TLOU – Botswana – Coal Bed Methane (CBM) – Gas to Power

What’s all the fuss about? Well TLOU Energy is an interesting company for sure. With a seemingly highly professional approach to business and very good PI communication skills, it has some solid entrepreneurs on the board with ‘form’ for returning large capital growth to shareholders. e.g Tony Gilby, and a member of the board who has a solid reputation within the highest ministerial circles in Botswana. TLOU also has solid deals with IPC (the UK’s leading power developer)  to work on the Botswana CBM RFP for a gas fired energy plant – see here. There is also a investment company called Quantum in the frame ($3.7bn infrastructure fund).

TLOU has received a Request for a Proposal (RFP) to supply up to 100MW of energy capacity within Botswana. There is one other competitor who has been offered the opportunity of bidding for 50Mw. 100Mw in total. If you DYOR – and I mean solid serious research and not cursory research – on the competitor you might conclude that it’s not a 50:50 bet. My money is on TLOU.

An interesting parliamentary statement in 2014 sets out the issue – here .  Basically – there is a chronic shortage of energy. The country is using expensive imported diesel to power electricity energy plants, and  yet cleaner Botswana gas is available – CBM. The Botswana government is now seeking CBM as the energy to resolve the energy shortfall. Expertise lies within several companies – TLOU is one of them.

Various audio recordings can be found here. The latest presentation can be found here.

I continue to accumulate.

 

SDX Energy – Circle Oil

Well, it looks like SDX Energy are going to get some additional acreage in Egypt, and new acreage in Morocco as shown below. It gets my vote for sure :-).

I also noticed Malcy mentioning that SDX Energy would be on this years bucket list – always a good sign – but missed so far by the market – even better for now as I accumulate.

“As this moment in time I would give the benefit of the doubt to SDX, a company that is very much on the short list for the new bucket list.” Malcy

The statement below was likely in response to Broker Man Dan’s comments on a potential placing – which scared the market, but has since recovered – another good sign.

SDX ENERGY INC

(“SDX” or the “Company”)

 

STATEMENT REGARDNG MEDIA SPECULATION

London – 11 January, 2017 – SDX notes the recent media speculation concerning a potential acquisition and material equity fundraising.

In line with its stated strategy of seeking value accretive opportunities to expand the asset base in the North Africa region, SDX is pleased to confirm that it has entered into non-binding heads of terms (“HoT”) with Circle Oil plc (“Circle Oil”) for the acquisition of Circle Oil’s Egyptian and Moroccan businesses (the “Acquisition”).  The HoT has a 30 day exclusivity period.

The Acquisition is subject, inter alia, to the completion of due diligence, documentation, compliance with all regulatory requirements and conclusion of an equity fundraising.  There can be no guarantee that the Acquisition or equity fundraising will proceed.

As previously announced, SDX is entering an exciting period for the Company as it moves into the drilling phase of the work programme at South Disouq in early 2017.  In addition, the well workover program at North West Gemsa continues, as does the redevelopment, waterflood program and facility capacity upgrade at Meseda. 

 

Further announcements will be made in due course as and when appropriate.

Commenting, Paul Welch, CEO, said:

“We have made clear our firm intentions to create shareholder value by growing SDX into a profitable mid-tier E&P company.   Circle’s assets present an attractive opportunity to add material production and reserves at an attractive price.  However, there is no certainty that this deal will be completed.  We remain excited about the near term activities from our existing portfolio, including the near term South Disouq exploration well, and look forward to keeping our shareholders appraised of all developments.”

Chariot – Latest Interims & Presentation

A very good set of interim results was accompanied by a very interesting September presentation that bodes well for Morocco and Namibia. There are some elephant sized opportunities in Chariot’s acreage for sure.

The market seems to like what it is seeing.

 

 

Senegal – Mauritania – why does it matter?

I have been asked several times why I care about the worlds largest most recent Senegal oil discovery, or Kosmos world beating Gas discovery in Mauritania.

Ignore country boundaries – it’s rocks that matter! And Chariots acreage is ‘oily’!

From Cairn’s recent 1015 Annual report.

Helios Chariot - Cairn Energy Report - 2015

Wooside are looking for acquisitions

Woodside Petroleum (Chariot’s Morocco Partner)  has turned its back on large-scale corporate M&A but will hunt out smaller acquisitions of undeveloped fields as it builds up a bank of resources to drive future growth.

Chief executive Peter Coleman told an investor briefing on Friday that Woodside would focus on acquisitions worth less than $US1 billion.

 

Senegal – Woodside – Buys into Acreage owned by Impact oil and Gas

Woodside Petroleum, Chariot’s Moroccan partner along with ENI,  has further expanded its exploration acreage in Africa with the acquisition of interests in waters off Senegal and Guinea-Bissau, signalling it is very much still in the market for smaller asset deals even as it turns its back on larger corporate …  “This builds on recent acquisitions in Cameroon, Gabon and Morocco [with Chariot ] and reflects our disciplined and strategic approach to studying regional petroleum systems,” … “the company would continue to seek exploration and deepwater petroleum assets that could come onto the market amid the slump in oil prices, but signalled a cooling toward larger corporate deals because of the uncertainty in the market outlook”

Cairn, FAR, Conoco – another home run in Senegal – 100% success rate

Just like Kosmos, the Cairn, FAR, Conoco partnership in Senegal has once again had success with the SNE-4 drill – A 100% Success rate! Add this to the 100%  Kosmos /Chevron success and it would appear that Mauritania/Senegal is about to become a highly commercial and prolific Oil and Gas producer. Chariot’s Mauritania acreage is in the oilier North so I am particularly looking forward to the farm-out. Cairn farmed into the Mauritania acreage for $26 million   in 2013 with a subsequent  license extension  which allowed for further analysis such as seabed coring (always a good sign) which has now completed. It’s time to get the statisticians on the case ….. but the chances for Chariot’s Mauritania acreage to hold oil which sits in the same oil fairway, further North, surrounded by oil shows, and ‘oilier’ look very promising indeed. Kosmos have stated they are heading into their Northern Mauritania acreage where they believe the chances of finding oil are much higher.  We are elephant hunting!Helios Chariot - Mauritania - May 2016 - 2

Helios Chariot - Mauritania - May 2016

Helios Chariot - Probability of Successive Oil Well Exploration Success

 

Kosmos – Oil exploration Success – again

Kosmos has announced that the Teranga-1 exploration well offshore Senegal has made a significant gas discovery. 5 wells out of 5 across Senegal and Mauritania. A 100% success rate. Work out the chances of that! Then consider that once the key is unlocked what that means for other acreage holders.

Kosmos are now planning further drills in the oiler Northern part of the oil and gas fairway which happens to be in Mauritania and nearer Chariots oilier acreage 🙂

AIM of course seems to forget these successes quite quickly. Meanwhile I continue to accumulate as no doubt do several other large shareholders.  Keep giving your shares away for way below their worth if you want… !

See you on the other side of the AIM casino 🙂

 

Chariot - Mauritania - Oil Map