Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Mick, They should maybe look at who is actually selling the WEN stock to trash value. Rather then refering to dissenting Norwegian shareholders.
It is their trusted long terms shareholders like AXA. If that is not a statement to the board and Kat, I do not know. The reply is that AXA needed liquidity in the fund. I mean who do not want that? It is rather a statement: get your foot out of your as... nd create some shareholder value.
Mick, agree GSA still to high for a company like WEN. Dividend good. In the presentation it is mentioned that K1 will start later in the end 2020 with 20-30mm. If that is the case, we can hope that WEN will guide around maybe 90mm during 2021 (?)
If so, it should not be a problem to keep the dividend around the same level.
Mick,
Maybe I do not understand all your comments. If they have around 12musd in cash (after last debt payment in January). If they produce worst case scenario 70 MMscf/d , it is around break even. They will still have 12 musd in cash? So I still do not see why they would need to reduce dividend of around 2-3musd. And as I said 70 MMscf/d I think is worst case scenario. I expect increase in gass sales after the summer.
Mick, With a balance of around 12musd after last loan payment, I do not see why they should cut in dividend? It should be no problem for the company to pay around 2musd.
It was a very conservative guiding, but It is a reflection of the high rainfall last year. It was extreme, and they naturally fear the same outcome this year. We can never be sure about rain, so lets see what happens. I personally think that we will see increased gass sales especially from end Q3 and Q4. New customers will be added to the pipeline. This guidance is worst case scenario. The guidance will be updated in the summer, lets hope for the best. The company increased the cash balance from around 10 to 13 musd the last 6 months. That was with around 70 mmscf/d and after loan payments. So it is not all black :)
what about a combination of RTO, fusion etc with a company that have some cash (like WEN), assets outside Tanzania, but has not yet been listed on the stock exchange. After WEN has negotiated a new deal with TPDC,it will also make WEN very interesting for a partner, that would like a quick listing on the stock exchange. and also would like to derisk their assets play. If this partner have cash, I would be suprised if they do not see an increased stake in MB as an attractive investment. We will see, their is several possible outcome of all this, but the most important is that a new deal is signed. I do not think we will see much action before this is signed.
Tanz, why don't you ask him if he has ever received a fee from any company on the bucketlist for the massive job he has done to present the company, and given a full analyze of their company on his page? Then to do all the follow up work before and after they have been included on the bucketlist.
There are no free meals in this business.
Malcy is probably doing a lot of good work and analyze. However, only the one who pays will make the bucket list. If you do not accept his fee, the company will not be evaluated as good enough for the list. Ref WEN, they would not accept to pay the fee, and is no longer mentioned as a candidate for the list. I think it is only matter of time before Aminex is out of the list, but that is just my opinion.
We have waited long for WEN to develop into a good investment. Slowly is the correct word, but moving it the right direction. Different from the past, WEN is making money while we wait :) Soon debt free. I see Aminex as no investment case the way they are priced today.
Mick, hopefully there are some more trigger as well. We will see :)
Can any of you in UK describe how AIM works? How do they match orders etc? We have investors in Norway that have higher bid in the system, then what some of the transaction is completed. I have seen this mentioned before as well. I assume many of the trades are done outside the system? Is it many of the sales and buy orders that is never put into the system? etc
Mick, They have again confirmed that they are in negotiations. Let's hope they close this very soon :)
The company will present a plan for dividende during 2019, accepted by the board already.(so start buying Eskil and Kat) However I do not think there will be any dividende payed in 2019. It is a plan for the future 2020,2021 etc. That is at least something. I think we can see other share triggers before dividende.
By the way, it seems it is correct to leave the 4m usd payment from M&P out of the books. It was discussed in Norwegian forums today, and the agreement between Cove and WEN for Wentworth will acquire Cove's 16.38% participation interest in Mnazi Bay.. In WEN accounting this was 3,5 musd to Cove. Rest debt pr 30.06 18 was 1,6musd to Cove + the payment from M&P. So I guess WEN will not see this 4m usd in their balanse.
Mick, fair enough. It is boring to discuss the same issues in different rapping over time, I agree :)
However I think things can happen faster then end 2020. We will see, some info to you from the cold Norway
There are different newspaper intervjue with Mette Ottoy country manager for Equinors Tanzania. She was hired in March last year to solve the problems/challenges in Tanzania. Today she reports she has strong belive in a break through in Tanzania for Equinors . In the same time we know TPDC (from Twitter) CEO describe massive events in #oil & #gas industry. If it has any impact on WEN, I do not know. However, it could only be positive in my eyes if Equinors start taking the Tanzania gass market seriously. I think that will only add value to the assets already established. Good luck to you as well :)
This is what WEN informed about the Wen carry (November)
Pursuant to a 2009 farm-out agreement entered into between Artumas Group Inc ("Artumas"), Cove Energy Tanzania Mnazi Bay Limited ("Cove Energy") and Les Establishments Maurel et Prom ("Maurel et Prom"), the 2012 Ziwani-1 well and associated 3D seismic costs were paid by Maurel et Prom and Cove Energy as part consideration for their entry into the Mnazi Bay asset, thereby fully carrying Artumas (the "Wentworth Carry"). The net Wentworth Carry is $8.4 million.
Pursuant to the Joint Operating and Farm-Out Agreements, the Wentworth Carry is recovered by Maurel et Prom, post operating, but prior all exploration and development expenditures from cost gas sales. Wentworth expect Maurel et Prom to fully recover the Ziwani-1 well and associated seismic costs from their adjusted allocation of the TPDC receivable over the next nine months. The Company notes that ongoing operating costs continue to be recovered in preference to all other costs, minimally offsetting the impact of the prioritised recovery of the Wentworth Carry.
TEMBO
Further to its announcement dated 17 December 2018, the Company is in the process of relinquishing the Tembo Appraisal License with a planned effective exit date of 30 April 2019. The Company continues to assess suitable upstream opportunities in country, through its strong relationships with ENH and INP.
Did you adjust your cost estimates for the exit from Tembo? I do not have the figures for 2018 total, but I am sure WEN has spent several millions USD. I also assume most of the workforce related to Tembo/Mozambique will be gone. Unless RTO agreements etc makes it neccessary to keep some of the workforce.
Is it not also an agreement that M&P will pay around 4m usd when average production exceeds 80 mmcf/d over a periode of several months?
Please also note that the guidance reduction is a solution for a better long time solution. The same time such action will but more pressure on the Tanzania government. Maybe not to bad of a play from WEN/M&P ?
In addition WEN has spent a few million USD on management re-structuring,consultancy, legal and professional charges+ other cost related to moving offices. Some cost save in delisting from OSE can be included.
In the last update from WEN the guiding was upgraded.
A return to production levels closer to 90 MMscf/day are expected during the second half of November 2018, with the Company likely to exceed the previously guided average for 2018 of 65 - 75 MMscf/d.
That it self is a good indication of the road a head. The loans and dept can easy be found. If all investors need to see that reported before they see the big picture, they do not like any risk. The big question is how the expansion plans will effect the company. If they can find a partner with win win situation. looking at 1+1, is not 2, but maybe 3 or 4. That can give both companies benefits. The future could be bright. Again, to wait and see could lose upside. On the other hand, WEN have never rushed when it comes to value the company on the stock exchange :) Short time trading in WEN have never worked very well. So the liquidity is an issue, and we will probably get answers if it still will be, after the delisting is completed. I hope the delisting, roadshows and RTO agreement can change this during 2019.
Mick,
If the UK investors like some type of risk, it is no better time to buy WEN. As you said, the good financial results has not been shown yet. However that will change very soon. I agree about Tembo. Again if you like some type of risk/bet, you should buy before any info about expansion plans. If the investors wait for all this info, much of the upside could be gone. At least that is what we hope for. :)