Of course there will.... mcap of companies is not valued on current revenue.... they’re valued on earnings potential and long term asset value..... this will add significant value short term.
Several years away is likely inaccurate... one of the selling points is faster lead times due to using existing infrastructure, already proven resources and contracted supply....
Upfront payment is likely the greater source of cash short term, and mfdevco owe nuog £1m+. Companies have a lean balance sheet and low cash burn for what they are trying to deliver and the earnings potential. Baring in mind 90% of what nuog are doing is MFDevCo based most of nuog a burn should be recoverable from MFDevCo anyway..... it’s not as if GHs is taking up time.
Answers to 1 and 2 I’m guessing will be made clear in he next rns.... yes people can invest after with more confidence, but at what premium???!
Perhaps LT... unless they announce the SPV with the deal.... I hope they split it
Jan 25 - GTW initiative announced.... Marnavi added with gas field operator and power generation company still to sign up
Feb 12 - Siemens collaboration agreement
Mar 28 - SPV project finance facility
Jun 19 - petrofac agreement “final element”
??? ?? - deal
BTW one point to note regarding the 3 revenue streams....
1 - Upfront payment
2 - Management services contract
3 - SPV equity
One point to note, as stated in the RNS, the management services contract commences at the moment a transaction completes with the SPV. The services contract is for full lifecycle of the project from implementation to decommissioning.
Therefore revenue for MFDevCo begins as soon as the transaction completes as the revenue is service revenue from the SPV, not from the sale of the electricity. So when we talk about first revenue for MFDevCO, we have what i believe will be a sizeable purchase upfront payment, and we will be getting paid for managing implementation through to production and beyond. Project finance will likely be funding the implementation stage. SO the bulk of our profitability from the project will come from the upfront payment and the service contract which kicks in from day 1 rather than the 30% equity in the SPV. But you guys keep going on about lead time.....
If that is not clear enough, the chairmans statement adds to this
I am excited by the potential of MFDevCo's business model and the pace at which negotiations are progressing with operators. Applying technology and innovation to generate value from fields which can potentially be accessed at a low cost, is appropriate for MFDevCo, the Company and its shareholders, compared to the alternative of buying into a development project or production
MFDevCo is aggressively pursuing its exciting gas to wire ("GTW") venture, which is an ideal solution to a pressing need in the market
the Board believes that GTW will position MFDevCo as a first mover in a market with global opportunities and we anticipate significant support from governments
My confidence is increased by the interest MFDevCo has received from operators and speed at which negotiations have progressed with two priority targets
The proposed structure enables projects to be financed without diluting the Company's equity interest in MFDevCo
MFDevCo would earn three sources of revenue for each project the SPV purchases: the initial sales price; payment for services to manage projects; and project revenues as a result of its proposed 30% equity holding in the entity
Utilising existing infrastructure, such as the platform and power infrastructure installed to transmit power generated by offshore windfarms, further reduces capital investment and lead-time to redevelop fields
GTW directly addresses the twin goals of maximising economic recovery from hydrocarbon resources and supporting energy security
Gas is expected to play an increasingly important role as a primary source in meeting the rising energy demand and complements renewable sources to meet increasing energy demand.
It is the opinion of the Board that the opportunities being pursued by MFDevCo have the greatest potential to deliver value for shareholders and for that reason resources are being allocated accordingly
MFDevCo has been advancing multiple projects for some time,
Under the proposed terms, MFDevCo will receive up-front payment for projects and will be further paid for managing projects from the point at which any transaction with the SPV is agreed
I hope that I have made clear to investors our determination to convert the hard work that has been performed hitherto into tangible results. All efforts are being made to create and acquire investable profitable projects. It is my belief that the Company is positioning itself to deliver on that promise in the year ahead.
The Board is confident that the Company's investment in MFDevCo will be rewarded
Easy to be critical of past RNS releases, but the SPV RNS couldn't spell it out any clearer.....
MFDevCo will offer investment ready projects, along with commercially viable development plans, to the SPV, which will have the right of first refusal
The SPV will remunerate MFDevCo for any projects accepted
In addition, the SPV will agree a contract with MFDevCo to manage all and any projects accepted by the SPV
MFDevCo will further contract its Consortium and Strategic Alliance Partners to provide resources and technical expertise to develop projects accepted by the SPV
Einar will lead efforts, on MFDevCo's behalf, to raise finance for the SPV which will be used to fund the acquisition and development of gas to wire projects
Einar is seeking additional financing for MFDevCo to support the business as it concludes the terms of the SPV with Marnavi and, in parallel, seeks to agree Heads of Terms for the two GTW opportunities where efforts are being concentrated
Provision of seed capital to MFDevCo will reduce Nu-Oil's general and administration overhead incurred through MFDevCo related costs and staff utilisation
Finally, the Company notes that MFDevCo is concentrating efforts on the two priority GTW opportunities where discussions with operators have advanced quickly so far.
The nature of GTW projects enables them to be 'packaged' as a facility (including export route) and sales contract and financed in a manner analogous to shipping financing
prepare a development plan to justify the investment decision
to advance the significant GTW opportunities we are working to conclude
accelerate the development of the 'project pipeline'
As specific gas to wire opportunities take shape, we are now in a position to formalise discussions with potential investors
Einar is seeking financing for MFDevCo to support the business as it concludes the terms of the SPV with Marnavi and, in parallel, seeks to agree Heads of Terms for the two priority GTW opportunities where efforts are being concentrated and discussions with operators are moving quickly
offers of up to £500,000 for immediate funding, subject to the conclusion of the SPV
65MW project over 10 years
work out what it's worth
you think we are going to sell that project to the spv for nothing? The structure of this will bring forward MFDevCo cash flow from the project significantly.
It certainly would be easier if MFDevCo and NUOG were under common ownership. How many companies out there invest in JVs in a similar way. You think they do so knowing they will never get any benefit... please. especially a company that have common management.
Nobody knows you are right about something, but my view is based on hours of understanding discussing and reading, your view is based on trying to support a negative agenda and is much much looser with the facts.
I don't really care if anyone buys or not. The RNS will do the job. And i wont be selling on one deal. I have an understanding on what this can be worth with multiple deals, and i am only concerned with future prospect and not stuck on a view based on bitterness and losses from the past.
Wrong.. 500k is seed finance in MFDevCo to tie them over until they get the first upfront payment.... the upfront payment could be an 8 figure sum, certainly a 7 figure amount at least.
In terms of lead time we don’t know yet.... but we know it will be a lot quicker than a conventional play as most of the infrastructure is there and the wells have already been producing. It needs final fdp sign off, closure of the deal, conversion of the platform to a power plant and laying of cables to connect to nearby grid. 12-18m maybe....
But we get the upfront payment on closing the deal that is short term money in the bank... value in our Mcap will come immediately it doesn’t need first production for that.
They will have been working with the OGA along the way. Remember they want this to happen. I am certain they will prioritise resource to make this happen as soon as possible so that other projects follow.
NUOG will benefit from seed finance in MFDevCo and upfront payment in near term which could repay the loan, and they will benefit from greatly increased mcap from acquiring a revenue generating project. It is also extremely likely that further projects will close during the lead time to first electricity bringing further upfront payments in.
Any attempts to play down the significance and the impact a deal will have will soon be put to bed I believe.
No hint of a deal..... what about the fact they have released an RNS saying they are setting up a project financing facility at the same time as concluding negotiations on 2 priority assets, and now releasing a forum ready to discuss such deals when it completes??? Don’t you think that’s more than a hint???
The news we are waiting for is a deal encompassing a project on proven resources with infrastructure already in place, for assets that are no longer wanted by the current owner, with a FDP designed by MFDevCo, consortium partners already lined up as suppliers and technical and operational support, project finance, seed finance, upfront payment, service contract, equity in the SPV, relative low capex outlay, low operational cost, deals with governmental and company finance decommissioning and security of energy supply problems, is a cleaner energy source which can bridge the transition to cleaner energy and the 2050 government targets, deals in supply of electricity via an existing offshore grid and is an energy source that even the majors are looking to for the future security of their company and will be the first project of its kind leading the way with the GTW initiative.
Assuming this gets announced all together, can anyone give me an example of any AIM deal in history that has gone from nothing to a complete project to this extent? A lot of the successes I can think of are a much more of a step changed process or driven by a large discovery.
The real exciting thing from an investment point of view is that this can repeat over and over again for multiple projects over the next few years.
When this project lands this is going to be seriously hot stock. The initial re rate will be significant imo and the expectation to continue to deliver new projects will keep this on a steep upward graph.
The significance of what is about to happen here will go a very long way to overshadow any negative comment anyone can possibly come up with. Look out for the upfront payment details, the gas field operator that was mentioned in the initial Marnavi rns. Are Siemens more involved than we have currently been told? What’s the deal with forward sale if electricity supply and who to?
They are clearly getting the house in order ready for a material announcement. In terms of timing, I really think you don’t need to take your shoes and socks off to count the number of days to go now. It is fast approaching 3 months since the SPV RNS and I fully expect an update within 3 months, and the timing of the article, website update, launch of new forum and government talks for carbon reduction, the foundations have been laid.
There is absolutely no need to ramp this. When the deal lands it will take care of itself. Just a need to provide factual information against all the rubbish posted on here.
Couldn't care if anyone buys or not, would rather not see people selling out just before news due to being ill informed and falling for the attempts to talk people out of it.
We will soon find out who understands what's going on here and where the embarassment lies.
However many shares i have, it isnt anywhere near as many as i want.
SBP posts are always full of inaccuracies and twisting of facts. This one is no different
Yes lets stick to the fundamentals......
Current market cap only £3.1m
Our 50% JV partner are currently working to conclude a project financing facility in the form of an SPV, with an Italian shipping and geoscience company.
We will package up projects for the SPV to buy and in return receive 30% equity, upfront payments and a service contract. (I think some of you would call it " pay me once pay me twice pay me three times)
We have a strategic collaboration with Siemens to assits with persuing such projects. This fits very well with Siemens own ambitions to revitalise their own energy division.
We have a solution that is highly attractive to asset owners, the goverment and investors alike.
We have a model that is easily repeatable and a desire to buiild a multi asset portfolio
Indications that we are working to conclude 2 priority targets on completion of SPV and finance
Several other projects in the pipeline with a great deal of interest generated in the industry
On announcing a project we will have first mover advantage and will be a market leader in this space
The fundamentals stack up pretty well here. The fundamentals make this a very attaactive buy. The fundamentals say you would have to be mad to sell this at this price. So come on lets talk fundamentals as the fundamentals are not what is driving this down. It's scaremongering, its impatience, lack of understanding, the harsh investing environment of AIM controlled by the mms and brokers, lack of faith in a bod that have disappointed in the past. But that will easily be put to bed with a good deal.
But in terms of fundamentals, the upside as an investor here is extreme. One GTW project can create a whirlwind few days in terms of added value. Several projects and this will build into a substantial company with a bright future in a very on point market.
This looks like this is designed with the expectation of a lot of interest in GTW and MFDevCo very soon, getting ready to deal with the great amount of interest an imminent deal will bring.
#cleaner2greener
Lots of talk from the government this week on clean energy targets.
Gas is expected to lead the transition to cleaner energy, and gas to wire is a step further in achieving the cleaner energy goal whilst providing security of energy supply.
Large investment in the offshore power grid will supply infrastructure for which GTW can leverage.
Carbon capture can play a role in GTW
This is a very exciting time to be invested in an initiative that is so on point and capable of adding great value. News of a deal will capture the interest of stakeholders and potential investors beyond the normal reaches of a small aim company update.
you have it the wrong way around.... the need the share price up to do the equity conversion.
the share price has likely been ruined by the bullshite placing, driven by the delay in getting this done and the broker shorter it to shite and holding then to ransom.
It's not as simple as that Cobra.....
I think we would all feel more comfortable with a sizeable BOD holding.
Remember Minty's owns 50% of mfdevco
They have reward options
Buying now at a big discount to what the placees paid would be bad form if possible.
The equity conversion would have to be an appropriate price, and i don't believe the market has reached an appropriate price. If you convert at a huge premium with nothing to support the value it could be seen as creating a false market and theres no guarantee of the sp reflecting it.
The simple fact is whether they have shareholdings or not, they will all do a hell of a lot better by making this a success, via new reward options, salary increases, job security, career achievement etc.
It's worth remembering this had a mcap of £12m in January at a time that it had nothing but GHs and speculation, before GTW was even heard of. So if a deal completes you would expect there to be upside from £12m, as having something must be more valuable than having nothing, which is 400% increase from here.
I don't expect to see people piling in before news. It is a tight ship now, most people that believe in this are already fully in. I think they are trying hard not to have any leaks. Especially if the upside is as high as expected. Look at the last time this did 600%, didnt appear to be a leak.