RE: Conclusion1 Dec 2019 17:36
Well said Fingers.
Am1, CLON are also in direct negotiation for a second Tano block this is in addition to the 2a where CLON are the legal licencee recognised by law. An agreement has been reached between CLON and GNPC/state and as per RNS the legal case was dropped by CLON for the conclusion of block being ratified. This has been sent to cabinet see RNS's.
As you may be aware from Africa Oil week, Ghana has been working for a significant change towards transparency, methodology of working practices and honesty. Remember that CLON had the block taken away as they would not agree to actions that broke anti bribery. It'll be major egg on face if this was to not come back on for CLON and if we think that CLON now have access to serious financial backing by known oilers' - its very unlikely of back word going to be given IMO. Last step in this process is ratification.
Erin was in chpater 11, I understand it is now chapter 7.
Now that Ghana is working to a new era of no corruption and legal agreements protecting both private company and state, we could be seeing a double announcement in the the days ahead IMO one for 2a and another for a new block awarded directly, it would not surprise me if both get awarded at the same time.
As Fingers was alluding to PET rightly have a 30% interest in CLON, if you couple this to the new backers also holding contacts in Ghana and significant interest to oil discovery it is going to be interesting times ahead! IMO our new PET backers will have had extensive talks with CLON and GNPC these discussions will have likely included the 30-40M drilling costs / options. Why else did the BOD take options at 0.7, they are smart cookies and know (like many of us) that there is a significant increase of MC/SP coming.
Recent PET shareholder meeting includes dialogue on Ghana and its highly probable that there will be a positive connection between new backers wanting 'in' on Ghana blocks. Again, IMO all the signals and information is available.
Earlier this year and before we knew about the developments of new blocks being negotiated and new potential financial backers, Bridges put forward a 20p upon ratification suggestion/ prediction (if I remember correctly). I was more thinking we may be looking at 5-6p, but based on where we are right now, I'd say that a SP of 15-25p is entirely possible! The amount of resource is staggering in Tano Basin.
Going to be a exciting week ahead.
All IMO, DYOR
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