The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I'm trying to understand this - any help appreciated........
The PSC states GKP 75% / MOL 25% / Texas Keystone 5%
Yet the 2P reserves on GKP presentations state a working interest of 58%
So I conclude income to GKP is 75% of the 58% of brent minus $22 (to cover quality / transportation costs, etc)
Is this 58% after the capacity building charge, etc - paid to the KRG?
Hopper147,
Thanks for your thoughts. Some more from me.
I don't see "investing" as gambling - for this analogy:
Gambling is placing a bet on a single event (single casino game, horse race, etc) - you either win or lose.
Investing (which is what this is) - is like placing a bet on a situation (i.e. buying shares) yet the event is run over & over & over again - the only time it stops is when you sell up & leave. You can leave when you've won, lost or broke even - it's your choice.
The big difference - is you need to choose the correct game to play (i.e. which company to invest in).
So - if you like VAST - it could take 2 months or 10yrs to realise a gain; but that's the rules of the game.
Impatience is an investors biggest enemy - if you read all the most successful investors they have pretty much an infinite amount of patience.
Just my 2penneth - have a good day.
SQZ applied to develop the Columbus field with a tie-back to Shell Clearwater https://www.energyvoice.com/oilandgas/north-sea/174683/serica-applies-to-develop-columbus-field/ Why this isn't RNS'd I don't know?
WTI - debt 20x MC. Only producing asset Tschudi pit has massive groundwater ingress issues it seems BOD eluded to but kept from severity from SH - agreed 2 acquisition deals & and announced they were renegotiating short-term debt into long-term debt; so was looking good recovery situation - then boom pit flooded /can't access ore, etc. LOM went from 8yrs to 2yrs in no time. SP Went from 0.3p to 3.4p then down to 0.18p then admin last week. As I say Baron allegedly had 7% of all shares in issue. It was a big risk /reward and it failed - it happens move on.
I reckon Baron has exited VAST off the back of chastening experience with WTI so he's gone off small-cap Miners. Big losses make you look in the mirror and make changes. Baron Suggested WTI as biggest growth potential in Jan 2018 but its now in administration & likely total loss. He's allegedly had 7% of equity in WTI including his family, so a v bitter pill to swallow & big repulational damage. Personally - I have interest in VAST and WTI but I make my own decisions and don't follow others on twitter or anywhere else for that matter. Baron has a track record of very good calls and he tweets accurate fundamental analysis. Anyone can see that. Everyone makes bad calls - but him exiting VAST makes no difference to me whatsoever. I also take leemorris comments onboard - hence my analysis here.
Teknikal /KOTB Your views are aligned to how I see it. TCW has said previously on the record sanctions would only affect SQZ ability to use US expertise should there be issues / no directly to operate Rhum. Having said all that.............. IMO the RNS put out By SQZ last week was shocking and made no reference to the "logical" response to the Iran sanctions by US. If I explained this situation to my 9year old daughter she would likely come up with a better RNS than last weeks' effort. It's hammered the SP - but I'm a LTH 100% invested average 60p and I haven't sold anything. The issue with selling out now is - it could bounce upto 85p+ off the back of any decent RNS so it's too risky to be out - coupled with the Rowallan drill on the horozon
Plenty here trying to spook PI for their own reasons. Let's just make some glaringly obvious statements: 1) Everyone knows the Iranian Oil Company are 50% JV partners here. 2) Trump told everyone in his pre-election pledge to exit the Iran Nuclear deal. He's persistently stated it all the way through his first year in office - so he's followed through 100% 3) SQZ / TCW knew both of the above well in advance - there are no "surprises" here. So - I find it unfathomable & very difficult to believe that thes events are going to significantly derail this deal. None of this is news to anyone. SQZ will surely of done the due diligence and will have a plan in place to deal with this considering it was such an easily predictable event. Just IMO but this needs a balance - a lot of attempts to spread negativity & spook people - but sadly thats how it is on these BB
Guys, The way I see it is this: Orion are massively exposed in WTI - primarily from a debt and to a lesser extent their SH position. The only logical way they are going to recoup their losses is by continuing to support WTI moving forward. To pull the plug is nonsensical as WTI is beginning to generate cash. Administration/liquidation would lose Orion >$130m. Apart from the various supporting indicators (such as not taking the ore at $6000pt) an obvious major indicator that Orion will continue to support is their agreement for WTI to acquire 2 additional assets literally in the last 16 weeks. Who has ever heard of a debtor who isn't even getting the monthly repayments allowing additional expenditure on top of the existing debt. This SP drop from 3p to 1p has wiped another c$10m off Orion's asset value for WTI. Significant expenditure has been made to improve production - which hasn't yet been fully reflected in the cashflow of WTI. It's clearly a testing time - but considering where WTI has been to over the last 24months I'm quietly confident of Orion's continued support & the progressive return to health of the business. Problem with a lot of PI. They have massively short-term timescales. Financiers like Orion & ii understand it takes time & patience is what's required - especially in a recovering commodity play such at WTI. A significant proportion for WTI SP has tanked is nervous PI's exiting In terms of the water ingress issues in the pit. Having had some professional experience in this particular discipline - it's simply a pumping issue. Fit a bigger pump. Pumps for this kind of application aren't very technical - not a particularly challenging fix for an open pit operation. All IMO of course DYOR.