The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Orca's an operator. More likely they'd be interested in M&P's stake, if they're indeed selling. They do however want to expand, and have the cash and cash flow to do it.
An AEX/WEN combo still makes strategic sense, despite BB indigestion, though no one cares about that. "Cash flow + near-term funded growth opportunity" makes both stories more interesting. Newco would still farm out assets because someone needs to do the work.
SCIR is not a factor here and will likely sell to ARA or other who can afford upfront $$ + exploration/dev costs.
Correct, it’s basically a pre-paid debit for the first $35M on any Ruvuma development. We receive 25% of all income generated regardless of monies spent. And of course will be responsible for any costs incurred beyond $35M.
With only $6.25M being spent on seismic and CH1 drill, we have a lot of runway on that farm out cash.
With lower drill costs than originally expected, I wonder if we can use some of that credit towards Kiliwani/Nyuni? Wishful thinking probably
+ $5M cash.
I agree SCIR should get more than $20M equivalent for their 25% share now that the project has been significantly de-risked. But not sure they will.
? steve58. I would rethink that entire post.
Kiliwani is in Songo Songo. We feed into the same processing facility.
And yes, of course they explore. They've just discovered so much in the immediate area they haven't had to in a couple years. No one knows that immediate area better than them. To each their own, however.
This is great news and important for so many reasons, even if the net amount is a touch than some were expecting.
Will be interesting in the weeks and months ahead to see how AEX approaches next steps. We have a KN1 remediation plan, but our strategy and resources are aligned with being a non-operator. IE, we won't be the ones doing the work.
My guess and hope is for a farmout of KN1, KS2, and Nyuni with a partner that's ready to go. My strong preference would be with Orca Energy, since we already share land with them and they have the finances and people on hand.
Has it started yet? Not sure if commencement is a reportable event
Tony's been hired to advise the TZ government how to re-engage with foreign investors. No bad thing I suppose, I just hope there's some cash left over after his hefty consultancy fees.
https://www.africaintelligence.com/eastern-and-southern-africa_business/2021/10/08/tony-blair-samia-suluhu-hassan-s-new-ally,109697111-eve
Don't get me wrong, I'm as excited about recycled cow manure as the next guy, but that deal to buy Dutch natural gas assets when prices were half what they are now, seems like a big big missed opportunity.
Agree! Now if only can sort out that Kiliwani mess, we might actually have some interesting newsflow between now July22.
I'd like to see us remediate KN1, receive payment from invoices due, and gather seismic on KNS & nearshore Nyuni. THEN to farm out the asset to a team that can take over operatorship.
Help or hinder? Can't say the last guy did us any great favours, at least in terms of timeliness. Can only hope that the new guy is a bit speedier in his approvals. 3D (MoE or TPDC approval needed?), Nyuni extension, and KN1 remediation plans all need John Han****s