focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Agree Trellis. The delays were inexcusable and I posted as much at the time. The team have been poor. BM couldn't find a virgin in a convent let alone gas in the desert and whoever manages their logistics should be buried in the sand alongside some coiled tubing.
Back to Back drilling.....remember that one?
Technically not a pun LW and I'm pleased someone picked me up on it. Didn't want anyone to think I had accidentally quoted the Messiah JP (that's sarcasm btw).
Why Rothchilds? Could be for several reasons:
Maybe because he wants the very best deal and thinks they can get it better than him alone.
He was expecting to have several Tcf under his belt, that would have attracted plenty of players so he would have needed them
Maybe because if it goes to shell he wants to be able to say 'its the best deal Rothchilds could get' when ppl say 'sold it to Shell at Mates Rates'
GLA
'Table- My opinion is we have been working on selling the business in earnest since early this year. I think we can only say the decision is right or wrong (to sell now) once we know the sale price. Then we can assess the risk/reward of continuing. Or of course we may have to continue anyway. That's not my expectation, but we will see.'
Sounding Off posted this earlier and I've reposted so it is not lost in all the mud slinging. I think Table and SO both have some correct observations. Some of JP's actions have been strange (such as the 'sudden' decision to sell before drilling TE11) I think JP's hands have been tied for some time. I think he has been in negotiations for a long time and that Sou were given a time frame with a cut off date which was end of March.
I am sure a deal will be done, no doubt the price range will be much lower than any of us would like but I'm sure it will be many multiples of the current share price (pun intended btw) just hope it is enough to make sure no one has lost money on this share.
GLA not long now.
Testpack why would you get rid of JP during the marketing period? It's the most ridiculous suggestion I've seen. Get rid of him before it or after it if not successful but during it is the last time you would do it....unless you were one of the bidders maybe?
Not long to wait now and let's see what we get. As you say PIs make up almost 60% of the shareholders so he needs us on board with any offer.
GLA
Agree Scarf. The asset is huge, TE5 is an enormous amount of gas. The asset isn't going anywhere. Agree the board's performance so far has been poor but the asset will be attractive to someone.
GLA
I agree with you both. I'd much rather hear news of a deal before the SPA process takes place but that is what JP said. It puts back news by several weeks. Feel free to email Sarah or JP to ask why.
GLA
Jacklevi that isn't what JP said at the FSC. he was very explicit that any recommended offer would be after the SPA was agreed. It answered one of the questions I posed so I remember the answer.
GLA
STB what laws have the BOD broken that will get them locked up?
SPA = Sale and Purchase Agreement
It will take a long time because it is a legally binding agreement to purchase the assets so all of the legals need to be done i.e.. transfers of licences, IP etc etc Financial due diligence.
A lot of work really and timings out of SOU's hands.
GLA
Exp. The company does not have negative current assets, go back to accountancy school!
Agree with JTF that deadline is end of this month for offers but then they have to agree SPA before it is put to shareholders (JP explained this at last FSC) so we are looking at positive RNS end August at earliest. RNS early August would suggest no offers.
GLA
Can anyone confirm that when SOU refer to E Morocco assets they mean Tendrara AND Anoual? I assume they do but I've never seen Anoual specifically mentioned.
Also an observation from Q3 presentation, the area is huge and much closer to Algeria than the Shell and Repsol areas. Interestingly the Shell website references their own areas as 'close to the Algerian Border'
Exciting times!
GLA
Is there anyway of telling whether the recent raise was from IIs? I assume it was but not sure how to confirm this as we only have % for each quarter.
GLA
https://www.energia16.com/repsol-shell-explore-moroccos-hydrocarbon-potential/?lang=en
Some background to yesterday's thread
GLA
250k share buy just before close last night, nice.
GLA
When we know the LE outcome then is the time to judge JP. At the moment we are operating with incomplete information. His performance at the moment has been poor but lets see what he can deliver. I remain open minded at the moment.
GLA
Further to my post below I did quite a bit of research about the two companies and what they have in Morocco. Obviously I have no idea what their strategies are or what is in the data room but the potential for Morocco both as a market and provider of gas is considerable. I would think Shell might see this as the opportunity to open a new market and Repsol may see the same but also the proximity to Spain may be their attraction.
There is also the possibility of a JV between the two of them given the potential size of Tendrara.
Suggestions that no one will be interested are just ridiculous, SDX are chasing pockets if gas several magnitudes smaller than we already have in TE7. So I have no doubts there will be offers, just how much is the question?
GLA
Medi I don't think they will, I'll explain below, If they do then there are many other operators in Morocco and the bottom line is there is a massive amount of gas in TE7 that we know flows commercially and it is sufficient for 60% of the gas to power needs of the whole country, this really is a strategic asset for Morocco.
I think Repsol and Shell will be interested because they have very limited assets in Morocco atm, shell only has the Tanfit licenses Repsol has a few other assets. but neither has anything with the potential of Tendrara.
GLA
What did it say, i'll read it quickly this time!
GLA
I think JP has run out of time, plain and simple. He ***d about so much on TE10 that SOU ran out of time. MG want TE7 on stream in 2021 and SOU won't deliver that. Still think it will be Shell or Repsol that take us over.
GLA
Yes? Why is it only reported on LSE now?