Morocco Exploration.
NewMed Energy is in an advanced process for the receipt of exploration licenses in Morocco as a leading partnership in its field with considerable professional knowledge and a proven track record in regional activity. NewMed Energy has identified Morocco as a country with tremendous potential in both geological and commercial terms. The Partnership’s Board of Directors have authorized NewMed Energy’s management to act, and the Partnership is currently in advanced negotiations for receiving exploration licenses in offshore Morocco, in both the Mediterranean and the North Atlantic Ocean.
Wow
So the company behind the Leviathan field agrees the geology in morroco is favourable based on thier experience.
Leviathan is a giant field that can potentially supply 2.4bcf a day. I don't see them going after a tidler.
Granted its offshore but they are late to the table and we know the similarities we have with the anchois offshore field.
Connoco Phillips and new med, not bad for neighbours
It's hard to say what a fair share price should be. I'm holding for special divis.
If you believe in the geology of guercif and the results thus far then even if the share price was £1, a mcap of £280mil, still wouldn't do us justice.
Then there's mag mell which is the best option for the Irish political climate.
Theres reasons why many of us here are comfortable holding large positions as the story plays out.
US gas prices were up 70% at one point yesterday, the biggest single day increase since the futures contracts inception. A major short squeeze.
The German chancellor has come out and said future sanctions against Russia could include shutting down the nord stream 2 pipeline. Bare in mind that it has the Capacoty to supply 26million homes and Germany has shut down the last of its nuclear reactors.
So if Germany and other countries do need to secure none Russian suppliers then demand increases significantly and so will prices. Germany has the purchasing power to outbid other countries.
With everything going on, Paul should have no problem securing funding for our drills in return for security of supply for the local industrial sector.
@nametrade evening.
Yes the target area is much larger, hence the minimum figure.
It depends at what point paul wants to exit, can drill further wells and increase reserves or cash in after mou ne.
Imo the market will only pay for those reserves that have been proven by testing.
Another poster mentioned why keep mentioning maghreb pipeline if its not part of the cng plan.
Recent control of the pipeline has been transferred to ONHYM. Its possible they may be the final bidder on our 75% equity. Paul will have developed the plans to monetise for them and so it's straightforward.
They'll have control of the pipeline and reserves.
Bullish nod from lonny.
I also feel there's a huge disparity between the underlying value and share price which a few really appreciate.
I have no interest in 20/30p.
I expect at minimum £1/per share dividend at which point I've hit my target return.
At current float that would require a sale of guercif for £390mil when factoring in we own 75%.
Mou 4/5/NE drill will increase our sale value and so I have no concern about sp.
Finally had a read of the CPR.
All is well. Mou-1 will flow. If you follow the energy markets, you'll understand high gas prices are the norm now, not a blip. Guercif remains highly attractive to a JV partner.
Funding will come when it's time and the best deal for shareholders has been found. Don't forget the CEO is the largest shareholder.
Finally for those that haven't been here since the start, MEM changes his tone depending on his position. From overly positive (making up positive RNS timelines, despite being repeatedly wrong) to less than subtle deramping when he wants back in. You were terrible at it the last time I called you out and you still are.
Read the RNS, study the CPR then make up your own mind.
The fall is down to Mou1 testing going ahead in q1 without mou4/5 drill.
The market and shareholders expected rigless testing to go ahead alongside drilling of mou4/5.
Irrespective of the positives in the update, the key takeaway for the market is that Mou4/5 is delayed. Its how the market works.
I couldn't care less about the daily sp movement as I have conviction in my investment.
If the day ends red then there's more selling pressure than buying pressure. The reported trades are not accurate whereas the opening and closing price is.
Mm's have 3 days to report large or uncommon trades. Considering its down 17% I expect large sells from today to be reported over the next few days.
Even if you believe the market has misinterpreted the rns, it doesn't change that there was more selling pressure today.
Evening Vegas,
I agree sound needs a lot of things to fall into place for it to work, however they needed the uplift and it’s probably a better deal than they could get with a private JV partner. I’m not a sound shareholder so I don’t follow them closely. Bring on our deal.
Regards
Zebra
Great news for sound, a state owned JV partner.
A similar arrangement is a possibility for us. It did take sound a long time to reach that agreement but now we have precedent and Lonny on board to speed up negotiations. Paul himself is on good terms with ONHYM and has been considerate.
I may well be getting carried away but it makes sense why that first RNS was worded as it was. Why care about the market reaction when you’re in discussions with the state. $7mil is peanuts for the state and it ensures they get their energy security on favourable terms.
In regards to ceg, I expect bankruptcy declaration and we won't get the 500k we're owed. They owe the bahamian government millions.
Instead we'll be given control of fram by heritage for free. We have a good relationship with heritage and they want the co2 project to continue.
So in affect we get control of fram for 500k and 100% control of profits going forward. Not bad.
Exlusivity of co2 supply has been extended until 2023.
I don't see rams head getting the go ahead.
Mag mell is a far better alternative for the Irish political climate.
Few examples why I think it's better,
1. Much quicker to get up and running. The key is no new drilling.
2. It uses the world's existing supply of gas.
3. Quick and safe to decommission when alternative energy supplies take over.
And so it's a far easier sell to environmentally conscious voters because it can be promoted as a temporary and neccesary solution.