Member Info for StoneFold

People should not grumble about AEX's placing (its discount was tiny 3.3%) - have a look at CAB to see a real stinker, they are doing a placing at 0.1p when the share price was at 0.43p that's a discount of 76%.

Sorry that should be Bounty not Doriemus.

https://www.asx.com.au/asxpdf/20181005/pdf/43z0nxxwsfw1x1.pdf
05-10-2018

Bounty (who held 10% of Kiliwani North) believed they were owed $475,866 for their share of gas sold.
And
"A substantial but yet to be quantified amount for condensate ..."

--

TPDC might get $557,700 gross, if they sell all (12,096 bbls) of the condensate at cost price $46.10 per bbl. If any of that would get passed back to the Songo Songo or Kiliwani North companies I don't know.

It might be not be related to the "withheld payment" for gas sold issue/(excuse).

That is more likely just a by-product of not running a balanced budget. The Government gives farmers cheap fertilizer, by telling TPDC to sell gas to fertilizer manufacturers at a cheaper price than it costs TPDC to produce the gas. But the Government is slow (if at all) to reimburse TPDC for the difference. So TPDC runs out of money and has to find excuses to dodge those it owes money to.

https://www.thecitizen.co.tz/News/Big-firms-owe-TPDC-Sh527bn--Bunge-team/1840340-4970518-hr4gp8/index.html
07-02-2019

Using 7.33 bbl per ton
1,650 t is 12,096 bbls
Cost of processing and storage $338 per ton is $46.10 per bbl

Does any of that go back to the gas production companies?

For a trader bidding for that load:
I don't know what the price of condensate is in Africa (for a rough estimate - in USA it is 5% discount to WTI or $49.52)
So if you buy at $46.10 and sell at $49.52 per bbl
That is a profit of $3.42 per bbl or about 7.4%
For the full load of 12,096 bbls that would give
Total profit of $41,374

That is assuming that the buyer paid for other costs such as shipping.
Also you would need no one else bidding against you and TPDC happy to only get paid cost price.
That is not much of a profit, but if the real price of condensate in Africa is higher then that would help.

http://tpdc.co.tz/wp-content/uploads/2019/01/3.-Advertisement-Condensate-buyer-for-2019.pdf
18-01-2019
Sale of 1,650 tons of Condensate that has accumulated at Songo Songo Gas Processing Plant.

The lack of benefit for selling any higher value components such as condensate was something that Doriemus was not happy about.

Considering the recent tenders for the Songo Songo and Madimba Gas Processing Plants and Gas pipeline, for maintenance, housekeeping, spares and Environmental audit, It might signal preparation for a "national gas infrastructure company" that is pretty enough to attract external finance or privatisation.
They have big expansion plans so it makes sense to ensure the existing gas backbone is sturdy enough for the task.
It would not be desirable politically to encourage homes, businesses and power-plants to convert to relying on natural gas, to be let down by the infrastructure or insufficient capacity available from suppliers.

http://tpdc.co.tz/

The discount from yesterdays price of 1.5p to the placing price of 1.45p is only 3.33%, which is keener than average.

At least 25% of the placing shares will be held for a long time, that leaves up to 92,563,655 new shares available to be forward/sold quickly if they wanted to.

To absorb that volume of shares would take two and a half days (based on todays volume of 38 million). That includes the single trade: 11:27:38 07-Feb-2019 @ 1.475p Qty. 27,581,896 £406,832.97

The placing will have little effect on the shareprice.

https://www.thecitizen.co.tz/News/Tanzania-to-renegotiate-natural-gas-contracts/1840340-4965384-6s090cz/index.html
04-02-2019
When the review (which started two months ago) is finished, government will talk with investors about revised terms for Gas Production Sharing Agreements.
This is primarily aimed at the next round of auctions (due q2 2019) for offshore gas exploration blocks, but may affect existing PSAs.
It might explain the delay in signing licences.

---

https://www.thecitizen.co.tz/News/TPDC-plans-to-end-charcoal-menace-/1840340-4965772-wbpr2w/index.html
04-02-2019
Promotion of roll out of natural gas pipeline, significant cost saving for households and businesses, prevents deforestation caused by charcoal making, safety and air quality improvement.

Shiny new Helium One introduction video (1 minute 40 seconds) on website

http://www.helium-one.com/

and on YouTube

https://www.youtube.com/watch?v=40q8lDDXwi4
24-01-2019

SOLO could be a good place to start with its Helium investment, to lift up your portfolio in 2019.

DYOR - Early stage exploration - High risk/reward.

https://constructionreviewonline.com/2019/01/impact-assessment-report-for-uganda-tanzania-pipeline-complete/
23-01-2019
Progress in the preparation of the proposed Uganda to Tanzania oil pipeline.

"....We can confirm receipt of the ESIA Report for the East African Crude Oil Pipeline (EACOP) Project and our oil and Gas Team will review it in the next set of days,” said NEMA................"

"...Approval of the 1,445-kilometre pipeline project by NEMA will pave way for its construction which is expected to take at least three years. .."

".....Due to the viscous and waxy nature of Uganda’s crude oil, the pipeline will need to be heated along the entire route making the East African Oil Pipeline the longest electrically heated oil pipeline in the world. ...."

Looks like they will need additional gas, for the additional gas-fired power station capacity, for all those pumps and heaters.

Also approval of the route for an oil pipeline from Uganda to Tanzania, will also serve as an approval for the proposed Gas pipeline from Tanzania to Uganda.
Which will need an additional supply of export gas.

====

http://tpdc.co.tz/wp-content/uploads/2019/01/ADVERT-PROPANE_18_01_19.pdf
18-01-2019
Maintenance of Propane Refrigeration Systems - Songo Songo Gas Processing Plant.

I think Approx. 1% of the gas volume is Propane, so with increasing volumes being processed it makes sense to ensure maximum value can be extracted.
Although it does not effect gas sold at well-head contracts?, should extra production supply become available then additional sales off-take agreements could benefit from higher value sales options.

https://www.theguardian.com/environment/2019/jan/22/fracking-polluted-kirby-misperton-yorkshire
22-01-2019

Study finds, increase in air pollution at drill site caused by actions of protestors.
Protestors wood fires and vehicles.
Vehicles of police used to control protestors.
Increased waiting/idling slow running of suppliers vehicles (and passing local traffic) because their path was obstructed by protestors.

There are several H1 companies including:

--
HELIUM ONE LIMITED, Company number 09523349 - which is UK tax registered -but as the financial activity currently occurring via that company is below the threshold, it can be classified as Dormant for reporting purposes.

--
Helium One Ltd, company number 1888591 - a company incorporated in the British Virgin Islands, whose subsidiaries hold helium prospecting licences across a number of locations in Tanzania.

The BVI holding company # 1888591 is presumably the active one. It is the one referenced in SOLO RNSs. It is a private company so its accounts will only be seen by its direct shareholders such as
SOLO and http://www.havocpartners.com/
The board at Havoc all had links to Ophir Energy PLC., which had drilling success off-shore Tanzania with a 15 TcF gas discovery.

Both SOLO and Havoc still have enough of a shareholding in H1 to justify having a Director on H1's board.

I wouldn't be surprised if another H1 investor was H1 director Emeka Okwuosa. Who is CEO of Oilserv Ltd.
http://oilservltd-ng.com/olmls/personnel.php
Oilserv previously bid to build a gas pipeline in southern Tanzania.

--
HELIUM ONE PTY LTD, Company Number618979007 - Australian private company first registered on 05-09-2017.
Possibly to be used for an IPO on ASX.

===
The Helium One website is as attractively presented as you could wish for in an investment project.
All the required information is there, for instance this 24 page presentation from August 2018:
http://www.helium-one.com/wp-content/uploads/2018/09/HeliumOne_CorpPres_Aug_18.pdf

News of the fund raise and exploration drilling dates could appear any day.

SOLO should offer AEX a small loan.
Secured on part of AEX's assets.
Interest at 10% - 15% pa. to be paid at the end of the year (or added onto the outstanding capital amount).
Loan and unpaid interest to be repayable in full when AEX have a monetising event (such as the farm out payment).

SOLO won't need that money until the farm out is activated. As soon as the farm out is activated AEX will get paid so will be able to repay SOLO.
If there is a long delay until the farm out occurs then SOLO might accrue a lot of interest or control of part of AEX's assets.

AEX won't get a simpler, cheaper method of ensuring that they have the necessary funds to keep the company ticking over, and to bring Kiliwani back into play.

SOLO won't get a short term investment that pays such a good return, and is certain to be repaid in time to coincide with cash calls for the Ruvuma project.

http://tpdc.co.tz/wp-content/uploads/2019/01/Re-Advert-Mechanical-workshop-facilities.pdf
08-01-2019

Tender for Mechanical workshop facilities at Madimba gas processing plant.

They want to make sure that when the time comes to connect up a new gas inlet pipeline from Ntorya, that they will be able to find the spanner.

Helium One promotion activity.
https://twitter.com/Heliumone1?lang=en
Yesterday's tweet has a link to story of the condition of roads in the Rukwa region (rain damaged sections have been repaired and all roads are passable with 63% in good shape). With funds available for improvements.
https://dailynews.co.tz/news/2018-12-305c287f25be8f2.aspx

--
No news yet on fund raising - IPO?
But they are welcoming contact from potential investors:
http://www.helium-one.com/investors/
"If you want to be a part of the future of helium, get in touch"

Gold price USD 1283.20 oz

Exchange rate 1 USD = 384.48 KZT

Gold price KZT 493,364 oz

Which is the highest gold price expressed in Kazakhstani Tenge for any of the last 17 years (all data available on that site) . That figure might just be a blip on the chart, but the gold price trend is upwards.
This will help with the profitability for those costs paid in the local currency.

https://goldprice.org/gold-price-south-africa.html
Change currency on chart to KZT

https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=KZT

"..The third party is a UK based nickel company with complimentary interests in Southern Africa .."

As PAF does not mine nickel, then PAF is not the third party UK firm which has struck a deal to take over Zim nickel producer BNC.

PAF was though previously interested in some of the assets of ASA Resources, which if bought at fire-sale prices could have provided good investment potential.
Including - Freda Rebecca is the largest gold producer in Zimbabwe with a production target of 70,000 — 90,000 oz per annum.

As the part of ASA's assets that PAF were not interested in has now gone, will they look again at the remaining parts that ASA's administrators will be eager to quickly dispose of?

https://miningzimbabwe.com/chinese-mining-group-exit-zimbabwe/
21-12-2018

Just noticed that the Youtube interview was Published on 26 Nov 2018 but was of an interview recorded on 30th October - so they are not as behind with the drilling as I thought.

If the first well is a failure then the rig could be in Tanzania mid January 2019.
If the first well is a success (looking likely) then the rig could be in Tanzania by either mid June 2019 (or up to mid August 2019 if they have the same problems with the second well).

And a geography error
Pate gas field, Faza, Pate Island, Lamu Archipelago, Kenya

I thought that this might be the drilling rig : Sakson SK604, 2,600HP.

It was planned to spend approx. 4 months to drill 4,500m + complete + test a first well = July to end October 2018.
Then if that was successful to-
Then spend approx. 5 months to drill 5,000m + complete + test a second well = November to end March 2019.

The rig could then travel by ship from Pate field, Faza Island, Lamu, Kenya down to a Tanzanian port in a couple of weeks (arrive mid April 2019).

But as of 26-11-2018 they were only at 3,800m (which is 100m more than they were at on 18-10-2018) for the first well.

If the first well is a failure then the rig could be in Tanzania mid February 2019.
If the first well is a success (looking likely) then the rig could be in Tanzania by either mid July 2019 (or up to mid October 2019 if they have the same problems with the second well).

Zarara Oil & Gas (Midway Resources International)

Pate 1 well - historic high pressure gas blow out, plug + abandoned.
Pate 2 well - exploration vertical 4,500m sandstone targets, gas find at 300m, drilling in progress.
Pate 3 well - exploration deviated 5,000m sandstone targets. Not started yet.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/other/13674325.html
11-06-2018
".....Zarara has contracted the Sakson Rig SK604, a 2,600HP rig owned by Sakson Drilling and Oil Services DMCC ..."

https://www.the-star.co.ke/news/2018/10/18/gas-drilling-in-lamu-to-be-done-by-october_c1835514
18-10-2018

https://www.youtube.com/watch?v=fW3foqo8DfQ
26-11-2018

"..Further, Aminex has signed a conditional rig sharing agreement with Heritage Oil Limited in Tanzania in order to reduce mobilisation/demobilisation costs for both parties. ........"

They have not said that it is an 'exclusive' rig sharing agreement.

If Helium One wake up from their hibernation in time and give Sakson Drilling

http://www.saksongroup.com/contact-us

a bell, then I'm sure that something could be arranged.

CrustyPete,

Heritage are ready, so they go first.

Helium 1 just need two months to arrange a fund raise (IPO), then they are ready for "...drilling activities, currently scheduled to occur in 1H'19. ..."

Both Heritage and Helium 1 will be drilling in the same neck of the woods = Inland near Lake Rukwa. So to save on time and travel costs best to drill them consecutively.

AEX are the least ready so they go last.

Sakson Drilling and Oil Services DMCC
http://www.saksongroup.com/rig-fleet

Have scattered throughout the Middle East and Africa regions, operating currently a fleet of 8 land rigs.

Then again if the rig arrives in Tanzania via Mtwara Port then a different ordering may be cheapest.

There is enough time for one rig in 2019 to drill for the three companies allowing for the rainy season roads.
If one rig serves three companies in one year it is more profitable/cheaper than two rigs in one year or one rig spread over two years.

If AEX have access to the rig last, there is the possibility (subject to demand) that they will think of something else to do with it.