focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
https://total-market-solutions.com/2020/10/15/block-energy-october-2020/
Just listened to this. We are in for an exciting few months. Hopefully appreciation of what is coming down the track will spread to a wider pool of investors and we will see value emerge
Whatever is happening this news today feels significant one way or the other. It’s the most tangible sign of shareholders remaining in play, we just don’t know to what extent if any, but the mere mention of “return of capital” is the sort of language I want to hear.
Do you have a link to the article?
I’m not criticising anybody on this board who has done research. I am referring to all the donuts who lay in to people who have clearly done lots of research but present a view from that research that differs from what said donut wants to hear. I’ve learnt more from one of star rage’s posts than the 5000 that are sent in response criticising. Nowt wrong with being lazy and doing little research, (me) but then I’m not rude enough to criticise people who do. Anyway, just a point of view I’m making in a failed attempt to get the board to pull together during what feels like a big few months ahead. I’ll go back to reading the frontera archive now.
They are probably asking the same questions we are and getting impatient. Perfectly understandable and as much as covid has wreaked havoc it does feel that it can only be the reason for “delays” for a finite time and am sure most of us agree the end of that period is approaching if not already expired. PH stated “under promise and over deliver” in response to a question about gas hook up and confirmed H2 but wouldn’t be more specific. That was as far as I’m aware in his most recent interview and surely he can’t be naive enough to pledge another deadline and then miss it again, especially as the interview was done after the first wave of COVID with no apparent logistical issues rearing their head since (appreciating we won’t know all the local issues in Georgia).
Agreed. I also think with some of the innovative ways Block have got in to bed with industry heavy (or heavier) weights, I can see some similarly thoughtful ways to raising more funds. Don’t think a rights issue makes much sense at current mc
Thought that was a good interview, and some more direct and challenging questions rather than the usual nonsense served up. Future looks bright, albeit from a low starting point which means most of us are underwater
For those more knowledgeable about the workings of BLOE’s team - do we expect much of an update to be provided as part of AGM next week? Appreciate we are in care and maintenance bit wondered if our leader might take the opportunity to set out H2 plans in More detail.
1. Tarabini stays with FRR
2. Possible negotiations can now conclude around extension of license/sale of Tarabini which include valuable historical drill info.
3 we’ve got a ton of bills payable.
At least we are further forward in knowing arbitration result and that might expedite conclusion of other discussions which have a bearing on whether shareholders see anything from this.
I’m not referring to costs! I’m talking about revenue. Obviously there are costs offsetting the revenue, my point is if you can demonstrate revenue generation, and there is a profit margin there, then scalability is in play. A key question is how much the profit margin is and that’s where the operating costs come in. But not all costs go up as revenue goes up
Schlumberger 242 plus 155 from WR at $50 Brent minus transport. Rough calcs but you get the idea. Flex up and down dependent on oil price. This is revenue not net profit in highlighting. The point I’m making is it doesn’t take a huge amount of oil to generate decent revenue. And that’s when the finance options open up, assuming there is a scaleable plan.
II’m going to stay put until q4 and reassess then. I can’t see Brent staying below $40 for long, and think the sweet spot is nudging $50 as that keeps a lid on shale. $50 Brent gives us revenues of $6m pa from the oil we have plus the Schlumberger stuff we inherit. Get the gas hooked up and that’s more revenue, small amounts to start with but it’s the start and we can push on from there.
I understand the frustration here but I think a boost to global oil prices sees us in a much better place, both in terms of revenue, but also finance options. And who honestly thinks oil prices will be stuck under $40 much beyond this year? Shale is going off a cliff anyway, and will be dead and buried if no decent oil production cut is agreed or if Coronavirus stays longer than anticipated. 12 months time with a vaccine the world will be back on its feet and oil prices higher.
Brent at $50 in 6 months, has Hooked up. World looks a much better place
Positive messages from OPEC.
Geo - agreed that’s high on my list of options. Whatever we say about gas being the big boy, it’s clear that with less cash in bank than anticipated we are more heavily reliant on oil price than I’d realised. Still, we have the relative luxury of being able to time our oil sales in to what will hopefully be a more stable and sensibly priced marketplace. Not sure what others think but $40 dollar Brent for 6 months following any cuts that are agreed today and tomorrow would feel okay.
Understand that ops costs will grow but until we know the details hard to comment. My point is that when Block get to the point of needing to raise funds, demonstrating revenue is a big positive and opens up further options. With the share price at these levels I’d suggest they will look at other sources as alternative to placing.
If we take Brent at $40, minus transport costs at $9 so call it $30. Schlum contribution of 242bopd plus 155 from WR = 145,000 annual production at $30 = $4.35m revenues. Brent at $30 = $3m revenues. That’s not a bad point from which to secure funds for development of next phase, and it ignores any gas revenue.
Add to that that any company without debt has to (start to) become a more attractive prospect - not sure any central bank intervention will be sufficient to keep all credit markets liquid if CV-19 and oil crash linger for more than a few months
Can’t help but thinking that an investment in BLOE is a decent place to weather the storm with all the current chaos. Whilst energy markets are tanking we have the luxury of a fixed price agreement, and options to store a sizeable quantity of oil, should we so wish. Think recent sell off is linked to broader market sentiment and can’t help but think a decent end to q1 and q2 should see a significant re-rate of optimism and share price.
Not beyond the realms of possibility to suggest Zaza and co have had the nod from the politicians to not worry about the court cases as they have had it explained to them that FRr are hamstrung by Georgia’s initiation of arbitration, meaning no financing deals can be concluded. Just a thought