 Good morning. Anyone fancy some breadcrumbs for breakfast?
Leviathan – named after the largest animal in the sea. Now, what was the largest animal on land called? Began with a T...
Leviathan prospect has 23TCF, NewMed Energy were 45% owner & operator of Leviathan, but earlier this year BP & ADNOC (Abu Dhabi National Oil Co) agreed to buy 50% of NewMed for $2Bn.
hxxps://www.offshore-technology.com/news/bp-adnoc-newmed/?cf-view
$175M per TCF doesn't sound like much of a deal, until you take a closer look at the bottom line. Not much profit in Leviathan - it's offshore, deepwater, very high costs per drill, very high capital costs for undersea pipelines and processing equipment on shore. Gas is contracted to be sold mostly to Israel for around $5 per mmcf. Corporate tax is 23%. Additional hydrocarbon royalty and special profits levy is insane – up to 62.5% - see last paragraph on p.2 of this:
hxxps://www.oecd.org/fossil-fuels/ISR_v2.pdf
So if I was Yossi Abu, with a couple of $ billion burning a hole in my pocket, in what would I invest? I would be looking for something big, but more profitable – lower cost (onshore), higher price ($10-16 per mmcf?) with a new, under-supplied, customer base, and a more favourable tax environment. Trouble is, most hydrocarbon opportunities geographically close to Israel are not at all close politically. Oh, look at this...
hxxps://www.aljazeera.com/news/2023/7/17/israel-recognises-western-sahara-as-part-of-morocco
and this...
hxxps://newmedenergy.com/regional-ties/
Halfway down you will see a photo of the top NewMed people, with on the left Amina Benkhadra, ONHYM Director, and on the right, Leila Benali, Morocco Minister of Energy Transition and Sustainable Development.
"For a long time now we have recognised a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors," NewMed CEO Yossi Abu said.
NewMed have agreed a 37.5% stake in a venture (with Adarco) exploring for Moroccan offshore gas, but this is years away from producing anything. Leviathan output is now fully contracted to Israel and neighbouring Middle East countries, whose immediate energy needs are now satisfied. NewMed need a deal that gives them near-term expansion, for which they need new resources and new customers.
I just happen to have a deal, right here under my coat....
If NewMed shareholders BP & ADNOC are involved in discussions, that could slow things a little, but Abu Dhabi & UK are both best chums with Morocco. Mañana can mean later on today, tomorrow (literally), maybe next week or even next month, but almost never next year.
🐳 💲 🦖 |
Pro is also posting like a dervish on his TXP thread as the share price is falling out of bed due to mixed signals coming from the management about their ability to produce what's been promised. |
Paul is working on a deal, which is imo why testing is still not starting.
Interested party can buy in now - pre testing at X price with some risk.
Interested party can buy in later - post testing at XXX price with no risk.
Paul will balance the sales price against the left over risk.......see if the bait catches the fish. |
Heavy seller finished? |
"badger6027 Sep '23 - 15:18 - 1129 of 1130
0 0 0
It's no wonder you call yourself ohdearohdear..............."
Quite right. Is there a reason you call yourself a badger? Is it because you have short legs and eat earthworms? |
The force is strong here.
Taken from the year end results 31 Dec 2022:
"Excluding share based payments for options and warrants corporate administrative expenses were GBP1,310,909 (GBP1,323,268 for the restated period to 31 December 2021)"
The Admin costs are quite stalemate £1,310,909 (per year).
Be careful. |
It's no wonder you call yourself ohdearohdear............... |
As it stands Paul has not updated shareholders as to the current situation in terms of what progress can or cannot been made in the light of the earthquake. The equipment hasn't yet arrived, so one has to assume that everything is at a stand still. |
Badger keep going now that you don't hold. No point reasoning with you.Let's see where we are in a months time |
It was 8.9 Mio net to the company, which is currently in limbo land due to the earthquake fallout. The last 6 month reporting shows a loss of circa 2.4 Mio quid, which will increase when the overhead gets ramped up .....that's if the equipment ever arrives. In the meantime, cash is being spent for no return. |
The 10 million should be in GBP not $ , |
The force is strong here.
Badger, you need to read note 3 in the interims:
Share based payments - options
£1,444,227 (this year)
£131,297 (last year)
It will explain the mainpart of the difference.
Be careful. |
Nametrade is right Badger about cash burn. The figures you are quoting are due to drilling well costs which are in the region of $2.5 million. Currently with $10 million just raised the company is fully funded for all tests, to be undertaken, to drill one more well ( Jurassic i guess) expenses for CNG development plan and working capital for a next one year. |
Badger...stalker (LOL) is inaccurate as two clicks and we can all see what you post on advfn. Very little, if any, of your post 1116 is accurate. Why the angry profanities?
I have a level of concern about you in the stock market. Degrade that as much as you want but just think about it. If you do not have a spreadsheet on projected numbers (especially fcf) on JSE then I am 100% right although I hope you do.
At all times though be happy. |
nametrade
Their cash burn is currently about 2.5 Mio quid in 6 months......dear boy.......read the RNS. |
Financial highlights:-- Loss from operations for the 6 months period is GBP2,361,721 ((GBP599,789 for the 6 months period ended 30 June 2022 ). |
Badger dear boy…
They have just done a raise and had funds of £8.9 million
Their cash burn is approx £300-400k a year
What next? |
Afraid it is not that simple being a significant shareholder himself. Think he kicked himself between the legs? |
Well the CEO in his last
Interviews was really selling
the company, obviously shortly
afterwards a placing resulting
in a 50% loss for holders!
It’s that simple!!
Why would you trust a CEO
Who kicks holders in the nuts
Then hides away!! |
When you are invested in JSE, who produced a gross loss and a placing after one hiccup, I understand why you think that way Badger (you predicted fundraises for OBD and MCM today too). That was very very poor resilience at JSE you must admit. Another term for that is very very high operational gearing.
Unlike JSE, PRD have a small malleable team with a low cash burn rate. This is low operational gearing.
Can you think of any other reasons why the management team are so quiet? |
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