Spotted this earlier when it flashed on my screen:
http://online.wsj.com/article/BT-CO-20091202-704222.html
Only according to "sources" as I mentioned in Alphaville.
D
OT - slightly annoyed as Ive been trying to buy DPL for the compo in my "fund" but orders are not being dealt..
I see the DPL price has dropped 20-25% this week - could it be that Mgmt are doing the rounds for a placing to meet their capex requirements ?
In reply to StrollingMolby (post #13)
I mentioned on the HOIL board yesterday that hearsay from somebody who knows, suggested the Lake Albert saga was muddying the waters for DPL. I took this to mean, rightly or wrongly, that Exxon/Total interest is dependent on securing a stake in the Lake Albert licences. The desired outcome for them has looked decidedly uncertain over the last few days, hence pressure on Dominion's sp, imo. If Tullow win the day, and my interpretation is correct, then a bounce will be due. If not, then I've got it wrong ;-)
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Another possible farm in partner ?.
http://uk.reuters.com/article/oilRpt/idUKLDE61708820100208
A delegation from the company led by Vice President for Business Development, Andrei Sapozhnikov, met Uganda's President Yoweri Museveni on Friday to discuss their plans, the statement said.
"Sapozhnikov expressed interest in the oil exploration, refinery and the training of local manpower to facilitate the development of the sector," the statement said without giving any indication of how much LUKOIL was looking to invest.
On top of share price weakness due to an anticipated placing, rumours abound on the financial strength of BlueGold Capital Limited, who provided $10m of financing last August for a 20% stake in DPL.
From Alphaville:
RTRS-HEDGE FUND BLUE GOLD DENIES IT WAS RESPONSIBLE FOR VOLATILITY IN CRUDE OIL PRICES IN LAST FEW DAYS
some more details coming through from Reuters suggest traders attributed WTI’s 5 per cent sell-off on Thursday to hefty liquidations by the commodity hedge fund.
So is this an example of some delta hedging gone wrong for BlueGold?
FWIW - bit of sloppy journalism but no smoke ... ?
http://business.timesonline.co.uk/tol/business/markets/article7022626.ece
Rumour of the day
Dominion Petroleum shares were chased 1¼p higher to 5.125p amid whispers that the energy minnow had caught the eye of a big player in the sector. Dominion looks for oil and gas in Central and East Africa. The names in frame were Tullow Oil, which owns assets in Uganda, ExxonMobil, of the United States, and Total, of France.
Also, DPL have cancelled their participation in the next Oilbarrel Conference (18 Feb) - delaying it until March. Does this imply that something is cooking...?
In reply to AbAngus (post #18)
Also, DPL have cancelled their participation in the next Oilbarrel Conference (18 Feb) - delaying it until March. Does this imply that something is cooking...?
That is a very good spot - and a very good point, IMO.
It seems highly likely to me (just based on that change, coupled with the rumour yesterday) that something is indeed "cooking" - and may come to the boil in late February?.....FWIW
FWIW, Poo Bear posted this on ADVFN a couple of days ago:
poo bear - 9 Feb'10 - 06:45 - 1005 of 1051
Posted on iii, looks authentic.
".......Finally got an email response this morning.
Here is the email I sent:
Hi.
I am a shareholder in Dominion and I notice from your half yearly report in September that you are planning to drill ‘early’ in 2010. However things are very quiet on the news front. Can you confirm that this is still the case for Dominion?
Many thanks
*****
---------------------------------------------------
and the reply (nice man called Rob Shepherd)...
Hi ***,
Sorry for the delay in coming back to you – we’re still planning, subject to contracting a rig and securing funding, to drill during the first half of this year in Uganda. We’re well aware we’ve been very quiet in recent months but rest assured there’s lots going on and as soon as we’re able to say more publicly, we will.
Regards,
Rob
That sounds like a genuine Rob (The Lipstick) comment to me. Not much he COULD say, of course, and I wouldn't want to try to read much more into it than it actually says, except that to note that 'securing funding' could, presumably, come either in the form of a placing (I hope not !) or a farm-out.
If I recall correctly, over a dozen companies have been into TLW's data room - so many more than the big names that have been identified in current Ugandan discussions. Surely some of those who have decided, for whatever reason, not to try to proceed or who have been ruled out of the running must have been taking a look at DPL.
IF a farm-in agreement is under discussion (perhaps with more than one potential partner?), it'll be interesting to see what size of company is involved. I wonder what DPL want? A big player, to whom they then play nothing more than second (or tenth) fiddle, or someone smaller, who might allow DPL to play some kind of role in future operations beyond being merely a remora?
http://en.wikipedia.org/wiki/Remora
A remora (pronounced /?r?m?r?/), sometimes called a suckerfish or sharksucker, is an elongated, brown fish in the order Perciformes and family Echeneidae.[1][2][3] They grow to 30–90 centimetres long (1–3 ft), and their distinctive first dorsal fin takes the form of a modified oval sucker-like organ with slat-like structures that open and close to create suction and take a firm hold against the skin of larger marine animals.
Man Siarad
PS: Yes, Rob: this is an invitation for you to contribute here from time to time, if you so wish!
Some talk on FT Alphaville this morning of Tanzanian disposal.
E
What's that Dominion Resources thing you were talking about yesterday?
NH
the new Heritage Oil you mean?
BE
Is that a good or a bad thing?
NH
in the case good
NH
the chairman is not a mercenary
BE
Well, that's a plus.
NH
quite a few people excited by this little thing
NH
basically it is a Ugandian play
NH
or it will be once it has exited Tanzania, which is on the cards in the next few days
NH
apparently they are drilling to the South of Tullow
NH
in the Rift basin
NH
so some people hope the structure will extend
NH
but this area has never been drilled before so it pretty RAW
NH
anyway, the company is trying to raise some cash at the moment
NH
Mirabaud and Canaccard have been sounding out investors
NH
don't know who much they are looking to raise
NH
although it will be more than £10m they got from BlueGold last year
BE
Aha - Bluegold
BE
"troubled," I think is the term we use
NH
EmoticonEmoticon
BE
Anyway, Dominion's down 0.3p at 6p in the middle right now
BE
And people familiar were very keen to stress last night that Bluegold is in for the long term.
BE
Core investment, etc etc etc.
In reply to ManSiarad (post #20)
'securing funding' could, presumably, come either in the form of a placing (I hope not !) or a farm-out...........it'll be interesting to see what size of company is involved. I wonder what DPL want?
No doubt they'd prefer a fully carried farmout but from what I've heard, they're looking for a partner who'll bring more than just finance...interpret that how you will! Can't see that being technical ability?! As to the process being slow, this appears to have been influenced by the Lake Albert goings-on. One advantage DPL do have of course is that Block 5 was the last licence to be issued under the old, fairly friendly legislation. Any future licence rounds are certain to bear harsher terms. So, if they do resort to a relatively lumpy placing, I think we can take it they'll be disappointed not to have attracted anyone on decent terms. I suppose we couldn't rule out a bit of both though.
One off the wall thought. I wonder if HOIL might be tempted to take DPL out? They'll have over $1bn cash after paying the special divi and said they'd be interested in acquistions, although they did refer to producing assets. Not quite sure why though, it's not really their style. In any case, they can ramp up Russia to 15,000 bopd and a lot more in Kurdistan (albeit blah blah) if they so chose.
Today's DPL announcement -
http://www.investegate.co.uk/Article.aspx?id=201002150700091219H
Maurel et Prom effectively taking on the two Tanzania onshore licences, acquiring
· a 40% interest in the Mandawa PSA onshore Tanzania , resulting in M & P owning 90% of the Mandawa licence and Dominion's interest being reduced to 10%; and
· a 35% carried interest in the Kisangire PSA onshore Tanzania (operated by Heritage Oil, who own a 55% interest), reducing Dominion's interest to 10%.
In return for these additional interests being acquired by M & P, Dominion's funding requirement in respect of the Kianika-1 well on the Mandawa licence will be reduced from 100% to 20% of the drilling costs and to 10% of associated expenses. Dominion will retain a 10% interest in all profits earned from the Mandawa licence.
In addition, M & P's interest in the Mandawa licence will rise to 100% upon the Government of Tanzania agreeing that exploration expenses incurred on other licences can be carried over to the Mandawa licence. At this point, all of Dominion's costs relating to the Kianika-1 well on the Mandawa licence will also be reimbursed
That seems to me, at a quick glance, like a reasonable deal, leaving some potential upside, at low cost, while, as the DPL CEO says:
"This agreement with Maurel & Prom constitutes active portfolio management and is part of the corporate repositioning recently undertaken. It significantly reduces Dominion's financial commitments for 2010 and allows us to focus more attention on our higher impact exploration assets in Uganda and Offshore Tanzania. We plan to increase activity in these two core areas during the course of this year."
So they hang on to the Ugandan interests in toto.
Not a life-saver, though it should cut outgoings significantly, while it keeps DPL in the frame for any further M & A activity in Uganda, once the HOIL/TLW/CNOOC(?) saga gets sorted out.
Since The Lipstick told us that "there's lots going on" (see #20,above), including efforts to raise funding for Uganda drilling (and a farm-out there?), presumably more news is somewhere in the pipeline...
Man Siarad
PS: I wonder what the long-term life expectancy of M & P is these days?
Anardako's reported discovery at Windjammer today is pretty positive for DPL block 7 license offshore Tanzania .
http://www.dominionpetroleum.com/uploads/MicrosoftPowerPointFistEnergyDPLNovember2009.pdf
In reply to ohisay (post #24)
In fact Block 7 is AFAICS the closest to Windjammer you can buy in to the Mafia Deep Offshore Basin in Tanzania.
The blocks are numbered from south to north, with Block 1 on the boundary with Mozambican waters.
Blocks 1, 3, and 4 are held by privately-owned Ophir Energy.
Block 2 is Statoil, blocks 5 and 6 are Petrobras.
See: http://www.tpdc-tz.com/active_psa.htm for licenceholders (not sure when this was last updated and it doesn't show Dominion's Block 7)
and http://www.tpdc-tz.com/history-1.pdf for a map.
Interesting place to be given the surrounding companies.
Disclaimer: This has been enough to trigger today pressing the 'small punt size buy' button I was considering on the prospect of Ugandan developments.
wand
Looks like we might have some dilution .
http://www.ft.com/cms/s/0/a8d201fe-2498-11df-8be0-00144feab49a.html?nclick_check=1
Dominion Petroleum the Africa-focused oil explorer, is priming a $50m (£33m) share placing as it seeks to raise cash ahead of a drilling campaign in Uganda.
The Aim-quoted explorer, which is set to issue new shares equivalent to almost half its current market value, could announce the placing as early this week, according to people with knowledge of its plans.
Yes but does mean they will not farm down.........had to be one thing or the other, or both!
That should leave plenty of cash to continue elsewhere as well so there could well be a period of interesting developments here if the placing comes off.
Could be a good time coming to up my ante if the placing occurs.
Placing RNS carried off at 5pps.
"£32.7M Placing to fund active exploration program................................." (continues)
http://www.investegate.co.uk/Article.aspx?id=201003011146558427H
They got the $50m (£32.7m) placing away, subject to approval at a Special General Meeting on 25 March, with five Directors participating.
http://www.investegate.co.uk/Article.aspx?id=201003040700180637I
The Company now intends to follow a high-impact exploration programme, and the net proceeds of the Placing will be invested as follows:
· Uganda: first exploration well intended to be drilled in Q2 2010, additional 2D seismic and exploration drilling in H2 dependent on initial results; and
· Tanzania offshore: 3D seismic to be acquired during H2 2010.
Oilbarrel Presentation 11th march 2010 = http://www.dominionpetroleum.com/uploads/Dominionpresentationtooilbarrel11March2010.pdf
Omni Research Nore published at the same time = http://www.dominionpetroleum.com/uploads/OmniDPLInitiationv7.pdf
Posted by Rob Shepherd CFO on other blogs for any that are interested.
Problems with RNS feeds this morning, however an operational update is announced.
Dominion Petroleum Limited
("Dominion" or the "Company")
Operations Update
· Rig secured for drilling Uganda, Block EA4B
· Vessel secured for 3D seismic shoot on Block 7, offshore Tanzania
· Drilling in Mandawa, onshore Tanzania expected in June 2010
More................. when the news is updated, full view over on iii
And here it is better late than never.
http://www.stockopedia.com/news/announcement/DPL/100322dpl001144.htm?title=Dominion Petroleum Operations Update&date=1269216000
I appreciate that a new thread has been created but I don't like to ;eave things hanging even if everyone knows where they are with the news update.
Thanks for everyones patience but Mum comes first..
