Member Info for SpArmada

It's a hell of value destruction, a new record or something:

31/12/2022: Net cash of $123.3MM

22/05/2023: $200MM RBL

06/06/2023: $50MM placing + $35MM facility at 13.5% rate

This is a clown show of epic scale! It seems they were fine overpaying for the NWS and Thai assets and buying shares, while Montara was shut down. Now, they realised just after signing the RBL that they are short of money, so they have to dilute the company and get a working capital facility with the terms offered to any distressed company. It seems nobody thought that it could be a good idea to run some stress tests before committing $30m plus additional capex commitments for a declining gas play in Thailand, on top of all the ARO payments for the NWS and the contingent payments.

This company seems to be run by amateurs, and they have waiting until the very end before getting this insulting conditions from Tyrus Capital. They offer the carrot by saying there is a small deal coming that will bring an additional 2,000+ boe/d, like that's enough. I only expect CEO, chairman and IR head to resign immediately for not being able to run the company properly. The CFO, Bert-Jaap Dijkstra, must be sacked immediately.

Https://twitter.com/deitaone/status/1666129041710100482?s=46&t=XEvIPNYNbJjer670_nz0Qw

This is outrageous

How did you get to that NAV?

Some have been saying for a long time that this company needs more expertise in US oil and gas operations, as it is now relying on external consultants, not people in the board or management. It was ridiulous that the names that Colin gave in the team responding to the incident don't have any public link to Zephyr. However, the major issue here is that they committed to spen $8.9m in CAPEX this year under the assumption that the oil price will remain high, they hedged part of the production but not enough, and they run out of money due to the State 36-2 well.

PS - it is funny they say Zephyr is "the Rocky Mountain oil and gas company" and also describe the Paradox Basin as "the Company's flagship project"

The problem is not the rig but the permit, I'm sure it has been repaired by now, it was a serious incident. I'm sure it has risen concerns about safety and environment regulations.

Blythe is already connected to the subsea pipeline, it will use the same connection it had for Blythe H1 and Elgood, just minor work to connect H2 to it.

Remember that perforation requires explosives, and these cannot be stored at the rig, they require special transportation and safety measures

Sattara, I do hope to see a TD RNS this week, your are right, they have to start completion (cementing, casing and perforating) and preparing the rig for receiving the fluids and gas for the flow test. The bad signal would be lack of movement of the vessels around it, if they are preparing for completion, they need extra supplies and equipment. Give or take 3-4 weeks to get final result (it is a good or bad well) if they announce TD this week.

I think you are consuming enormous amounts of copium ... 50% up, 20p, 40p ... Come one, let's calm down a bit!

First, they have to announce TD with casing completed, then they have to make the perforations and prepare for receiving any gas and liquids, ahead of the beginning of the flow tests. We are still weeks ahead of any final results, and the gas prices are not helping, remember this is a natural gas business though.

With lower drilling costs in USA, maybe it is time to drill that baby ASAP

The issues that the State 36-2 LNW-CC may take some time to be fixed until the state regulators lift any concerns they may have. The State 36-3-LN-C9 drill will be exploratory as no production has ever been produced from that horizon, maybe it could be less gassy than the other drills in the Cane Creek horizon. Time to seize the opportunity now that many rigs are idle.

I can see more vessels back and forth than usual, some are even pictured in 2 of the last satellites. It is obvious the jackup is requiring more supplies to complete cementing and casing, I have good vibes =)

Stiffybristol, I'm curious to see how you got to the figure of "£500,000 profit per month". If you ever plan to visit El Tesorillo, it is a beautiful place, I totally recommend it for a spring or autumn short holidays. However, the area is full of eco-hippies, and I'm sure they will prevent that any gas flows out from the ground, even if the socialists in the Spanish goverment gave the green light, the Andalusian regional government is quite pro-mineral extraction.

Would you say the same of "same positivity"? That's precisely my point, if you do not like that someone may cast a doubt over the company, then counterargue, just do not attack the person. Being agnostics of what the company says it is not the same than being negative, that's my point. I do not hold any shares now, but I have traded it with some success, I may consider buying some in the future

"would you be so kind as to post those emails, replies so I can view them then." Why on earth would we have to share any of his personal conversations with the company? Feel free to email them. He's not working for you. It is always the same in this board, pump the company and praise CH, no questions asked; say a negative comment, you are trash and have to demonstrate everything as in an audit.

Great read! Thanks

Nothing new there

UJO is extremely overvalued compared to Egdon or Europe, the share price reaction is talking.

Don't feed the troll