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How the heck does net debt exceed m/cap and it's not a constant ?
Seriously. Go and study what is going on. This has been laid out before for you but you refused to acknowledge it and continue to show complete ignorance and any understanding on what you're posting.
When you're taking net debt into account, take into account the bls produced but unsold in coming to the projected net debt figures due to the 'timing of liftings'. If you can't support your argument, at least try and learn.
Not so long ago you were going on about the oil price in the mid- $70s when these deals are based on $60-$65/b oil yet the oil price has risen into the $90s while we also recieve a premium to Brent - yet we don't hear you when that has gone substantially the other way. That will affect the figures/projections not witstanding that production has also risen month - on month now to some 6,600 bopd which is about 15% higher than when the deals were signed.
I suggest you check Petronor with an identical set up which was doing 6k+ bopd Q1, 35 mmbo 2P and similar net debt and was trading at a £270m m/cap which i highlighted at the start of the year (equivalent to a £1/share price here with £50m m/cap to spare).
It is acheiving it's growth projection with 7.2k bopd for H1 2023 and now in Q3 has touched on 11k bopd. The m/cap is £281m today, higher net debt due to timing of oil liftings (650k bls lifted last week) where as AET is already substantially tracking Petronor on equivalent reserves, lower net debt but most of all on growing production as shown in the August figures of 6.6k bopd but at a fraction of the valuation which i fully expect to start playing catch up once the deals are ratified.
You could say what took Petronas, Exxon, Chevron, Sinopec, CNPC, ONGC, Sonagol and others to these places and sunk billions in developing fields and pipelines and running these assets until they were mature when they were already so called 's' holes 20+ years ago and made money from them.
If Chad wasn't worth chasing for over TWO HUNDRED MILLION FCF yr at $65/b oil what was. Have you seen the number of other companies that chased deals there and got whittled down to preferred bidders not to mention others that have arrived ?
Family owned Perenco made their cash in so called s.holes.
There's others chasing assets in both S.Sudan & Sudan alone never mind Niger which didn't seem to be a concerning s/hole up to the latest coup.
If you can't understand when you read a strategy to expect ups and downs you shouldn't be complaining later. Whatever happens re S.Sudan doesn't change our underlying value regardless of emotional sentiment about S.Holes and why are we there.
M&P acquiring Assala during a Gabon Coup - fools ?
Meanwhile Afentra is doing exactly the same in West Africa in creating a 'west african independent' - 'opportunity for new, credible and responsible operators' on transition assets. All on a buy and build strategy. They too are chasing similar to what they have negotiated so far as well as larger operated/non operated being evaluated across West Africa.
Maybe they all went to the AK school of thought or maybe like many other CEOs they seek out assets relevant to cost, risk and non recourse debt financing. I didn't buy into SAVE or a few other African plays hoping to be a UK/Norwegian north sea operator.
The new finance minister was appointed early August - is that the Presidents doing just before these Caltech discussions kicked off ?
I think the President himself has business interests or connections.
New finance minister said in that interview they have been discussing this with Caltech since about 22nd August - that's late in the day.
He said they had a 3 minute meeting in New York - seems quite, quite ridiculous not withstanding they want $3b including $1.25b to buy Petronas assets.
First 5 years as repayment holiday on a term of 13 years at an interest rate of 1.5% - never mind inflation.
Risk would be incredible on future oil prices never mind a future government and risk of not being able to repay with the economy predominantly dependent on oil, landlocked (for now) and a war raging on your only export route.
Seems somewhat very underwhelming for a US firm that their website is pretty poor.
Has the govt not approached oil traders who are fairly awash with bumper cash this past few years ?
I could be very wrong but i don't think they have said NO or YES to SAVE but trying to find a better deal that gives them more interest if they could get the money and maybe up against a deadline. The govt seems pretty broke.
One thing which i think is important - we DON'T KNOW know how the oil contracts, clauses etc are structured - sellers rights etc?
Perhaps the govt knows that SAVE/Petronas can complete on whatever laws/rights are in force and if the govt doesn't have that cash by a specified date then maybe a deal can be close depending on what the original contracts are ???
Either way, i would expect a mention in the next few days.
Exactly Trustilie. And that’s on top of all the difficulties in Sudan at the minute to ever consider it I would think. The Chinese have pumped billions in already. Glencore got caught out on their loan to Chad so plenty of lessons to be learned. My point is on my belief on a possible protocol of govt approval coming last in the queue.
We do see acquisitions agreed between buyers/sellers in the west and UK where sometimes for strategic or important matters need government clearance later.
UK Gov - "The government will review your acquisition. It can either clear your acquisition, impose certain conditions, or block or unwind it" - from the national security and investment act.
It looks like in all cases the deal is made first as we see what AK and any of the other countless CEOs have and are doing - ie sign the SPA, get shareholder approval and wait for government ok. I can't see an African gov 'OK'ing a deal because they may say your own shareholders haven't even approved it yet (don't waste out time going through all the processes until you have yours in line first so to speak) - so again i feel it follows a protocol. I think Petronas used Jefferies to handle their African asset sales (from AI). You only have to look at the amount of companies vying for the Assala assets - its unlikely they all sought government clearance first. It was the selection process by the sellers advisors to reach preferred bidder status, then in agreeing the deal which then in turn goes to the governement for approval which can take months or longer.
By comparrison to the West - some of these African countries have absolute miniscule GDP compared to the likes of the UK etc so you can see how a country like S.Sudan (and others) that get about 80%+ and in some cases all of it's income from oil - therefore will view them strategically and of national importance.
The danger is of course in governments borrowing to buy these assets making them more and more reliant on the oil and all their eggs in one basket come a downturn in the future.
From Fenikso today 26/3/23
' Fenikso is the restructured holding company that used to be called Lekoil Limited. The Company holds one main asset which is a US$51.9 million loan made to Lekoil Oil & Gas Investments ("LOGI"), a wholly owned subsidiary of Lekoil Nigeria.
Net assets of the Company at the end of the Reporting Period were $19.3 million. Cash balances as at the end of the Reporting Period were $1.09 million.
PERATIONS REPORT AND ASSET SUMMARY
The principal business of the Company is to manage and ensure the full recovery of the LOGI Loan. The Company has received payments under the LOGI Loan as at the end of 30 June 2023 amounting to $2,615,472. A further $1,543,240 has since been received post 30 June 2023.
Outlook
The Company intends to repay all creditors as well as the first instalment of the Savanah Energy loan repayment before the end of the year. Once these steps have been taken the Company will look to build its cash position before deciding how best to deploy the cash it builds up.
Following the Settlement Deed, the Company entered into a loan agreement with Savannah Energy pursuant to which the Company agreed to pay Savannah Energy certain upfront payments together with 25% of all amounts received by the Company from LOGI pursuant to the LOGI Loan, subject to a maximum total payment of approximately $16,256,159. '
https://www.investegate.co.uk/announcement/rns/fenikso-limited--fnk/interim-results/7777271
Might be something to consider but after the number of gas contracts already signed and operating are we constrained in anyway given that there is always the possibility at any time that customers who are taking 80% TOP say they want to take more or all of their DCQ.
I say this on the basis that if you add them all up they mightn't be able to supply the contracted demand ??
They supplied 145 mmcf/d last year all from UQUO - that's the average and we know that 3 contracts didn't start until June last year and 1 more signed in August 2022 - so capacity could be tight/tightening.
Also the compression project is to complete next year so undoubtedly that's needed for expansion.
Then If you think about the AMOCON deal signed just there in May and operational - SAVE is buying the gas from them ie up to 20 mmcf/d and perhaps in trying to understand the points i make above - " Gas purchased from AMOCON does not require processing by Accugas and therefore does not utilise available capacity at the Uquo CPF" (which is to 200 mmcf/d and following compression up to 240 mmcf/d potential).
Is this a sign that they are buying in that gas so as to be able to make sure they have that gas to fulfil their existing contracts as well as have capacity for new ones - otherwise just sell our own Uquo gas.
In light of the timeline of those contracts having started it will be interesting to see this years full average compared to the average sales of 145 mmcf/d last year.
Worth adding that as far as i'm aware customers pay for their own connections so who knows there could be deals afoot.
I've no doubt the gas opportunity for SAVE is huge.
Heard it before - but the expansion and near doubling of Stubb Creek oil is sheduled next year - so this could be viewed short term as replacing Niger income re the1-1.5k bopd there which was expected Q1-2 2024 ?
I said a few times that judging from all the other deals that other companies are involved in, all i can find from the time of a SPA, it appears it's adm doc, put to shareholder vote and then wait for approvals in due course as timeline of doing things. Whatever went on over the weekend it could be viewed that the govt keeps it's options open ie approval not yet fully given until the last, otherwise i don't think that what was announced yesterday would have been allowed to happen in the first place.
The adm doc and relisting could well come anytime from SAVE but i'm still not convinced it will come with govt approval at the same time - personally expecting it in the order of above (unless the whole thing is unfortunately not proceeeded with).
I think Cplloyd has a valid point in that chasing acquisitions has cost us in terms of share price - but i view that in the light of the debacle over Chad where if it had went smoothly the reverse would have happened ie share price would have been much higher and we may not have been suspended now at all for this past 9 months.
Let's say we had stuck with just Accugas and on the 996m shares it would be more like 62p instead of it being around 45p on the present f/diluted number based on an $800m net valuation for the Nigerian asset net debt free. We were playing for 80p-100p f/diluted with Chad and i still see that with S.Sudan if it goes through regardless of wining arbitration over Chad.
We shouldn't lose sight of the importance of Accugas. They've ramped up on the number of contracts and thus income that should really kick in versus everything else that has happened. If they hadn't those new deals, uplift in revenue then i would question it if it was any good in the 1st place. So the extra income even from 1 year imo can be justified in paying towards negotiating those new deals. I don't view it as costing us on such a narrow timescale given the size of the deals/potential uplift. Over the longer term we will get a decent return on the Lekoil involvement - thats paying for somthing. I'm only looking at a fairly static value of $800m net for Accugas/Nigeria but think it will be worth a fair bit more in due course.
I just wonder will the net debt be paid down even faster if there is no immediate committment to spend in Niger. I think our interests are fairly safe and will be respected and there's a minimum if i recall of $100m back costs and 33 mmbo 2C which on a sanctioned dev plan will convert to reserves - so minimum all round i'm leaning to at least $100m all in worst case for Niger overall or 5.5p - so i still think as we stand SAVE has a value of about 50p to come through just letting Accugas perform/edge into net cash from a net debt position in the timeline stated and everything else not in the share price picture.
AIM listed Wentworth Resources reference - 5 December 2022, the boards of Wentworth and M&P announced that they had reached agreement on the terms of a recommended all cash offer by M&P for the entire issued, and to be issued, share capital of Wentworth (the "Acquisition"). The Acquisition was approved by Wentworth Shareholders at the Court Meeting and the General Meeting which were held on 23 February 2023, but remains subject to the satisfaction or (where capable of being waived) waiver of the other Conditions to the Acquisition.
These Conditions include, inter alia, (i) consent from the Minister responsible for petroleum affairs in Tanzania under the Petroleum Act 2015 (the "Act") and any other applicable laws; (ii) the waiver of any right of first refusal or pre-emption right to which the Tanzania Petroleum Development Corporation is entitled in respect of the Mnazi Bay asset; and (iii) approval from the Tanzanian Fair Competition Commission ("FCC"), in each case on terms satisfactory to M&P, acting reasonably.
On 11 July 2023, Wentworth was notified that the FCC has issued a decision notice that application for FCC approval shall not be determined at this time and that this application will be marked closed by the FCC.
Following this, there have been a number of discussions between the parties to the offer including recent meetings in country between the CEO of Wentworth and relevant Tanzanian government stakeholders, as well as the CEO of M&P and relevant Tanzanian stakeholders, to seek to bring the Acquisition to a successful conclusion before the agreed 31 December 2023 Long Stop Date, including at the highest levels of government in Tanzania.
There has been positive progress in these discussions, although there can be no certainty that the Conditions will be satisfied or (where capable of being waived), waived by M&P. The Company and M&P are working towards the satisfaction or (where capable of being waived) waiving of the Conditions in Q4 2023.'
As for Perenco - BLVN etinde for reference https://www.bowleven.com/system/files/press/agm-presentation-08-12-2021.pdf
No not suggesting that SAVE are after Etinde - although we do know that they said they were evaluating other hydrocarbon deals in Cameroon.
What i'm saying is that all these deals are difficult to wade through and i've always said not unique to SAVE. On the other board i've seen the CEO lambasted for bringing us into this. If we want the same kind of deals that everybody else is trying to build and grow from in moving their companies higher up the value chain, it's the price we pay on the emotional swings. Some others think that we are the only company doing this or somehow learn a lesson from it. I'm sure SAVE and its negotiating teams and their advisors who specialise in asset transactions are well versed in these matters. As far as i can see SAVEs net debt on its Nigerian asset will be eliminated in 24 months or less - so we are left with an $800m minimum asset (45p) still able to grow in value. This doesn't affect what happens re S.Sudan but peoples emotions will never think of this in the short term re value.
Perenco is a 270k boepd producer with about 85k in Cameroon - so i wonder why a deal for them is taking so long to get approval there especially when they are such an established operator in that country.
This only adds to my recent posts on the timelines and delays for not only SAVE in various countries but for other companies that i highlighted in August and September from when SPAs were signed.
Afentra - 3 in Angola - 2 pending, Save - Nigeria (how long was that), Chad completed with issues, - S.Sudan pending. Seplat a very long established operator in Nigeria yet from 25/2/22 Exxon Nigeria still delayed. M&Prom Assala Gabon pending. Now Perenco deal in Cameroon long delayed. Even AIM listed Wentworths takeover by M & Prom was turned down first time around by relative safe haven Tanzania. These are only the deals in the last 12-24 months.
Re Cameroon contd -
'The Company notes that SNH's approval, the next key milestone towards completion of the Transaction, has remained outstanding for a significant period and it remains uncertain when a decision will be made by SNH whether to approve the Transaction, if at all.
Whilst Bowleven is not a party to Transaction discussions, the Company understands that, although the formal long-stop date under the agreement between New Age and Perenco passed on the 30th June 2023, both parties continue to seek to progress with the Transaction. The extended delay, with no established timeline to closing of the Transaction, has created uncertainty as regards potential additional risks associated with the Etinde project and the Company is currently considering a fundraising proposal from a shareholder which contemplates the shareholder providing equity capital at a very substantial discount to the current market price of Bowleven's ordinary shares.'
You have to wonder about what's holding up the Perenco - New Age transaction in Cameroon that Bowleven announced 16 months ago would have benefitted on FID to the tune of $25m - now as of today they are very low on cash of $1.25m and doubtful going concern unless a very substantial cash raise at a discount to yesterdays close
7/6/22 - Change of Partner and Operator at Etinde Licence
BLVN announces that it has been informed by New Age (African Global Energy) Limited ('New Age'), the operator of the Etinde JV, that New Age has signed a definitive conditional agreement with a subsidiary of Perenco S.A. ('Perenco') to transfer all of New Age's participating interests in the Etinde permit.
The Transaction is subject to a number of approvals, including the customary regulatory approvals by the Cameroon government and the approval of the Etinde JV partners. Under the terms of the joint operating agreement, both LUKOIL and Bowleven have a 30 day right of pre-emption over New Age's interest.
"The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news. We believe that Perenco's proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure FID and the associated USD25m payment to Bowleven.
8 July 2022 - Bowleven, the Africa focused oil and gas Exploration and Production Company with key interests in Cameroon, today announces the expiry of the 30 day right of pre-emption period pertaining to New Age (African Global Energy) Limited's ('New Age's') definitive conditional agreement with a subsidiary of Perenco S.A. ('Perenco'), to transfer all of New Age's participating interests in the Etinde permit and operatorship of the Etinde JV to Perenco.
Neither LUKOIL nor Bowleven exercised their right of pre-emption over New Age's interest.
A number of conditions to Perenco's acquisition of New Age's interest in the Etinde permit remain outstanding, including customary regulatory approvals by the Cameroon government, competition approval and, exclusive exploitation authorisation (EEA) Titulaire confirmation (by way of a letter issued by the Minister).
26/9/23 - New Age Etinde stake sale to Perenco
Despite the elapse of time since the signing of the agreements for the sale by New Age (African Global Energy) Limited ("New Age") of its 37.5% stake in, and the operatorship of, the Etinde project (the "Transaction") to Perenco S.A. ("Perenco"), completion remains outstanding.
The Company understands that a number of conditions to the completion of the Transaction remain, principally including the approval of Société Nationale des Hydrocarbures ("SNH"), the national oil and gas company of Cameroon. The Company notes that SNH's approval, the next key milestone towards completion of the Transaction, has remained outstanding for a significant period and it remains uncertain when a decision will be made by SNH whether to approve the Transa
Hard to understand what's going on but i guess we'll find out pretty soon.
The F/b page of the office of President says he met an American Co 'ready to invest'.
Then says finalized a $3b deal of which $1250m is for paying Petronas - but is it still formal ?
Caltech say they are ready to begin formal procedures for the takeover .
In the next 2 months deliver $800m to S.Sudan - is that after they pay Petronas ?
As some posters on the page ask - it's the president & finance minister in the photos but where's the oil minister ?
Kiir was in New York for attending the 78th UN gen assembly - home yesterday.
He's also met the UK and pother governments on the sidelines. So seems pretty quick on any deal with a little if any known so callled oil Co.
Why is a US company using our terminolgy of 'projects that matter' ? coupled to what actual oil experience have they ? (Website is woeful about what they supposedly do and doesn't even give a contact address that i can see).
What about ESG if that matters to Caltech or S.Sudan?
What about Chinese & Indian Cos re new partner ?
Cash supposedly for Government & roads etc but where's the balance compared to a known oil company thats prepared to invest in energy and electricity/power for the country as equally important ?
If the deal has been going on since August 22nd - one month ago and the deal with SAVE fell apart becuase the goverment disaproved of SAVE - it seems peculiar that we have heard nothing from SAVE if true and if they are unaware of that til now.
Why does that make Caltech a better bet for the government in terms of experience etc
I wonder is Caltech all it seems ?
I'm not sure but isn't the ICC COTCo issue maybe seperate from the ICC Doba fields/TOTCo assets ie 2 ICC cases rather than the first one back in January 2023 ?.
Either way i just accept it as part and parcel of SAVE keeping track of where all the oil goes never mind any government assets owned outside Chad (if any) that can be intercepted. It was Cairn who were able to seize India airlines outside the country in their dispute. Not saying Chad has that but there may be other assets to go for and not just oil payments/transportation fees down the road.
Anyway with only another 7 days approx to go for interims, we'll get some indication of how South Sudan will be progressing given the expected adm date was also the end of the month.
Out of interest - Q1 2023 Nigeria performance was $71m up 29% on Q1 2022 - so will be interesting to see if an overall improvement to end of June (Q2 ). This would have covered all the gas contracts bar the Amocon contract for 3rd party gas that started around 31st May 2023 or barely 1month if included in invoiced sales.
ZENGAS - 18 Sep 2023
With 3/05 running at over 20k bopd since end July and 1.45k in 3/05A net production is around 6,300 bopd.
--------------------------------
Production still rising as evident from the 20th Sept webcast presentation (p4)
3/05 - August 2023 production averaged 21,000 bopd (30%)
3/05A - running at 1450 bopd (21.33%)
Net production therefore about 6,600 bopd last month.
Pretty material increase from when first purchased and impacted from higher oil prices. This could continue to rise from the increased water injection programme as well as workovers and further drilling.
Also worth pointing out for anyone that hasn't read the 5/9/23 'Upstream' arcticle
"However, what has also caught Afentras eye is a clutch of unlicensed discoveries close to production facilities in 3/05. 'we tend not to talk about them too much' McDade told Upstream recently but did offer a little more detail. 'Each discovery has at least one well. I think most of them have been tested ...its kind of 1,000, 2,000 bpd but they've just been ignored.'
According to a map in a recent company presentation at leat 7 discoveries lie within tie back facilities at Palanca and Impala. They were undeveloped because they were just too small for the majors."
All in all, very appealing with a build and buy programme, and will do for me since i first started buying.
Whatever happens , happens so to speak NiceTMU when we eventually come out of suspension.
I'm just saying i don't want to get my hopes up on high expectation that we will see govt approval alongside the adm doc and take that as a negative if it doesn't arrive or if both are delayed come the end of the month for that matter. Great if it happens but i just think it might be a case of the cart before the horse just now - but who knows but it doesn't and won't change my perspective and I think TIL has hit the nail on the head with the 'Deals' post. I'm focussing on the longer term especially with other deals in the pipeline and Accugas continuing to evolve and the compression project to complete and the impact of more deals.
We've had a considerable number of new gas contracts (5) where we haven't seen the impact on a full year basis yet.
First gas sales to - TransAfam only started 28th June 2022. To Central Horizon only started 27th June 2022. To FIPL TransAmadi 22/6/22.
Likewise Notore Chemicals was only signed 16th August 2022 and connected so i assume may have started supply then.
That's 4 contracts that barely accounted for 6 months in the latest full year accounts to end 2022 released on 8th June this year.
In addition the Amocon contract didn't start until end of May this year.
There could be a significant amount of revenue playing catch-up to come through on a full year basis regardless of any new contracts in the pipeline and next years completion of the compression facility. All of this i would hope to have a material impact on reducing the net debt forecasts that much faster than anaylsts previously guided on prior to these additional contracts.
RR I've absolutely no doubt that Financial & Co IR are and would be expected to be very close to II's.
8 II's above 3% hold 53.87% and Cavendish that holds the EBT shares is another 5.26% plus the directors 4.79% is just shy of 64% in total and i've no doubt there are smaller II's below the 3% figure.
That's isn't my point about turkeys voting for Christmas but i'm just wondering how they feel about risk and if any of them decided to drop out or demand something for their support v risk since you ask. They know like us there are other deals being pursued so its not like S.Sdn to them is the only opportunity on the horizon.
That's why i posed the question about relying on or expecting govt approval and the adm doc at the same time.
Far from it being 'strange' to pose it - I never rule anything out especially after the fundraisings which came all the way down to 19.35p to get Chad through. They (II's) got more of the pie (inc AK) versus PIs and it's not PIs who call the shots. I'm hoping that everything will be fully debt financed this time around and obviously that all II's remain supportive.
My post was on the adm doc/Govt approval expectation happening in tandem.
There were two more SPAs signed in the last 3 weeks.
M&Prom/Assala in Gabon and a few days ago ENI/Oando in Nigeria with both subject to later govt approval - that's why i asked is there a set protocol or legal avenue that is followed in seeing a SPA through to completion rather than trying to get govt approval prior to a shareholder vote if that is the protocol/legal route ?
Does anyone know the protocol or legal route in taking a SPA through to completion ?
I'm just wondering that in light of what happened in Chad are we fooling ourselves in thinking that in order to prevent similar happening again we are expecting S.Sdn Govt approval along with the adm doc release ? I'm just thinking that it could be a case of the cart before the horse ?
If it was the case that Govt approval came first - but what happens if some (institutional) shareholders don't like it and it doesn't pass the GM Vote at all.
This in the belief that we are trying to tie in govt approval first and all that effort and time waiting to get that done first. What would the govt think that we as shareholders haven't voted on approving the matter first to see if the deal is even over the first hurdle - ie shareholders. I say this particularly with the situation in Sudan which came almost 4 months after the SPA was announced. How do the main shareholders feel about the risk level since then - are they all still fully behind this or instead could AK end up dealt a blow by the vote not being a majority - while we think rightly or wrongly all this time is being taken up trying to get Govt approval along with the release of the adm doc and restoration of trading. We've seen absolutely nothing of note in relation to figures ie even approximate capex, opex, reserves, production, FCF etc some 9 months later so how is an opinion to be informed if it is a good deal or not.
SAVE SPA for Exxon Chad 13/12/21.
Adm doc & Restoration 31/12/21.
GM Shareholders result to approve deal 24/1/22.
Consent deemed given with Completion 9/12/22
Afentra SPA with INA 19/7/22.
Adm doc & Restoration 10/8/22.
GM Shareholders result approving deal 30/8/23.
Recd Govt consent 12/1/23.
Completion 10/5/23
The INA SPA was a minor acquisition to the additional main Sonagol SPA signed in April 2022 and the later July 2023 Azule SPA making up 3 SPAs in total and currently suspended for the 2nd time.
On the remaining 2 SPAs' this is how Afentra set out the timeline to completion.
"The Company will now publish an updated Admission Document in due course, which will also convene a General Meeting at which the resolutions for shareholders to approve the Amended Sonangol Acquisition and the Azule Acquisition will be proposed - ***Subject to shareholder approval*** - the Company will proceed to obtain Governmental approval for both transactions with an expectation to complete both transactions in Q4 2023."
I could be absolutely wrong and to temper possible disappointment i am leaning for the expectation of a similar timeline as the above to how things progress - ie ad doc along with restoration of trading - then GM for shareholder vote - then expectation of Govt approval/deal completion.
The timeline i still believe will be hard to pin down for closure. After the commentary about the state of play re achieving closure here, i've looked at Seplats own issues in getting it's acquisition over the line now 19 months later.
Looking at it in context of South Sudan and in trying to evaluate the 'UP TO' $1250m price tag -
Seplats ongoing acquisition of Exxons Nigerian assets = $1283m + up to $300m in contingency payments if oil above $70/b and paid over a 5 year term. This works out at paying $1.89 per bl produced no matter if oil is $72/b or $85/b+
The base price is $1283m for 446 mmboe 2P (411 oil + 35 Gas) and 95,000 boepd (8% gas) or 87,000 bpd oil.
Total overall cost $2.90/ 2P or $13,500 flowing bl.
If you were to completely remove the gas and apply $1250m against the oil - you get $3.04/2P and $14,370 flowing bl.
Applied to S.Sudan on 55k bopd/300mmbo P2 you get a $790m - $910m range.
--------------
I've now added this to my original 26/8/23 12:32 post with Seplat now making up the 4th EG to the 3 i covered then. There's no reason why i can logically see S.Sudan with all it's risk being more expensive than the most expensive eg in this list.
Afentra 2P = $3.50 + $19,750 Flowing bl.
Petronas/Exxon Chad 2P = $3.15 + $14,450 F/bl.
Assala 2P = $7.84 + $16,250-$17,900 F/b skewed up by inclusion of midstream.
Seplat 2P = $3.04 = $14,370 F/bl.
1. Approx $1050m - $1086m relative to Afentra using both P2 & flowing bl numbers.
2. Approx $795m - $945m relative to Chad using both P2 & flowing bl numbers
3. Approx $895m - $984m relative to Assala on the 2 flowing bl numbers (P2 not used) .
4. Approx $790m - $910m relative to Seplat.
In addition - With an effective transaction date of 1/1/22 i would think at least $600m could be shaved off 1,2,3, 4 above by 30/9/23 plus a further $100m off by end of 2023.
$257m - $275m estimated year end 2023 net debt on existing assets to be added.
At the most expensive option above, i get a max year end net debt of around $660m.
Applied on the basis of 300 mmbo 2P & 55k production acquired and if these are more/less then there would be an obvious variation but either being compensatory to that price.
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In theory and looking at the most expensive option above - to reach 100k of acquired production, a further 45k production at the most expensive option could see $1.3b overall net debt for a $3 billion revenue company on 100k production at $70/b oil, Accugas + small COTCo contribution. I think it's a massive transformational and understated prize to go for despite the pain to date. Imo would be fantastic when compared to TLW/KOS at circa $1.6b revenue each with $1.7- $2.3b year end net debt forecasts and valuations.