Member Info for somm

DaisyDo,

"More importantly ... can the new investor bring a mud mix that works to the deeps ... I bcompanyet they think they can".

You do realise the new investor you refer to a financial institute not an E& P company.

Did you know the mud balance used on the 8A Deep Well was successful at 5,000m as the well flowed, and on the 803 Deep Well at 4,000m with oil flowing at 500 bopd with further testing ongoing.

So it looks like they've cracked the mud weight balance.

Jo,

It's nothing to do with Kz EM.

The $72.5m is a stake to develop the BNG deeps, it's not up to the EM to say it's enough or not.

The FI have said to CASP we will put $72.5m towards developing the deep for a 50% stake in the reserves/ bopd.

Some on the boards seem to think this money is going into CASP#s back pocket to by pork pies and pay for dividends, it's not, it's a purely development stake and the FI are no doubt hoping that many thousands of barrels produced per day will pay for further development.

The CE/ AR dosh is where the $12.5m will come from along with any dividend/ buy back dosh etc..

This deal can not go ahead until CASP receives the AR dosh, which could be a while away re EM sign-off.

Jo,

The $85m is for developing the BNG deep licenses, why do you think the FI have asked CASP to contribute $12.5m to their $72.5m offer?

Think about that one.

Un,

CASP get circ. $36 net per barrel atm, the FI would get the same for their half. The $85m should pay for initial development costs with deep oil revenue paying for further development.

Reserves value, now that is the question, AR paid circ, $2.20 for circ, 40m shallow reserves.

The FI has basically offered $1.83 per barrel for 50% of the 79m 1C/ 2C Airshagly reserves which could be circ. $1 pboo if the Yelemes reserves are on par.

CASP's broker had the oil per barrel at $8 - so as we've come to find out the reserves value per barrel depends on how much someone is willing to steak pboo.

Let's hope Sir Loin comes to the rescue and makes a proper counter offer.

Un,

It's pretty simple what they would get from the deal if it went ahead.

50% of BNG deep reserves

50% of BNG deep oil production - paid monthly for dom-oil and every 2 months for inter-oil.

When BNG has been further developed and the deeps are flowing X bopd and the reserves have significantly increased they will probably sell their 50% stake on for multiples of the $72.5m.

Or are you talking ribeye steaks?

Un,

The FI won't be getting any dividends, they will only have a 50% 'stake' in the 2 BNG deep licenses i.e. reserves and bopd.

They won't be getting any of the shares in issue, the deal is just a WI stake.

Just to add,

One of the conditions for the $72.5m FI offer is that the AR deal is signed off.

The reason for this is that on condition is CASP have to add $12.5m to wards the development costs ($85m) of BNG which they don't currently have until they receive the AR dosh, the KAZ EM could take months to sign-off on the AR deal (plus $54m bank loan to sort thereafter) so the FI deal may not complete for a few months yet, giving time for Yelemes reserves booked/ deep licenses approved, but more importantly a Major stepping in or offer increase. imo.

Food for thought.

If Yelemes initial reserves come out at 66m boo (145m barrels re BNG total reserves) it would mean CASP would have sold 50% of their reserves to the FI at $1 per barrel!

Great deal, but not for us.

Un,

''A large special dividend might also, in effect, be made possible by this new financing (you can only hope!)''

Financing a large dividend, geez what ever next, lol!

Jo,

Who knows, they still have a 5 month window to sign-off on the 2 deep 25 year BNG structures, so tomorrow/ July for news.

Like I said before who knows what assets are held by BNG Ltd LLP that may be included in the 50% WI sell off.

CASP have ploughed tens of millions into developing BNG and will no doubt have to pay a new license fee for the two deep licenses - in effect the new deep license fees will be no doubt be included in the $72.5m offer.....ouch!

Surely when the Yelemes reserves are booked this carp offer has to increase!

Why offer $72.5m without first knowing what the Yelemes reserves estimate is, which could see a significant increase in the overal BNG reserves, another 40m+/ on par with Airshagyl, bigger estimate?

How can anyone think $72.5m is a great deal without knowing what both BNG deep structures initial reserves are, duh.

And what's with one of the FI conditions wanting the AR dosh first?

This low ball offer values the whole of BNG at $145m, knock off the MC and that makes everything else B8, WS, CE, Drill Co, Trading Co and other worth around $50m, yeah right.

Divermike,

Was that paragraph you posted from an old January 2015 news article?

Here are two later RNS's

RNS - June 19 2015

''Oil and gas explorer Roxi Petroleum has received the first payment from the sale of its stake in the Galaz asset in Kazakhstan. In a statement released on Friday, the London-listed company said it had received the first $10.4m of the $23m it is owned following the sale of its 34.23% stake in the project. In January, Chinese firm Xinjiang Zhundong Petroleum Technology, reached an agreement to acquire the asset for $100m. Roxi added proceeds from the sale will be utilised for deep wells at the flagship BNG project. Roxi shares were down 0.49% to 17.17p at 08:45 on Friday.''

''RNS - 29, September 2015

Proceeds from the sale of Galaz:

Roxi is also pleased to report that the FULL AMOUNT of the proceeds due from the sale of its interests in Galaz have now been received.

Of the $100 million gross sales price some $23 million was attributable to Roxi with a further $11 million attributable to Baverstock, Roxi’s partner across the Eragon assets, including BNG.

Accordingly the full $34 million expected from the sale of Galaz is available to develop BNG.''

I think the final $23m to Roxi included the debt and I think it was also based on the oil price at the time of sale?

L45,

Within the next 3 months or so they will have received $150m in cash if these deals go through (with production revenue too etc.), enough to start an appraisal well program if they want to increase Reserves too - FDP on one or both deep structures?).

It is what it is but it's a low offer for a supposedly world class asset(s) with massive potential, imo.

Like I've said a couple of times may be both structures are not as big as originally thought having had two dusters hence the fire sale. ;-)

I wonder how having another 200m shares soon to be added to the shares in issues pot and only have a 49% WI will effect CC/ KO $3m bonuses re 27p target?

Let's hope B8/ WS are gushers for their sake, and ours, which leads me to ask what happens when they get the two 25 year licenses and test the 803 well/ A6 well in the short term and they're both gushers producing thousands of barrels per day - will the $72.5m offer have to be increased or will the deal have already been done beforehand, showing Kuat was not as shrewd as he thought he was. hmm....

Lastly I think the Special Dividend could now be a lot higher than the 0.5p touted, hey Divermike?

''Rosie,

One of the big oilers might have bought in and if they got results then ok if not write it off. Think a financial institution are a better bet.''

Rosie Lea still to drinking tea co's you've evidently had too many beers, mind the pick pockets in the Old Town they like to target the pis sed fogeys there ;-)

L45,

I explained this in a previous post.

They have 4 rigs 5 with the G70 rig still to be purchased.

G40 will drill WS well this month.

G40 will drill the A5 sidetrack and the 2 G20 will probably be testing B8/ 803 wells?

I've said they should buy the specialist equipment to pull the stuck pipes out adding to their drill company's abilities not only to get the job done but to be able to be hired out, instead of paying a specialist $X pb to get the 802 Deep Well producing, which was 700 bopd prior to being stuck.

Adrass, you get worse!

The CE/ AR money is enough to complete their current on going deep work, $20m-$30m to acid wash/ sidetrack the 5 deep BNG wells leaving plenty left over from the $80M they're about to have in the bank, if they are successful the thousands of barrels produced would generate enough income to develop further wells on top of the $80m, what don't you understand about that? Why do you think selling 60m barrels of deep reserves for $1.20 pb is a good deal?

Several Brokers notes had the oil valued at circ. $8 pb and the shallows were sold for $2 pb - if they'd have done a better deal and got $4 pb for their oil/ potential they wouldn't need the $72.5m, which they don't.

CASP's drilling company will be getting all the $72.5mUh? you mean like they already have done over the years, and that affected the share price/ value how? geez!

And by the way you imply 'they' (you mean Roxi) got $100m from the Galaz sale, Roxi didn't get anywhere near $100m they got $23m net from their 34% WI.

More research needed.

Adrass,

Stop talking like a complete plonker you numpty.#

It's a terrible deal, the AR dosh it plenty to drill the deeps.

You think because they have more money the drill bit is going turn differently, the acid wash is going wash differently - wake up fool.

Sold? there you go again with your numpty one liners.

Quaytec,

The mining venture is only supposed to cost a few million bucks for the JV's new mining equipment.

The shallows sale proceeds should be way more than enough to sidetrack A5/ A6 acid ash and complete the A7 wells and finish testing the 803 well and get a specialist to pull the stuck 802 wells drill pipe out especially as that's being paid for from a $$ per barrels fee.

With AR/ CE/ shallow production revenue up to completion they will have circ. $80m in the bank less a $15m deep contribution. They will probably have another million bucks to add from drawing down the BNG license fee from $16m outstanding to about $15m now and another $3m-$5m from the B8 loan.

If they have another say 40m barrels to add from the Yelemes structure, added to the circ. 80m Airshagyl Reserves then the FI will have approx. 60m barrels of 1C/ 2C Reserves 'initially'. $72.5m / 60m barrels = $1.20 per barrel - that's why I'm not happy, but some on here think that's a fantastic deal.

Hopefully a Major will join the fray.

Bull,a

And who do you think are going to drill and flow the deeps, a financial institution?

No CASP will with or without their money, try keeping up.

Bluemango,

That's right, with only 6 weeks to go why wouldn't you, DUH!

A few numpties on here today who don't understand the poultry sum offered for half of the world class BNG deeps.

WHHOOOOOOSSHHHHHHHHHHHH!

This is another fire sale imo and it's much worse than the shallows sale much worse!

$72.5 million for a 50% stake in BNG Ltd LLP (what other assets does BNG Ltd LLP own B8/ WS/ CE???) - that's half of the circ, 80m barrels of 1C/ C2 Airshagyl Reserves (shallows had circ. 40m booked Reserves) AND the yet to be booked Yelemes Reserves, 40m+?

So at least 60m barrels of BNG Reserves (shallows circ. 40m barrels for $88m) for $72.5m? with at least three deep wells capable of flowing thousands of barrels of oil per day.

Plus the deal won't go ahead until they shallow dosh has been received and the 2 new 25 year licenses have been signed-off and Yelemes Reserves booked, so we're months away from completing this deal especially with the EM glacial pass.

But why do a 50% WI deal with a financial institution and not a Major like Chevron/ Exxon who know how to get the deeps flowing - this is a another mates rates deal and will leave CASP with a 49% WI in the deeps.

The CE/ production dosh and shallows proceeds should be enough to get the deeps flowing and if that falls short then don't buy a WI in a mining company for millions of dollars. - plus CASP are having to contribute $12.5m from the shallows sale to contribute to drilling the deeps is that a joke. CASP have probably spent $70m on developing the deeps.

CASP are due $14m/ $54m from the shallows sale and $1m per month for 4 months thereafter and have the CE dosh plus the current production revenue - what are they going to do with this money, drill a WS well for $5m -there'll be lots of spare dosh if it's none commercial as with B8 testing. If the do a share buy back let's hope they buy back 1B+ shares so we get are 50% WI back, no doubt a special dividend will be on its way.

Anyway just a few observations from a very disappointed shareholder.

DM/ Un,

Can you both refrain from talking sh ite and start a Smarty thread if you're so bored and not jump onto CASP research threads.

Try posting some research for a change.