Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Can someone please explain to me how the share price is up almost 2% on 81 trades this morning. That's almost 8 million added to the company valuation. Likewise, it can drop just a sharply on less volumes. The London stock exchange is a joke. No wonder companies are moving to American markets
I don't see much buzz over on the Capricorn board this morning after the release of H1 results. Maybe because there is nothing to get excited about.
117mmscf/d gas (down 7% from 2021 post acquisition average)
Revised full year production guidance of 33,000 boepd to 36,000 boepd (previous guidance 37,000 boepd to 43,000 boepd)
7% reduction in gas out put and 11% reduction in revised oil production guidance is a sizeable reduction at current prices. It looks like the Capricorn board believe the proposed merger is the best outcome for the company.
At this rate tullow share holders should be looking for a higher % in the combined company. It will be interesting to see Tullow's results in a couple of weeks.
I might just vote against the merger for the simple fact that Capricorn's share holders think Capricorn is far better Tullow. I just would like to see what position they will be in 2 years from now. Before the tax settlement with the Indian Government which was less than what they were owed was there not a going concern issue which is why they settled for less, just to get the cash before they went bankrupt?
Only getting a chance to reply now due to work commitments. Scrodingerscat, I see your point but to look at it as a glass half full and not as a glass half empty scenario, Capricorn is producing 36,500 boepd at end of 2021. From Capricorn's anual report on page 153 total equity in 2020 was 1.125 billion. By the end of 2021 it had increased to 1.8 billion which includes the 1.06 billion tax refund from India. Without the tax refund there would have been a reduction in Net assets of 425 million. 100% of a company that is selling assets and are cash rich for the moment may not leave the share holders with a lot in 2 years time if they don't invest soon. On the other hand you have tullow which are asset rich and are increasing production annually and organically, while reducing debt at the same time looks like it will be still around in 10 years. I would be happier with 47% of the combined company than 100% of a company with rapidly depleting assets. Development, I too see where you are coming from. There are some good producing assets available with a reasonable price tag. The example you used isn't the best. Kosmos has increased its stake in Jubilee and Ten giving it an extra 17,000 boepd at the cost of 550 million as you have stated. I'm glad to see Kosmos has such good faith in Tullow Oil as it is Tollow who are the operators of both fields. As for Kosmos who produce 70,000 boepd at the end of 2021 similar to Tullow, they too made a loss after tax of 78 million similar to tullows loss of 81 million. However, Tullow plan to spend 380 million in 2022. Most of which is been spent on increasing production of existing assets. Compare this to Kosmos planned investments for 2022. In their Annual report Kosmos plan to spend 700 million in 2022. 400 million of which will be spent on "base business as stateed in their annual report, of which only 100-150 million will be spent on increasing production and 250-300 million on maintaining current production. Another 300 million is allocated to Mauritania and Senegal. Kosmos has a net depth of roughly 2.2 billion after dept was reduced
by 330 million by the of the first quarter. Referencing back to my original post and using the example which Deeko referred to of Kosmos. For an extra 17,000 boepd Kosmos is spending 1.25 billion. I do except that Kosmos will have a further increase in production by year end as a result of the 700 million investment. I do have one question, what effect if any does Tullows pre-emption and payment of 118 have on Kosmos 550 million purchase and extra 17,000 boepd?
A lot of people think the purposed merger is a bad idea for Capricorn because Tullow will have access to their 1 billion in cash but fail to see that in return Capricorn share holders will get 60,000 + bopd. If Capricorn started investing in new licences and drilling campaigns to increase their output by 60,000 bopd the 1 billion wouldn't last long at 50 million per well. That's not to mention geological surveys, hitting dry wells, infrastructure to transport the oil and natural decline in oil well pressure. Tullow plan to spend 380 million this year to replace natural decline and add another 10,000 bopd if lucky once all wells come on stream in early 2023. Yes, after the merger the new company which still have 1 billion in debt but it will be producing 100,000 bopd to excelrate repayment of debt. Capricorn have made a loss of 130 million the last two years and are selling off assets. What is their future plan to replace them assets if the merger doesn't take place? I believe the merger is a great benefit to both companies. The only thing I wouldn't be in favour of is the name change however as they both originated of Celtic countries it should be along them lines. Just a suggestion!
Correct me if I'm wrong but Beebei-1 wasn't spudded until May 25th with a time frame of 60 days of drilling to reach target depth of 4539 meters. That would mean target depth should be reached by this coming Sunday??? It appears that spudding of the well was suppose to commence originally on May 15th reported in articles back in March.
One thing that should be of interest tomorrow is the date from which the commercialisation of Gas commences. The target was set before year end in 2021 final results. Hopefully they have an agreement in place and can release figures in the results tomorrow. I can imagine hedging costs will be the main disappointment tomorrow with the price of brent over the last 6 months. From January 1st oil hasn't dropped below hedged ceiling price of $78. At a guess total sales should be around 900 million. Profits before tax 400 million. I would like to see debt below 2 billion as inflation is driving up intrest rates. I would also like to hear where the finance is coming from for the all share merger. It will be good results tomorrow but I'm not sure if they will be as good as we hope they will be. Shorts will be closing after tomorrow. There should be nothing in the results that should give them a reason to stay open.
https://www.upstreamonline.com/exclusive/repsol-resumes-drilling-offshore-guyana-with-beebei-1-exploration-well/2-1-1228872
Drilling started May 31st. Should know the results by the end of july
They also stated that it is Cinemark that brought the lawsuit and not Cineplex! Two totally different companies based in different countries
https://www.google.com/amp/s/www.investingcube.com/cineworld-share-price-forecast-cine-bankruptcy-cant-be-ruled-out-shares/amp/
Seems to me like a very badly written article to scare investors
Shares in the new company would accumulate to 2,639,616,990 based on the total voting rights released today in Capricorn RNS. At today's close price that would value the new company at 1,422,753,557. I would like to think once it is up and running there would be a share consolidation or a share buy back scheme.