Chevron are not committed to drilling a well here. The committed costs are the 12.5 plus up to 15 on behalf of CEG for the 3D seismic, so up to 27.5 bucks to CEGs benefit. If seismic costs go above that CEG will have to start paying.If Chevron do opt to drill a well the partial carry is capped at 20 to CEGs benefit. Above that & CEG will have to start paying its share of drilling. |
Am I correct in thinking that deal closes before the end of year? |
 In terms of a possible cash element Chevron appears to be paying $67.5m here at this stage so how does this deal ie our 12,000 km2 Block 2A look in a world hot spot compare to Challengers 14,500 km2 offshore Area 1 block Uraguay in similar water depths with the Transaction completed today and a similar $40m minimum well cost.
We are already 50% covered by 3D ie some 6,000+ km2 3D worth well over $20m and drill ready for 1 major prospect minimum. Challenger isn't - their farmout is just progressing to 3D and not drill ready.
We have 1.7 - 3.7 billion boe in Kertang alone with numerous follow on prospects. Challenger/Chevron has 2 billion boe across 3 prospects.
Challenger are picking up $12.5m cash for the farmout. Bear in mind Chevron have to acquire firstly about $35m gross of 3D seismic.
The primary terms of the Transaction are:
· Chevron will acquire a 60% participating interest in the AREA OFF-1 block, and will assume operatorship of the block.
· CEG Uruguay will retain a 40% non-operating interest in the block.
· Chevron will pay to CEG US$12.5 million cash on completion of the Transaction, these funds will be used to support the further development of the Company's business (Completed today 29/10/24).
· Chevron will carry 100% of CEG Uruguay's share of the costs associated with a 3D seismic campaign on AREA OFF-1, up to a maximum of US$15 million net to CEG Uruguay.
· Following the 3D seismic campaign, should Chevron decide to drill an initial exploration well on the AREA-OFF 1 block, Chevron will carry 50% of CEG Uruguay's share of costs associated with that well, up to a maximum of US$20 million net to CEG Uruguay.
In basic terms Chevron pay $15m for seismic which would have been Challengers (40%) share meaning the 3D cost is actually a lot more - $35m+ immo - (we already have over 6000 km2 and drill ready.
So Chevrons immediate seismic cost is at least $35m. Paying $12.5m cash to Challenger and $20m for half the well cost. In total the farmout deal is costing at least $67.5m to chevron.
We hope to be fully carried for the well and some cash so i think the above considering all the associated costs bodes well for a good deal considering it's a world hot spot, nearby infrastructure, ready market, intense industry interest with majors in nearby blocks and the fact that we'd been approached from the outset. |
Great time to accumulate with partnering not too far away.Cash |
Not as much posting now so i think a lot of very short term and momentum traders will have moved on.
Following on from the excellent upstream article it reiterates as we know and what we've been told re more opportunities in the pipeline.
MBR anytime now.
While we only saw/heard word on a DRO mid year but not the actual named DRO. We were able to find out a lot earlier by looking at the Companies house website showing the new registered subsidiary in the name of the DRO/Asset ie DEWA as early as late March last year - worth keeping an eye out on sources other than from the company as i'd expect similar ahead.
These other growth avenues are going to be a significant driver of value due to the still very low m/cap in the scheme of things.
With the low float, too risky imo and for my own strategy to sell and try and buy back in, as someone else might have snapped up your stock you hope to get back.
Plenty of newsflow to come and worth bearing in mind their recent statement last month we were told of 'Multiple, near term catalysts ahead' in terms of value. |
Get what you pay for in life.Worth every penny for upfront news imhho. |
Yes its a bit pricey ! |
With current and expected news flow share price cannot stay at these levels for long. |
With the ink barely dry on its latest production sharing contract in Malaysia, UK independent Seascape Energy already has its sights on other upstream opportunities in the country and within Southeast Asia.
Seascape executive chairman, James Menzies, compared the vibrancy and welcoming investment climate of Malaysia's E&P scene with that of the UK today.
'There are plenty of opportunities ..we are being approached by Petronas ...they want us to come and evaluate opportunities that they have' |
Profit taking is very healthy for any stock when it's bagged a couple of times. |
Market makers having a fun day. A little profit taking before the next hike up.Finish 40p+👍 |
It helps to see the trades going through... |
Even if it does, they will do it post farmout which is going to happen this year. I am not averse to them doing a raise if it progresses things faster, that is really the entire point of the stock market. |
If they want to.raise a small amount of GBP3 to 5 million let them go ahead but imo will not happen. |
I did listen, yes. I heard "minimise and hopefully eliminate" dilution a couple of times. I certainly didn't hear it being ruled out. |
They could probably place 25m shares at close to 40p now Never say never That would be a positive of course |
No Sludgesurfer, no opportunic raises here - did you not watch last weeks presentation? |
It seems likely to me that they'll raise some cash off the back of this bounce. We're going into November and they'll run out of cash in Q1 '25. Whilst a farm down/out might result in some upfront cash, with cash running out in a few months it's not the strongest negotiating stance. |
Moves fast both ways this one! |
Should be double that before the 2A farm out imo.Too cheap at GBP 21 Million market cap |
Hold on tight. |
57.1 million shares in issue, so valuation here still only £21.3m. Very cheap. |
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