The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Great to hear s/hs that were able to join the AGM are feeling enthused after the meeting.
For those of us that regretfully couldn't attend this year, any new insights from the team? No doubt the BoD were careful with the details they shared. Many thanks in advance
1. TZ / Kenya electricity line to be completed this year. Broadens demand for onshore gas
https://www.thecitizen.co.tz/tanzania/news/business/kenya-tanzania-electricity-line-to-be-launched-this-year-4280016
2. China's CNOOC plans offshore gas exploration in Tanzania. Blocks 4/1B and 4/1C, which is immediately east of Nyuni
https://www.bloomberg.com/news/articles/2023-06-22/china-s-cnooc-plans-offshore-oil-gas-exploration-in-tanzania
On twitter reported (google tranlation):
'The Government through TPDC has continued with efforts aimed at increasing the availability of natural gas where the Government, TPDC and the investor of the Ruvuma Block with approximately 1.6 Trillion Cubic Feet have completed discussions and signed the Natural Gas Supplement Agreement, Minister Makamba"
Nice demand driven gas flows from Orca's Q1 report. Produced 120 mmcfd in April, an unsustainably high level for them. CEO noted higher production is in response to "the emergence of longer term high levels of gas demand", due largely to supply power sector.
Sounds like the long-awaited gas boom in TZ is finally taking off
I didn't expect them to co-mingle an operational update with annual report. Sounds like things are moving.
Not much new in here. This line on Nyuni is sort of interesting after AEX tried to hand back their licence: "The Tanzanian authorities requested that we continue efforts to secure a farm-in partner over the next year, to which we have agreed."
Sounds like they want AEX's help on it
...And they've been published. As you were!
https://www.londonstockexchange.com/news-article/AEX/final-results-and-annual-report-2022/15937854
FCA rules state listed companies must report annual accounts within 4 months of fiscal y/e. I believe the covid-era extension are no longer being granted. Anyone know whether 2023 has a special exemption, perhaps due to the May 1 holiday?
Mnazi Bay gas production up +9% Q/Q. Lots of activity in Tanzania.
Separately, Orca seismic activity is still underway. They reported that onshore started before year-end, offshore was phase 2, which I believe started in Q1. No indication obvs on when any data will be shared with AEX. Could be in batches or after all works are completed. TBD.
As for Kiliwani development, farm-out to Orca seems the only plausible play, unless ARA wants to back into that too. We're no longer an operator and don't have the resources (or appetite) to do anything directly, for now anyway. Orca is a steady hand, and would be a great partner.
Well, at least is shows the business model does work and can be profitable. No doubt one rationale for their new strategy is prioritizing a shift away from the foot-dragging bureaucracy of TZ. Nice to see some money still on the sidelines here, ready to hop in with a bit of newsflow. SCIR could could actually gross $3MM + $3MM + revenue share by Q4.
Better than a kick in the head!
Can't say I'm not disappointed to see another drill delay, but the stategy feels sound. A couple of takeaways from me:
- Near term lower ceiling but higher floor
- Rig availability no issue
- Kiliwani an after- thought and will get farmed out to Orca if seismic results promising
- A big plus that they're drilling CH1 (NT3?) before working over NT1
- Very curious to see NT2 potential in capable hands
- Seismic is clearly showing something previous data did not. Better/worse? Who knows
- 2023 cash flow that once seemed unthinkable will be manna from heaven
- Sp at CH1 spud date will be higher than at MAR23