Global Petroleum Share Discussion Threads

[jimarilo] 02/3/2018 00:33

Looks like the Ocean rig Poseidon will be in Walvis Bay by the weekend

Be interesting to see if they can secure another drill, ahead of Tullows Cormorant

[caters] 01/3/2018 21:08

Jim's right. The lack of progress is hardly news and neither is the cash burn nor the juicy salary for the CEO. None of it's a secret so it shouldn't come as a surprise.

If you want to invest in this company because you think it may get a farmout deal to shoot 3D and perhaps even drill a well, then buy in, but don't grumble so much about the negatives - they are all a plain as day.

[hugepants] 01/3/2018 20:48

Thanks. Look at the last quarter results. Forecast cash outflow is to increase this quarter.to $785K mainly due to an increase in exploration and evaluation expenses. At that rate they'll be bust at the end of next year. Any idea what they are spending it on?

[hugepants] 01/3/2018 17:58

emptyend but they are always doing some kind of capex. Check back. Even when they were not processing seismic there was always something being spent. It's an ongoing cost as far as I'm concerned. It has already reduced quite a bit and I would not assume it will reduce further.

It's not far off sweet FA. They don't even have any seismic for the Italian licenses and no plans for any as far as I'm aware. They are still trying to fight off the environmentalists. That's how early stage that is despite them working on it for 5 years or more. Regarding Namibia, they've reprocessed some existing 2D seismic and produced some new "in-fill" 2D seismic. That's about what they've achieved in the last 5 years. It's a pretty hopeless performance to be honest.

[emptyend] 01/3/2018 13:47

Simply untrue that "they have done sweet FA". No deal signed...sure....but they've shot & reprocessed Namibian seismic and progressed Italian licences a bit. It may not meet hopes....but it isn't "sweet FA"!!

[emptyend] 01/3/2018 13:44

You can't make that cash burn calculation, without separating out one-off capex.....which has been significant in 2017 due to shooting/processing seismic.

[jimarilo] 01/3/2018 12:43

Agreed, a commercial discovery would derisk our prospects and add value for sure

But it's a punt, on getting a deal first and foremost for me

You have to think that one of these wells are going to hit pay at some point and a deal would be cheaper for a farmee before that happens imo

[hugepants] 01/3/2018 12:22

By my calcs they only have about 2 years cash left. They had $6M at end of last year and are going through about $2.5M per year. To me this is a punt on the other explorers finding something.

[jimarilo] 01/3/2018 12:07

Stellar say 8-10 weeks for a first offer, in their farm out process, which means if there is an offer, news could potentially come this month

That being the case we could be at multiples of the current M/Cap

Chariot BoD said there is a lot of interest for farm out deals in Namibia currently

We have as good a chance as anyone at getting a deal

Time will tell

[neo26] 01/3/2018 10:41

JimarilloThat is true, its the most frustrating thing for last 4 years an oil exploration company has been trading under cash, they have done sweet FA.Money is fast dwindling on director pays and admin expenses..

[jimarilo] 28/2/2018 13:29

Even with a 7% rise, M/cap still below cash

[yesyesno] 28/2/2018 11:18

Ha ha! money talks. The truth is out there for anyone to find if they are interested. I'll not comment on this again as I suspect I've already been labelled.

Good luck everyone lets hope it comes good soon.

[emptyend] 28/2/2018 10:42

40% shareholders are ALWAYS relevant. And they are paid c A$40k each as directors.....which is far from a "fortune".

[jimarilo] 28/2/2018 09:45

At least we know the 40% shareholding is tightly held

Tullow is first up to drill Cormorant and Chariot follow on mid October

Both companies have options depending on their initial out comes

[yesyesno] 28/2/2018 09:25

This 40% shareholding would really be relevant if the shares where bought with their own money but as the directors were very well paid it's hardly been a a sum they would miss.

I do hope they come good, but it's took too long to get here and they've spent up what chance they had of drilling in my opinion. I wrote my shares off 3 years ago but I've made my profit before that so just keeping it real.

[jimarilo] 28/2/2018 08:16

Can only buy 1k online

[jimarilo] 28/2/2018 07:21

The read across from the Chariot conference call notes and their presentation is confidence inspiring for us here

To know there is a market for high impact exploration prospects in Namibia is good news imo

[emptyend] 28/2/2018 00:12

Well the FOGL shares were sold at something like 20x the price at which they were last traded, so "sell and sit" was largely the right approach. Chunks of cash were spent on Ugandan drilling (Iti) and on US developments....later sold....Jupiter (Namibia) was bought for shares back in 2011.....and I'd guess half the then cash (so....$7-8mn) has been spent working those assets up to the point of farm-out. Some on Italy too. And doubtless lumps on due diligence and legal costs for deals that didn't quite get done.Shooting the latest 2D last year and reprocessing is a major step towards trying to progress the Namibian asset. We should find out soon whether it was money well spent. The 40% shareholders plainly expected it to be......

[jimarilo] 27/2/2018 16:42

Don't know anyone that talks down their said, holding before

[gaddy88] 27/2/2018 16:29

Been holding for a while now and happy to do so for a while longer. I'll admit it's been a reeeeally slow burner though. Tedious at times.

[jimarilo] 27/2/2018 16:02

As EE has said before regarding cos, source is the main element of risk

If there had been more drilling around our prospects that had proven source, the risking would have been nearer to 20% - 25% .

Majors are well aware of this and have been willing to take on this risk as the rewards out way them

Hence, Tullow calling their drilling campaign on Cormorant in September, "high impact-exploration"

If Tullow find source in September, farm out deals will become more expensive and derisk our assets

Some may want a deal done before Cormorant is spud imo

I am more than happy with the risk/reward here

[jimarilo] 27/2/2018 15:50

Tharg, seems funny how yesterday was the first time posting here on GBP and your first post on ADVFN since 1st September 2017

All of your previous posts, like now, were all De-ramping

Obviously paid to do so imho