Member Info for Slift

Petra hasn't specified how they're going to sell these diamonds.

But wonder if it will be a special tender again following a viewing.
They have stated that they are maintaining a flexible approach to sales.

Personally, I think they should be holding multiple viewings and tenders in multiple countries to maximise the value for these diamonds.
China, India, Middle East, Europe and USA.

See what happens.

PlantedBHA,

Are you genuinely okay?
I haven't seen you mention your broken truck or the fact that it's "loaded" with your weight.. in AT LEAST the past 3 posts!

Positive messages sent from the JMMC may see oil price move soon.
Some developments:
- Saudi Minister tells traders not to gamble with OPEC and that all quotas will be met
- Russian energy minister makes statement: "supply is 1.5-2mbbls lower than demand now"
- Recent decline in stockpiles. US crude stockpiles are now (as at 11/09/20) at 496m barrels (surplus of c. 50m barrels since COVID19)
- Recent increase in refinery utilisation (possible draw in crude next week)
- Oil price moving towards 200DMA (Brent $44.3/barrel)

All very positive for Tullow and other oil companies.
At current Brent price of $43.3/barrel, Tullow is c. $5 above breakeven which puts this company in a good position for the time being. Any positive cashflow is good to make negotiations with lenders easier for Tullow.

* Recovery in oil price - Check?
* Recovery of cashflow and impairments - Check?
* Recovery in Tullow - Check?

Good to be invested in oil :)

Slift.

"Place a sign to sell."
And who's going to buy in this environment?

ngms27,
what?
That's not the explanation to a shallower OWC with production!

Stop making statements if you can't provide explanation for it..
Point, Evidence, Explanation.
You're lacking Explanation.

Slift.

"If I was giving advice"

And if the government was giving advice...
"Don't wear masks", "wear masks"
"close schools to prevent covid19", "don't close schools"
"14 day quarantine if you fly", "no quarantine needed if you drive to places instead"

etc. :)

ngms27,

I quote from you:
"This is because OWC has gotten shallower with production and coning can work to approx 120m from the well bore in this reservoir."

Based on your quote, why do you think the OWC has gotten shallower with production? (Yes, it has, but just want to hear your explanation).

Hopefully, your own answer can provide you with insights to explain why adding more water to a reservoir MAY fix the issue.

Slift.

PlantedBHA,

"the only way is up"
I disagree, shares can go up or down.

ngms27,
"A water injector in Q2 won’t save well 6 and 7z is now dead as a producer.

I don't believe you can make this statement. There is a chance that water injector may be able to save BOTH wells. Obviously there is uncertainty due to the complex reservoirs, but your statement whilst MAY be true, it MAY not be.

Slift.

Won't invest, will trade in the future though :)

cluelesstim,

You keep comparing Tullow to PMO. I don't believe that Tullow will be in a similar situation as PMO. In fact, I'm not invested in PMO but I have high hopes for PMO following the rights issue. The future for PMO is certain and very promising.
I do agree that risks are heightened, but the steps Tullow are making is definitely in favour of the lenders, shareholders and the future of the company.

"There is too much uncertainty surrounding some of these companies and now is the time to focus on quality assets and balance sheets, Berenberg said"
I think Tullow has quality assets. $9/barrel production costs and producing over 50k+ barrels from these assets is certainly quality to me.
As for balance sheet, this can be easily fixed as there are several ways to increase value of assets. Some of these include:
- Increasing reserves
- Increasing production
- Increasing longevity of assets
- Increasing resources by factoring in higher recovery factors at higher costs
- Exploration successes for resources
- External factors to assets/company - e.g. oil price
- etc.

Selling and raising cash isn't the only way to increase balance sheet, and I'm sure Tullow and the new CEO know this.

Just IMO.
Slift.

Lol, The FB concept became a whole level riskier since the downgrade.

Before the downgrade, the only thing that kept investors in is the report done by competent people that estimated the fields to have HUGE amounts of oil. There was hope that these resources could be produced netting Hurricane big income at higher oil prices.

Now, with the production at very high breakeven and future exploration being very expensive due to the geology of the rocks as well as the cost for exploration in these parts of the world.. I personally do not have an investment case here.

There will obviously be some upside when reserves are increased and production is maximised (that is if they succeed in the future plans for the complex reservoir).. but all cashflow and income they produce will be to repay debt.

I don't believe the BOD will return any profits to shareholders, and we're all just scapegoats.

The only other thing that could potential provide time and upside to this company is oil price, and even then other oil companies will benefit from this more than HUR.

Just my opinion.
Slift.

Tony,

Thanks for your contribution! Was worth reading your comments.

I do understand your points. Tullow has definitely become a lot riskier since the Interim Results. But i'm sure you will be back in oil when market conditions improve.

In the meantime, you weren't wrong with your other investments including Pensana! So good luck to you on those.

"Projection pretty close I’d say"

Personally, I think you need a new pair of rose-tinted glasses.
I thought production was 15k bopd?! why are you saying it's 14,000? That isn't the PlantedBHA I know!!

"I think the cash position is positive."

Can you please explain where you went wrong here? See below, your post from 10 Sept:

"Yes Ken its revenue
But 500000 bbls at $13 is 6.5 million
12 months in every year I think so Minimum 78 million profit being conservative as most of this quarter it’s been 45 bucks
70 million free cash as of April ( quoted in AGM)
Estimated 98 million year end at that date at $30 bucks ( quoted in AGM)
But 45 million more every 10 bucks hike ( quoted in AGM )
Plus money saved on P and A of 30 million

So adding it all up say 165 million bucks free cash "

"In February 2020, Tullow concluded its Business Review - which included a review of the Group's organisation structure and resources. Implementation of the new organisation structure will result in a significant reduction in headcount, with an associated restructuring cost of $59 million provided for in the first half of 2020 for redundancy and onerous office lease payments."

I think majority of the redundancies are complete and included in the breakeven.

PlantedBHA,

What are your opinions on the Technical Review, Half Year Results, and the Presentation?

Lmao, the truck driver is back with another shot of hopium.

Welcome back PlantedBHA.

Beetham,

Absolutely. Tullow will probably not announce it until October though. Afterall, the RBL test is at the end of this month.
I think we can be very confident in terms of RBL approving the covenant waiver. So IMO, no need to worry regarding this September 2020 RBL.

Just my opinion,
Slift.

Yeah i can't be that wrong.

Petra did sell a similar diamond 20.08 caracts for $14.9m just before COVID19 crisis.
And value for big diamonds are still there.

"Will not have a material impact...
Don't understand"
Would suggest you to research into Petra's current situation if you want to understand what that means.

Slift.