Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Serif, perhaps the board have some doubts over Ireland and NS and are looking for an alternative.
West Africa is sought after by the majors, if the board can somehow land a percentage of a proven licence next to infrastructure, work it up and farm it out to a major for a free carry.
Better than money in the bank or paying a meaningless dividend.
Ridgtile, when has Europa ever been “just” an UK oil and gas exploration and production company? And how do you know the terms or timeframe for any possible new venture in West Africa?
You need new prospects to drive interest and (hopefully) the share price.
As previously noted, both the current CEO and founder of Europa support new ventures.
There doesn’t appear to be anything visible on the recent site photos/videos that should prevent a return to full production and an update to the market. So perhaps they’re awaiting for some form of additional permit, i.e are they now producing higher water rates once the taps are open and do they need a permit to dispose of the additional water?
You can’t compare excess cash in the bank against salaries, and going back 8 years? The current board has been in place between 2020 and 2023?
What this company needs is a new exciting project that succeeds (unlike everything they’ve touched previously), something that delivers value and returns to shareholders, saving on salaries will not give you that. After all, this is an O&G company……
3 directors remaining (after 2 were removed recently) earnings for the directors is c.£600k in total, which actually isn’t a lot in comparison to other companies.
Years in which the 3 current directors were appointed:
2020 Brian O’Cathain
2022 Will Holland
2023 Alastair Stuart
Looking back at the history of EOG since it was founded in 95’ the company has invested in locations that have either proven to be the wrong decision (Romania, France, Morocco) or yet to prove value to shareholders (Ireland, NS).
Appears to me that the current BODs are taking the heat for past mistakes as per the above. So what’s the answer?
According to this bb it’s a) replace the above 3 directors with the 2 founding directors - the only benefit I see for this is the founding directors will be more incentivised to sell the company to release value in their % holdings.
And b) pay dividends to shareholders - this IMO is incredibly shortsighted and a poor choice as the company only has c.£5mil in cash which it needs mostly for future plans and to protect itself against any possible downturn at Wressle. Most probably there is c.£2-£3mil from the c.£5mil available, this will not yield a great return to investors (look at UJO for a prime example).
IMO this money would be better spent acquiring into a new asset in a favourable location of majors which has a good chance of success. This IMO has the potential to multiply the lacklustre SP by multiples whilst attracting new (much needed) investors/money to the stock.
Tovoc, over 10 years for what exactly?
Unless I’m mistaken, this article refers to Europa being awarded this licence in 2019….
https://www.offshore-mag.com/regional-reports/north-sea-europe/article/14280496/europa-seeks-offshore-ireland-license-extension-to-aid-farmout-process
I believe this presentation is more recent, prospects are 1.5tcf and 0.8tcf in size. An Inishkea farmout would unlock significant value:
https://www.europaoil.com/wp-content/uploads/2023/05/FEL-4_19-Summary-Overview-nvn.pdf
DB finally admitting new assets are required, something I have mentioned for a long time now, shame it didn’t happen earlier as it was obviously needed and in the best interests for the co/shareholders.
TheAimCasino, I would be interested to hear if you are still against new assets or have you also changed your mind?
Acquiring EOG at 2.5p / £24mil, Heyco gets £7mil ish in cash and a very fast ROI with EOGs Wressle % and other production, not to mention other assets (mainly Ireland and NS).
EDR and EOG are both operators, it makes sense for M&A, cut their costs significantly - additional profits for Heyco etc etc
10 years? They are aiming for 5 for production. It’s a relatively easy tie back to existing Corrib infrastructure:
https://www.europaoil.com/wp-content/uploads/2023/05/FEL-4_19-Summary-Overview-nvn.pdf
Absolutely nothing wrong with raising debt, providing its to grow the company and in the shareholders interests. All successful companies raise debt for M&A, reverse takeovers etc.
UJOs strategy to rely on others, to not acquire new assets and to not strengthen the aging board. Netflix should produce a new series, companies that do nothing……
As I’ve said for years now, the only way to make money from these stocks is to trade. Do not listen to the LTHs who have been trapped and continually post about them being great long term investments and how great things are looking. It’s always next year Jam Tomorrow…..
Why the constant oil price commentary?
Every $10 increase (or decrease) equates to approx $1million revenue on UJO’s tiny production (approx 300bopd).
This is hardly going to move the share price and give investors a return. What will though is drilling wells and M&A…..
If you really believe the story you’re preaching wouldn’t you be better looking at companies producing 20,000+bopd?
Or is this simply a tactic to clog the bb with junk as there is nothing else happening…
Keep telling yourself that although the share price and other investors don’t believe it.
In reality, Wressle has been a great success, however everything else has been a complete disaster and waste of shareholder money.
Itsawrap “The EDR takeover means UJOs 17m shares will be worth £765k, I would be happy for DB to take a modest punt on Europa (hopefully a much better prospect than UKOG (now sold) or Elephant Oil)”
Interestingly someone has been buying large volumes of EOG recently. A few 6million delayed trades and today a 4million+ delayed trades, their SP is approx 40% up in the last couple of weeks.
UJO clearly need to a new strategy and to strengthen their board, as I’ve said many times before….
Gwynwin It doesn’t quite work like that, as there are running costs and other financial commitments.
Based on 770bopd (308bopd net to UJO)
Brent $75 (£/$ 1.23)
Annual revenue c.£7mil
UJO admin costs are over £2mil which are significantly higher than EOGs and EDRs, whereas both EOG and EDR are operators and you would have thought have higher admin costs?
Dave, no reason at all why you can’t invest in both and based on 770 total barrels per day at Wressle:
308 net to UJO
231 net to EOG
EOG have approx 80bopd outside of Wressle, therefore EOGs total production is approx 311bopd. What is UJOs production outside of Wressle?
UJO cash in bank approx £10mil
EOG cash in bank approx £6mil.
Both fully funded for next 12 months, UJO will have larger outgoings if/when WN is progressed.
Market caps:
UJO £29mil
EOG £13mil
Yes UJO will pay 2 special small dividends in probably a 12 month period and are buying back shares for treasury (not being cancelled), depends if you value this over returns on share price gains. I know what my preference is…..