 more from the Conrad quarterly
Conrad Managing Director and Chief Executive Officer, Miltos Xynogalas, commented:
“Whilst we are disappointed that a Final Investment Decision (“FID”) for the Mako Project was not achieved by the end of 2024, finalising GSAs and securing regulatory approvals have both impacted the timeline. However, momentum heading into 2025 is strong, and we are in advanced exclusive discussions with a partner for Mako. In conjunction with this farm down, negotiations are progressing with project financing. We are also dealing with interested parties in Aceh and hope to conclude a deal in the coming months.
The market conditions for gas in Asia are particularly favourable, and we have seen significant interest in our projects from gas buyers, potential partners, and financiers. Beyond the Mako Project, our discovered gas resources and exploratory potential in Aceh are drawing considerable attention with numerous commercialisation options now being evaluated. Conrad has five gas discoveries in its portfolio with total recoverable resources in excess of 500 billion cubic feet (c 340 “Bcf” net attributable to Conrad1 ) and 15 trillion cubic feet (“Tcf”) of prospective resources on a gross basis (c 11 Tcf P50 unrisked net attributable to Conrad2 ). The company is committed to continue building a substantial gas portfolio and capitalising on the numerous commercial opportunities across our assets aligning with the region’s robust energy demand growth and the ongoing transition from coal to gas.” |
from Conrad quarterly
Gas Sales Agreements (GSAs) Finalised. All Mako gas 2C Contingent Resources under the Duyung Production Sharing Contract (“PSC”) are fully allocated to buyers in Singapore and Indonesia.
Regulatory Approvals in Progress. The Sembcorp GSA remains subject to approval by the Indonesian Government. Following a change in government and the installation of a new team at SKK Migas (the relevant government regulator), discussions are ongoing to conclude all approvals in line with any new energy priorities that may be set by the incoming administration.
Mako Project. Refinement/refreshment of schedule and costs continued. The Company commenced inspection work for rigs for the Mobile Offshore Production Unit (“MOPU”) fabrication, commenced detailed engineering for the compressor package, further matured shorebase location and operational planning, and completed analysis of project insurance bids.
PSC Farm-Down Advancements. Conrad is engaged in exclusive discussions with a preferred partner for the farm-down of the Duyung PSC. In conjunction with this farm down, negotiations with multiple financial institutions are taking place with indicative proposals received and due diligence ongoing to fund the debt financing component of the project. |
begorrah8816 Jan '25 - 15:25 - 5988 of 5990
Totally agree apart from the feeling sorry for the newbies bit. Wish I got all of mine for 0.00029 which is almost a tenth of what my lot are costing me. Just got to let it play out now. We know it won't go bust as the bond holders aren't sacrificing their millions plus interest for 66% of the new set up. The question is how much will us plebs get when the Duyung saga comes good? I'll be happy to breakeven and the newbies will be delighted with their punt. |
"Just when I thought I was out, they pull me back in!" |
Market makers getting short ready for placing flippers |
.....and there we are, back to the opening spread after that RNS and the relatively massive volume today. Just another cynical swap of stock for some forward selling at someone elses expense.
Presumably it was all part of Richardsons pitch 'we'll push through some news so that you guys can rinse a chunk of stock and turn a profit on paper'.
You'd have to feel for the new buyers now trapped in after some paying 0.029p |
Difference here is no debt and growing $600k revenue. They also have 15% of Duyung! |
Oh! How rude?
They could have fattened the calf before negotiating the hair cut.
But decided not to.
They thought the pig looked OK.
Perhaps.
Be careful. |
indeed, just in time to sway people to take up their placing offer... then when its all done and dusted fall below placing price, like eme ? |
Curry,
I reckon, in round numbers, that the implied market cap of the company when the reorganisation is done is about £7m. (465m new shares at 1.5p) plus maybe a bit for the retail offer. It currently has a market cap of around circa £750k.
The bond holders are getting 66% - so roughly £4.6m. Quite a haircut and leap of faith! And why are they happy to swap a secured debt for unsecured equity?
This assumes that after reorganisation the shares hold at 1.5p ,or better. Short term, that's the million dollar question.
It's an interesting one. Pretty much no debt, a renewables business that some people reckon might be worth backing and 15% of Mako - which may or may not get monetised at some stage. All for around £7m.
Imo
P.S. I haven't managed to find a copy of the Bond Holder letter, which is meant to have been posted on the website yesterday and may throw a bit more light on what's going on. |
in money;s worth ? |
so how much worth of equity are bond holders getting ? |
Sorry that should be PB01. |
I agree with everything that PDO1 has written. With that much cash invested in our solar and wind projects the future could well be promising. May I also add that there will be a much lower amount of shares in issue. |
We're definitely backed into a corner!! |
It was that or go bust. So better than nothing.
We are left with a company, no debt, £50-60M of Mako cash incoming and several wind and solar projects. Even though my av is significanty higher it will get my vote of approval as I dont feel there is any other choice. |
I'm 0.28 with averaging down. Not the RNS I wanted to be honest. |
Sorry to hear that digger. My av is unfortunately 0.8, so not great either |
blakie - unfortunately yes. Although I have been averaging down quite a bit I was taken by surprise when it nosedived coming out of suspension. |
will eme go the same way ? |
Digger do you have a high average? |
I reckon the share price was deliberately walked down when it came out of suspension so the bond holders could ensure they are going to take a huge slice of the company and be repaid plus make a tidy profit on top. All this guff about giving up 75% of the debt but ending up with 66% of the company isn't them being nice. They know the GSA is forthcoming and can start unloading with impunity once the 6 months are up. Probably be a few months to get the Duyung news so they wont have to wait too long before cashing in.
Richardson also done nicely out the recent loan. It's just us poor saps that will suffer and chances of me and a lot of others getting original investments back are zero.
No wonder they are delighted, yeah delighted for themselves. |
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