We would love to hear your thoughts about our site and services, please take our survey here.
"The Directors believe the purchase of these mills at a significant discount to the price of the same equipment when new, should have a material positive impact on the Empire mine project economics, as well as reducing the time required to purchase these long lead-time items."
They could have waited and bought when new with bond funds - but bought now as they must fully expect the Bond to be confirmed - the time saving on long lead items is worth more to them than the cash on account.
Capital difficult to come by as the baby boomers retire and move into T bills, take their money off the table - so those projects that do get finance are top tier and have passed rigorous due diligence - Phoenix likely to have passed this process and just waiting on final approvals, or they would have gone the traditional funding route by now.
copper in high demand and growing with green tech reqs
if mining development timeframes are not what you may have patience for, then should move on to faster moving plays.
Agreed trek, difficult one.
Perhaps the CEO doesn't wish to re iterate "Bond coming " yet again as has cried wolf too many times.
Equipment purchased with the limited funds available is a good sign of the bond finance coming imo, as if at risk they would surely husband their limited resources until funding gained. Equally RF would want to understand their pay back timeframe to agree to this facility, all interlinked.
Multiple interpretations of the tender offer by PI, similar number of implications for those shorting, more risks to their positions, doubts created - better to close and move on, as more innovative moves may be expected by DEC.
"he's looking at CREATIVE ways to keep the momentum going in buying back shares…"
recent asset sale, $200m capital, creative transaction
"The Transaction generated proceeds to the Company of approximately $200 million.... further demonstrates the attractiveness of Diversified's asset base that provides reliable production and consistency of cash flows. At an attractive multiple, this Transaction has provided a path for the Company to unlock additional value from our assets, reduce our outstanding debt, and enhance our liquidity."
if BB a priority, then it will happen if the Company focuses its capable team to make it so - if BB at substantial scale is optimum then that will be the outcome, its just good business.
VisitTimor on trades being sell or buy :
"Take a look at the real LSE, only like all world markets PRINTS TRADES, no buy/sell/unknown red/blue labels, you see a label and it is a 100% Best Guess by the Dumbo Algo, which may or may not be sat on the correct mid, at the time of rehashing the real LSE print, this London South East LSE, like the rest, try to establish trends etc, failing miserably on most shares daily. Its what we are stuck with, Real Exchange declined the offer for the quick modern tech fix required, to produce real time data at source.
They chose tradition over tech and also view every TRADE they print, as both a buy and a sell, eg you the buyer via dma or broker from a market floor trader MM the sell and any other combo you care to come up with."
Not sure what the delay is with their RBL increase confirmation, but if the lender needed any more surety on the assets worth as collateral, then this latest drill results provides it in spades, with further upside established.
Fully expect this funding to be confirmed soon and the 2024 campaign rolls.
Hold and wait.
Carbon footprint of EV manufacture/operation higher than ICE
https://www.youtube.com/watch?v=8P95NFlAnmY
Https://www.investegate.co.uk/announcement/rns/baron-oil--boil/chuditch-operational-update-drilling-site-survey/8032085
"Baron's wholly owned subsidiary, SundaGas Banda Unipessoal Lda. ("SundaGas"), has entered into contracts to conduct a survey (the "Site Survey") at the planned drilling location for the Chuditch-2 appraisal well, which is illustrated in the Company's presentation published on 11 October 2023. Site Survey operations are expected to be carried out at the location during February and early March 2024.
The objective of the Site Survey, which is a requirement, is principally to identify any potential hazards at the proposed well site, ensuring that a drilling rig can be safely located there with minimal environmental impact. The Site Survey work consists of geophysical studies and physical investigation of the seabed and shallow geological section.
SundaGas maintains dialogues with other companies active in the region to identify operational synergies for the drilling of the Chuditch-2 appraisal well. These discussions have resulted in the opportunity to acquire the Site Survey in partnership with a nearby operator. The estimated cost savings that derive from sharing services and vessel mobilisation compared to standalone acquisition are significant. In addition, the shared operation enables SundaGas to acquire the Site Survey earlier than originally planned, enabling aspects of well design to be accelerated and the environmental approval submissions to be expedited."
regulatory requirement for enviro safety survey, benefits of partnering:
cost savings
time savings
well design accelerated
approvals expedited
They must have a good relationship already developed with their partner,
"if your doing a sea bed safety survey for your drilling campaign, can your vessel survey our drill site and we contribute to costs."
just a day cost to Baron perhaps, rather than the full vessel mob/demob cost - probably a favour then - as Doug refers - operational synergies - may be a lot more to this.
Interesting Doug
Suggests partnership soon being being hinted at by Baron
time dependant aspects to allow drill to go ahead expedited
towards final sale
Doesnt need an extensive delineation campaign - sale value could be reached comparatively quickly in this sectors terms - Baron get paid, move on to next prospect.
No need to bolster SP in their world -Baron not looking to grow a production concern- mcap value comes with asset sale proceeds not by any PR or spin by the company until that point, the key development news once confirmed all they need to RNS.
hold and wait.
Baron in the past would not have bothered issuing an RNS like this on operational analysis, past survey work etc - just major updates then silence for months as they have never been in the business of marketing to bolster SP.
Reading between the lines on this RNS shows a change- there is progress towards drill and partnering on all fronts, they would not be spending money (or looking for partnerships) if drill unlikely/funding issues, the survey partner would not have agreed to the dependency of Barons involvement unless they are viewed as serious in intent.
Its not major news, but it is progress and the fact its viewed as newsworthy by Baron is indicative of progress.
Nat gas often a by product of crude oil production, reinjected or flared - side deals possible.
https://www.bing.com/videos/riverview/relatedvideo?&q=peter+zeihan+on+gas&&mid=8C088A812AAC663A36C58C088A812AAC663A36C5&&FORM=VRDGAR
"We estimate that the well was drilled for under $6 million on a gross basis, which further enhances the economics of this prolific hydrocarbon fairway. With this new data point we can design a multi year drilling program to fully develop the structure. This well has not defined the eastern most edge of the structure, which warrants further delineation through future drilling."
design a multi year drilling program to fully develop the structure
Known drill costs at $6m each, delineation and infill drilling with expanding reserves and revenue over time, business case for increased reserve based lending to drawdown and pay for the drilling has improved substantially with this drill result and its interpolation.
Looking forward to the drilling plan once funding confirmed, may explain why RBL announcement to Q1 $20m facility was delayed as TXP may have been waiting on this drill result.
Next RNS may well be increased funding gained, glidepath for 2024 expansion should provide a smoother profile for market cap stability and growth, momentum maintained.
As its said, money never sleeps
its been elsewhere, working, but it seems now is the time for TXP investment
fundamentals a re good, solid base for growth.
funding request was for RBL from $7m - $20m to fund Q1 activity, no matter if it goes to Q2, but could be confirmed at any time - they have never had RBL drawdown rejected by their current provider and are now in a stronger position than at any time before, good investment for lenders in a difficult capital market.
Consistency in performance and deed
Finance need to be confirmed - why would it not? just extension of current RBL facility, they have more reserves to leverage.
"The Company is in advanced discussions with its existing lender to increase its current debt capacity to facilitate the forecasted timing and amount of the 2024 capital budget presented herein. The 2024 budget contemplates increasing the Company's revolving component of its credit facility from $7 million to $20 million in the first quarter of 2024. "
Once funds gained then the full plan can proceed for 2024 and target 135% prod growth in year:
"2024 mid-point annual average production guidance of 9,400 boe/d represents an approximate 135 percent increase from our forecasted 2023 average production, with a budgeted exit average production rate of 14,500 boe/d. "
With Momentum and trajectory established, confidence and sentiment returns, domino effect likely.
Adding at this SP.
A lot of drilling to come after this initial drill planned, good COS
o Chuditch SW prospect estimated to contain 675 Bscf gross Pmean Prospective gas Resources when aggregated** across two segments, Alpha and Beta, with respective Geological Chances of Success ("GCOS") of 52% and 45%;
o Chuditch NE prospect estimated to contain 744 Bscf gross Pmean Prospective gas Resources with a GCOS of 30%; and
o Quokka prospect estimated to contain 143 Bscf gross Pmean Prospective gas Resources with a GCOS of 26%.
"Aggregate oil equivalent Pmean Prospective Resources net to the Baron working interest, including the condensate yield, are estimated by the Company to be 366 MMboe**, representing a significant follow-on portfolio to be explored. Management estimates of the Geological Chance of Success for the prospects are in reasonable agreement with ERCE's estimates, indicating the relatively low risk nature of the Prospective Resources assessment."
"The apparent increase in gas resources in the Chuditch-1 discovery itself suggests that a single appraisal well will suffice to determine commerciality of the project without the need for immediate follow-on exploration wells."
once a partner on board , It would make sense for them to operate a thorough drill campaign ascertain the scale of all the prospects.
Drilling could go reasonably quickly once the key decisions are made - shallow sea.