Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Can't be all that bad BC.
After 2 years plus of doing nothing but moan and criticise at every opportunity, you're still here and, presumably, invested.
We currently have an opportunity to regain 100% of the Beetaloo on the cheap, having had millions of $'s spent, in effect, at no cost to Falcon, should be we exercise our ROFL.
And you're wondering how much we're paying to have a rig on standby?
I'm sure there are many here who have been frustrated over the years by the 'apparent' lack of progress, but the fact is there has been huge progress over the last 2/3 years.
We might not all get the payday we were hoping for in the timescale we hoped but the game is still very much on.
The Beetaloo IS being developed - we own a decent chunk of it, and we might, just might, soon own all of it and be in a position to negotiate our next free carry.
The rig can sit there for the next 6 months for all I care - as long as we get a decent deal out of this 'fiasco'.
We've known for some time now that Origin wanted out.
Interested parties have had months to work on this and must have had an idea of the price.
You never know, but I'm not expecting any late surprises.
On the plus side, we're getting a whizz bang rig, lower drilling costs, and hopefully a more pro-active operator.
Will be fascinating to see what POQ can extract from Tamboran for playing along and not scuppering their deal.
From Hotcopper site:Tamboran Resources (TBN) said it attracted strong interest in a A$133 million ($89 million) sale of new shares on Monday to pay for a majority stake in a promising Australian shale gas prospect and help fund its development.The acquisition of the 77.5% stake in the Beetaloo joint venture from Origin Energy (ORG) in a 50-50 partnership with its top shareholder, ex-Parsley Energy CEO Bryan Sheffield, turns Tamboran into the dominant player in a sub-basin seen as comparable to the biggest U.S. gas field, the Marcellus Shale.Tamboran and Sheffield agreed to pay Origin A$60 million up front plus a 5.5% royalty on future production from the Beetaloo joint venture and sell Origin 36.5 petajoules of gas, or 100 terajoules a day, over 10 years.Tamboran aims to start producing gas in 2025, focusing on a permit acquired from Origin called Amungee, underpinned by the gas sales agreement, Chief Executive Joel Riddle told Reuters.The share sale to pay for the deal was pitched at A$0.21 a share, a 29% discount to Tamboran's close last Wednesday and nearly half the price investors paid in its initial public offering in July 2021.Riddle said the deal sharply boosted the company's growth prospects, with gas sales locked in with Origin and the potential to eventually supply gas to liquefied natural gas (LNG) export plants in Darwin or on Australia's east coast."No one wants to take dilution, of course. But when you look at the opportunity, by acquiring the Origin assets this is hugely accretive," Riddle said in an interview.The challenge now is to cut drilling costs to A$20 million per well with rigs that can drill 4,000-metres horizontally, four times what it can do with rigs now in Australia. That would bring the cost of its pilot project to around A$300 million, Riddle said.Ireland-based Falcon Oil & Gas FO.V owns the remaining 22.5% stake in the Beetaloo joint venture.($1 = 1.4950 Australian dollars)
I know we'll likely find out soon enough but does anyone have any thoughts on the pre-emptive rights?
Would there be a value attached to them and might Falcon benefit in some way, either financially or through free carry, by agreeing not to exercise them?
So it looks like Bryan Sheffield will be the single largest stakeholder in the Beetaloo - didn't take him long did it?
Assuming it all completes, I would hope to see a much more aggressive development campaign moving forward.
It will be interesting to hear what POQ has to say. He must have been aware of this prior to his last interview, where he was very confident of a much higher and sustainable share price early next year.
To be fair, there are too many unknowns just now to guess at a valuation;
We don't know the % that Origin are farming down
We don't know the price
We don't know the exact amount of any capital raise
We don't know the % of funds raised that will be used for any buy-in
We don't know of any additional conditions, such as availability and use of rigs from the US
We don't know of any other offers being considered.
We don't know which areas are being farmed down - does it include / exclude Amungee?
Maybe tonight we'll find out or maybe Sunday night (UK time).
It's interesting that Mr Riddle is even interested. After all, he already has the 'core' Beetaloo assets!!
Much to look forward to
'going concern' is standard and has been in the accounts for as long as I can remember.
I don't believe funding is going to be an issue with what we have.
In terms of 'urgency' there is little evidence that Santos. Empire or anyone else is moving any faster than Origin in the Beetaloo. I know a few like to harp on about Origin but they're moving at the same rate as everyone else.
As for Falcon funding their share of 23/24 pilot production - I guess the obvious solution is an equity raise, assuming the share price is significantly higher after this years work. I wouldn't rule out anything though, although I don't think we'll reduce our 22.5%.
POQ spoke about rigs coming in from the US and costs going down moving forwards. You'd like to think that's a given with the Sheffield involvement or why mention it?
Still confident of a good outcome eventually - when that might be is anyone's guess!
Thanks Illusion & Edgein.
Just popped in for a look as yesterday the posts on here were just so much drivel, in the main, and not worth trawling through.
Even screening out the AM insults, faux despair, cross-ramping and the 'will I lose my money' posts, its was quite clear that the majority of those left still didn't understand the CPR.
Nice to see a bit of sanity returning
Yes it may be taking longer than many had hoped for but, oil and gas, it's a complicated business.
I've said before that I trust AM - he's been there and done it and knows the industry inside out - nothing has changed.
Short term financing may not be what many had hoped for but it is a means to an end. If 'the end' is proving up 1M+ barrels then so be it. Happy days.
I have a point to make on the doomers here. I do hope everyone realises that those who regularly engage with them and clog up the board are all part of the same crew.
Pizza anyone?
Best regards to all the serious investors here.