Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
We have the deposit to lock in the rig following the placing on 15th February "These funds are expected to be applied principally towards a rig deposit, the drilling project team, a site survey, certain long lead items and a bank guarantee"
Keep an eye for an announcement any moment on a rig contract.
Looks like the Valaris 247 could be our rig, a rig contract announcement is due per RNS. Slide clearly states:
"Subsequent slot available to Sundagas"
"Sundagas Chuditch (40days)"
https://x.com/AiMTrades1/status/1769645799296696662?t=RZka7J19gOeV-l-ZoZdJmA&s=35
Source link:
https://www.facebook.com/photo/?fbid=3043831915748405&set=a.738275799637373
The latest Allenby notes assumes Baron retains 30% in a farmout scenario. That would be as follows:
To find 30% of the value of 1.1 trillion cubic feet of natural gas at a price of US$8.5 per mmBtu, you can simply calculate:
30% * $79,475,000,000
= 0.30 * $79,475,000,000
= $23,842,500,000
So, 30% of the value is approximately US$23.8425 billion.
Calculating the value of the Chuditch resource based on the Pmean Contingent 1.1TCF at the JKM (Japan Korea Marker) East Asia benchmark LNG spot price as at mid-February 2024, quoted at about US$8.5/mm Btu
To calculate the value of 1.1 trillion cubic feet (tcf) of natural gas at a price of US$8.5 per million British thermal units (mmBtu), you'll first need to convert trillion cubic feet to mmBtu.
1 trillion cubic feet (tcf) = 1,000,000,000,000 cubic feet
1 tcf = 1,000,000 mmBtu
Now, you can calculate the total value:
1.1 tcf * 1,000,000 mmBtu/tcf * $8.5/mmBtu
= 9,350,000,000 mmBtu * $8.5/mmBtu
= $79,475,000,000
So, 1.1 trillion cubic feet of natural gas at a price of US$8.5 per mmBtu is worth approximately US$79.475 billion.
Yes, it's complete and unconditional. Whats fascinating now is BOIL's market capitalisation stands at just £14m with circa half (£6.5m to £7m) of that in cash. Which means you've got an asset in Chuditch with complete CPR & 3D siesmic with confirmed Teir 1 resources; Pmean Contingent 1.1TCF/ Prospective 2.1TCF / PSC 3.3TCF upside >5TCF valued at just circa £7m which is unheard of tbh and is possibly one of the largest disconnects i've seen.
We have a situation now where Barons valuation is completely disconnected from reality because the outgoing CEO Yeo & Non Exec Chairman Wakefield didn't engage the market but have fortunately been shown the door thanks to shareholder pressure and now with Butler stepping up to CEO and further key appointments that disconnect can close. Theres no way this can have an EV of just £7m, there is some serious upside now.
It has some catching up to do with its peers UPL (£38m), PRD (£46m), MATD (£44m), CHAR (£82m) etc etc to begin with.
Atb
Well Butlers former Mitra Energy now Jadestone is doing business with Woodside. Let's see now that the clueless Yeo ho ho and Wakefield are out, Butler can bring in his own connections and get this show on the road.
"13 February 2024 - Singapore: Jadestone Energy plc ("Jadestone", the "Group" or the "Company") (LSE:JSE), an independent upstream company focused on the Asia-Pacific region, notes recent media speculation and confirms that it is a participant in the bid process being managed by Morgan Stanley on behalf of Woodside Energy Group"
"Farmed down or sold 9 assets to players including Total, GS Energy and Talisman, securing carries on 8 wells, 5 seismic campaigns and >US$250mm of gross spend"
Hello majors! 🔥
Worth checking it out for yourselves, the man is well connected and accomplished.
https://www.linkedin.com/in/andy-butler-93088b33/?originalSubdomain=sg
"Coordinator of IR activities including liaison with research analysts, shareholder communications, investor conferences, press releases and website content"
Well its good to have someone with a strong E&P record leading the company. Here are some stand out highlights from his Linkedin that standout for me as he takes Baron on up the value curve:
"Farmed down or sold 9 assets to players including Total, GS Energy and Talisman, securing carries on 8 wells, 5 seismic campaigns and >US$250mm of gross spend
o TCM / OCM representative on various assets"
"Should leave the .05's behind for good shortly. Hopefully catching up with them on Friday morning if the timings work"
https://twitter.com/Smudgedann/status/1768186017549308134?t=RJyevKY46OdjUZ8G-TmgmA&s=19
Yeah we'll trade back up at boils tried and tested channel 0.08-0.10 in a bit and then rig news takes it higher and so on. It shouldn't really be sub £50m mcap right now when upl are trading around £40m but thats yeo ho ho management for you.