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Morocco - Projects - Electricity - Transmission
Global Energy Research
17 January 2021, 183 words, English,
Copyright 2021 Enerdata s.a.s. - All Rights Reserved

Morocco wants to improve its power interconnections with neighbouring countries in order to meet its growing demand and to contribute to its renewable energy development. To this end, three projects are under development.

The first project is the development of a 1 000 MW undersea power interconnection between Morocco and Portugal (at an estimated cost of US$800m). The bidding process will be launched after the completion of the preliminary technical studies in 2019. Portugal has excessive electricity production, while Morocco has a growing electricity demand, so this interconnection will enable power exchanges between the two countries.

The second project is the construction of a third power interconnection line between Morocco and Spain. The two governments have signed an MoU to this end. The capacity and cost of the project were not disclosed, but it should be commissioned by 2026. Moroccan and Spanish TSOs will conduct feasibility studies.

Finally, Morocco is also discussing with Mauritania about a possible power interconnection line, which would allow Morocco to import electricity from the future Mauritanian gas-fired power plants.

https://www.moroccoworldnews.com/2021/01/332161/morocco-participates-in-us-conference-on-regional-energy-security/

I know it’s early days still but this is a billion pound company in the making eventually. Increased revenues quicker debt reduction. Nigeria gas revenues of $200m per annum, Accugas has infrastructure asset worth about 1 billion. Early Niger production of 1500 Bopd from 2021. To be increased in subsequent years. Further acquisitions of potentially distressed assets. Increase appraisal, development and drilling on our current Nigeria and Niger assets, potential dividends, institutional support, all in time for the commodity boom cycle.

We have seen decent momentum since December as it is likely to continue with cash flows in excess of $200m per year and still potential for more based on new contracts in Nigeria. The market is still not pricing in Niger where we are to start producing in EPS 1500 Bopd this year. Our cash flows will be materially enhanced and the potential is incredible wouldn’t surprise me if we carry on climbing. And this is does not include any other news which we may get from the company. Still the Sp is materially trading at discount when you think of all that is due this year. https://www.energymixreport.com/savannah-works-to-deliver-crude-oil-to-zinder-refinery-in-niger-republic/

We should receive some news this month on operations so could get interesting, I would also be interested to see if we submitted for the marginal field round as they will be announced shortly. I just feel we have a real opportunity to add another distressed asset which is cashflow positive and generating tons of cash

It should see 20p+ this week

Or they could go out and do another high cash generative acquisitions as they are a lot of distressed assets on fire sale at the moment

Shackles slowly starting to come off remember we consolidated for 9 months and still to see multiples of current sp

Buys nearing £1m and a sea of blue, people starting to see the obvious value curve and we are still only at the beginning of it.

Wouldn’t surprise me if we received a tr1 at some point after the recent volume.

Should easily bag a few times from here. Still very cheap as we enter a long term trend. Expect this to re-rate massively

We are on a long term up trend and should continue into high teens

We have just turned a corner I believe we have been consolidating under 10p for about 9 months ever since March 20, whilst commodities have recovered we did not and cashflow and collecting cash was a real concern before we have solid cash and now reducing debt and faster levels and signing up potential new customers with addition to add some gas resource to our reserves. We are now starting a long term trend considering how long we have consolidated for it would not surprise me if we see a quick re-rate well in excess of 30p

It always about the timing in any companies cycle

Agree this is a growth and a dividend story, we will get the best of both worlds our asset is worth, financials below:

As at 30 November 2020

Assets $ 1billion circa
Group cash balance was US$95.6m
Net debt was US$419.7m.
NAV = $680M = £500m

Our nigerian assets alone are worth £500m x5 our current market cap, ad this does not add Niger

Wouldn’t surprise me if we have institutional support now and some new institutional investors polling in now

It’s been consolidating between 8-10p for 9 months since March. And we are made huge strides in revenue and debt reduction and cash. Watch this go to 20-30p

If Lekan finally delivers on this then we can forgot the previous fiasco that we have experienced with the company like last Jan with the whole OPL310 funding the market time to right the wrongs of last jan as we go into this jan 2021

I reckon we will get funding news before the EGM on January 8th January and if it’s an offtake debt financiers coupled with operational Cashflow we will easily 5 bag from current levels, plus add all the other assets you and potential news latter on on those

Should see some orders filled on close