Anadarko: Monetization Of Mozambique [View article]
The clearest "direct" play offshore to the North is Ophir (OPHR LN) which is the junior partner to BG Group offshore Tanzania - and who already has initial discoveries under its belt with BG.
Cove Energy's (CNVGF.PK) board will recommend shareholders accept an increased cash offer from Shell Exploration and Production (a subsidiary of RDS.A). Shell's sweetened offer of 220 pence/share values Cove at £1.12B ($1.8B). [View news story]
For more information on East African oil check out my article from yesterday (http://seekingalpha.co...) on what has been going on in Mozambique. The Shell bid at 220p per share for Cove, puts a valuation of $4.50/boe, which is a good price. Both Anadarko and ENI (next door block) are talking of farming down their interest in Area-1 and Area-4 offshore Mozambique: that's when real money is put on the table.
East Africa - The Next Great Game In Oil And Gas [View article]
This morning I see that Royal Dutch Shell have upped their bid for Cove Energy to 220p per share, matching the PTTEP offer: their offer is conditional on Govt approval etc. The deal values Cove at $1.8Bn, which implies a value of Anadarko's 36.5% working interest of $7.72Bn and equates to a very 'back of the envelope' $4.50 per boe (barrel of oil equivalent). At this stage in the game, that is probably a fair value. HOWEVER...as part of their acquisition the buyer also gets a working interest in five offshore blocks in Kenya; nice!
East Africa - The Next Great Game In Oil And Gas [View article]
Huge fan of Africa Oil - currently trying to find the Ngamia well on Google Earth! Hopefully have something up later this week. thanks for the support!
Anadarko's Aggressive Exploration Will Reward Investors [View article]
For what it's worth the water depth is around 2000' and the total well depth some 15000'. Gas found in Oligocene and Eocene sands. The payzone are very thick (one well seeing almost 660'), but more importantly the three wells in the next door block, drilled recently by ENI (E), show clear connectivity with these wells and that the pay-zones thicken as the field extends eastwards. Combining the two blocks would mean that the companies possibly have a top-5 gas field in global terms.
Market Still Not Appreciating Eni's Potential To Profit From Asian Natural Gas Demand Growth [View article]
I agree with you utterly: next week I will be posting a detailed analysis well by well, with some seismic data. What that shows is the continuity of the gas-bearing snads within the Anadarko (APC) block, and from the comments made by ENI (E) it is clear that these sands are the same in Area 4 - the ENI block. If one puts together the wells drilled to date and the guidance for recoverable gas, the combined fields are in the top twelve, globally. That is without taking any notion of a guess as to the outcome of ENI's current well, Mamba North. If Mamba North proves continuity (static pressure only, at this stage) then these two licence areas may well be sitting on a field the size of Gazprom's Schtokmann Field, ie top 5 globally. What doe the market say about it? Niente, nada, nothing!
This is why the blogosphere is a wonderful place: great article - I look forward to the next nine! It is hard to look forward when one is staring at the depths of a disaster, yet we all know (or at least us uber-optimistic value-nuts know) that one must, really must, hold one's breath and jump. Here in Europe corporate balance sheets are way better than sovereign balance sheets, and most CEO's and CFO's are way better than any of our politicians. So here's for the Corporate State, long may we be allowed to buy their paper and park our capital on their shores.
Galp: A Periphery-Impacted Growth Stock [View article]
Anadarko (APC) has extended its contract for the Belford Dolphin drillship for a full four years and has taken usage of a new-build drillship from Fred Olsen Energy. Both drillships are to be used off for further exploration off Mozambique. Sounds to me like Anadarko are proposing to drill far more than a half dozen wells, if they are wanting two full-time drillships off Mozambique.
Dolphin Drilling Ltd., a subsidiary of Fred. Olsen, has entered into contracts for the provision of the drillship Belford Dolphin (UDW drillship) and its newbuild drillship under construction by Hyundai Heavy Industries (HHI) with Anadarko Petroleum Corporation (APC). The contracts are each for four years and are expected to be in support of Anadarko's future long term drilling programmes offshore Mozambique. The Belford Dolphin contract will commence January 1, 2012 in direct continuation of its existing contract with APC which had previously been scheduled to continue to April 2013. The value for the Belford Dolphin contract is approximately $701 million. The four year term of the newbuild drillship contact will begin on commencement of operations offshore Mozambique expected in the fourth quarter 2013 following delivery by HHI and mobilization to Mozambique. The newbuild drillship contract value is approximately $727 million including a mobilization fee of $15 million. In connection with the newbuild contract it will be invested in a second BOP, estimated to USD 35 million. Source RIGZONE
European Banks: Too Big To Fail Redux [View article]
The Spanish banking landscape is about to change radically, should this Sunday's elections bring in a new centre-right technocratic party (and I hope to heck that it does). We have Santander (STD) currently negotiating the sale of a large portfolio of impaired real-estate assets at what is said to be a knock-down price of 30%: why now, why such a "low" price? Quite simply because they, and a handful of other sustainable Spanish banks are about to be handed the rest of the sector.
Whilst their is a studied silence on the matter, it seems increasingly probably that post the elections one of the first actions of the new Government will be to set up a "bad-bank" along the lines of the Irish NAMA (but learning from some of the Irish mistakes). That will basically mean that all of the dubious banks are cleansed once and for all. The we will see the emergence of not much more than five big banking group in Spain built up around Santander, BBVA, La Caixa and Bankia - the fifth being Barclays which is currently over-dressed at the executive level with the ex-CEO of Bankinter as Spanish CEO, and the ex-minister of the economy as senior board member.
This then changes the game and the outlook completely. It will bring visibility to the markets and transactions will return (at a far lower level) to the real estate market. It will also mean that after an initial period of digestion, that both Santander and BBVA can regain the blissful seat in most fund managers' portfolios as being core longs.
Galp: A Periphery-Impacted Growth Stock [View article]
An issue to note here is that ENI (E) is looking to sell its 33% stake basically because the controlling Portuguese Amorim family have blocked them from taking a majority stake in Galp. The Amorim family are tied in with the Angolan National Oil company, Sonongal. Obviously were the Chinese to buy the ENI stake they would essentially gain a working interest in excess of 50% in Galp's Brazilian assets.
Galp: A Periphery-Impacted Growth Stock [View article]
Correct, basically to the south of the Area 1 block. Interesting to note that Anadarko (APC) has recently announced that they are contracting a second drill ship into the area in 2012 and are looking to drill a dozen more well. Some analysts suggesting that the Rovuma Basin could be as prolific as GoM for gas. Suspect that the oil story will be a minor part of the overall value though.
Galp: A Periphery-Impacted Growth Stock [View article]
hello! as I said, I think you will find that Galp gave entry to Sinopec into the Brazilian assets via a capital increase giving Sinopec 30% - meaning Galp retain 70% of all the Brazilian assets. 8% fall is your opportunity!
Italian PM Silvio Berlusconi has arrived at Quirinale Palace to present his resignation to President Napolitano. Live feed of the celebration outside here. The president is expected to appoint technocrat Mario Monti as the next PM. [View news story]
I seem to recall that in the year after Nero "left office", Rome enjoyed no less than four Emperors. This isn't over.
Anadarko: Monetization Of Mozambique [View article]
Cove Energy's (CNVGF.PK) board will recommend shareholders accept an increased cash offer from Shell Exploration and Production (a subsidiary of RDS.A). Shell's sweetened offer of 220 pence/share values Cove at £1.12B ($1.8B). [View news story]
East Africa - The Next Great Game In Oil And Gas [View article]
HOWEVER...as part of their acquisition the buyer also gets a working interest in five offshore blocks in Kenya; nice!
East Africa - The Next Great Game In Oil And Gas [View article]
Anadarko's Aggressive Exploration Will Reward Investors [View article]
Market Still Not Appreciating Eni's Potential To Profit From Asian Natural Gas Demand Growth [View article]
The Coming Decade Of Stocks [View article]
Galp: A Periphery-Impacted Growth Stock [View article]
Dolphin Drilling Ltd., a subsidiary of Fred. Olsen, has entered into contracts for the provision of the drillship Belford Dolphin (UDW drillship) and its newbuild drillship under construction by Hyundai Heavy Industries (HHI) with Anadarko Petroleum Corporation (APC). The contracts are each for four years and are expected to be in support of Anadarko's future long term drilling programmes offshore Mozambique.
The Belford Dolphin contract will commence January 1, 2012 in direct continuation of its existing contract with APC which had previously been scheduled to continue to April 2013. The value for the Belford Dolphin contract is approximately $701 million.
The four year term of the newbuild drillship contact will begin on commencement of operations offshore Mozambique expected in the fourth quarter 2013 following delivery by HHI and mobilization to Mozambique. The newbuild drillship contract value is approximately $727 million including a mobilization fee of $15 million. In connection with the newbuild contract it will be invested in a second BOP, estimated to USD 35 million. Source RIGZONE
European Banks: Too Big To Fail Redux [View article]
Whilst their is a studied silence on the matter, it seems increasingly probably that post the elections one of the first actions of the new Government will be to set up a "bad-bank" along the lines of the Irish NAMA (but learning from some of the Irish mistakes). That will basically mean that all of the dubious banks are cleansed once and for all. The we will see the emergence of not much more than five big banking group in Spain built up around Santander, BBVA, La Caixa and Bankia - the fifth being Barclays which is currently over-dressed at the executive level with the ex-CEO of Bankinter as Spanish CEO, and the ex-minister of the economy as senior board member.
This then changes the game and the outlook completely. It will bring visibility to the markets and transactions will return (at a far lower level) to the real estate market. It will also mean that after an initial period of digestion, that both Santander and BBVA can regain the blissful seat in most fund managers' portfolios as being core longs.
Galp: A Periphery-Impacted Growth Stock [View article]
Galp: A Periphery-Impacted Growth Stock [View article]
Galp: A Periphery-Impacted Growth Stock [View article]
Italian PM Silvio Berlusconi has arrived at Quirinale Palace to present his resignation to President Napolitano. Live feed of the celebration outside here. The president is expected to appoint technocrat Mario Monti as the next PM. [View news story]