The latest Investing Matters Podcast episode with multi-award-winning fund manager and international bestselling author Lee Freeman-Shor has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
From the recent RNS only a very modest 36.5BCF required for a viable and lucrative netback 10 year project...
Scoping annual gross undiscounted potential revenues of US$26.3 million (US$19.7 million net the Company's 75% working interest) for 3.65 BCF of gross annual gas production would support a potential commercial development in an MOU-1 success case and provide multiples of the development capital requirements necessary to attract reserves-based lending. For a 10 year pilot project life, total gross gas resources required are 36.5 BCF. For the first 10.6 BCF of net gas production no government royalties are payable and there is no liability for corporation tax until 10 years have elapsed
Auc...
sorry...
that is not what is says...
that is an example only
the minimum commercial threshold is very much lower
3.65 bcf pa
would 'provide multiples of the development capital requirements necessary to attract reserves-based lending'
My 'Michael' Caine posts tried to explain in a bit of detail
ATB
Hi GRH, yes indeed, my careful use of the word ‘lucrative’ leaves plenty of room for adjustment. The example posted obviously provided by HQ
Regards
Morocco Overview
With the PRD Morocco drill upcoming in June it’s worth reminding ourselves of the opportunity with this exceptional company..
As stated by the board in the Corporate presentation July 2020….
Prospectively of northern Morocco recognised by ConocoPhillips acquiring licence adjoining Guercif 12/6/20
https://www.moroccoworldnews.com/2020/06/305910/morocco-signs-2-year-exploratory-contract-with-conocophillips/
This from the ?FEBRUARY 02, 2021 Q4 2020 ConocoPhillips Earnings Call
Question,
So my question is, what are some of the things that the management team is going to need to do to sustain its leadership position in this new environment to continue to be the best E&P company with these new realities
Ans
we've got to also deliver this low-greenhouse-gas affordable energy all around the world, and that's going to be a part as we go through this transition that's really important. I think it's maybe lost in some of the rhetoric today, just how important oil and gas is to this transition that we're going to be going through over the next number of years and decades.
And
I think we're focused really on what our cost structure will look like……
stopping our new ventures exploration program. That reduced our targeted exploration spend from $300 million to $150 million a year.
Q, just how you're thinking about some of the international LNG opportunities at this point?
Ans ,
We do like the LNG projects. We like the growing need for gas around the whole world.
The future is so bright Seabright, we need to wear shades.There seems to be an insatiable demand for LNG and as sure as night follows day, that demand will soon be for non fracked LNG. The Chinese will soon start to get their eco house in order and I have every belief that when they do, the job will be do w properly, no half measures and they will use Green as a stick to beat the US and fracking is their Achilles heel. The US know this, hence why the S in ESG was has slyly shifted from Sustainable to Social. God forbid you would have acknowledge an eco minded dictatorship..
Plus of course the population of Africa is predicted to double to 2.5 billion by 2050 and we are already in there to help. They won't however need twice the fuel, they'll need an awful lot more as their societies develop economically. They want air conditioning, EVs, 24 hour reliable electricity supplies etc.just like we have available ourselves.
Evening again
I know this might sound odd at this stage of the game...
but the more I look at PRD and it's projects,
the more I think it might be taken out...
not 'just' one project at a time...as originally planned
but the whole shooting match...with series of conditional payments upon successes
Suppose there is a PE house that understands the way the market is 'greening at an astonishing rate...
they could deal with PG et al on takeout
and shareholders here could retain some stub equity with maybe an option to 'put' that on the PE house at pre determined future dates (yes...done that before)
OR could it be that an existing super major might want to accelerate their own greening?
that would make sense
and frankly the numbers...
at my target of £15 value creation per share...
are not large
Hmmm
I had thought I had bought enough a year ago...
and, in truth, I probably have
but I am going to have to revisit the fag packets
DYOR x 10
Caveat emptor
Trust nobody
Flatcoats are good looking dogs
ATB
Hi GRH,
I have the same instinctual feeling that PRD will be taken out whole. I’m no expert on how these deals are done and you clearly are so wouldn’t challenge the assumption that a conditional payment structure could be established. For me though either one of the catalysts of Ireland sanction or Morocco success would then make PRD an unbelievably attractive target for a major. One thing I am certain of is that however valuable T&T is in it’s own right, the value is magnified for PR purposes to someone like BP.
Morocco and Ireland opportunity
Following on from my first post highlighting ConocoPhillips need to deliver low-greenhouse-gas affordable energy …
Consider the AGGRESSIVE push toward low carbon energy transition that is happening WORLDWIDE….
This from PRD rns 30 June 2020
Paul Griffiths, Chief Executive of Predator, commented:
"Guercif is pivotal to the Company in terms of developing a gas business utilising the excellent infrastructure that exists in Morocco…. We have used lockdown to define additional Guercif prospectivity and to review potential LNG markets suitable for FSRU penetration …
And some wider market context…
KISTOS PLC Acquisition of Tulip Oil Netherlands B.V. for €222.75 million ..
In line with one of the key objectives of Kistos’ acquisition strategy set out in the November 2020 Admission Document, that acquisitions should play a role in energy transition ….
Gas is a commodity and, accordingly, the gas market is a global one with gas being transported around the world, primarily in the form of LNG. Europe remains a net importer of natural gas with imports both in the form of LNG cargoes and non-liquified product from around the world…..
And
Europe currently remains energy dependent and whilst longer-term competition to gas may come from solar, wind, biomass and other green energy sources it is, in the Directors’ view, unlikely that the market for low carbon gas is likely to be impacted materially.
DYOR
GLA