-Production
Hi RR - I approve of your taste in Champagne, fingers crossed.
The majority of the difference between gross and net debt relates to allocated funds held for debt service:
From the 2022 AR:
"The Group continues to work with its advisers to refinance the Accugas US$ Facility into Naira. Substantial positive progress has been made to date as an initial step in the refinancing process, the existing Accugas lenders have agreed a new Naira-denominated four year term facility (the âTransitional Facilityâ) which will be utilised to assist with the full repayment of the Accugas US$ Facility. The Transitional Facility is intended to then be progressively paid down through a combination of long-dated domestic bond issuances and other bilateral facilities (as was detailed in the Groupâs Admission Document, published December 2021). The Accugas US$ Facility is currently anticipated to be fully repaid and cancelled during 2023.
Whilst the refinancing process proceeds, Accugas continues to work closely with its lending banks and at 31 December 2022, Accugas had agreed to set aside approximately US$174.8 million for debt service purposes. Completion of the refinancing of the Accugas US$ Facility into the Transitional Facility continues to require access to appropriately priced US dollars and it is anticipated that the refinancing will complete at the point in time that these US dollars are accessed."
RR- your comment âif we are struggling to refinance our gross debt of circa $600m.â prompted me to ponder on why that may be.
The current difficulty in deal financing is well documented and makes me think the delay in getting the SS deal over the line and refinancing the Accugas debt could be linked.
AK has previously ringfenced subsidiary/division debt with only limited PLC exposure but perhaps that is no longer possible? Perhaps Accugas lenders want the comfort of group US$ denominated oil revenue?
The net debt at 30th June 2023 was $443m that figure may have reduced to circa $350m plus Naira FX loss by the year end.
What is the SS deal conclusion debt likely to be?
In September â23 Zengas calculated what the SS purchase price might be, based on recent Afrenta/ Chad/ Assala and Seplat acquisition P2 and flowing bbl numbers, net of possible deferred consideration based on oil price/ production.
The mean of the four ranges quoted is $932m. Assuming an effective date of 1/1/22 and using my calculation of 50,000 bbls per day at $20 per bbl ($30m per month) the consideration reduces by $761m to $171m as at 31st January 2024.
Could those figures be prudent?
Petronasâs share was anticipated to be 50k to 55k. Based on 55k bbl/d the net consideration reduces by $76m to $95m.
How prudent is $20 per bbl?
On page 8 of the SAVE 2021 AR a Chad netback per barrel of $36.8/bbl at $60/bbl was quoted based on the CPR forecast. Using the above estimates every extra $1 above $20 reduces the net consideration by circa $40m.
If the net consideration is so low (or even negative) could SAVE be looking to leverage the SS asset to refinance Accugas, fund another acquisition or perhaps to prove to the SS government the funds are available to finance their share of the required increased production costs to ramp up production.
Perhaps I am being optimistic, other posters thoughts would be appreciated.
Our risked NAV and price target falls 13p to 74p/sh primarily as a result of a lower Cascadura valuation, although potential remedial actions being considered for the Cas Deep-1 well could reverse this cut.
2024 guidance and ops update Touchstoneâs 2024 capex and production guidance confirms a return to an active drilling programme with another year of very strong growth ahead. A six-well programme is planned next year that will contribute to more than a doubling of average production y-o-y and a 2024 exit rate over 3.5x higher in its pursuit to fill existing production infrastructure capacity. - Active drilling programme, strong growth. TXP has set a 2024 capex budget of US$33m to drill six wells â two Cascadura development wells, two legacy block oil development wells, one Coho development well and one Coho exploration well. The first of these (Cas-2) is expected to spud in early Q1 2024 and will mark the onset of the next leg of growth as Touchstone looks to fill its c17,250 boepd of existing infrastructure capacity. The drilling will contribute to another year of strong volume growth, with the 9,400 boepd mid-point of 2024 production guidance representing 135% annual growth and the 2024 exit rate of c14,500 boepd 260% above average 2023 production. To fund this programme, TXP will need to increase its revolving credit facility and management is in advanced discussions, which it expects to complete in Q1 2024. - Operations update. Commissioning of the Cascadura natural gas facility is complete and uptime has been strong. However, November net sales fell 7% m-o-m to 8,268 boepd, with Cascadura volumes down 8% on the prior month. The Cascadura Deep-1 well into the lower thrust formation is performing below expectation, with gas production of 11.4 mmcfd some way below Cascadura-1ST1 (35.7 mmcfd) and our expectation (c20 mmcfd). To remedy this, management is evaluating increasing the perforated section of the well in H1 2024, which should boost production. The Coho-1 well workover was successfully completed in early December, isolating the water-producing zones and increasing gas production by 15% to 4.6 mmcfd. The first Cascadura development well (Cas-2) is expected to spud in early Q1 2024 and rig mobilisation is expected this month for the two legacy oil block wells. Drilling of the Coho-2 development well and the Gibba-1 exploration well is planned for Q4 2024. Production testing of the Royston-1X exploration well has been suspended after it failed to deliver economic flow rates. - Estimates and valuation. We have updated our forecasts and valuation to reflect Touchstoneâs 2024 guidance and ops update. The biggest adjustments are to production (lower Cas Deep-1 production) and capex, with additional wells now expected in 2024. All told, our net revenue forecasts decline 11% and 23% in 2023 and 2024, to US$35m and US$61m, respectively. EBITDA falls 20% in 2023 to US$15.1m and 32% in 2024 to US$39.3m. Net debt is little changed in 2023 but increases in 2024 from US$13m to US$30m, assuming the company secures the planned increase to its revolving credit facility.
Interesting points on the RNS for me are:
Itâs exactly six weeks from today.
1st Feb is a Thursday rather than the end of a week or month.
The words âfurther extension to the Company's cancellation date has been grantedâ rather than the anticipated date for the issue of the Admission Document.
Ordinarily wouldnât Petronas also have been a party to such a meeting?