Member Info for redeyemines

Two more cracking results from Decklar------the co seem very pleased.

The price of coal hasn't risen from 50 dls to 212 dls in a year for nothing... Somebody really needs it (China especially), including Bangladesh.
.. Two current coal power plants, will be joined by at least two more in the near future, and they will need feeding... Even if Phulbari is not up and producing by the time further plants come on stream.
.. With the scheme as it was, with 6000 mw of power plants included, there was a compelling case to let the coal be mined.
.. Without the plants and the coal sold elsewhere, that is an asset worth 120 billion dls, to the Bangladesh economy, no matter who ends up using it.
.Without the power plants, can we present a strong enough case to reverse Sk Hasinas previous decision, and let us mine.

So $7.7 mi.. from 40% of MLPL over 6 months--even with production at rock bottom (6,600 BOD)
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-If this RTO goes through then we would earn $38.5 mill from 100% of MLPL a year, even if the production stuck at this 6,600 BOD.
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-So once the pipe line and FSO come into operation, and we release production back to proper levels---(and the higher average oil price )---------what do we then earn ??-.
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-sounds good to me.

nacho2------No, I do not know the terms of the license we hold, other than the fact that we do have one.
---Varies "Anti" groups in Bangladesh have tried to challenge us over the years, saying we have no rites to the coal, and we have always proved that we have.-----------but the go-ahead to mining is always subject to "approval from the GOB", and this is the hurdle we have never crossed.

Pappi, apologies, i missed your reply to me the other day.
-Of course you are right about the power plants currently under construction ,but not yet producing any power.--I did not mean to infer that there were only two power plants in total in Bangla, only that at this time there are only two currently producing any power.
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-As you said there are a number of plants that are still being constructed, and one or two are near completion (although some of the others may still get cancelled).----------but how can those plants can make any sort of forward plan in this current climate.
-They have seen the price of the raw material they need, rise by 350% in the last year alone, --that must have thrown all of their projected figures straight in the bin---and that is if they can secure ongoing supplies at all--------
-Will this unstable fuel supply lead to others walking away from their proposed projects?
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-I hear what you say about "using own coal" (from Phulbari)---but where ever it comes from, the price is still too volatile to be able to make any long term plans, and even if we got the go-ahead at Phulbari next year, --how long would it take before we could start supplying those plants (at least 2/3 years).
-Using our coal "in house" for our own power plant, would have been the best solution as it would have cut out most of the variables ( we could have fixed all the costs and tariffs for years to come)--------so we really need those PC plants to make using Phulbari coal in Bangladesh viable.
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-Here's that article that started this conversation.
-https://www.thedailystar.net/frontpage/news/govt-scraps-10-coal-power-projects-2118089

Morning Papp----you coming round to my way of thinking ---lol
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-If China really do stick to their announcement of "no new coal fired power plants abroad", then where does that leave us at Phulbari.
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-We (GCM on our own ) have not been able to persuade GOB to let us mine the coal, and with out the Chinese involvement we could continue to be ignored.----So if PC walk away from the 6,000 MW project, where does that leave us.
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-Could China offer Bangladesh financial backing to develop alternative energy supplies (wind solar ect), in exchange for the rights to mine and export (to China of course) the coal at Phulbari.
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-This, to me, is now looking increasingly likely to be the final outcome, but can we hold out long enough to be able to extract a "reasonable" price for our License.??

Morning Pappi----- good to hear from you too.
-Nobody could dispute the value of the deposit at Phulbari (about $100 bill as of today), of clean high calorific coal, but Bangladesh are not using it--------why.
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-Well, despite all the talk of new power plants, Bangl has only one or two actual working plants-the rest were just proposals, and a lot of them have never gotten off the ground and have been dropped ---(see my post below from a few weeks back).--So unless things change and Bangla starts building a lot more coal powered plants, then they could well be a net exporter of coal.
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-Easy to get distracted. Over the years so many plants had been proposed and approved, that you got the impression Bang had lots of producing ,coal powered plants----not so.
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-At present they only have 600MW from Payra and 525MW from Barra---that's all.
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Lots of smaller fiddly proposed plants, that never get off the ground, is typical of the scatter gun approach Bangla has taken over the years.
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-ONE mega project of up to 6,000 MW solves all their problems-----Phulbari-what else.

It's been about 30 months since the JV was announced, and we are still waiting for PC to sign into it.
-The last we heard from them, they were trying to get a larger slice of the pie (the coal, the mining, and the power generation), and the MOU kept getting extended.
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-A thought that crossed my mind, ---and one I put to the company---was whether PC were trying to starve us out (we have no cash left to carry on), and take the mining license off our hands for a pittance.---------------obviously the Co disputed this--well they would, wouldn't they.
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-So were does that leave us and PC after this latest statement from the Chinese Gov.---
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-The coal is still there in the ground, but we potentially, do not have any new proposal we can now put to the GOB, to hopefully let us mine.-------but that coal is increasingly more valuable.
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-As of this morning, the price of coal has risen by 270% from it's Sept low, which means the coal in the ground at Phulbari is now worth over $100 Bill if it is extracted and NOTHING if it is left where it is.
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---This will not be lost on PC/Chinese Gov.
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-Although Bangladesh does use some coal, the biggest users are China, and if "no new power plants are built overseas" (in Bangla at Phulbari), then Bangladesh could become a net Exporter of coal, ---and who would want it-------China.
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-Whatever the Chinese Gov say, and however long PC delay signing any sort of agreement with us-you can almost feel them circling like Vultures around this coal field.
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-Will we sell it to them ??

The 30 th of Sept is just the date for the AGM and has nothing to do with the proposed RTO.
... Nothing new can be introduced at any AGM, and it is just an historic look back on the past year, along with any new proposals that have been tabled to be voted on.
.. The end of the degotiations regarding this RTO are in no way governed by the date of the AGM, and they will finish when they are finished.

urther progress towards drilling of Anchois appraisal well in December 2021
Chariot (AIM: CHAR), the Africa focused transitional energy company, is pleased to announce that it has
signed a binding letter of intent with Halliburton, one of the world's largest oil field service companies, for
services on Chariot’s planned Anchois gas appraisal well within the Lixus licence, offshore Morocco.
The services Halliburton will assist Chariot with include but are not limited to:
• project management services;
• directional drilling and logging whilst drilling services;
• drilling fluids materials and engineering services;
• cementing, pumping, materials and engineering services;
• wireline logging services; and
• drill bits and coring services.
Adonis Pouroulis, Acting CEO of Chariot, commented:
"Following on from our recently announced rig award, today’s release marks further progress towards our
planned appraisal well on the Lixus licence, offshore Morocco, later this year. We remain on track for drilling
operations to commence in December and we look forward to updating the market further as other
operational milestones are achieved ahead of drilling.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, as
retained in the UK pursuant to S3 of the European Union (Withdrawal) Act 2018.
For further information please contact:
Chariot Limited
Adonis Pouroulis, Acting CEO
Julian Maurice-Williams, CFO
+

The real question should be-----------What's the company cash position after the drill.

Nice to see a bit of a rise in the SP, but looking at the trades, it's not on the back of any serious buying.
-More likely the seller that was there at 6p, and halted the last rise, has pulled their order for the time being (probably there @7 now )

That at is really sad news,.. But thanks for letting us know Pap.

Just had a read of the Decklar ws, and although they didn't say what they had been expecting, they sound very chipper with these results, so I guess they are better than expected.

Not the last hurdle I'm afraid ICB... We need Power China to sign into the JV before we can present our proposal... This has been holding us up for over 18 months now, and nothing positive can happen untill that is signed.

That sounds a very reasonable flow rate, and still with two zones to go....... Wonder what they were hoping for.

That's an interesting angle your mate has come up with Al,... Another venture that could add value here... Let's hope it happens.

Things are still in flux, so I don't think I can give anything other than guesswork at this stage.
-As with all negotiations, there is continual pulling and pushing right up until things are signed, and nobody gets everything they wanted, it's all compromise.-So yes my thoughts were that we would lose the loan repayments and interest, as these would be offset against the size of any equity issue,-- but maybe not all of it.
-SLE (Oisin) has rather put his head on the block with those podcasts and interviews, all stating the policy of returning "spare cash" (50%) to SH by way of Dividends, and I'm sure he was anxious to stick to his words,--- of course things could look entirely different now, but not necessarily a total reversal.
-I agree with you that part of the outstanding loan and interest money could be kept out of the new Co, and returned in full to existing SH's----------but we'll have to wait and see.
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-The thing that could be of greater importance will be how much of ELI we will finally finish up with, (100% would be really great), but maybe a tad optimistic----again we will have to wait and see.
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-Will we get the 18% held by Sahara Grp at some stage, or even the NNPC holding----------all thought for the future.
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-First lets get the pipe line and FSO up and running. and get it up to full capacity of 100/- BOD---that should get our production to a stable 25/-BOD, and then we can build on it, and our earnings from OML18 should fly.
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-With the amount of time we have already been suspended , I'm sure things are going well, and that this deal will definitely become fact, and hopefully in the not too distant future (I think the resignation of our CFO spoke volumes about the progress that has already been made)

Morning Al----there were about three or four of these podcasts, and they all highlighted the potential future dividends (about 50% of "spare cash"), which was fantastic.
-I wonder now how this RTO will affect our immediate cash position.----Will the outstanding loan repayment amounts be swallowed into the bargaining pot, and become part of the RTO deal, leaving us waiting for future earnings before we see another Div payout ?
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-No point in asking the Co at this point, because they are still in the middle of negotiations, but what's your thoughts?

Before anyone starts, let me say, that I know this makes no difference to our current situation.
-but
-The price of coal just keeps rising, and it is now up 230 % since Sept.
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-That means that Bangladesh has a coal deposit at Phulbari, now worth $150 billion.
-Add to this the value of the Electricity that would be generated, and even the value from the minerals in the over burden, plus all the spin off industries and regional development.
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Surely this is too big an asset to be left in the ground forever.