Is permeating from the CC this morning…
Some of the highlights so far (we’ll provide more later, we’re a bit pressed for time)
- Good quarter, cash profits exceeding cash requirements
- Mulaceck aruges that they will close out Elk/Antelope transactions by year-end
- The second horizontal at Antelope2 is set up as a production well (hence some delay, as Government approval and special equipment are necessary).
- After finishing there, the old rig will move to Antelope3 and the new rig will also move to Antelope. After the old rig has drilled Antelope3, it will move to exploration, probably Bwata where a promising structure has been located in seismics that would, if played out, significantly increase the resource.
- Another target is Wolverine with two possible reefs. The seismics done in conjunction with LNG Energy has revealed a deeper structure, below the existing one
- It did strike us as if they’re already making plans with the (yet undisclosed) strategic partner, as it supposedly indicated no more exploration is necessary
- The $25M bridge loan is for accelerated drilling (as they cannot use the BNP credit facility for that)
- The cash-flow from the CSP can cover 100% of the equity of the LNG plant (IOC’s stake after sell down)
- The floating LNG (FLNG) is a serious option, it accelerates cash-flow and the only capital requirements are the pipeline and the marine jetty
- Tom’s explanation of the bridgeloan