Eland Oil & Gas Share Discussion Threads

[mr.oz] 18/9/2018 07:43

Delivering the goods. Well done ELA team

[shakesmaster] 18/9/2018 07:40

CyanConnode Holdings PLC $11.6 million order from India
18/09/2018 7:02am
UK Regulatory (RNS & others)

Cyan (LSE:CYAN)
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Today : Tuesday 18 September 2018

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TIDMCYAN

RNS Number : 0841B

CyanConnode Holdings PLC

18 September 2018

CyanConnode Holdings plc

("CyanConnode" or the "Company")

$11.6 million order from India

Largest order to date for Omnimesh IPv6-based smart metering solution in India

CyanConnode (AIM: CYAN), a world leader in narrowband radio frequency mesh networks, is pleased to announce the receipt of a $11.6 million purchase order relating to a smart metering deployment by an Indian State-Owned Utility.

This major purchase order, from a Tier One Metering Partner, is for Omnimesh IPv6-based hardware, perpetual software licenses and installation services. In addition to this order the Company is also negotiating a five year support and maintenance contract. The end customer is a State-Owned Utility and the agreed deployment schedule is expected to result in H2 2018 revenue.

The Company forecasts revenues of c.GBP700k under this order in this financial year to 31 December 2018, contributing to the delivery of management's existing full year expectations. The Company now has a total order book in excess of $110 million.

Anil Daulani, Managing Director of CyanConnode Pvt Limited, commented: "We are very pleased to announce the Company's largest order to date for Omnimesh. The product was launched in 2018 and this brings the total value of orders received for this new product to in excess of $16 million, and demonstrates its suitability for the Indian smart metering market. The size and scale of this opportunity reflects the rapidly evolving Indian market as well as the ability of CyanConnode's Tier One Partners to offer highly innovative and workable solutions."

India is a key market for CyanConnode, contributing revenues from existing contracts for State-Owned Utility end customers, such as Uttar Gujarat Vij Company Ltd and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

[cartonet] 18/9/2018 07:35

Dear Subscriber,

This is a weekly insight of news and events in the Power, Oil and Gas industry in Nigeria and around the world. This roundup is for the week ended August 24, 2018.

If you are an Oil and Gas Investor or stakeholder then this Newsletter is tailor-made for you. You can also subscribe to our other Newsletters and have some of the best insights from the world of investing in Nigeria, straight in your mailbox.

We also love feedback, so, do send us some as we continue to make this Newsletter informative and useful to you our subscribers.



Cloud of darkness on Oil blocks renewal
In an earlier newsletter, we discussed the pending renewal of a number of upstream leases in 2017/2018. The renewal of assets is a risk for oil and gas operators as they could be revoked or approval gets delayed despite the assurances the Petroleum Act offers.

The Petroleum Act describes the conditions to qualify for asset renewal which includes payment of outstanding royalty debts and liabilities to the government.

Recently, the Directorate of Petroleum Resources (DPR), the agency charged with administering licenses and directly under the supervision of the Minister of Petroleum has reported earnings of $1 Billion from the renewal of Oil Mining Leases (OMLs) and Oil Prospecting Licenses (OPLs) in 2017.

The details of the assets renewed, amount received, and owners of the renewed leases are unavailable. The syndicated press release by DPR was decidedly ambiguous and incoherent.

Malfeasance thrives in darkness. Did all the companies meet the prescribed criteria? Were there any change is asset sizes? Were the renewal fees the best the country can get? Many questions, no answers. DPR even brushed away questions from the House of Representatives.

The industry grows with transparency, with public information on renewed assets, businesses, SMEs, financial institutions, NGOs and the public at large can make better decisions, and the industry thrives.

Katsina Refinery: Delay or Denial
A few weeks ago, we outlined our thoughts on the feasibility of the Katsina refinery and Niger pipeline project. Our analysis suggested the project may be feasible given the economics of the upstream company driving the project.

We may have missed a few things there because the company in question, Savannah Petroleum has now signed an ‘early production agreement’ with the Nigerien government to use the Chinese built Soraz refinery. This is only a few weeks after the same Nigerien government signed a Memorandum of Understanding (MoU) with its Nigerian counterpart.

From our analysis, this may be a temporary setback for the Katsina refinery given the limited size of the Soraz refinery, Savannah Petroleum has seen stunning success in its exploration activities in Niger recently prompting the decision to fast-track development. Katsina might work if Soraz cannot handle increased capacity, but then the Chinese might just expand to accommodate increased production capacity. We will be watching developments on this.

Seplat – The Gas and Oil Company
Seplat Petroleum is transforming to a gas company with some oil. Since acquiring Shell’s stake in some Western Niger Delta assets, the company has blossomed from an upstart to a thriving, result-oriented business, continuously delivering value to stakeholders.

Becoming a gas company may have been by circumstance as the assets they have acquired have mostly been gas rich but they have doubled down, developing a reputation for quick project delivery. It’s a peculiarly integrated and diversified indigenous company with a balance of upstream oil, upstream gas and midstream gas portfolios.

The company has moved eastward of its current base as it seeks to develop the Assa North Ohaji (ANOH) gas-rich fields. Assa North is actually owned by Shell/NNPC while Ohaji South is owned by Seplat/NNPC (bought Chevron’s stake).

Before Seplat’s acquisition of Chevron’s stake in Ohaji South, Shell was designated to develop midstream facilities for ANOH but they slept on it. With Seplat, the sprightly and more ambitious company in play, they were better positioned. Now, it’s going to develop ANOH’s 300 mscf/d processing facility with NNPC’s subsidiary, Nigerian Gas Processing and Transportation Company via a wholly midstream vehicle.

Seplat’s midstream strategy is curated to take advantage of tax benefits. With ANOH and potential future expansion, a central processing facility (CPF) is being established in the east, a critical thrust of the 2008 Gas Master Plan.

Location is very ideal too as it is proximous to the 42 inches Oben – Obiafu/Obikrom interconnector pipeline. We assume the completion of the OB-OB3 is a conditions precedent for the ANOH project. Overall, the ANOH project provides a huge benefit to everyone – domestic gas market, Seplat, NNPC, FIRS.

Eland Oil – Rising Star
UK headquartered Eland Oil is top contender for our Independent Oil Company of the year. Its meteoric rise in the last 12 months is unrivalled in the industry. A successful 4 well campaign has given rise to 100% increase in oil production (from 12,000 bopd to 23,000 bopd), alternative evacuation options have been secured, OPEX significantly reduced above peer facility uptime recorded and to top it an 80% increase in share price on the London AIM.

An investment of $1 Million in March 2017 would have yielded $1.8 Million within one year. Exceptional performance, by any standard.

Its future is bright. Improved cashflow has given the company headroom to pursue the development of Ubima field, a farmed-In marginal field owned by All Grace Energy Limited. With Gbetiokun and Ubima fields in the horizon, Eland is positioned to accelerate beyond its peer companies in the nearest future.

NB: Professor Adebulugbe, a former Special Adviser on Energy to President Obasanjo is the public face of All Grace Energy Limited, the owner of the Ubima field.

An Encore on the broken power market

We are publishing again our recent commentary on the current broken power market

Never in our history have we witnessed the current public mudslinging between private operators and government. A frustrated Minister of Power launched a public tirade against the DISCos (Electricity Distribution Companies) perceived inefficiencies and the Discos replied with a very uncomplimentary published statement.

As this newsletter has warned repeatedly in the past, the power market is significantly broken. Broken beyond normal repair, hence the frustration on both sides as solutions seem remote and beyond the parties. Yes, the solution is beyond the Power Minister or the Discos. It’s with the President.

The simple but key reason for the state of the market is lack of enforcement. Seems very simplistic but enforcement of the rules (of law) is the pivot on which economic prosperity or in this case a successful market stands.

The problem of lack of meters, transformers etc. are ‘chicken and egg’ as investments would only follow an orderly and predictable market. Enforcement of contracts: Discos and Customers, Discos and NBET, NBET and GENCOS is the key to repairing the market but it takes a steely will from the top of the hierarchy to address the issue.

Discos have poor revenue collection metrics because of managerial inadequacies and lack of consequence for stealing power or avoiding payments. The enforcement of the contract between the DISCo and customers is an onerous job but very critical to the health of the market.

The President needs to consider this seemingly simple issue as a priority, emphasizing to the nation the importance of payments, rallying round law enforcement and penalties on government-owned agencies and individual customers. What is a market if the rules cannot be enforced? And enforcement is sadly beyond the Minister of Power of Disco’s capabilities.

With enforcement of rules and contracts (fuel contracts, PPAs, Vesting Contracts, Transmission tariffs, MYTO) across the chain, losses will crystallize at the weak nodes. NBET may become insolvent, MYTO reviews may not be totally cost reflective but the process isolates the areas that now need interventions and temporary subsidies.

The current process of throwing subsidies across the power value chain is creating a moral dilemma and perpetuating indiscipline. The World Bank which currently supports the power sector may attach conditionalities that encourage enforcement of rules in its future interventions.
Without the rules, chaos beckons.

[wisecat2] 18/9/2018 07:14

anybody alive

[awise355] 16/8/2018 15:48

£1.2M ordinary trade just went through. Got to be a holdings rns triggered from that soon!

[mr.oz] 16/8/2018 07:22

OP11 brought forward from 2019
Fantastic team.

[shallwe] 16/8/2018 07:08

OP10 well complete. Great news and looking very positive confirming previous figures. Now moving onto OP11 earlier than planned.

[cartonet] 25/7/2018 09:49

Agree shallwe. My assumption is 5-7 pounds a share in 2 years with full field development circa 80k bopd and oil price closer to 100 bucks. I keep adding at each step closer to full fields development

[shallwe] 25/7/2018 08:45

One of the best oilers, if not THE best, out there.

[mr.oz] 25/7/2018 07:45

30000bopd target assured now
Excellent team

[gconvery] 10/7/2018 15:24

Breaking out to a 10 year high! ?

[itsriskythat] 04/7/2018 15:11

Little tricky in my view starting negotiations to increase the current $70m RBL, when one of the wells used to set the borrowing base has a water cut (as it may introduce a little uncertainty over the 2P recoverable reserves).

The current commitment of $35m is derived from Opuama-1,3,7 and 8's 2P recoverable reserves and they are seeking to refinance to a $150-200m RBL using 9 and 10 wells in addition.

[thechurch333] 04/7/2018 11:05

cartonet - you are correct. CMD current production was given as 22,500 bopd. Importantly there is sufficient slack in their guidance of "in excess of 30,000 bopd" for such setbacks. If the water cut issues can be resolved, which the RNS suggests they can, the outcome should be closer to 35k bopd than 30k bopd.

[cartonet] 04/7/2018 10:29

Correct me if im wrong:

Last production update was in May on Capitals day presentation : 22,000 bopd

Now added 7,000 bopd from Oupama-9

Current production stated at 25,000 bopd after Oupama-9

So 4,000 decline from 22,000 (Water issued at Oupama-7) ?

[awise355] 04/7/2018 08:06

Marks doesn't seem phased by the water cut?

[mr.oz] 04/7/2018 07:06

Excellent team.

[thechurch333] 02/7/2018 15:18

cartonet - I'm with you 100%

Some decent non-exec buying today

[cartonet] 21/6/2018 09:28

My analysis shows Eland is one of the best holds (for high risk/reward tolerant investors) on any public market for the upcoming energy equities bull market imo. I think of it as a "Mart Resources part 2" but without some of the problems Mart had to contend with: Bad management,hefty and ever growing pipeline "losees" and no alternative plan to get out the oil on the too frequent pipeline outages.

[gersemi] 21/6/2018 09:10

This is breaking out into blue-sky. News due?

145k buy

[robizm] 16/6/2018 10:47

Eland has been called that the whole time it has been on aim so looks like a clone with a diferent name it that makes sense

[cartonet] 15/6/2018 10:55

Anyone, whats all this about ?

hxxp://lavaoilandgas.com/main/index.html

Was Eland ever named Lava Oil and headquartered in Texas or that website is some sort of scam ???

[mr.oz] 14/6/2018 07:45

Rose to the challenge. High output. Fast payback. Excellent.

[cartonet] 07/6/2018 14:06

Nicky : take your COPL spam to COPL board, this is ELA´s board !