Roxi Petroleum Share Discussion Threads

[hashertu] 24/3/2017 15:44

Little bit of feedback from the EGM.

808 (BNG shallow well) is 50m from TD. It is targetting a structure other than the MJF horizon (which it hasn't passed through). If successful, this is a new resource.

A5. Sidetrack drill start imminent.

A6. When revisited, an interval above 4450m will be perforated by Schlumberger.
At a later date, the original (unnamed, but one of the big three who is not Schlumberger) contractor will return to re-perforate the 54m below 4450m. (CC confirmed that it was in this order).

801. Still getting chemical flushes from time to time.

Munailly. 4 wells re-entered. Result not disclosed. (I don't think CC knows either). Chinese contractor in hibernation for winter.

Revamped website available next week. Not only for name change but to refresh format and bring content up to date.

CC booked to do a number of corporate presentations to II in near future. Said it was not specifically for fund raising now, but more to sow seeds and raise awareness.

KO not at meeting, but on site.
KS in Almaty.

[xclusive2] 24/3/2017 14:42

Jay,

Little flaw in the logic there as they have to reach their 700mb P2 target by June 2018. They also have to play the game with the Kazakhs as it's in their interest to buy oil at domestic prices and there'll be plenty of politics surrounding that. CASP will satisfy the Kazakh merger admin requirements and crack on and any loss of revenues from domestic to export are insignificant in short term. All about proving up the P2 and the quicker they do it the better. They will need funds to deliver the P2 so it can't be too far away.

2 bags from here within 2 months.

Smarty

[timberwolf3] 24/3/2017 14:05

The name of this thread is going to need changing or do we start another ?

[jayrh] 24/3/2017 13:27

Konil it will be they will get a deep up and running they are playing the smart game ffd next year so they can sell oil on international markets. By delaying the deeps they don't have to sell at domestic prices for long...

[bullinachinashop3] 24/3/2017 13:17

all resolutions passed, CASP on the 28th...gla

[konil] 24/3/2017 13:01

smarty, as long as they maintain a listing, stock is available to everyone, but i agree there are no absolute guarantees.

jayrh, imo they have run out of cash for remedial works to get the 3 deeps to production status. the shallow revenue is spent on g&a and shallow ops. so i reckon they need a big slug of cash to meaningfully re-start deep ops. if they have a successful deep already (possible news this qtr as mentioned by carver in march interview) then its a different ball game.

[jayrh] 24/3/2017 12:51

Kenil that funding will come from the 3 deeps and shallows.

[xclusive2] 24/3/2017 11:51

K,

They won't but they could if they wanted too.I was invested in a Gold Miner GGG,the Chinese took out the key players and the institutions went along for the ride, PI's shafted. Even with large institutional shareholders involved in organisations, you can't guarantee that you won't get shafted.

Funding will get sorted, the question will be, how much dilution as there will be some. The immediate priority is to get share price up and that has to happen post Merger agreement.

Smarty

[konil] 24/3/2017 11:25

unfortunately i haven't seen anything in any resolutions or toc or t&c's or undertakings that prevent it being taken private.

they need serious funding to continue to develop bng and will want full access to all funding avenues and for that reason will not take it private, but that's just my guess.

[xclusive2] 24/3/2017 11:05

Well, we can't make a difference as the control is with the Kazakhs. The share ownership landscape has to change to attract the right investment as nobody will play with a risk of this being taken private.Let's hope no shenanigans and next 2 months is going to bring great news. Caspian Sunrise, new beginnings and the ducks are definitely being lined up, if not then our Carver will look VERY silly.Smarty

[steveh8] 24/3/2017 10:22

Don't think anyone is going smarty the question was asked over on LSE too and no response

[xclusive2] 24/3/2017 08:20

Hoping that somebody is going for a quick cuppa and a piece of Victoria.The merger cleans things up and enables them to raise funds more easily. The enlarged group at circa $200m will hopefully make it easier to attract institutional interest. Some positive operational need would help that cause !Company now debt free, goodbye Roxy, hello Casper .Smarty

[xclusive2] 23/3/2017 23:17

News tomorrow am pre meeting ? Anybody going ?

[ngms27] 23/3/2017 16:06

I'm not Mr Burrows

[ngms27] 23/3/2017 13:15

At least I support the original magpies. Nolan and Ameobe doing great for us at present.

[konil] 22/3/2017 14:13

re. cash, $100m is doable i reckon but roxi dont need $100m up front, $20m or $30m or even $10m would be more than enough to kick start remedial works at one or more of the 3 deeps and start a new deep drill.
as to who would lend, cash has been the problem since the credit crunch started 10 years ago, but with shallow revenues at c.$20m p.a. for next 29 years from licence renewal in june 2018 (why do you assume they will lose the licence, they already have ongoing production), with perhaps more to come from imminent increased shallow production, i reckon they should be able to find a lender.

re. deep ops, yes that's been a disaster but may be about to come good if carver is to be believed - he is expecting to report at least 1 deep success in this qtr (march interview).
and who knows, if they get a good funding deal, maybe they will take your advice and get schlum or halli to replace current crew.

[ngms27] 22/3/2017 13:12

What they have needed to do for the past two years is kick the Chinese off the acreage and get Schlumberger or Halliburton to do the deeps. It would be a completely different outcome to now.

[ngms27] 22/3/2017 13:10

Whose going to lend $100m given the current cash flow and loss of exploration acreage in 2018?

Answer no one.

[konil] 22/3/2017 12:03

'institutional investment' could mean placing. i dont like this because its dilutive.

but if i read carver's intentions correctly he wanted to awaken 'institutional interest' and this may just mean that they have to buy the shares in the market, which is much better for shareholders. of course that would not raise finance for the company.

i was not suggesting the shallow revenues will pay for deep ops, but it will pay for significant debt interest, which could allow roxi to raise perhaps $100m, or even more depending on terms, through debt alone. this would lead to zero dilution and provide plenty of cash for deep ops.

[xclusive2] 22/3/2017 11:12

K,

Agree re BOCO deal and they will be pushing for the least dilutive option. They're currently forward selling oil so as production increases so does the revenue but i suspect they'll be on a go slow til full production license agreed and these revenues won't fund deep ops. Mixture of debt and maybe a Placing but that would be done at a far higher sp, maybe with a Rights attached. They will have options if news is good and institutional investment smacks of a Placing to me.

Smarty

[konil] 22/3/2017 09:51

i would rather not see a boco type funding, that entailed issuing further shares.

imo if they can secure substantial debt financing, perhaps a revolver, then that would minimise dilution.

of course with debt comes the need to service the debt but roxi will be more or less quadrupling its income stream from c.$5m to C.$20m on existing shallow production alone, when it goes export next june, so significant debt would be serviceable on current production alone.

and if carver's bullishness on the shallow campaign comes to reality, there will be significant more shallow production in the short term.

deeps are another matter - roxi have much to prove in that regard - and their failure to get any to production so far must be the main cause of the sickly share price any success there and boom!

[xclusive2] 22/3/2017 08:49

People are talking about dilution on other BB's caused by merger, not understanding that CASP will be the whole entity as opposed to 54% !!The current crude cost is $51 and we're getting paid at domestic levels.if we get lucky and deliver success as per my last post, CASP could be upto 10000+ bopd if deeps come in. Doesn't take a rocket scientist to work out the revenue generation at export prices and this company is transformed out of sight. P2 numbers will be increasing, they'll be able to fund more seismic, buy more acreage and the story will develop.Blue sky ? all doable imo.S

[xclusive2] 22/3/2017 00:22

Let's hope so Buzz.http://www.energy-pedia.com/news/kazakhstan/new-163777Remember the BOCO subscription agreement in 2015 that didn't get off the ground. I suspect if they could pull off that deal then they'll be able to do something similar if story is compelling enough.