Fluormin Share Discussion Threads

[dreggspicker] 16/3/2013 13:59

Lifted from Afren; I do not think they will mind;

Seychelles
A and B
Working Interest
75%
Operator
EAX*
Net prospective resources 2,101 mmboe
Work programme Seismic acquisition
* EAX is a wholly owned subsidiary of Afren Plc

Overview
Areas A and B are located in the Seychelles micro-continent covering a combined area of approximately 14,319 km2. Areas A and B are located in mainly shallow water in the Northern half of the Seychelles plateau. Afren operates the blocks with a 75 per cent. interest; Avana Petroleum has a 25 per cent. working interest.

The Tectonic evolution of the Seychelles plateau is related to the imposition of three phases of rifting, that isolated the micro-continent from the centre of Gondwanaland. Most of the structures were formed during a later tectonic re-activation of the area in the early Paleocene.

The first sedimentary rocks found in the Seychelles were formed during the Permo-Carboniferous time as part of the early Karoo section on the Gondwanaland paleo-continent. The Western Seychelles margin can be reconstructed to a position adjacent to Somalia and as a Northern extension of Madagascar prior to drifting from Africa in the Upper Jurassic. A second phase of rifting occurred during the mid Cretaceous when India and Seychelles separated from Madagascar. The Madagascar landmass acted as a major sediment source for the Seychelles micro-continent during this period. The third and final rift phase occurred in the late Cretaceous with the drift between the Seychelles and India initiated during the early Paleocene.

Exploration
The bulk of exploration activity commenced in 1977 when three separate PSCs were signed by a consortium led by Oxoco, Siebens and Burmah Oil (later acquired by Amoco). Between 1977 and 1979 this consortium acquired a total of 6,400 km of seismic which revealed several structural and stratigraphic leads.

Between 1980 and 1981 Amoco drilled three wells (Owen Bank A-1, Reith Bank-1 and Seagull Shoals-1); all were plugged and abandoned with hydrocarbons shows. Amoco commissioned a further 27,900 km of aeromagnetic survey and 7,100 km of seismic as well as other gravity and geochemical surveys but relinquished the acreage in 1986 following the collapse of oil prices.

In 1985, Enterprise Oil (later acquired by Shell) signed an Agreement for the South-Eastern Shelf plus Constant, Coetivy and Fortune Banks with an option to later include Platte Banks. It surveyed a total of 4,870 km of seismic and in 1990 it drilled the Constant Bank-1 well which was plugged and abandoned. A further consortium of Texaco, Ultramar (now ENI) and Enterprise Oil conducted a seismic acquisition programme in 1991.

In November 2008 EAX (75% interest) and its partner Avana (25% interest) were awarded a Petroleum Agreement for Areas A, B and C.

Commercial terms
The PSC for Areas A and B has an effective date of November 2008. The PSC has an initial exploration period of two years, followed by two additional exploration periods (the first lasting two years and the second lasting three years) before entering an exploitation phase lasting up to 25 years. The Government of Seychelles has no back-in rights into successful exploration wells and contractors are allowed to recover 100 per cent. of their costs from 100 per cent. of the production. Oil and gas royalty rates are both flat at 5 per cent.; revenues incur an Additional Petroleum Profit Tax that ranges from 30 per cent. to 45 per cent. depending on previous production revenues.

During the first exploration period, the PSC partners are obligated to obtain 2,000km of 2D seismic and 150 square km of 3D seismic. The partners acquired 3,637km of 2D seismic data in 2007 and a further 1,271km was acquired in 2009. During the second exploration period, the PSC partners are obligated to acquire 1,500km of 2D seismic and to drill one exploration well. During the third exploration period, the partners of the farm-in are obligated to acquire 1,000km of 2D seismic and to drill two further exploration wells.

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.

[dreggspicker] 16/3/2013 11:21

Well it made vanoil share zip up 10% late yesterday,so in theory we shud b up 10% on monday ........ but then again ........

can't do a graph, it seems I need level 2 to post graphs on a canadian co.




Name Symbol Market Type ISIN Description
Vanoil Energy Ltd. TSXV:VEL TSX Venture Exchange Common Stock

Change % Chg Cur Bid Offer High Low Open Volume Chg Time RN NRN
0.05 11.11 0.5 0.45 0.5 0.5 0.45 0.45 48,818 7:59:51 PM

Type Size Price Time Units
4000 0.5 7:59:51 PM CAD

[dropside] 16/3/2013 09:38

James Passin is certainly interested in East African oil potential - this is what he said last year:

TCMR: You cover a wide range of investment arenas both geographically and in terms of commodity type. What looks promising in the energy arena?

JP: Since we started following East African oil in 2003, there have been a number of very large, important discoveries, the most famous of which was Heritage Oil Corp. (HOC:TSX; HOIL:LSE) discovery in Uganda, which proved the existence of world-class oil basins in the Great Rift Valley, precipitating a wave of strategic interest in East Africa. At the same time, evolving geopolitical dynamics are now supportive to East African oil development. For example, South Sudan's independence created momentum for a new pipeline that can potentially link offshore East African oil fields to export markets, creating a platform for monetization of otherwise stranded oil deposits.

TCMR: What companies in this space are you considering?

JP: I am the Chairman and Interim CEO of Vanoil Energy Ltd. (VEL:TSX.V), which has two blocks in Kenya. Given the amount of interest in Kenya now and the number of deals that we can point to in East Africa, I think it's worth considering independent companies with acreage in Kenya and the surrounding countries. Vanoil has had some encouraging results from its seismic program and we look forward to advancing further work on our Kenyan properties under the terms of our Production Sharing Contracts. Firebird's East African holdings include Africa Oil Corp. (AOI:TSX.V), a Lundin company. It has a number of interesting oil exploration projects in East Africa, and the company is currently drilling on two properties, one in Kenya and one in the Puntland Province of Somalia. I've been to the Somalian oil concession—it has the potential to prove the existence of Yemen-size oil basins in the Horn of East Africa.

[dreggspicker] 16/3/2013 08:59

see 3a/3b

dreggs,starting to get mildly excited.............

[dreggspicker] 16/3/2013 08:54

Map of Vanoil in Kenya;

[cyprussteve] 16/3/2013 01:42

Hi Bam,
Your reference to Firebird and Passin is almost undoubtedly correct.
However, this does not neccessarily mean that it is wrong for FLOR to change their core strategic oblective of fluorospar during difficult financial times for their product - this to me makes good financial sense.
However, the extent to which the deal has been initiated for the benefit of Firebird is, I accept, a key to the whole deal.
However, one should not discount the potential benefits if Vanoil / Avana comes good.
Have a good weekend all,
Steve

[bam bam rubble] 16/3/2013 00:00

I'm not sure we should credit FLOR execs when Firebird and J Passin have instigated this. Oil & gas is a departure from Firebird's contrarian investment strategy with fluorspar so from a strategic viewpoint it's disappointing. In terms of shareholder value FLOR relisted a year and a half ago at 105p and is being merged into another stock -75% below that price (and some -95% below its previous IPO as Maghreb Minerals plc)

[cyprussteve] 15/3/2013 23:29

Maybe a little more credit should be given to the FLOR Board - I am sure they have spent a huge amount of time and research in studying Vanoil's assets and potential - plus information that is probably not in the public domain as yet.
I would have thought that they must be pretty damn confident - ( and that is probably all they can be ) - that the share and warrant deal will be beneficial over time.

[dreggspicker] 15/3/2013 21:15

Now on Vanoil web site, it does look like they needed the dosh from us prompto as they have already dished it out for Avana for the Kenyan 10% offshore interest, not worked out who is the other 90%.......

Thanks Bam for the calculations ----- As Keya says we could have a good deal - but who knows- there could be zero oil there - or gas come to that - Trouble is nearly all my other holdings are oil- Afren being the main one - the company Vanoil is partnered with in the Seychelles!!!!!!!

[bam bam rubble] 15/3/2013 20:56

Based on the two week average price of 40c its almost a share-exchange at parity

10,000 FLOR shares (£2,100 if bought at 21p)
=8,060 VanOil shares (£2,100 worth@40c) +1,160 warrants exercisable@75c

As VanOil has risen strongly this week, up 40% (pumped to help get this deal away perhaps) looks like it will go through at a premium. However I would expect the post-merger company to see poor share price performance (most do post-merger), say ending the year at 20c, equivalent to 10.5p FLOR

[keya5000] 15/3/2013 20:44

I would value Vanoil's Kenya blocks in the region on £40m in its current state, thought they had very pressing drilling commitments though to keep their PSC?

While since I looked at them, interested in Simba who have the block further North.


Honestly believe given the interest in Kenyan oil blocks you have got a good deal here but perhaps not one you may have chosen?

[dreggspicker] 15/3/2013 20:26

dunno, I thought it is free, Vanoil is buying out/ merging with Avana pet. who has exploration rights in the Seychelles,25% -75% Afren, but again early stuff - no oil found - yet............

[vauch] 15/3/2013 20:15

how much will it cost to convert each warrant.

[vauch] 15/3/2013 20:00

need near 80p to break even. not impressed

[dreggspicker] 15/3/2013 19:56

got to say I am gutted with this one, Vanoil has no oil at the moment, may never find any; yet we are being absorbed, lock stock and barrel........if we want to keep our holdings, we have to hope they hit oil -- soon.

[bam bam rubble] 15/3/2013 19:14

A somewhat dubious proposed transaction with Firebird consolidating 2 of its investments, and a poor exit for long-term holders here. Vanoil's monthly low would value FLOR at 16.5p per share so expect to see a bit of a retrace.

[cyprussteve] 15/3/2013 19:13

I have just found this link - what do you reckon this values the Company at in sensible terms come Monday morning ?


Extract below -
" Fluorspar miner Fluormin (LON:FLOR) has been in talks with Vanoil Energy (TSX-V:VEL) for some time over the terms of a bid by the latter for the former, and on Friday the Canadian company laid its cards on the table.
Provided it can get the agreement of the independent directors of Fluormin, it intends to launch a US$27mln offer for the UK company on the basis of 0.806 new Vanoil shares plus 0.572 C$1 warrants and 0.116 C$0.75 warrants for every Fluormin share held.
The C$1 warrants will entitle the holder to subscribe for one Vanoil share at any time during the two year period following the acquisition, while the C$0.75 warrants will also entitle the holder to subscribe for one Vanoil share any time prior to 13 March, 2014."
Current market cap of FLOR according to advfn is £23m.
If I am understanding it correctly, it also gives FLOR shareholders the opportunity for warrants - which would be beneficial IF Vanoil performs well.

[cyprussteve] 15/3/2013 18:53

LATE RNS TODAY -
I haven't worked out - ( or been bothered to ) - the actual share price value now ascribed to FLOR - estimates will be interesting.
I can't find anything relevant at present on either Company's website, nor can I anything relating to this apart fropm the RNS issued late today by FLOR - am I being thick, or getting confused, or, have they simply not updated their websites ?

[dropside] 06/3/2013 20:39

Some recent tweets, interesting stuff..

Shruti Salwan ‏@ssalwan_indmin
#Fluorspar ranking moved up from 4.5 to 6.7 on BGS risk list 2012
Expand
Feb 26 Simon Moores ‏@sdmoores
BGS also now rank #graphite as higher risk than the more famed platinum, cobalt and indium.
Retweeted by Shruti Salwan
Expand
Feb 26 Simon Moores ‏@sdmoores
#Fluorspar (fluorine) up 8 places to 28th highest risk raw material - BGS
Retweeted by Shruti Salwan

The 2012 BGS table:

[dreggspicker] 03/3/2013 07:41

I notice you have not dared to spell "emulstion" haha ;+}

ps just googled it "emulsion" router is correct - just checked ....

[pisces4] 02/3/2013 19:39

you need to brush up on yer spelling too dreggs,no pun or spelling mistakes intended! amazing how the rustic look has come back into fashion,maybe fluorspar will one day too.

[dreggspicker] 02/3/2013 08:50

you will be waiting a while for the divis to come through drops! ......

painted our pine 16yr rustic kitchen with magnolia emulstion, rubbed the edges a bit, to age the look,then coated with water based varnish, satin finish, all with a poundland mini roller -- solid oak top with the edge routed out with a Aldi £39 router - looks like we have spent a fortune! Trouble is it escalates into making more units out of timber, (hate chipboard) and painting those,but it is susprising how some car filler and paint can make good rough workmanship - to look like the gloss mags that cost £10k +

[dropside] 01/3/2013 20:49

Yes, its not an obvious cost saver, car makers don't own parts divisions anymore, the trend in most industries has been to focus on the core activity and divest or outsource the non-core work. That said, I can see why a fluorspar user might try to secure their own supply given the shortage of openly traded product and the lack of a transparent 'market' in the product.

I was interested in the RNS that there was a couple of references to exploration and options for Witkop. Maybe thoughts are moving towards re-opening this given the direction of travel in the price?

Sorry dreggs, I was pulling your leg about the tiling, our kitchen is looking a bit weary and needs some action too. Would be nice if Fluormin helped pay for that!