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I think its going to be worse than expected fundraiser .. its the first time to my knowledge that we have been pre-warned to expect a bad quarter, so in my view it is likely to be significantly worse than Q1 (proportionately speaking).
I do think however, it has been priced in - and somewhat overdone(I hope).
Possibly hoping that the SP has picked up sufficiently that they can raise equity through shares. That’s why they aren’t considering finance options yet.
Yes, good results and update imho. Nothing there to explain the savaging of the SP.
(Of course, these are a bit out of date, so what is happening in the last year is what is important).
I hope we see positive movement on the SP, but we really need Q2 results .. and for them to be exceptional..
A second rig will (IMO) require additional funds. I am not sure the income from7E will be enough to fund a multi-well campaign. So I would think a farm-in or will be required first. I don�t think there will be any appetite for another fund raise any time soon .. not after the last botch up.
Actually the SP has already tanked and is significantly lower than before the Divi was introduced. The question is do we want to be an earnings or a growth stock? Not much growing on the growth front.
Book-Worm .. selling assets I assume
Indeed, prior to the 7E deal, all talk was regarding farm-in .. before drilling commenced. My view is that no partners wanted to take the risk at the time - instead preferring to sit on the side-lines, Now we have had some success, the risk is mitigated massively, so I guess those same players are still watching. One problem is that there isn't loads of cash around at the moment looking to invest, so I don't imagine farm ins will raise as much as it would have done 10 years ago. Hopefully somebody will be happy to invest in a stake of what is potentially a huge operation. I may be wrong but whilst it is cash generative, I dont think 7E alone will generate enough capital for us to develop the fields alone (multi-well) - not at speed, so the alternatives are similar to a year ago - farm-in or raise capital. I think we are in better negotiating position for either now.
... not very good 13.5k tonnes
I thought it was a dreary presentation, which didn't provide any additional information over and above what we already knew. I now these corporate things are always like that - but nevertheless I was hoping for more. The one key question asked was flunked by AK. Namely regarding the bookbuild / raise price. He bumbled on throwing in jargon, but could not give an adequate explanation of why one week after indicating a raise of 250m at 40-50p he had to settle for half that figure, at a reduced price. Not sure who asked the question - but well done. I want able to speak as I was listening in from work.
last time this happened, we subsequently found out the mill had broken.
Agadem, can you tell us about your disagreement with JH and AK .. Is it material regarding the company, or just process stuff?
Sure .. I can't understand why anyone would sell their shares AND THEN spend so long reading the admission document .. You had obviously made plain that you were definitely selling out (which is your prerogative) and that you had no faith in the BoD. BUT THEN you spend so long poring over the document ... as you are so anti SAVP, why read it at all (other than a cursory glance)? .. Or if you thought there may be something of interest in the document, then why wouldn't you read It first. (All feels a bit 'Columbo' to me). Hope that explains it! Happy New Year to all.
Morning Jim .. I thought I would ask again. I have to say it's a little bit suspicious that you are so far refusing to answer. It does look somewhat like you are hiding something. Interesting that you are now lumping me in with the 'paid for rampers' as well. Not sure why that is, we've generally been civil to each other. Anyhow, that question again, which relates to the Admission Document ... Did you read the document before or after you sold? I am genuinely interested as to Why would you spend Christmas dissecting the admission document, if you don't believe in SAVP! And have sold your holding? I am sure recognise that it seems unusual that you would sell out on the day of Relisting, be absolutely determined that you want nothing further to do with SAVP as you had no confidence in the management and did not want to invest in a company with Nigerian assets .. BUT then spend so much time poring through the admission doc .. Actually spend more time examining it than most on here - including myself.
Hi Jim, I thought I would post this for a third time .. Just in case you missed the previous times I posted .. Or that other people asked ... Obviously you don't have to answer, but it would be good to understand. Someone asked yesterday .. Did you read the document before or after you sold? I am genuinely interested ... On the face of it you seem rationale and honest - but some things just don't add up. Why would you spend Christmas dissecting the admission document, if you don't believe in SAVP! And have sold your holding? I don't pay too much mind to these bashers / shorters comments, but all the same, it does seem unusual that you would sell out on the day of Relisting, de absolutely determined that you want nothing further to do with SAVP as you had no confidence in the management and did not want to invest in a company with Nigerian assets .. But then spend so much time poring through the admission doc .. Actually spend more time examining it than most on here - including myself.
Jim .. No explanation yet .. Is there a reason? ... Someone asked yesterday .. Did you read the document before or after you sold? I am genuinely interested ... On the face of it you seem rationale and honest - but some things just don't add up. Why would you spend Christmas dissecting the admission document, if you don't believe in SAVP! And have sold your holding?
All, thanks for your responses. For clarification, I recognise that trucking oil is an option .. My point is that it's not ideal. Drilling and trucking is better than nothing, but I think this is part of the reason nobody has been interested in farming in (at an agreeable price). Key points are the pipeline is no nearer to being built, refinery capacity is no nearer to being increased. SAVP is in a position to (hopefully) make money, but trucks travelling on an 800m round trip is not ideal (what would that be .. 3 day round trip? .. Meaning a fleet of at least 60, and more like 100 trucks to ship 10kbopd) I'm in SAVP and want the best, but let's not talk away these very real infrastructure issues. Hope everyone is having a good Christmas break .. And hope the New Year is brilliant for all. Back to my children ...
I think the biggest issue over the last three years, is that PIs have assumed that it would be easy to get a partner. But looking around, there are no IIs / farm in partners / people willing to take big stakes in early stage E&P companies. The investment landscape around oil is still in the doldrums, despite the pick up in oil price. After three years of trying and failing to get a partner (or sale), AK has now accepted we have to go it alone. I don't think it will change until we start getting oil out of the ground. The 7E tie up allows us to do so.
On the contrary (but thanks) Jim .. If you read through my posts, you will see that I've highlighted this issue well over a year ago. The logistics has always been a big issue, as has AKs inability to strike a farm out deal on non punitive terms. Nothing here has changed ... except that by taking on 7E, we can generate the income to pay for these things, without giving too much of the company away at a later date (that's the true term of 'transformational' in my opinion). The company is maturing .. It's not what AK wanted (or what I expected) .. But it makes sense - and in months / years to come we will see the results.
Jim .. Someone asked yesterday .. Did you read the document before or after you sold? I am genuinely interested ... On the face of it you seem rationale and honest - but some things just don't add up. Why would you spend Christmas dissecting the admission document, if you don't believe in SAVP! And have sold your holding? Thanks and Merry Christmas