Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
http://pipeline.wyo.gov/AllOpcoProd.cfm?oops=ID52273&RequestTimeOut=65000&nOpco=1769
Patience….
I will refrain from saying I told you so…..
That either Wed or Thurs is RNS day.
No particular reason (well other than everything we’ve been waiting more than patiently for that are ‘well’ over due excuse the pun) but I just feel it in my bones!
So we’re first in line of the flaring permit hearings. Just gotta wait for the first section to pass through. Not long now!
WaddWeknow …… thanks for the response and I totally get your concern about a JV.
So…. Let’s put it this way…..
Have you watched dragon’s den? Where people that want to grow their business give up a percentage share, not for just the cash investment but for the knowledge, guidance and tools the dragons bring to the table…..
This is like the episode where there’s a fantastic pitch and several dragons are fighting to get in on it.
If they invest it’s like this (ignore figures they’re just an example).
The dragon puts up a tonne of money and grows the business exponentially with 5 years. Say they make £500m profit. As a result the company has to give 10% or £50m to the dragon…… fair enough!
Without the dragon’s investment in five years the business has only generated £100million profit…….
So in answer to your question, what SHOULD the market think of a JV……. It should see it as a massive positive.
BUT…… with all the shananigans going on…. Maybe it’ll take a little longer to realise….
Ps I’m just ignoring the fried squid, not even going to react to the games….. nice try but please jog on soon sir…..
Waddaweknow …. I think that’s a bit of a naive view to think that a) only one major would be interested in a JV on such a large discovery and b) that they would have the upper hand in negotiating.
Let’s remember our working interest is 85-100% on the fields in questions….. it’s our oil….. we have the upper hand in negotiations. If a major wants in then they’ll have to make a very good offer. If they don’t, then another will!
Not too sure why you’d want a negative spin on a cash rich company being able to expedite delineation and bring revenue to COPL so much quicker than if we went alone?! Plus they would bring to the table the right equipment, casings and expertise! A JV will mean that we give up a percentage of the generated revenues, but those revenues will be so much larger, so much quicker with a major involved than if we went alone, so the small sacrifice would be for the far greater good!
Soon the market will wake up to this, most probably when we have terms agreed on both the JV and RBL and names are introduced!
For some reason I read that as ‘continentally’ optimistic ;-)
Nice that he seems to want to sort both RBL (as expected) but also JV …. This month!
Now that is big news!
And they have the necessary casings! (Like he said previously, companies have been hoarding them!)
No idea how he’s going to get through all his slides in the next 3 minutes!!
At least he’s already looking more professional than the Angus CEO who was mid play date with his kids!!
Nice post Adena.
Completely agree with what you’re saying. I think we just need the extreme posts at each end of the spectrum to stop. They just rub people up the wrong way. Let’s take a balanced approach.
I think we all know that the share price over the next few months is dependant on production increasing. We can only go by what we are told by the COPL management (which at times can be difficult to believe) but we are told that issues have been or are being fixed and production has begun to increase. So this is positive and we simply have to ‘wait and see’ what happens, or cut losses and run.
What we need is BOPD numbers to increase enough to be cash generative. If that happens we all know the potential given our huge discovery. Whether it’s £100m barrels recoverable or £600m barrels recoverable, if we can get the infrastructure in place to extract it, the share price will see very positive gains.
The crux of it is whether or not we can secure finances to achieve that in the long term. An RBL that will help to protect our investments from an amount of further dilution. So the next three months production figures are crucial to help us to get the loan in place. Again…. It all hinges on production!!
I think we all understand the derampers perspective, that if production doesn’t increase and we don’t secure an RBL then we are at risk of further dilution and could be in sever financial difficulty. Will this happen? Based on Art’s experience and the explanation of issues being resolved, I think we’ll be just fine. IMHO I think it may take a month or two but when production figures are release the share price will head in the right direction. I think we have hit the lowest point in production (with wells being out of action for necessary maintenance, conversions and upgrades) and now the only way is up.
Art is a wise old fox and it wouldn’t surprise me if the drop in production (due to wax in pipes, which wouldn’t have been a surprise for him) was orchestrated to finally see off CUDA and to procure their assets at a steal. Plus having their assets on board makes any future takeover from the likes of Exon a lot cleaner and easier…… (just a thought).
There’s no rush for Art to develop a billion dollar business (some things like CUDA can’t be rushed), he just needs to follow his plan to get us there. A plan that may not be in a straight line to achieve the best overall outcome. He’s not in the position he’s in from being stupid, he is a very competent person. Far more so than a lot of posters here that suggest he’s not.
Anyway…. I wish everyone well and really really hope this quarter gives us the results we need to unlock the potential of this ferocious beast….
GLALTH.
TI and out.
The more I think about your post Darren the more I realise you have absolutely no understanding of this industry or the company finances / structure. Maybe stick to investing in something you know a little more about. Numbers obviously aren’t your thing.
Maybe you need to consider that the first 1000bopd is hedged; anything above that Is unhedged.
Last quarter we weren’t much above the hedged numbers. So we’re not currently making any real use of the higher POO.
Now…. Production is on the increase. In my opinion this will be significant increases over the coming quarter. So our cash generation will be exponential.
If you think this is a bag of **** then that’s your loss. Drop back in January and remind me of this post…..
Cophodler …. Your 28million recoverable (as conservative estimate) as you state is for 2 of the three formations.
Interestingly the largest formation with almost 3/4 of the total 993 million barrels isn’t included in those figures….
Now I couldn’t see an estimated recoverable number for the frontier 1 formations in the RNS. But assuming the conservative estimate of 8-10% is applied to the third formation then we could be looking at another 70 million + barrels?! Or am I misunderstanding the RNS?!
It is only worth billions in the right hands and Art needs to prove we have the financial depth to sustain company growth and turn the resource into profit.
Totally with you Chickster but I also think a 10 bag on an investment in the short term would be silly to turn down. It’s money you could re-invest in another potential bagger.
I think we have further dilution ahead and although £3
a share could be achievable long term, we are a long way off that.
If a buyout were to happen this year then Chickster what would you see as acceptable?
Sorry I meant 1 billion barrels of resources not £1 billion!!
Ps here’s something to debate….
If Exxon came in with a bid of £500m to acquire COPL how would you vote? For or against??
It would be an absolute steal for a giant like Exxon, the cheapest acquisition of probably £1 billion plus of resources worth at least 200x the acquisition value….. but would you accept it? After all it would be around a 10 bagger on current share value?! If it happened this year I think I’d be happy with that!!