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Coro/Ophir, Savannah, Amerisur, Genel, Aminex

10:31, 21st March 2019
Malcys Blog
Malcy's Blog
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Coro FOLLOW/OphirFOLLOW

You get one bid for Ophir and three come along (albeit I am aware that the last two were ‘indications ‘ ) rather proving that there was more interest in the company that even its own board had imagined. Warm on the heels of the Soco interest we now find out that Coro also approached the Ophir board and got the same answer although at least Coro managed to get the Medco bid increased so must have had some respect. Indeed, any company headed by James Menzies bidding for those assets should have been given utmost gravitas. This was all about getting the necessary firepower together on the debt front and it is huge credit to JM that Coro did and from a tier 1 bank who backed Coro for this audicious attempt.

This proves, if any were needed that Coro has big plans and is only at the start of its journey in the sector, clearly it is aiming for bigger deals and if I was a shareholder I would be with them all the way. This was a demonstration of intent to investors and industry counter parties alike and this ballsy, ambitious move is a clear message being sent.

Savannah PetroleumFOLLOW

Savannah announced yesterday that it had submitted the feasibility study for the EPS and development proposals on the R3 east portion of the R3/R4 PSC area of the ARB in South East Niger. The company have detailed plans to develop the resources identified in the successful 5/5 2018 drilling campaign based around the Amdigh field. Oil will be sold to the SOraz refinery, initially by truck and the Agadem-Zinder pipeline but with a pipe link to be built shortly, initially 1/- b/d rising to 5/- b/d on ramp up. This is the long awaited good news we have been waiting for from Niger and investors will be pleased to see monetisation of the reserves, potentially with a good deal more.

Amerisur ResourcesFOLLOW

AMER yesterday announced that it had exercised its right to first refusal on the Vestra sale of PUT-8 acreage to Gran Tierra Energy at a cost of $19.1m. The amount is easily funded from cash reserves built up in the last couple of years for just such an opportunity. Commitment is 3D seismic and a well when permission allows but much more importantly AMER get to put more oil down the OBA pipeline at financially beneficial economics. With the result from CPI-5 imminent and the Occidental deal bedding in I can think of few better investments in the sector.

Genel EnergyFOLLOW

I wrote about Genel on the hoof yesterday and was surprised to see that selling had pushed the price down. Genel is in an extremely strong position which can be seen by the enormous cash build in the last 18 months. This has enabled the company to become properly cash positive, make the Chevron deal which brings substantial potential for the future, be in discussions with the KRG about Bina Bawi gas, oil and importantly midstream and initiated a maiden dividend policy. At 215p and this sort of outlook it is without doubt an obvious buy especially as it will soon carry a yield into the bargain.

AminexFOLLOW

Aminex has announced an extension to the long stop date to 31st July 2019. Although this may disappoint shareholders good albeit slow progress is being made and the company is at last in active negotiations with the Tanzanian Government. For my sins I am hanging on in there for this deal and would consider now as probably not the time to call it a day.

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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