Member Info for redeyemines

Oh dear Black Swan---you have reverted back again

----Nobody is going to "avoid using the Eli Pipe Line" ---in fact they are queuing up to use it---so much so, that there is only room for 30% of OML18 oil to pass through it, the rest is out to other fields.

-Oil is (and has been for over a month), being produced at OML18---the last we heard it was 20,000 barrels a day and rising sharply.

-This oil is being barged to the "mother ship" and will then be transferred to to the FSO---so we are NOT waiting for the pipe to be completed.

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-You know all this----because I told you not long ago----so why have you gone back three steps and started all your nonsense again.

---Not followed all the chat here, so don't know if this has already been picked up on, but this one line from the last RNS could spell that more is coming, and that we could well see a fund raise on top of the draw down.

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-Just how I'm reading it.

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-----"The Company will make a further announcement on receipt of the drawdown funds from Polo"

.. There's some positives to be taken here.

. Firstly we have no dilution, either from a consolidation and placing, or from a share split and placing.... That has to be good news.

. Although the funding will only take us to March, the Co have made some very positive noises about the future direction of Bangla coal policy,... Do they know something we don't, or is it just a hopeful guess.... I don't know, but maybe we should give them the benefit of the doubt.

.. As I said, we certainly seem to have put all our eggs in one basket, and pinned our hopes on a GL before the end of March.

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... Should be worth a pint.

... Well we've gone all in now... All our eggs in one basket, as we draw down the last of our Polo loan facility, which will fund us until March next year.

... Looks like we are pinning all our hopes on a change of direction from Hasina if she wins the next election.

... Really tight time wise now.

Interesting that India will produce almost twice the TOTAL reserve of Phulbari, in just one year (1 billion tons a year)..

.... In March India thought they would be able to become a net exporter of coal by 2028, but domestic demand has increased so readily that they now need it all themselves.

... With production up 47 % in the last few years, coal is still very much King... Even underground mining is making a major contribution, so I still think that could be an option at Phulbari.

Thanks for the response hedgehog,. That a solution I hadn't thought of, so thanks for bringing it up..... Following ORCP's example, we could indeed issue deferred shares which would let us have a placing below 1p...

Wos.... Think you best read my post of the 15th....we cannot issue below 1p

Maybe an even better solution, would be to sell the licence to Petrobangla (the GOB body), and let them do a JV with Power China to develop it.

-That way Bangladesh has the coal back in house, and they won't need to be paying any foreign company, (even Chinese), for their own coal.

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-Mine your own coal----no import costs ---no drain on FX-----supply constant fuel to Rampal, Payra, Barra, and the others and no more down time at those plants and therefore no more Capacity Charges.

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-Even though the world is against the use of coal----this is NOT new usage, --just replacing imported coal for home produce----the CO2 output is the same ---or maybe even less as Phulbari coal is better quality.

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-So yes Stokes, i fully agree----GCM is not a Bangladesh company, and would still need paying for the coal-- that could well be the major problem here, and why we have never been given the GL.

Really Callas, you do bring the worst out in people, you are enough to try the patience of a saint.-

---I am invested here, and yes I do try to see the positive side to SLE. ----You are clearly not invested here, (or you have a strange way of looking after your investment), and yet over the last six years or more, you have posted around 600 stories, almost 2 a week, constantly looking to prove how cleaver you are, and always trying to find a negative in everything SLE does, ---not even one positive comment----why ??.

-The last RNS , where we brought a huge new investor on board, provided us with the funds to increase our stake in ELI approx 55%.

----Do you really think we would do this if there was a chance that ELI would be wound up with this action from Dec 22 ??

-Yes ELI owe sums to Brightwaters, and Brightwaters brought the action to try and force payment--- ELI clearly needed funds-----SLE have stepped in with loans to ELI, and in the process gain more %..

-So, have ELI paid any of that debt to Brightwaters---my guess is yes, as the funds were clearly earmarked to bail out ELI--- and that is why certain papers were withdrawn . Why hasn't it all been paid, how much was paid, and what is left to be paid, I don't know, but clearly SLE ( with 2 reps on the ELI board), can see the complete picture and are happy to increase their holding.

--I'm happy to admit that the BOD know more about things at this stage than I do, why can't you accept the same.?

-With the ACOS being our major corner stone and given our current financial position, I will expect that more funding is heading to ELI one way or another, and I do not accept that there is even the remotest chance of ELI being wound up, and I expect the whole matter to be settled long before the next court date in Feb.

-Why cant you see that from the last RNS ?

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-Now lets look at something positive that seems to have flown over everyone's head.

-Depending on which of Oisin Fanning's interviews you listened to, OML18 was producing anything between 15,000---20,000 BOD----where did that come ?---and what are they producing now,---as it looks like things are being ramped up quickly.

---Over 40 days since those interviews so the oil must be on barges (20/- barrels ish) probably on to the Mother Ship (200/- barrels ish), then maybe loaded on to the FSO (2 mill barrels ), and then on to Shell.

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-Can't wait for the next RNS and full update----got a feeling it's going to be a cracker

Funny, I thought you were the fountain of all knowledge regarding SLE-----Seems you're not

Any news on this court case then Callas????

Yes Goon 0.90 to sell and we still need to raise funds..... Unless there is a master plan that we don't know about, then things don't look like they have been handled too well at Gcm

What I would prefer, is a new loan facility. That will give us time... Maybe 3 years......... If it is going to come down to a share consol and then a placing, I would want to see the terms and how much is then raised.... Again if we could manage to get over say 1.5 mill, then time is on our side, and the sp should rise.... If its 1 mill or less, then its short term security again and the sp will drop.

-Having done that, in theory we will have a SP around the 5p level, which will make it possible to issue shares at say 3p.--

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-The trouble with this, is that it's again a short term measure, and even if we manage to raise £1 mill, the mkt will be expecting us to be returning for more funds in about a year, and the SP will be sinking slowly south again, as the year moves on and our new cash diminishes.-

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--( 2 )---a new loan facility --(say around £3 mill as we had from Polo), would keep the wolf from the door for a few years, --long enough to see if a newly elected Hasina, or a new Gov, have any intention of OP coal at Phulbari.

--I think it would be safe to say, that if nothing changes in the next three years, then it's never going to---and we would have had our chips.-

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--So that's how I see it (unless anyone has a solution iv'e missed)---

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-----and my money is on a share consolidation.

Yes we have an election coming up early next year, and before that we have our Final results due in Dec---but maybe the real issue is going to be our ongoing funding, which may come before both of the other two.

--Nothing will happen in Bangla straight after the elections, and a good few months could pass before (and if) Hasina does a  u-turn on own coal, and we still need to be around to benefit--

---which means we need funding for at least another 6 months.-So what are our options----and how are the mkt viewing things.--

-Well as far as I can see we have (or had ) 4 options.

-1)---draw down on the last of the POLO loan facility

-2)---get a new loan facility

-3)---Try to have another placing (an option i'm ruling out as we stand)

-4)---I will come back to as it ties in with  (3 )

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---We are trading at 1p because the mkt KNOWS we are short of cash and will be coming back with our second fund raise in six months, before the end of this year.-

-So if we go with option ( 1 ) and draw down the last of our Polo facility £300/-----that will only last us about an extra 3/4 months and we will then be back with yet another fund raise.-----The mkt will know this and the SP will head further south in anticipation.-

-So now lets look at option  ( 3 )---a placing.-----It would be impossible to place stock unless we offer a discount to the current mkt SP---say 30--40%-----------but we cannot do this-------------The issued share cap in GCM is of 1p Nom Value, and we cannot issue new shares below the 1p Non Value--It's against Aims Rules.

-With the issued share cap in GCM being of 1p Nom Value, and we cannot issue new shares below the 1p Non Value---so we could not have a placing and issue shares at say 0.7---0.8p---and we would need to change the Issued Cap to make it possible. option (4 )

--( 4 )---to be able to conduct another placing, we will have to get the SPO up to a level where we can issue new share above 1p (our NV)

-to do this we are going to need to consolidate our shares---say something on the basis of a 5 for 1.

So you have no opinion at all about our last RNS??

Morning Afameuna, it's been a while since we have heard from you.-----I was surprised that you have not commented on our recent RNS,

---$186 mill of new finance which will see the completion of the ELI pipeline and the start of the FSO operations---all debts cleared and a huge new investor on board-----a real cash machine about to be switched on.

----Just wondered what your views on it all were.

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-Not too sure what the ins and out's of this decommissioning business are, ,---wonder if Ardilaun have actually paid any of those costs, and thereby admitted liability,---maybe you will know the answer.-----but that really doesn't matter too much at this stage.

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--What I really want to hear is your view on all our good news, ---look forward to your reply.

The decommissioning agreement provided that the minister was conferred with the authority to enforce the lessees’ PSE and Island respective obligations to share in decommissioning costs. Commercial production at the Seven Heads field ceased in July 2020,.

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-The field ceased production in 2020 , but SLE had sold ALL of its interest's (and liabilities) to Ardilaun in 2019---- In 2020 when commercial production ceased SLE were no longer one of the lessees, that responsibility had passed to Ardilaun in 2019.

----Do you really think, that if the field had continued production for another 100 years, that SLE would still be liable for the decommissioning costs ??

-As Alaric said yesterday---this is just an attempt by Ardilaun to pass the buck, now they have seen us win the lottery.

-All a lot of nonsense over some small beer.

Yes Papp, all those plants sitting idle and Incurring those astronomical capacity charges, all boiling down to the same problem... Whether they are gas or coal, they just haven't got any fuel to run them, and where they have got the fuel the end price electricity if just uneconomic... And all of it caused by the Bangla policy of Importing... So many bad decisions have been taken over the last twenty years, that they have built themselves a complete minefield, which is now coming home to roost.

...To have ignored the golden goose at Phulbari and committed to spending their entire fx reserves on imported coal and gas, has been a total desaster... And yet still they try to convince everyone, that all is well...... Without hand outs from the IMF they would really be up against a wall, and maybe this needs to happen before things can improve.

. A new Gov needs to bite the bullet and undo many of these old contracts that are strangling the economy.... But where to start.

That's 2 out of 3, if we get the third one then we must be due an RNS..