Regarding the $13.15 million loanto COI from Santos that was used by COI to acquire Australia Pacific LNG PtyLtd.’s (APLNG) 30% interest in the Mahalo Gas Project.
As I read things - Santos has asix-month option to acquire an additional 12.86% interest in Mahalo from COI atthe proportional acquisition value which from my reckoning has to be ‘done anddusted’ by the end of this year. Should this option be exercised - COI’sinterest in Mahalo will drop to 57.14% and the loan repayable to Santos will decreaseproportionally. At that point Santos will move up to a 42.86% interest inMahalo – leaving COI with 57.14% but still there will be an $8 million loanoutstanding to Santos.
Santos also has the right to buy50% of the other COI 100% owned Mahalo Blocks and equalise its stake in themain Mahalo Hub by a further 7.14% -- BUT as I understand it – so the good news– at a price to be hammered-out between both parties.
Here’s the downside – COI owesSantos £13.15 million and COI has limited fund availability.
However - as suggested in aprevious post – I’m as certain as I can be that our management team are workinghard to attract an alternative farm-in partner who has the funds and experienceto fast-track Mahalo North to development.
Here’s the upside - Mahalo Northlooks as if it is the most productive pilot production well ever sunk inQueensland now producing over 1.7 MMcfd - so anyone farming-in to Mahalo Northcould potentially fast track Mahalo North to production which in turn couldeasily bleed the gas from the Main Mahalo Block to Mahalo North.
Thus Santos has a dilemma – whatdo they do? Wait on the side-lines hoping that COI will run out of money - or –make a move now to either buy into all the Mahalo Blocks on a 50% basis at aprice to be agreed (other than the 12.86% pro-rata rate in the main MahaloBlock) – alternatively make a move to buy out COI in entirety?
One thing we do know is that gasis in short supply – not just in Australia but throughout the world and thesituation is not going to improve – so I would have thought that there must becandidates other than Santos who would love to jump into the frame on aJV/Farm-in basis to snaffle 50% of Mahalo North which has the highest everproducing pilot production well in Queensland. Likewise - those same guys mightalso be in the frame to buy COI out in entirety.
Let the games commence.
Good luck all…
- Forums
- ASX - By Stock
- Ann: Mahalo North pilot gas production exceeds 1.7 MMcfd
Regarding the $13.15 million loanto COI from Santos that was...
-
-
- There are more pages in this discussion • 16 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add COI (ASX) to my watchlist
(20min delay)
|
|||||
Last
17.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $188.3M |
Open | High | Low | Value | Volume |
16.5¢ | 17.0¢ | 16.5¢ | $76.57K | 453.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 88307 | 16.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
17.0¢ | 691952 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 88307 | 0.165 |
3 | 63500 | 0.160 |
4 | 212903 | 0.155 |
7 | 496951 | 0.150 |
3 | 110339 | 0.145 |
Price($) | Vol. | No. |
---|---|---|
0.170 | 15729 | 2 |
0.175 | 906380 | 5 |
0.180 | 70000 | 1 |
0.185 | 240000 | 4 |
0.190 | 249480 | 2 |
Last trade - 16.10pm 18/09/2024 (20 minute delay) ? |
Featured News
COI (ASX) Chart |