Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
@Term https://www.europaoil.com/wp-content/uploads/2021/05/Irish-Exploration-Licence-Awards-17.10.11.pdf
I'm not anti Europa, I'm still very much hoping we get that elusive farm in; I bought in when Kosmos was talking of farming in which around 2012/13, not sure on the exact dates.
Two rounds of awards took place. The first had a TAX rate of 45% on the blocks given and the second round was 55%.
Inishkia Block has a Tax rate of 45% so must have been awarded in the first round.
Maybe Gray/Serif can confirm better.
IMHO
I second or third the option of "just farm the damn thing out".
It's been 10 years already, it's a fantastic asset but the reality is our timing is against the general mood of the nation against oil/gas developments; due to climate change this attitude is getting from bad to worse.
I would say we are fast coming to the point where any large new oil or gas project will no longer get permission, no matter how good the project, regardless of whether is makes sense and is actually better for the environment in the long run!
If we don't get the farm in early next year 2024, I think we will be flogging a dead horse!
Hopefully I am wrong but I think not!
IMHO
It doesn't depend on metrics at all!
We have a proven resource in our hands producing loads of dosh for Europa with great further potential.
Cloughton and even Inishkia have great potential but VERY importantly are unproven resources, hence no reflection in our share price.
Whats that saying, "A bird in the hand is worth 10 in a bush"... something along those lines!!
IMHO
@Tony, you are making too many assumptions, we hope Inishkia is worth billions but this is still yet to be confirmed if a drill takes place.
Remember it will be only 10% saving (the tax rate would increase from 45% to 55%), the tax rate may be increased even further! Ryan did make a statement that existing licenses would be honoured. This line of speculation is a red herring.
Vermillion needs a new source of gas for Corrib; hopefully they will finally commit to Inishkia as their options are very few and time is running out on their best one!
IMHO
I can't see Vermillion letting the clock run down on Inishkia; they risk losing the entire license to save pennies. The License may not be re-issued at all, plus if I remember right, Inishkia was issued on the more favourable tax rate of %45 rather than the %55 for the later licences.
IMHO
@Vern Selling off what is effectively our only asset generating loads of dosh is the worst mistake the company could do, the cash we make will dwindle to nothing very quickly!
We must have at least £8M in the bank now but our share price has gone nowhere, selling Wressle may even see our SP go down.
Sell of the company by all means but not our best asset.
Also Inishkea is not dependent on how much money we have, but on a partner deciding to take the prospect on; remember we have been trying to get a farm in partner for approx. 10 years!
IMHO
I agree with Serif, for this reason only; any new discovery will take at least 10 year from discovery to production;I can't wait that long!
Plus with all that is happening in the environment today, sentiment which is VERY much against oil and gas now will only get worse. 10 years may be an optimistic estimate.
Our best bet is to get Inishkea going or jump onboard a near drill prospect or get bought out entirely!
IMHO
Our biggest potential company maker Inishkea, has been dangling over our heads for over 10 years now.
It's the only asset Europa has that has kept me a shareholder.
I'm glad that by Jan 2024 that the string dangling this carrot will finally be cut; with one of two outcomes:
1) finding a farm out partner
or
2) Handing the licence back as it expires around Jan 2024 because we haven't met the terms of a definite drill.
IMHO
The idea of selling pretty much our BEST asset Wressle which is keeping the office lights on and paying the salaries of the staff and providing additional monies for our STALLED projects makes absolutely no sense to me!
Yes, by all means if an offer comes in to takeover Europa then yes let's consider it but to sell our golden egg, will result in all that cash paid for Wressle dwindle fast and hence see the SP crash as fast!
IMHO
@Serif - During Covid projects were stalled and we were short of cash.
Now we have Wressle producing lots of cash flow with all other projects still being stalled!
The directors have the POWER to dip into the companies reserves and choose how much to reward themselves.
Yes, if Serenity had hit and was a success then fair enough, increases in pay maybe justified but Serenity failed!
The pay increases that GP reported are disgusting given that the management has diluted our shares and crashed our share price; yet they get double digit pay increases?
This begs the question, how much in addition is being paid into their pensions!
In most other companies they would have been sacked!
By all means, reward on success but not failure!
IMHO
The oil price has surged to $85 per barrel; Europa will be rakng it in!
The question is where is the money going?
I suspect the salaries have increased in line with inflation so that's an increase in salaries at least by %10 or more.
Good times for Directors of a Sail Ship with no wind that generates loads of cash, sit back and take in the sun!
They must be sitting on at least £8M in cash by now with the biggest expense being the salaries on the directors!
I say spend £2M and buy back shares!
Europa has become more about the senior staff and not the shareholders; these guys have collectively destroyed shareholder value and diluted the shares while sailing into retirement on lovely pensions, I suspect!
IMHO
@Gary Goodluck; I hope Europa comes in time for you to reap some benefits.
With Europa everything moves in years rather months; we see Executives come and go before projects are completed or even get started!
They talk the talk but often walk straight into a healthy retirement!
IMHO
@bobbybee Great post.
So really not so bad news in the since that practically all onshore wells are producing water.
We need Inishkea to come in; our whale!
We should have plenty of cash and generating very good monthly income so no pressure there.
IMHO