Andalas Energy And Power Share Discussion Threads

[therealtonythetiger] 08/3/2018 13:31

Lots of buying today but still red..oh well..

[patch13] 07/3/2018 21:25

Thanks Tony

[therealtonythetiger] 07/3/2018 20:18

AG
This is your first time on a podcast since becoming chief executive of Andalas. Can you tell listeners a bit about you and your plan for the company?

SG
Yes certainly. It’s been about 4 months now since I took over as CEO, and I really want to take this opportunity to explain the strategy of the company and reassure investors, particularly in light of the weak share price. When I came on board my first objective was to review the company’s strategy, put the GM in place and the overall progress we’ve been making, and what I concluded is that we needed a more balanced approach that would drive both short and longer term value for shareholders. To that end we derived a dual strategy – which I’ll explain a bit more about as we go through – that’s aimed at projects which would produce some near term value for the shareholders. The start of this was me really bringing in a new project at the back end of last year which we called Sumatra 1 – which is a portfolio – and really we need to continue to fill the value gap to give the company and its shareholders the best chance of realising the value built to date on the longer term IPP projects that are in place.

I think it’s also worth just explaining my background, I’ve been – this is actually my 40th year in the industry, which is a bit shocking for me – I’ve been 10 years in the downstream when I first started my career in the ‘70s and early ‘80s, and then I moved into the upstream (oil and gas) in the late ‘80s when I worked with Kerr-McGee, and then in the ‘90s I worked with ConocoPhillips in the UK southern North Sea. So I have a lot of history in the southern North Sea and its 3 or 4 major projects with ConocoPhilips. In the case of the Murdoch system that was my baby, I saw that one through from a blank sheet of paper all the way through to first gas, and then followed up with various phases of that project, then for a time in the southern basin. Then in the late ‘90s I joined BHP (now BHP Billiton) working on their southern basin projects, then I did a project for them called the Keith project in the northern North Sea.

In the 2000s I ended up working for small independents in the UK, and as my first foray abroad I worked for 2 companies: Soco, who have projects in Vietnam, so that was my first experience working in Asia, I did 2 projects for them, Ca Ngu Vang, which is a 25,000 barrels per day oil well – my role there was as a really active development manager, project manager, I saw that project through from concept right the way through to commercialisation – and then Te Giac Trang which was a 65,000 barrel a day project for Soco. And then I did my first project in Indonesia for Serica, so that was the Kambuna development, an offshore gas field between Malaysia and Sumatra in the Malaccan Strait tied back to an onshore terminal, and my role was again as development manager taking it from concept right the way through to commercialisation. So my skill set is predominantly taking discoveries – oil and gas discoveries – from the discovery point right the way through to commercialisation, so that’s first gas or first oil as we call them. And then of course after Serica we then turned up with the forerunner to Andalas and then we did the reverse back in 2016 and got Andalas Energy and Power group.

AG
So Simon that’s a very illustrious CV you’ve got under your belt there, and clearly with our work already in the region you’re well versed with Andalas and the projects. Can you just move on from that and give listeners a bullet-point run-down of the projects that Andalas currently has underway?

SG
Yes certainly. We have Pertamina based projects and one independent project. The Pertamina projects follow Pertamina’s own internal processes and go at their own pace. For your listeners Pertamina is larger than ConocoPhillips. From my experience working with larger oil companies they do have their own processes and things do take time. We are making progress and we will be providing updates in due course. So the projects we’ve got with Pertamina, there’s Puspa 1, in which we announced we are equal partners with Siemens, Pertamina and ourselves. In terms of the activity the next step for us is to get a gas sales MoU signed with the gas seller, who in this case is Pertamina, and then moving into the next phase when we create the consortium and then actually I’ll put a proposal to PLN [State Electricity Company].

Jambi 1: we’re in partnership with PTPP Energy and the split there is 51% PTPPE, 49% us. That’s been slow to advance because Pertamina the gas supplier wants to focus its resources on Puspa 1, this is the proof of concept project, and the same considerations are hampering our discussions on the MJ Cluster project and further projects we’re viewing. So this has been a little bit slow for us and the progress to date hasn’t really gone at the pace I would have liked, but as I said earlier Pertamina go at their own pace and they want to see this proof of concept, Puspa 1, come on stream first before they roll out the other projects.

Sumatra 1 is arguably our leading IPP project. The reason we like it is because we’ve actually got a gas sales MoU in place with the gas seller and our partner SEG, we’re not encumbered by the large processes that the likes of Pergamina have in place, so we are in a better position to influence the outcome, and the next step for us is to form a consortium and to finalise the proposal to PLN.

AG
So these partnerships with Pertamina are huge, and obviously they’re large organisations. I understand the delays that occur within large organisations when they’re implementing projects, they have much larger hoops to jump through than a smaller company. But I think if we look back over the past few years, I’m a shareholder in Andalas and I know shareholders including myself and others have had a pretty rough ride over the past few years. Can you just elaborate on why you think that is?

SG
Yes, the company – it’s been a very ambitious strategy, the IPP strategy. You know, the original MoU envisaged with Pertamina five projects within the first year. Unfortunately this proved overly ambitious, and as I mentioned earlier Pertamina has developed this preference to pursue the proof of concept before expanding to a number of joint projects. The projects in place represent a clear value opportunity but they’re also dependent on a lot of external factors and parties outside our control. I’ll just explain that a bit more. You’re talking about a consortium with a maximum of 4 parties and then you’ve got the gas seller so that makes a fifth party, and then you’ve got PLN makes a sixth party. So you’ve got to get all six working together and agreeing on the way forward, negotiating our gas sales agreement, our purchasing agreement, and they’ve all got to come together at the same point. So there are many, many moving parts. I think the only time I’ve had to deal with this number of parties was on a project for BHP in 2000, the Keith project. BHP Billiton were the operator and we had BP as a partner, we had Total and we had Marubeni, and to convince that number of partners to invest at a time when the oil price was very low. I’m pleased to say that the project came on stream at a much higher oil price, but it was very challenging. I’m not saying these projects are in that class, but we are dealing with many moving parts. I’m up for the challenge, but I think we just have to recognise that things take a little bit longer than we originally envisaged. We’ve got some very good partners like Siemens and PPE, we’re very pleased to have them on board. It’s difficult for us to deliver progress in the short period to get the share price moving in the right way, it’s certainly very disappointing for all shareholders, and I’m including myself as a shareholder as well, hence I’m very keen that we look to get some restorance of shareholder confidence.

AG
It’s encouraging to see from your CV that you’ve overseen these complex negotiations and protracted contract arrangements where you bring these parties together. I accept and appreciate that there is a big challenge there, but I guess given where Andalas is now you’re making progress with these partners. Going back to the shareholder issue again, what in your view needs to be done to restore shareholder confidence?

SG
Just one word, a very simple thing – delivery. We have to deliver – my role, my skillset in the past is project manager, as a project manager I have to deliver to a timeline, on time and on budget as they always say. And I want to make sure that we have the right balance in our portfolio of what I call the short, medium and longer term strategy. Our concern right now is that the IPP is what I would call a medium and Pergamina could be viewed as a longer term strategy, and I’m very keen that we – I’m not very keen, I am moving through strategy to the short term so that we deliver some value to the shareholders in the short term.

AG
Good. So going back to the results statement, you mentioned your ambitions following your appointment last October. You highlighted seeking out upstream projects. What do you have in mind in this area, and how do you anticipate achieving bringing these shorter term upstream projects on line?
SG
If you look at my background and if you look at the rest of the team, we are skilled at doing projects globally – upstream projects – but now I want to put more emphasis on the upstream projects and broaden the portfolio. We’ve been looking over the last 4 months at a significant inventory of opportunities which we’re really excited by, and we’ve got the expertise to deliver those, and we believe we’re going to bring significant value potentially to the company.

AG
Okay. Prior to this interview we asked all our followers on Twitter to submit questions for today, so I’m going to put some of those questions to you now. One of the most oft-repeated questions was what your plans are for dealing with the convertible loan note.
SG
We’ve had a number of significant shareholders that have bought into the company, these are Lombard Odier who’ve invested £500,000 plus they confirmed their support with a market share purchase. Lombard Odier also provided a convertible loan intended to communicate long term support as a significant shareholder and give confidence to the market. At the moment it remains undrawn, and can only be drawn by written agreement with Lombard Odier and Andalas, and that would have to be announced.

AG
Okay, so a couple of other questions for you. What can you tell me about the recent board changes?

SG
Paul Warwick left to pursue other opportunities outside of AIM, it’s as simple as that. I’m the CEO, I run the company, and the team is very much focused on delivery.

AG
Okay, one other question as well: Corsair Petroleum. A lot of investors are uncertain as to what the agenda or what the issue is as regards Corsair and Andalas. What can you tell us about it?

SG
The relationship was fully disclosed in the admission document. It’s a shareholder in Andalas and has no other business. It has no commercial relationship with Andalas.

AG
Thanks for clarifying that. Simon, can you leave us with two or three key takeaway points for Andalas investors to focus on in 2018?

SG
Yes, I’m up for the job and will bring our team’s upstream expertise to bear on our business going forward. We’ve managed to reduce significantly our burn rate and conserve the company’s cash resources. As I mentioned earlier we’re going to re-focus on upstream opportunities, play to our strengths, and deliver near-term value to shareholders. The existing IPP opportunities will continue to form part of our portfolio, however it will form a more balanced part of the overall portfolio.

[sweet karolina] 07/3/2018 20:14

Lots of shares dumped on to mug punters today. AIM reg still negligent so the mug punters may have a chance of claiming their money back - if under £5k they could use small claims court, that would be good to see.

Who buys in on a soft unregulated jam tomorrow pack interview with a shareholder! You could not make it up.

[therealtonythetiger] 07/3/2018 17:30

Thanks Bud..

[buddugoliaeth] 07/3/2018 17:18

ALAN GREEN
This is your first time on a podcast since becoming chief executive of Andalas. Can you tell listeners a bit about you and your plan for the company?

SIMON GORRINGE
Yes certainly. It’s been about 4 months now since I took over as CEO, and I really want to take this opportunity to explain the strategy of the company and reassure investors, particularly in light of the weak share price. When I came on board my first objective was to review the company’s strategy, put the AGM in place and the overall progress we’ve been making, and what I concluded is that we needed a more balanced approach that would drive both short and longer term value for shareholders. To that end we seek to drive a dual strategy – which I’ll explain a bit more about as we go through – that’s aimed at projects that would create some near term value for the shareholders. The start of this was me really bringing in a new project at the back end of last year which we called Sumatra 1 – which is a portfolio – and really we need to continue to fill the value gap to give the company and its shareholders the best chance of realising the value built to date on the longer term IPP projects that are in place.

I think it’s also worth just explaining my background. I’ve been – this is actually my 40th year in the industry, which is a bit shocking for me – I’ve been 10 years in the downstream when I first started my career in the late ‘70s and early ‘80s, and then I moved into the upstream (oil and gas) in the late ‘80s when I worked with Kerr-McGee, and then in the ‘90s I worked with ConocoPhillips in the UK southern North Sea. So I have a lot of history in the southern North Sea and its 3 or 4 major projects with ConocoPhilips. In the case of the Murdoch system that was my baby, I saw that one through from a blank sheet of paper all the way through to first gas, and then followed up with various phases of that project, then for a time in the southern basin. Then in the late ‘90s I joined BHP (now BHP Billiton) working on their southern basin projects, then I did a project for them called the Keith project in the northern North Sea.

In the 2000s I ended up working for small independents in the UK, and as my first foray abroad I worked for 2 companies: Soco, who have projects in Vietnam, so that was my first experience working in Asia, I did 2 projects for them, Ca Ngu Vang, which is a 25,000 barrels per day oil well – my role there was as a really active development manager, project manager, I saw that project through from concept right the way through to commercialisation – and then Te Giac Trang which was a 65,000 barrel a day project for Soco. And then I did my first project in Indonesia for Serica, so that was the Kambuna development, an offshore gas field between Malaysia and Sumatra in the Malaccan Strait tied back to an onshore terminal, and my role was again as development manager taking it from concept right the way through to commercialisation. So my skill set is predominantly taking discoveries – oil and gas discoveries – from the discovery point right the way through to commercialisation, so that’s first gas or first oil as we call them. And then of course after Serica we then turned up with the forerunner to Andalas, CEB Resources, and then we did the reverse back in 2016 and got Andalas Energy and Power group.

AG
So Simon that’s a very illustrious CV you’ve got under your belt there, and clearly with your work already in the region you’re well versed with Andalas and the projects. Can you just move on from that and give listeners a bullet-point run-down of the projects that Andalas currently has underway?

SG
Yes certainly. We have Pertamina based projects and one independent project. The Pertamina projects follow Pertamina’s own internal processes and go at their own pace. For your listeners Pertamina is larger than ConocoPhillips. From my experience working with larger oil companies they do have their own processes and things do take time. We are making progress and we will be providing updates in due course. So the projects we’ve got with Pertamina, there’s Puspa 1, in which we announced we are equal partners with Siemens, Pertamina and ourselves. In terms of the activity the next step for us is to get a gas sales MoU signed with the gas seller, who in this case is Pertamina, and then moving into the next phase when we create the consortium and then actually I’ll put a proposal to PLN [State Electricity Company].

Jambi 1: we’re in partnership with PTPP Energy and the split there is 51% PTPPE, 49% us. That’s been slow to advance because Pertamina the gas supplier wants to focus its resources on Puspa 1, this is the proof of concept project, and the same considerations are hampering our discussions on the MJ Cluster project and further projects we’re reviewing. So this has been a little bit slow for us and the progress to date hasn’t really gone at the pace I would have liked, but as I said earlier Pertamina go at their own pace and they want to see this proof of concept, Puspa 1, executed first before they roll out the other projects.

Sumatra 1 is arguably our leading IPP project. The reason we like it is because we’ve actually got a gas sales MoU in place with the gas seller and our partner SEG, we’re not encumbered by the large processes that the likes of Pergamina have in place, so we are in a better position to influence the outcome, and the next step for us is to form a consortium and to finalise the proposal to PLN.

AG
So these partnerships with Pertamina are huge, and obviously they’re large organisations. I understand the delays that occur within large organisations when they’re implementing projects, they have much larger hoops to jump through than a smaller company. But I think if we look back over the past few years, I’m a shareholder in Andalas and I know shareholders including myself and others have had a pretty rough ride over the past few years. Can you just elaborate on why you think that is?

SG
Yes, the company – it’s been a very ambitious strategy, the IPP strategy. You know, the original MoU envisaged with Pertamina five projects within the first year. Unfortunately this proved overly ambitious, and as I mentioned earlier Pertamina has developed this preference to pursue the proof of concept before expanding to a number of joint projects. The projects in place represent a clear significant value opportunity but they’re also dependent on a lot of external factors and parties outside our control. I’ll just explain that a bit more. You’re talking about a consortium with a maximum of 4 parties and then you’ve got the gas seller so that makes a fifth party, and then you’ve got PLN makes a sixth party. So you’ve got to get all six working together and agreeing on the way forward, negotiating our gas sales agreement, our purchase agreement, and they’ve all got to come together at the same point. So there are many, many moving parts. I think the only time I’ve had to deal with this number of parties was on a project for BHP in 2000, the Keith project. BHP Billiton were the operator and we had BP as a partner, we had Total and we had Marubeni, and to convince that number of partners to invest at a time when the oil price was very low. I’m pleased to say that the project came on stream at a much higher oil price, but it was very challenging. I’m not saying these projects are in that class, but we are dealing with many moving parts. I’m up for the challenge, but I think we just have to recognise that things take a little bit longer than we originally envisaged. We’ve got some very good partners like Siemens and PPE, we’re very pleased to have them on board. It’s difficult for us to deliver progress in the short period to get the share price moving in the right way, it’s certainly very disappointing for all shareholders, and I’m including myself as a shareholder as well, hence I’m very keen that we look to get some restorance of shareholder confidence.

AG
It’s encouraging to hear from your CV that you’ve overseen these complex negotiations and protracted contract arrangements where you bring these parties together. I accept and appreciate that there is a big challenge there, but I guess given where Andalas is now you’re making progress with these partners. Going back to the shareholder issue again, what in your view needs to be done to restore shareholder confidence?

SG
Just one word, a very simple thing – delivery. We have to deliver enough, I want to change that – my role, my skillset in the past is project manager, as a project manager I have to deliver to a timeline, on time and on budget as they always say. And I want to make sure that we have the right balance in our portfolio of what I call the short, medium and longer term strategy. Our concern right now is that the IPP is what I would call a medium and Pergamina could be viewed as a longer term strategy, and I’m very keen that we – no, I’m not "very keen", I am moving through strategy to the short term so that we deliver some value to the shareholders in the short term.

AG
Good. So going back to the results statement, you mentioned your ambitions following your appointment last October. You highlighted seeking out upstream projects. What do you have in mind in this area, and how do you anticipate achieving bringing these shorter term upstream projects on line?

SG
If you look at my background and if you look at the rest of the team, we are skilled at doing projects globally – upstream projects – but now I want to put more emphasis on the upstream projects and broaden the portfolio. We’ve been looking over the last 4 months at a significant inventory of opportunities which we’re really excited by, and we’ve got the expertise to deliver those, and we believe they’re going to bring significant value potentially to the company.

AG
Okay. Prior to this interview we asked all our followers on Twitter to submit questions for today, so I’m going to put some of those questions to you now. One of the most oft-repeated questions was what your plans are for dealing with the convertible loan note.

SG
We have a number of significant shareholders that have bought into the company, these are Lombard Odier who’ve invested £500,000 plus they confirmed their support with a market share purchase. Lombard Odier also provided a convertible loan intended to communicate long term support as a significant shareholder and give confidence to the market. At the moment it remains undrawn, and can only be drawn by written agreement with Lombard Odier and Andalas, and that would have to be announced.

AG
Okay, so a couple of other questions for you. What can you tell me about the recent board changes?

SG
Paul Warwick left to pursue other opportunities outside of AIM, it’s as simple as that. I’m the CEO, I run the company, and the team is very much focused on delivery.

AG
Okay, one other question as well: Corsair Petroleum. A lot of investors are uncertain as to what the agenda or what the issue is as regards Corsair and Andalas. What can you tell us about it?

SG
The relationship was fully disclosed in the admission document. It’s a shareholder in Andalas and has no other business. It has no commercial relationship with Andalas.

AG
Thanks for clarifying that. Simon, can you leave us with two or three key takeaway points for Andalas investors to focus on in 2018?

SG
Yes, I’m up for the job and will bring the team’s upstream expertise to bear on our business going forward. We’ve managed to reduce significantly our burn rate and conserve the company’s cash resources. As I mentioned earlier we’re going to re-focus on upstream opportunities, play to our strengths, and deliver near-term value to shareholders. The existing IPP opportunities will continue to form part of our portfolio, however it will form a more balanced part of the overall portfolio.

[therealtonythetiger] 07/3/2018 13:38

Im going to have to listen to the podcast again.. I need to get some bullet points from it..

[therealtonythetiger] 07/3/2018 13:08

British Bulls... lol.. If BB traded a live account and took the ridiculous spread into account then they might have some credibility.. But they dont so they dont..

[buddugoliaeth] 07/3/2018 11:35

Yeah right

[turbotrader2] 07/3/2018 09:56

19.2m bought first think then sold for £570 profit Cheers

[turbotrader2] 07/3/2018 09:54

He's just running through his cv lol

[therealtonythetiger] 07/3/2018 09:50

here we go.. Simon Gorringe interview..
hxxps://audioboom.com/posts/6710476-multichannel-podcast-alan-green-talks-to-simon-gorringe-ceo-of-andalas-energy-power-adl

[domple] 07/3/2018 09:35

Any statement should just read:

"share price has been ravaged of late for no known reason, the increase in the last couple of days has not yet corrected the situation"

but knowing the idiots any rns about the movement will say "the company does not know of any reason for the change!" That would be total management incompetence but we've all seen it here before many times.....

[therealtonythetiger] 07/3/2018 09:32

Getting Pumped for whatever reason.. :-)

[turbotrader2] 07/3/2018 09:26

The company will be forced to make a statement WatchDCB

[ernestsyngen] 07/3/2018 09:22

BOOM time - good luck all as some good buying here

[ernestsyngen] 07/3/2018 09:22

BOOM time - good luck all as some good buying here

[turbotrader2] 07/3/2018 09:20

SOLD FOR MY BEER MONEY AT THE WEEKEND

BET THIS ANNOUNCES ITS BUST TODAY

[therealtonythetiger] 07/3/2018 09:03

Ron.. Thanks for the stats mate..

[therealtonythetiger] 07/3/2018 09:01

Up another 9% so far..
tt2 How's your mum these days ??