Fluormin Share Discussion Threads

[dreggspicker] 25/3/2013 22:21

Not our block, but this is afrens/Tullow Piapia-1 drill in onshore block 9 Kenya, whivh is above block 3a which is us, there must be some cooking going on down there which can only bode well for our drill ..........




See map below;





I will have to learn to draw arrows on these things..... ;+}

dreggs

[dreggspicker] 25/3/2013 22:07

Yet another lack-luster day, still, I have been doing alittle digging;

This is from Afrens presentation today;





Theoretical oil capacity;





You will see the size has grown immensely; Also this is Afrens cut, so we would in fact be on around 700mbls .................................... NOT the circa 500mbls I posted the other day,,,,, Anyone getting interested?????

(if there is anything down there)



Afren seems to have high hopes ....... and they are a "lucky" driller

dreggs

[dreggspicker] 22/3/2013 08:53

Just before anyone thinks about baleing out, just remind yourself of the prospects,



"Following the Offer, Vanoil's net recoverable mean unrisked prospective resources will increase from 927 million boe to approximately two billion boe, accelerating Vanoil's vision of becoming an emerging leader in oil and gas exploration in East Africa.

Vanoil's and Avana's shareholders will benefit through this further diversification and consequent de-risking of Vanoil's portfolio, by providing better access to financing, joint venture partners and in-country service providers."


TWO BILLION BARRELS !!!

Now I know they can not hit all that, not THAT lucky? maybe there is nothing down there, but if they-we can prove up 1/3 of that, then we would be in hay, even with a load more dilution ........


So how LUCKY do you feel???????

PS Paipai drill has also de-risked 3a alot see Tullows link:



Angus McCoss, Exploration Director of Tullow Oil plc, commented today,
"As we were unable to recover the hydrocarbons encountered whilst drilling, the well needs additional assessment. We will now carefully evaluate all the data and review the available technical options, which include possible flow testing and reservoir stimulation. From a frontier exploration perspective, we can already conclude that this part of the Anza Basin has the makings of a viable Cretaceous hydrocarbon play. Consequently, we will also be reviewing the follow-up Cretaceous prospects. Meanwhile, our exploration activities are accelerating in our core oil campaign in the Tertiary rift basins of Kenya and Ethiopia"

dreggs

[dreggspicker] 21/3/2013 11:12

A little bit on Vanoil boss Aaron D'Este;

Sounds like he knows his stuff ............

[dreggspicker] 19/3/2013 14:12

This is one reason why Vanoil is getting excited, see the link;

Notice that we are on the bottom of block 9 (3a & 3b) this is part of the same deposit, so if the chinese drill & hit, this would mean a huge +ve for us ......





dreggs

[dreggspicker] 18/3/2013 23:12

From November; It would seem we should get news of Vanoil's first spud in Kenya anytime soon...........



News Releases

November 12, 2012
Vanoil Completes 100km2 3D Seismic and Gravity Survey
Vancouver, British Columbia - November 12, 2012 - Vanoil Energy Ltd. ("Vanoil") is pleased to announce that it has completed a 100km2 3D seismic and gravity survey over its western leads in block 3A in Kenya. This is the first 3D seismic survey ever completed onshore in Kenya and it complements the 845km of 2D seismic acquired by Vanoil in previous years. A suite of substantial drilling targets have been defined on block 3A within the surveyed area and Vanoil plans to select its first two well locations by the end of November.

Vanoil has furthermore signed a contract with Sinopec to secure the last available onshore drilling rig in Kenya. The rig is stacked in Nairobi and ready for mobilisation. Vanoil's contract includes two firm wells and an option for two more.





With its seismic surveys completed and a drilling rig in place, Vanoil is on track to spud its first well in Q1 2013.






Aaron D'Este commented, "Vanoil has completed a comprehensive exploration program in Kenya, using 3D seismic and the latest interpretation techniques to produce robust drilling targets. Securing the last available onshore rig in Kenya allowed Vanoil to avoid substantial mobilisation fees and to be ready for its first well in Q1 2013."

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified resource company that has a comprehensive portfolio of oil and gas assets in the African countries of Kenya and Rwanda. In Kenya, Blocks 3A and 3B were acquired in October 2007 through the signing of a Production Sharing Contract with the Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square kilometers, are part of the vastly under-explored Cretaceous Central African Rift Basin System. The Company is preparing to drill in Q1 2013 its first exploration well on its Kenyan concession. Vanoil's is also the holder of 1,631 square kilometers of an oil and gas exclusive licence in the East Kivu Graben in Rwanda at the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda.

On behalf of the Board of

VANOIL ENERGY LTD.

[dreggspicker] 18/3/2013 16:33

Vanoil Kenyan report;

http://www.vanoil.ca/i/pdf/Vanoil-PP-Technical-Presentation.pdf

[dreggspicker] 18/3/2013 08:55

2 buys and we are now 21-24,
right off to work for me ................

[cyprussteve] 18/3/2013 08:01

Email below received today rom my broker - nothing of any significance, but, I copy it below anyway for info.
"Fluormin is about to give up its quest to become a fluorspar powerhouse and the fact that it is a Firebird oil & gas affiliate that is proposing to take it over, perhaps Firebird, a New York hedge fund with numerous fluorspar interests, has given up as well.
Presumably Fluormin's temporarily closed Witkop fluorspar mine in South Africa will now be permanently shuttered."

[dreggspicker] 17/3/2013 22:10

Question is.............................;;;;









Lets hope the share price does not get this in the morning...........................





Sorry all, I am just playing with photobucket............




Sweet dreams all.....

[dreggspicker] 17/3/2013 22:07

Vanoil 12mth chart....................





dreggs

[dreggspicker] 17/3/2013 21:55

2D siesmics of our 25% expo in the Seychelles;

[dropside] 17/3/2013 16:19

There was a presentation dated Jan 13 on the Vanoil website with details of forward programme etc. This was apparently taken off on Friday, I guess they are revising things now they have the $27m available.

[dropside] 17/3/2013 16:16

Interesting post by madmagoo on a north American BB:

actually according presentation - 2 wells at 6 million per to be started before July 2013.
Why the friday release cause all you guys and market are confused thus the lack of volume today. It takes a couple of hours to put it together.
These guys are brilliant, extremely sharp, certainly not typical of 95% of the junior stocks.
to Summarize the deal for you guys as I interpret it IMO

Acquired flourmin and get 27 million dollar in return for
45 million share valued at 60 cents
31 million warrants at a dollar and
7 million warrants at 75 cents

they also acquire Avana for
25 million Vel shares and
5 million warrants at a dollar
and 4 million in cash if and only if they encounter hydrocarbons

so if all goes well Vanoil with have 27 million to spend
129 million trading shares trading
potential 2 billion barrels of oil

This deal puts Vanoil in way better shape than Horn Petroleum (Africa Oil's Spin out) and
compare to Simba and taipan others are peddlin' or for that fact 95% of any other junoirs.

relatively, 129 million shares is very little dilution.
However Vanoil will have to have success early cause they will burn through 27 million fast, luckily the offshore licences are 25% and 10% interests so the risk/costs is shared.
Without success juniors die fast.

Awesome deal considering there is no appetite for junior venture capital. Lots of juniors trading at a dollar two years ago now at 5 cents.


trader3000:

Well said madmagoo. I totally agree. No way that you raise $27 million at 60 cents. Me and skier were picking up shares in the 30's. Sweet. I think that now the chances of a JV are better as VEL has the cash for their end of the bargain. Like it and like it a lot.

[dropside] 17/3/2013 16:12

Dreggs, yes it is a good del for Vanoil which should drag us up.


Looks like they value FLOR at $27m (£18m) and have based their payment on 60c a VEL share. Seems they will sell the FLOR assets..

Based upon independent valuations, the Vanoil Directors expect that aggregate cash reserves in the order of US$27 million can be realised from Fluormin's existing accounts and receivables and from the subsequent realization of Fluormin's assets.

Pursuant to a loan agreement entered into today between Fluormin's wholly owned subsidiary, Kenya Fluormin (BVI) Holdings Limited ("KFH") and Vanoil, KFH has agreed to advance to Vanoil US$5 million (further details of which are set out below). The loan, once advanced, provides immediate cash for Vanoil to proceed with its ambitious drilling and seismic programmes.

Under the terms of the Acquisition, Fluormin is valued at US$27 million. In consideration for the purchase of the entire issued and to be issued share capital of Fluormin, Vanoil will issue an aggregate of:
45,000,000 Vanoil Shares, based upon a price of US$0.60 per Vanoil Share;
31,973,667 CAN$1.00 Warrants, entitling the holder to subscribe for one Vanoil Share at any time during the two year period immediately following the Acquisition; and
6,500,000 CAN$0.75 Warrants, entitling the holder to subscribe for one Vanoil Share at any time prior to 13 March 2014.


The advantage VEL have now is they are cashed up for maybe 5-6 deep ($19m- see map) wells if they JV them and retain 25%.

I think the warrants could be quite valuable personally.

[dreggspicker] 17/3/2013 13:03

So there should be 4 drills in 2013 ! See Vanoils november news;

News Releases

November 26, 2012
Vanoil Agrees Non-Binding Terms To Acquire Avana
Vancouver, British Columbia - November 26, 2012 - Vanoil Energy Ltd. ("Vanoil") is pleased to announce that it has entered into a non-binding heads of terms to potentially acquire the entire issued and to be issued share capital of Avana Petroleum Limited ("Avana") from its shareholders (the "Sellers") on a cash-free debt-free basis (the "Acquisition").

Highlights:
Non-binding heads of terms agreed for the Acquisition in a cash-free-debt-free share transaction
If completed, will deliver a 10% interest in Kenya offshore block L9 with its partners Ophir and FAR Limited and a 25% interest in Seychelles Areas A and B with its partner Afren plc
Supports Vanoil's vision of becoming an emerging leader in East African oil and gas exploration
Brings geological and geopolitical diversification to the existing onshore Vanoil portfolio
Increases, at completion, Vanoil's net recoverable mean unrisked prospective resources from 927 million boe to well over two billion boe
Accelerates Vanoil's exploration program, with two 3D seismic surveys and at least four drilling events scheduled for 2013 alone
Avana is a privately held Isle of Man company which holds a 10% working interest in Kenya offshore block L9 with its partners Ophir Energy plc ("Ophir") and FAR Limited. Block L9 is a 5065 km2 block located off the coast of Mombasa in the southern waters of Kenya; a region in which all of the neighbouring acreage is held by Total, Anadarko, BG, Apache, PTT and their respective partners. Block L9 lies directly to the south of block L8, on which Apache discovered gas in the Mbawa prospect earlier this year. The results of a 560 km2 3D seismic survey conducted in Q2 2012 suggest that the analogous Mbawa South prospect extends across the border of block L8 into L9, and a second 1536 km2 3D seismic survey conducted by Ophir in Q3 2012 illuminated potential oil prospects in a separate fairway spanning the southern half of block L9 and notably the Simba Graben. Ophir management presentations in October 2012 note that the estimated gross recoverable mean unrisked prospective resources on block L9 are 2.7bbbl/11.8 TCF of natural gas and that drilling will commence in 2013.

Avana also holds a 25% working interest in Seychelles Areas A and B with its partner Afren plc ("Afren"). Areas A and B comprise in excess of 14,000 km2 in total and are located on the Seychelles plateau and adjacent zones in the northern waters of the Seychelles in a region where Amoco previously drilled three wells with hydrocarbon shows. Avana and its partner have acquired 8,500km of 2D seismic in the Seychelles (in addition to over 4,000km acquired by other parties over the blocks) and an extensive new 3D seismic survey is scheduled to commence in early 2013. Multiple oil seeps have been observed on Areas A and B, and tar balls of natural origin are abundant throughout the region. In August 2012, Afren's management noted that the estimated gross recoverable mean unrisked prospective resources on Areas A and B are 2.8 billion boe and that drilling is due to commence in Q4 2013.

It is proposed that the consideration due to the Sellers will be CAD$15,000,000 (approx), satisfied by the issue to the Sellers of common shares in Vanoil. Deferred consideration of up to US$4,000,000 (approx.) may become payable in future, subject to certain conditions being satisfied in connection with the discovery of hydrocarbon on Avana's offshore blocks. The Acquisition remains subject to the satisfaction of a number of conditions, including agreeing the form of and entering into legally binding documentation, formal acceptance by the Sellers, satisfactory due diligence being carried out, as well as the parties obtaining all necessary corporate and regulatory approvals which may be required.

It is proposed that Sam Malin, CEO of Avana, join the board of Vanoil upon completion of the Acquisition.

The potential Acquisition supports Vanoil's vision of becoming an emerging leader in East African oil exploration. The underlying acreage to be acquired through Avana represents a complementary addition to Vanoil's existing portfolio, bringing geological and geopolitical diversification. The combined company will hold blocks in four separate basins, two onshore and two offshore, spanning four of the most prospective hydrocarbon systems in East Africa. At the completion of this transaction, Vanoil's net recoverable mean unrisked prospective resources will more than double, rising from 927 million boe to well over 2 billion boe. An active exploration program across the portfolio will also yield regular news flow, with two 3D seismic surveys and at least four drilling events scheduled for 2013 alone.

Aaron D'Este commented, "The vision of Vanoil's Board of Directors is to provide a compelling proposition for investors committed to oil exploration in East Africa. The potential acquisition of Avana represents a very positive step towards this goal. In a single transaction, Vanoil could double its net prospective resources, reduce risk through diversification, and gain a host of well-known joint venture partners with extensive experience across Africa. We are also delighted that Sam Malin has agreed to join the Board of Vanoil upon completion and pleased to note that the share-for-share nature of the deal preserves our cash position. Overall, we are confident that the acquisition of Avana will prove to be a transformational event for Vanoil and its shareholders."

Sam Malin of Avana commented, "The bringing together of Avana and Vanoil will create a uniquely focused East African exploration company with a wealth of regional experience. The transaction, once complete, will also meet Avana's objective of providing its shareholders with a listing on an internationally recognised stock exchange."

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified resource company that has a comprehensive portfolio of oil and gas assets in the African countries of Kenya and Rwanda. In Kenya, Blocks 3A and 3B were acquired in October 2007 through the signing of a Production Sharing Contract with the Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square kilometers, are part of the vastly under-explored Cretaceous Central African Rift Basin System. The Company is preparing to drill in Q1 2013 its first exploration well on its Kenyan concession. Vanoil's is also the holder of 1,631 square kilometers of an oil and gas exclusive licence in the East Kivu Graben in Rwanda at the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discovery in neighbouring Uganda.

[dreggspicker] 17/3/2013 11:17

pros & cons;


+ve's


1. could be massive upside

2. still the same deal making management

3. uncertainty over

4. paper deal so should not be any personal tax loss problems

5. VERY exciting prospects

5. 3D siesmics should have been completed with Afren by now around the
Seychelles

6. VERY, VERY, exciting prospects

7. PROSPECTIVE 2101 million gross barrels of oil equivelant JUST in the Seychelles .....500m to us, = 25%

8. move out of sterling into the canadian (spreading the risk out of uk)

9. waarants could come good

10, Vanoil share price could now rocket as they now have funding, thereby dragging us up



-ve's

1. burning our bridges

2. deal done at a low sp

3. might be a money pit with little success

4. will have to wait for years before we get going

5. moving ownership to Canada

6. will get more diluted


I am sure you all can think of some more..........


dreggs

[dreggspicker] 17/3/2013 10:44

Yep. I really wished we had bought them, but since Pasin is Canadian based there I can see the logic in doing this.
While I am very disappointed about "probably" leaving the mining side,the prospects here could be huge, then again they on our behalf could find nothing down there, then we end up with nought.......place your bets!!!!

[vauch] 16/3/2013 17:33

Why could we not have purchaced them instead.
And id rater have a 1 for 1 I dont like warrant.

[dreggspicker] 16/3/2013 16:45

The last bit could be important;


Outlook
"Seismic data previously acquired by the partners revealed the presence of several large scale structures in the two licence areas. A major new survey in Q4 2011 (3,733 km) focussed on these areas to better define the prospectivity. The data is currently being processed. An extensive prospect building 3D seismic programme is being planned for the fourth quarter of 2012."

So siesmic done?

Must have been +ve ?

then we get from Fluormin;

"The Board believes the current and anticipated oil and gas exploration portfolio of Vanoil to be commercially attractive and expects to be in a position to make a formal response to the Offer in the near future following the completion of due diligence. Full details of the terms of the Offer are set out in the Vanoil Announcement which is available on the Company's website."

Sounds good????

dreggs

[dreggspicker] 16/3/2013 14:17

I give up........

[dreggspicker] 16/3/2013 14:08

sorry trying to post a map of the Seychelles permit .....