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Https://www.youtube.com/watch?v=1PHBFJMxjEU&t=224s
David Mirzai, energy analyst at SP Angel, talks about UK listed smaller oil companies he thinks have potential to do well over the next 12 months. - including UJO
Rathlin's parent company: Connaught Oil & Gas Ltd
http://www.cogl.ca/
Connaught Oil & Gas Ltd is funded by Azimuth Capital Management.
(google searches)
"Hedon Town Council last night joined Paull Parish Council in objecting to the proposed Rare Earth Oxides processing facility originally planned for the Saltend Chemicals Park (SCP) but now earmarked for land to the East of SCP."
https://hedonblog.co.uk/2022/02/11/local-councils-objections-to-rare-earths-oxides-processing-facility-re-location/
Back to square 1? A new site required?
I cannot see there will be any further update apart from this:
"The Group expects to announce its final results on 29 March 2022"
Yesterday's so-called "Trading" Update said NOTHING apart from their liquidity being very poor (year end net bank debt being £10.2m). No figures whatsoever. Why is basic information so difficult?
Thinksmart Ltd, the "managed wind-down" as they call it, in reality now only an investment company owning some shares, currently costs around £3.6m per annum in management and BOD costs etc. to manage. Their only "activity" will be looking after 618,750 Block-shares worth around £77m today. That is a whopping 4?% p.a. "management charge" for watching some shares in one single company. In the NOTICE OF GENERAL MEETING they confirm that they have no strategy for the future. My bet is that none of the directors/top executives are in any hurry to reduce that £3.6m annually management charge since nobody wants to be the first to leave. Unless of course they award themselves an eyewatering shiny "good leaver" golden parachute each and cashing in their share options.
For me Thinksmart was solely a punt on the sale of the 10% Clearpay-share, not on Block's future prospects. I thought the sale was a very disappointing so it's time to exit. One positive thing is that I can safely cancel my IC subscription and save the reading time and a few quid. Don't misunderstand, I'm not criticising IC for ramping Thinksmart, they are free to write what they want?but I criticise myself for taking any notice of what they write so deceptively eloquent and for buying their arguments. Good luck all!
What will be the purpose and strategy of ThinkSmart in the future apart from eventually owning some shares in Block? To just watch some shares they will hardly need the the current full top management group on its payroll or a full board of directors?
In spite of BRR Media asking two or three times what the Shoreham project would mean for the shareholders of Getech, Jonathan Copus CEO of Getech gave no figures or said nothing useful about what specific role Getcech will play.
https://www.brrmedia.co.uk/broadcasts/6192687641216a596aef5107/getech-group-company-update/
So what Getech will do in this project is the planning (what Copus calls "development") of the facility. Although he said that the project represents "Asset value with transformational potential", nothing was said about Getech themselves investing in assets going into this facility, that will obviously be left to all the "stakeholders".
Jonathan Copus never says in the interview that Getech will generate EBITDA of £2m per year from this project. He generalizes by mentioning stakeholders' research which modelled financial characteristics of a 10 ton per day hydrogen sales facility to generate EBITDA of £2m/year [8:46] but Getech will never own or operate such a hydrogen facility so why using that in his answer to BRR's question about shareholder value? (EBITDA-characteristics for a 10 ton/day hydrogen plant can be found all over the internet so this information is hardly a result of Getech's planning).
All he says about Getech is that a project like this could represent "a path to cash flow" [8:36] (!!) and nothing about specific income. A possible "path to cashflow" is nothing tangible.
Without even being told where in this project Getech's income will be generated, it is very difficult to estimate any share value.
Does anybody know if ThinkSmart have any business plan for the time after the sale of ClearPay or will they distribute as dividends all cash to shareholders and perhaps become a shell company/"SPAC"?
The geoscience business is Getech's bread & butter activities and thank God for that! Without it, Getech would have no tangible activities left. The the share price wouldn’t even be as high as their cash position since lots of their cash is already spoken for in the hydrogen venture where the risks are sky high and the time lines are uncertain/unknown.
The Daily Mail article is about mixing some (up to 20%) hydrogen into the natural gas before distributing it to the consumers. This doesn’t require any new infrastructure so it is completely different to Getech's hydrogen punt.
Sorry you already included it. smallcapslife
Do you have a link to this article, or at least, who published it?
Released today:
https://www.iea.org/reports/oil-market-report-february-2021
World oil demand is set to grow by 5.4 mb/d in 2021 to reach 96.4 mb/d, recovering around 60% of the volume lost to the pandemic in 2020. While oil demand is expected to fall by 1 mb/d in 1Q21 from already low 4Q20 levels, a more favourable economic outlook underpins stronger demand in the second half of the year. The incorporation of new data lowered the 2019 baseline by 330 kb/d.
The Internal Rate of Return of this Royalty investment available to UJO is very impressive to say the least.
Normally such figures of financial return would be well and truly within the too-good-to-be-true category of investments and therefore not to be touched by any means whatsoever. However, the North Sea is in a different league to most other industries. Believe it or not, as far as many North Sea investments are concerned the fantastic royalties offered to UJO are just the crumbs from the big boys' table! To illustrate, this is from Equinor's Q4-2020 presentation:
"Johan Sverdrup [oil field] Phase 1 investment was NOK 83 billion [˜£7bn]. Today, we can announce that for Equinor, this investment will be paid back after tax this month. Or to be precise, actually this week. That's 16 months [—16 MONTHS!—] after start-up. In my view, quite impressive."
https://www.fool.com/earnings/call-transcripts/2021/02/10/equinor-asa-eqnr-q4-2020-earnings-call-transcript/
And after the 16 months Sverdrup will continue to produce the same volumes for up to 50+ years! Can anyone calculate Sverdrup's IRR?
This is a very good diversifying move for UJO. I wonder if these royalty instruments available to all of us?
I'm topping up every time it drops below 30p. Sentiment is one thing that has worked in our favour recently but a juicy rns will shift things suddenly whatever day of the week it is. In time I believe we won't even see the difference between 28 and 29p in the price graph unless the y-axis has a log-scale, and I don't want to regret I waited for a lower price. At this stage the NUMBER of shares is much more important than the PRICE of each share. Good luck!
Questioned here again and again is why would anyone sell H2 Green for "only" £1m?
I believe the reason Luke Johnson and Ian Spencer are prepared to sell H2 Green Ltd to Getech for £1m is that they realise that their role is actually very limited: There are probably no patents or intellectual property involved here. Instead they have had a VERY GOOD IDEA and they have some very good CONTACTS. They have been clever and lucky to secure an agreement with SGN whilst knowing that they themselves cannot fulfil anything in the contract without the help of others and this is where Getech comes in: Getech has the knowledge and capacity to start developing "an optimised network of hydrogen supply developed alongside demand, the key to providing affordable hydrogen". Therefore, Johnson and Spencer's role here is in fact limited to just selling a contract for £1m. However, they may of course continue to have a role in the project after the sale.
SGN Commercial services, with £37m on their balance sheet at last year, is a subsidiary of the £16billion SSE PLC - www.sse.com - ("a leading generator of renewable electricity in the UK and Ireland and one of the largest electricity network companies in the UK") This is big. Very big.
Why are they prepared to sell the company for a paltry £1mln?
The owners of H2 Green Ltd, Luke Johnson ("serial entrepreneur with extensive experience in energy and technology") and Ian Spencer ("previously Head of Economic Policy and Strategy within Scotland’s First Minister’s Policy and Delivery Unit") have somehow remarkably managed to secure a contract with SGN Commercial Services to start developing H2 infrastructure(!!) (https://www.h2green.co.uk/post/h2-green-and-sgn-commercial-services-agreement). This contract seems to be the only business there is in the company. However they both know that this is far, far too big for the two of them sitting in H2 Green Ltd to handle alone. They are therefore prepared to sell the company - and therefor the contract - to Getech in return for Getech-shares and cash as described in the RNS. They may of course continue to work on the contract as employees after the sale, we don't know.
Malik - Yes, the only potential "placing" they have announced is for paying less than half the purchase price of H2 Green Limited in shares to be issued instead of cash, should they choose to exercise the purchase option (something they of course will do to progress this project!).
from the RNS:
"…the maximum consideration that could fall due before H2 Green generates first revenue totals £375,000, of which up to 50% will be settled through the issue of new shares in Getech and the cash component of which lies within Getech's current financial capacity."
The fact that the amounts and figures mentioned in the RNS are so small compared to the potential size of this business, could be the reason the share price has not moved much. And their additional costs need not be very high apart from hiring more engineers to the team that will handle this project. Already in their 2H2020 report they hinted that something material was going to happen:
"These diversification initiatives are focused on opportunities that
have the potential to materially grow Getech. To date, activity has
been delivered through organic product investment, service
enhancement and innovation. The Group is also working to
accelerate this journey through acquisitions that target Energy
Transition related opportunities where Getech sees the potential
to deliver a stepwise series of growth-focused transactions.
Year to date, Getech has screened c.100 acquisition opportunities,
seven of which have been taken to detailed due diligence.
Diligence and negotiations continue on two of these opportunities."
At current share price, 29p, the market cap. of Getech is £10.9m, which is only £1.6m above Net Asset Value at the end of June2020 (2H2020 unaudited). What is going on here? Any other listed company just mentioning H2 involvement is priced 10 to 50 times NAV!