The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I would assume 60 calendar days, but this is from the point where winning bid is chosen which we don't yet know.
Might have already happened, might not. The 60 days will almost certainly have been chosen to align with planned drilling dates.
Lonny’s options vest in July which means he is then allowed to exercise them from that date. We haven’t been given information on the expiry date. I think they only come into play at a much higher price / near the end game.
I'm invested in both, but for different reasons.
I3E is a £350m cap producer paying a monthly dividend from a low P/E base. With a fair wind might double my money in the next 12 months.
PRD is a multi-faceted O&G tiddler on the cusp of greatness in Morocco, not to mention the other projects. By spending tens of millions in Guercif they can earn billions. I'm hoping for the share price to reach £1+ in the next year or two, so whether the SP is at 7p or 12p now is noise compared to that return.
Very different risk profiles and you should allocate capital according to your own situation.
And DYOR, I could be full of nonsense
They may also soon have a very explicit option contract:
"Company's commercial proposal includes past costs; disproportionate share of costs for 3-well drilling programme and "Put Option" to buy out residual project equity"
i.e. PRD would have the right to sell their remaining 50%+ share of Guercif to the farminee at a pre-determined price, regardless of how the story unfolds. I'm not sure if this is intended as a exit mechanism or as insurance, will be interesting to see the terms.
What it does mean is that, if this clause is agreed, it will put a floor on the valuation of Guercif and hence the share price.
new interview
https://www.youtube.com/watch?v=ZVX9Jy81LkE
sounds like Ghaghoo still in the mix
A rebuttal, shared by FT Alphaville this morning:
https://mises.org/wire/lighting-gas-under-european-feet-how-politicians-and-journalists-get-energy-so-wrong
I think the involvement of 3rd parties in Guercif deal discussions and their confidentiality complicates things. In the normal course of business they could provide a thorough status update but much of the near-term plans are conditional upon these JVs.
Until such time as a deal is reached (or otherwise) then they are limited in what they can say.
PG & Lonny just spent a week at the Irish Energy summit, this interview was a timely debrief of that. Pretty much as you were but they are doing all the right things (leading a horse to water...)
I'm sure a Morocco update can't be far away, just a little more patience required.
Some serious knicker-pulling-up required round here.
Looks like PG is part of a panel discussion at 11:10 tomorrow
https://www.energysummit.ie/agenda/
***
PANEL DISCUSSION:
Coming together to plan, build, operate and support the development of the country’s chief renewable energy resources
As Ireland transitions to an energy system with increased electrification of heat and transport, coupled with increasing levels of renewable energy, it is essential that robust solutions are put in place to ensure continued energy system resilience.
How can we attract investment and support indigenous business to innovate and accelerate in this space?
What is the impact of carbon taxes on households?
**
Hi Freethinker,
JVs first, then book drill and get some dates.
From 8th March RNS:
"The Company is pleased to announced that it has signed Confidentiality Agreements with a company based in the United Arab Emirates and an Asian exploration and production company to evaluate the exploration, appraisal and development opportunities in the area covered by the Guercif Petroleum Agreement.
Separately the Company has signed a Confidentiality Agreement with a company in the downstream sector in Morocco to work together to optimise the potential market for gas from the area covered by the Guercif Petroleum Agreement.
The focus of these activities is to seek to build the partnership necessary to finance the development of the prospective area for gas established by MOU-1 and to accelerate monetisation. The attractive commercial metrics and regional political tensions demand that the role of gas as the fuel of choice for a pragmatic Energy Transition and to preserve security of European Energy Supply becomes a strategic objective."
Need to get some of these for the £10 party
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Less than a month to the Irish Energy Summit at which PG is speaking, and Mag Mell is 'gold' sponsor.
If you can wait until then I'm sure you'll get some more information.
https://energysummit.ie/sponsors/
You only have to look at the recent news flow coming out of Ireland (try Lonny's twitter feed for starters) to see that what PRD have proposed is exactly what Ireland needs. Whether it happens is up to the politicians.
https://www.oilnewskenya.com/african-gas-producers-eye-european-market-as-geopolitical-tensions-remain-high/
rehash of RNS but looks like good exposure