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From 9mins 15secs, Greenvale on Mosmans EP145, for anyone looking to get up to speed quickly:
https://youtu.be/PVPcfJVTvvU?si=qAqGAzTbX4wc2Eag
MSMN will retain a 25% working interest in Helium permit EP145, Greenvale will earn 75% by:
- Paying year 3 Program, including Seismic. Estimated to be circa $2 million
- Funding Year 4, including drilling one well with a cost cap of $5.5M
-- Year 3 to be completed by Aug 2024. Then drill!
Just waiting on Government approval now, stamp duty paid by Greenvale.
HE1 is a great blue print for MSMN. One of only two UK listed Helium plays. £1.8m v HE1 mkt cap £90m.
"EP 145 & EP 155 both contain wells that flow tested. Amadeus Basin contains some of the highest concentrations of Helium globally"
The only other Helium play listed on the London markets is HE1 and that has risen from circa £6m mcap to £91m, over 1000% just recently. Mosman is just £1.8m mcap here (free carried to siesmic and a drill), the opportunity is quite staggering on Farm-out approval.
Almost another billion shares traded today (947m according to advfn). We are over 8bn since placing. Another 8 to 10 days at the current rate and that'll be at x3. Usually what is needed to clear the overhang. I think sub 0.06 will not be around all that long.
Well the placing before this one was at 0.12. They clearly dropped the ball on this one. Which is why i don't rate Yeo, he's proven to be useless. However they do now have circa £7m in cash and the shares will trade higher in anticipation of Q1 & Q2 news, significantly so if everything is nailed on.
Q1 - Site survey at the proposed Chuditch-2 appraisal well location in the first quarter of 2024
Q2 - Completion of drill funding and securing a rig slot in the second quarter of 2024
Jarvy the nearterm funding is out of the way. They are not going to raise $31m to drill lol
They've signposted in black and white for Q2 that they anticipate securing a rig and the farmout/funding for the drill. That is the clearest timescale i've seen from this lot for a long time. They usually just stick to "talks are advancing blah blah blah" but they've given a clear time frame this time so whatever is happening its not far.
Any working cap raise now will be significantly higher post rig and farmout as they have over £6m in the kitty. £4m of which is costed for H1 which includes Q2 objectives.
Atb
Well, the funding is out of the way. I did suspect it, any how i think we will run significantly higher from here once overhang thins out, shouldn't be long. Two company making quarters now, if they deliver then Allenbys revised initial target is still a whopping 0.595. Over a 1000% from current price. Bring it on
The Board anticipates the following key milestones for the Chuditch project in 2024:
· Site survey at the proposed Chuditch-2 appraisal well location in the first quarter of 2024
· Completion of drill funding and securing a rig slot in the second quarter of 2024
· Obtaining the required environmental and drilling approvals in the third quarter of 2024
· Well mobilisation, well spud and drilling results in the fourth quarter of 2024
The oil assets need selling and money banking. Sounds like thats what they plan to do with Stanley. It doesn't matter if production has improved a touch, the dilution and subsequent declines/problems has never been worth it. All in all the O&G assets are too small, they will never be valued by the market other than a huge drain on cash. This is what has got MSMN to this point over the years.
A sale is the best course of action and a full pivot towards the Helium where they actually have a very good Farmout with Greenvale on EP145 which looks set for near term action and a second one with GE for EP155 if they ever list. These alone are company makers for a £1.8m mcap company.
The interesting part "This flow rate is positive for commercialisation of the asset through ongoing cashflow or SALE OF THE ASSET."
3 weeks ago in the Investor Meet Company interview Andy Carroll was asked the question about selling the O&G assets he said they were trying to get production up to consider that. Now we have "SALE OF THE ASSET" mentioned in RNS. When asked how much they would sell it for he said definitely more than they had paid, a few million $'s certainly.
Would make sense with the pivot towards Helium. Given the Farmout with Greenvale which free carries Mosman for Siesmic and a Drill for which Government approval is imminent. Environmentals applied for and expected early April followed by Siesmic and Drill.
Interesting period ahead now. Could be a decent cash pile coming from the sale of Stanley et al and if they hit Helium then Mosman is transformed.
HE1 for perspective is something like £80m mcap right.
Great move to bin eecp. Can now look forward to farmout concluding without the death spiral slamming the breaks. Once the overhang is gone, should be no stopping it, it ought to be £20m-£30m pre spud. Better days ahead from £2.7m
From 9 mins 15 secs. Farmout partner Greenvale on MSMN's "world class" EP145. Environmental approvals should be in by April - followed by Siesmic and then drill mobilisation.
https://youtu.be/PVPcfJVTvvU?si=hBFlb-8g4jEbKSYo
EP145 contains prospective resources x4 larger than HE1. 26.4 BCF of Helium v 7.1 BCF.
Spot is priced at circa $920/mcf. EP145 Helium is worth circa $24bn vs HE1 $6.53bn.
Plus 440BCF of gas & 26.4 BCF of Hydrogen.