Agree, there's lots of directions they could go in, e.g. merger, further asset sales, payment collection. But, w/o those, we have no revenue coming in, with no path to revenue until Ruvuma in 2024, and insufficient cash to hold us over.
An equity raise is the easy/ logical answer, which is why I'm sure O-Jim is suggesting it. If we have something more clever in mind, I'd sure love to see it!
We've been hearing for weeks the govt's intention to prioritize LNG plant development. What should really get domestic gas producers excited though is the re-focus on building its $1.9bn fertilizer plant, which consumes epic amounts of gas.
Domestic gas demand for household consumption is slow and unexciting. Fertilizers, EA regional gas distribution, and further industrial use is the driver, and should align pretty well when we start producing in 2024.
They need to cut a cheque for $5MM in next 12 months just for 3D + drill. Then find another $35MM to get to production in 3-4 years from now. Existing shareholders would be diluted to the point of extinction to get there.
Hi CP, I disagree. I've not seen anything that shows they have the funding. He1 is a block holding that isn't easily sold. They would likely need to sell to another institution to get a fair price. We've not seen their Balance Sheet lately, and 'maybe' have $2m cash. The loan option is an abomination at the coversion price we'd pay and is more of a backstop to insolvency rather than a legit funding source.
If mgmt have stated they have funding in place, they're bluffing. The idea of SCIR paying its way to Ruvuma production is inconceivable
No sale until Ruvuma licence extended, which should come later this month I hope. IMO a sale could get announced soon thereafter.
Unftly SCIR has no means to pay for an expensive seismic + drill campaign. And even if they did (cash + HE1), the only buyer in town may still be Zubair, which may not want to pay much more, regardless of success. In 18 months time, SCIR would then have less than $0 in their accounts despite a more valuable asset. If a deal was then struck, they'd have to wait for TZ to actually approve the sale (which they don't always do) and could take ages. SCIR = dead duck in this scenario.
I think SCIR's strategy is clear enough, it's the lack of execution that hampers them. 1. sell all TZ assets at their bottom, 2. reinvest funds into for bubble-priced 'green' technologies that may/may not generate CF in future. Loads of transaction costs coming for them, most of which will line Gneiss' pockets.