Member Info for Wabu

OMG! A J Bell has marked my CASP holding down to zero!! Lets hope it's not a portent of doom!!

If only! If only I had sold at 8p in Feb 2023!

The fact is that there are very few (if any) large II who can buy Oil and Gas stock, due to the green lobby. So we are stuck at this low price due to the only possible upside is organic growth. Perhaps that is why the "move" to mining and minerals is the only possible way of Clive getting his bonus. The downsides are all clear. Kaz government not playing the game, the family crashing the price with poor RNS and then going private. Growth is a serious prospect for multi-bag as has been discussed hundreds of times on this board, but I think most PI would sell up if they sniff a profit as they have failed to give consistent results.

What? Caspian Exporer isnt sold is it?

Odd, but LSE is not showing the RNS. But on the Casp website it shows 1900bopd x 32 x 365 = $20m turnover PA. Any idea on how profitable this is?

Wiki says: The term organochlorine refers to a wide range of chemicals that contain carbon, chlorine and, sometimes, several other elements. ...

So basically a hydrocarbon that has reacted with Chlorine. Maybe Carbon tetrachloride? Carbon Tet is not soluble in water so maybe the refineries dont like it in the oil? Anything else like chloromethane is soluble and I think will form a salt, which is standard to remove in a Desalter.

And they need a way of getting the oil out to market.

Before you can sell gas to the network you need to control its LHV very tightly by removing all Butanes/propanes etc. By removing any CO2 if any. Removing mercury. Dehydrate the gas. Compress the gas up to the required pressure. The best thing would be to put a new pipeline up to the nearest gas intake treatment facility which must be up in Hull or nearby. Still need a compressor. Planning permission etc would take ages with the endless environmental, safety cases, noise. It could happen, depends on how much gas there is whether it is worth it. Burning it on-site in gas engines is perhaps simpler.

Say the engine is 1MWe and all of it could be sold. Then at say a Feed-in Tariff of 10p/kWh and feeding for 8000hrs per year will give a (MAX) income of £800,000 PA. Better than flaring but not without problems (noise, maintenance etc)

Especial...
There is an explanation page on AJB on what to do and where to send. Just type "canadian" in the search box . You cannot hold in a SIPP so I think I'll have to sell mine by phone.

Gas cannot be put straight into the gas network it has to be treated, things like mercury, water, sulphur have to be removed and the NTS has a very tight requirement on LHV so you have to remove all the ethanes, propanes and keep CO2 on a tight limit. So in the long term a pipeline to the nearest gas treatment (like at Easington) is an option. In the meantime they can burn the gas in a gas engine to produce electricity to feed into the grid. I believe they have 6 or so gas engines already installed.

Well, possibly HGV will go hydrogen. Maybe they will stay hydrocarbon. With Carbon cupture to take out the relatively small amount of Carbon they and aircraft use.
I will temper my post by saying "Rome wasnt built in a day" so we have to try Hydrogen and nuclear and electrolysis and keep evolving batteries so we can build expertise and find the best solution. I looked at a mega capacitor which stores charge just like a electronics capacitor, and so thats another field of investigation.

I am invested in CASP for more years than I care to think and I do like sensible discussion on here. However be careful on Hydrogen. I know a bit about this as I have worked on a Hydrogen plant. Hydrogen is very light and therefore has some distinct disadvantages. So be careful when investing. For instance PHE are selling a process that "turns plastic into hydrogen" When I emailed the CEO he waffled on about "other benefits" and declined to comment on the fact there is VERY little hydrogen in plastics. Polypropylene is (for instance) C3H6. So has a molecular weight of 42. Where Hydrogen is only 6/42 or 14%. PET is much worse (your coke or water bottle is made of PET). Polyethylene terephthalate has a MW of 222 with a formula C12H14O4. So only only 14/222 = 6% of the plastic is hydrogen! So a mix of plastics is at most 10% hydrogen. The rest is basically Carbon. And you cannot oxidise the carbon as that is CO2 the stuff that is bad of the global warming. If you make Hydrogen from water (electrolysis) then it uses a lot of electricity that is massively inefficient. Compressing Hydrogen is very energy intensive. For instance to compress the 10T/hr mass of methane takes about 3MW from 1 to 50Bar. Hydrogen would use 20MW to compress the same mass flow.
When I (helped) design a hydrogen plant from Methane (called steam reforming) whiich is where most hydrogen is made then this is spectacularly expensive. For instance to convert 30T/hr of methane we "only" got 9T/hr of hydrogen out. And we had to sequestrate all the resultant CO2 which is not cheap. The power to do this was huge too!
In summary, whereas you may not like batteries they are presently the only (practical) way! Hence why all the major car companies are into it. VW for instance is buying Lithium and battery production like it's going out of fashion.
There are of course niche uses. One last horrible fact about Hydrogen is that is it only a liquid at a -252DegC. And even then only has a sg of 0.07.

I got a message from AJ Bell .....

"Canadian Overseas Petroleum Ltd has announced details of a proposed delisting from the London Stock Exchange. This means that the shares will stop trading on the stock exchange.

The company intends to cancel its admission to trading with effect from 21 April 2021. You may continue to buy and sell shares up until this date.

Canadian Overseas Petroleum Ltd has already been suspended from trading on the London Stock Exchange, with effect from 17 March 2021, pending the release of an announcement regarding the reverse takeover in association with the Atomic Oil & Gas acquisition."

So, another "suspended share ??? So all lost?

Jarv55. This is all from the perspective of SYME. Why would a manufacturer use SYME?

Imagine if you make fridges. You have ten in stock. You "sell" the stock via SYME to a Bank. You get the money, minus the SYME commission. So you have capital to make more fridges. All good. Does the Bank take the risk you sell the Fridges? No of course not. What is your motivation to sell the fridges? You sell the fridges at half price to get rid. So who owns them now? Of course you still do. Is this SYME model just a tax dodge to allow companies to hide the fact they have not actually sold the fridges but in reality you have borrowed the money? Will the HMRC go along with this or introduce a change to say "hey you have really just borrowed the money so show it as that on the accounts"? Would you want to invest in a company that hides the fact that it has not in fact sold the fridges but just borrowed the money through a complex securitisation process?

I have commented on this share in the past and all I got was abuse "as I didnt understand SYME model" SO I expect the same this time, but I really want to know what sort of companies will actually sell their inventory like this. Alter their accounting practices to allow for it. BTW I do have shares in this as hype is often all that matters in AIM.

Thought so. This is indeed a risky share. So with roughly 2000m shares the SP needs to rise to roughly 10p to make the company net worth the 230m USD bond!

This does appear to be be very undervalued but anyone actually know what this means?.....

https://www.hurricaneenergy.com/investors/convertible-bond

which says:-

"In July 2017, Hurricane issued US$230,000,000 in 7.5% convertible bonds due 2022 (“Convertible Bond”). The Convertible Bond was issued at par and carries a coupon of 7.5%, payable quarterly in arrears. The Convertible Bond is convertible into fully paid Ordinary Shares with the initial conversion price set at $0.52, representing a 25% premium above the placing price of the concurrent equity placement, being £0.32 (converted into US dollars at USD/GBP 1.30). Unless previously converted, redeemed or purchased and cancelled, the Convertible Bond will be redeemed at par on 24 July 2022. The Convertible Bond was admitted to the Official List of International Stock Exchange in September 2017."
ANyone actually know what this means?

More detail in the Capital Markets Presentation at :-

https://www.hurricaneenergy.com/investors/presentations

My average is an eye watering 5p.... but I have mentally written this off like LION (Tally), G3E and SYME as a lotal loss, that way it can only be good news! But this RNS seems the clearest and most honest I have seen, so maybe a turning point!

what kills this share is the spread... 15% ! They admit the masks have not sold well. Yet there are shares out there trading on hope of mask sales like RMS.

RNS is out on final results. But not sure if this "meets expectations".