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We don't have the benefit of ARA at the table to negotiate with the MoE, since it's not Ruvuma related (despite they're minority holding in AEX). TZ gov knows we caved on the $2m bill to get the farmout done, and will prob do it again here. It's a shame we need the $$ so badly, otherwise, we could cut a bad deal and move on from it.
BTW, does anyone know whether we need TPDC or Min Energy for 3D signoff? Hopefully the former.
I'm hoping that's the case. Complete a reasonable amount of seismic now, leaving enough time to analyze and plan, while keeping the Q3 drill plans in place. We don't need them spending years analyzing data.
Will be cheaper in the s/t, which is good news for SCIR also.
Just pinged off a few questions to the Board as well. Mostly about tax dispute, 3D and development/farmout options for Kiliwani & Nyuni. We're information takers on Ruvuma now as non-operators, so I feel that project is not in our control.
Agree re the good support from ARA, which proves its worth with the $1.7m loan. Regardless of the rate charged, it's a lot cheaper than raising equity at our current sp. No financing needs in the near term then, at least until we agree any tax dispute related to outstanding invoices.
I was expecting a mid H1 drill date, so while the minor delay is disappointing, it'll be water under the bridge if we can see tangible progress on 3D and LL items. With 3D starting this quarter! Too bad the TZ need to issue approval every time someone sneezes.
This point of clarification on Ruvuma licence extensions is interesting, on page 54:
"...the granting of licence renewals are not considered to impact the development of the asset as the Exploration Licence is deemed to continue in force until the licence renewal is refused or granted by the Minister. The Directors recognise that future realisation of the Ruvuma PSA assets is dependent on the further successful exploration, appraisal and development activities and the subsequent economic production of hydrocarbon reserves.
Expect some grim reading tonight, most of it will be irrelevant mind you, with an eye to the future. The company literally did nothing in 2020, aside from rotate in the new batch of interim mgmt. A big deal will be made about the signing of the farmout, but again, that did not involved AEX putting any pen to paper. Many references to 'talks at an advanced stage' etc. I presume as well.
One interesting tidbit is whether they make further impairments to Kiliwani. Last time they basically transferred the value of North to the South, offsetting any accounting adjustment. If there's a mgmt view that it won't get worked on anytime soon, they will need to write some value down further.
Expect some thin reading!
Glad to see no after close news dump. We've never been 'that company' and I hope the trend continues. Early next week it is for financial results. Hopefully some form of meaningful Operations Update to go with it.