Gasol PLC seeks to capitalise on acqusition and investment opportunities in the oil and gas sector with a geographic focus in the Gulf of Guinea region of West Africa and specifically on opportunities in the hydrocarbon sub-segment of liquefied natural gas.
The company have recently completed a round of corporate funding via loan notes at a significant premium to its current shareprice and look set to make advances on its plans. There could be an exciting period ahead for gasol as they look to monitise various exclusive agreements with large regional players such as AFREN PLC and AFGAS.
At todays closing mid price of 0.375p there looks to be significant upside on this unique african focused liquified natural gas company.
NIGERIA::::
Gasol has entered into an exclusive Project Option Agreement ("Option Agreement") with Moni Pulo (Petroleum Development) Limited ("Moni Pulo") in respect of all of the gas in Nigerian offshore licence area, OML 114.During the exclusivity period, Gasol will have an opportunity to make a proposal to Moni Pulo regarding the development of OML 114, including exploration, development and offtake. If Moni Pulo accepts the proposal from Gasol, it is then the intention of the parties to work together to conclude definitive gas purchase agreements for development and sale of all of the gas in OML 114 to Gasol.
OML 114 is situated in shallow waters on the coast of South East Nigeria at the mouth of the Calabar River, within a locality that has a number of known gas reserves that could, subject to agreement, be used in due course to augment a Gasol project. The licence area has been drilled and surveyed since the 1990s and has gas reserves of approximately 750 billion cubic feet (approximately 107 million barrels of oil equivalent). Gasol has commissioned initial pre-feasibility reports which indicate that the available gas could support LNG production of over 800,000 tons per annum for 10 years or fuel a 500 MegaWatt power station for 20 years.This agreement represents the first step in the development of the Company's new strategy and offers Gasol the important opportunity to secure a known supply of gas for monetisation.
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EQUATORIAL GUINEA::::
Gasol has negotiated a revised agreement with Sociedad Nacional de Gas, GE ("SONAGAS"), the national gas company of Equatorial Guinea, in respect of the associated gas from the Zafiro field ("Zafiro gas").
Under the terms of the amended agreement, the Zafiro gas will now be used by SONAGAS in a newly structured entity for the production of ammonia/urea based fertilizer and/or other similar gas derived products, which is being developed with international investors.
The Zafiro gas was previously being developed in order to produce LPG, condensate and lean gas for sale, with development being carried out by SONAF, a partnership jointly owned by Gasol and SONAGAS.
Gasol and SONAGAS have agreed that, as compensation for giving up the rights to the original gas project, Gasol will receive the following benefits:
§ Gasol, through SONAF, has been appointed as an agent for the purpose of developing a market in West and Central Africa for purchasers of liquefied natural gas produced by the EG LNG project;
§ Gasol has the option to invest in 5% of the equity in the new Zafiro gas project;
§ US$2.0 million of development costs incurred by SONAF on the previous project will be recoverable from the new gas project, and will be reimbursable equally between SONAGAS and Gasol. In this regard, Gasol has previously written off all of its costs relating to SONAF.
This revised agreement complements Gasol's new strategy, in particular the Company's aim to see, and be involved in, the development of a West African focussed LNG market, whilst also ensuring greater likelihood of a successful gas project based on the Zafiro gas.
Zafiro is located in the 500,000-acre Block B, 68km (42 miles) WNW of Bioko island, Equatorial Guinea, adjacent to the international border with Nigeria. Water depths range from less than 300ft to greater than 5000ft.
The Zafiro-1 discovery well was drilled in February 1995, testing at 10,400 barrels per day. Three subsequent wells showed the reservoir to be relatively shallow (around 5,000ft), and low pressure, with a bottom-hole shut-in pressure of 2,800psig.
The 268,191dwt VLCC (very large crude carrier) Swift was selected for conversion to the FPSO Zafiro Producer. The Swift was built in 1973, with an overall length of 331.5m, a breadth of 56m and a depth of 26.4m. It has a draught of 20.5m fully loaded, or 8.3m ballasted. It has a storage capacity of 1.4 million barrels. The conversion was carried out at the HAM-PMB Bechtel yard, on Pelican Island. Early reservoir evaluation indicated that a 40,000 barrels per day (b/d) rate could be expected from the planned eight wells, requiring the installation of an 80,000b/d process plant, a 40MMSCFD gas flare capacity and storage for 1.7MMBBL of oil.
These are the main shareholders of Gasol plc.
Percentage of total stock:
African Gas Development Corporation Limited - 585,897,670 - 53.03%
Afren plc - 226,421,354 - 20.49%
Synergy Asset Management Limited - 75,000,000 - 6.79%
The percentage of the Company's AIM securities that are not held in public hands is 84.89%
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Gasol plc (Gasol) is a United Kingdom-based company. The Company is an African-focused gas company engaged to develop its own sources of gas, as well as gas to power projects. Gasol also intends to purchase stranded gas assets in Nigeria and other countries along the Gulf of Guinea. The Company’s primary geographic focus is the Economic Community of West African States (ECOWAS), together with Mauritania. Gasol works to develop an interim gas supply solution through the provision of regasified liquefied natural gas (LNG). The Company’s subsidiaries includes African LNG Holdings Limited, African LNG Services Limited, Afgas Infrastructure Limited, Afgas Nigeria Limited and SONAF G.E.S.A. more »
Afren plc (Afren) is engaged in oil and gas exploration, development and production in Africa and the Kurdistan region of Iraq. It operates in five geographical markets: Nigeria, Cote d’Ivoire, Other West Africa, Eastern Africa and Middle East and North Africa. It has a portfolio of 29 assets in 12 countries. During the year ended December 31, 2011, Afren and its partner Amni International Petroleum Development Company Limited (Amni) completed two infill wells, Okoro-11 and Okoro-12. As of December 31, 2011, it had operated one appraisal well and drilled nine production wells in partnership with Amni. During 2011, it had produced 19,154 barrels of oil equivalent per day. On November 2, 2011, Afren acquired a 60% participating interest in the Barda Rash PSC and a 20% participating interest in the Ain Sifni PSC located in the Kurdistan region of Iraq. In 2011, First Hydrocarbon Nigeria, in which Afren has a 45% interest, completed the acquisition of a 45% interest in OML 26. more »
Bahamas Petroleum Company plc is engaged in the oil and gas exploration in the commonwealth of the Bahamas. The Company’s portfolio consists of five petroleum exploration licences covering 15,676 square kilometers (3,873,546 acres) in the territorial waters and maritime Exclusive Economic Zone (EEZ) of The Commonwealth of The Bahamas. Its subsidiaries include BPC Jersey Limited, BPC (Falklands) Limited, BPC (Donaldson) Limited, BPC (Eneas) Limited, Bahamas Offshore Petroleum Ltd, Island Offshore Petroleum Ltd and Sargasso Petroleum Ltd. In January 2011, it acquired 1,120 kilometer of two-dimensional seismic over the southern licence areas. In September 2011, it acquired 3,075 square kilometer of three-dimensional seismic over the southern licence areas. On January 6, 2011, the Company acquired 100% of the issued share capital of BPC (Bain) Limited, BPC (Cooper) Limited, BPC (Donaldson) Limited and BPC (Eneas) Limited. more »
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RECENT FUNDING NEWS
10TH JANUARY 2012
Gasol enters into new funding facility:
Gasol (AIM: GAS) is pleased to announce that it has entered into a convertible loan facility (the "Facility") on 9 January 2012 for approximately £661,000 to roll over a maturing loan facility.
The Facility has been entered into with Banque Benedict Hentsch & Cie SA ("BBH"), which is also the lender of the maturing facility taken out on 30 December 2010. The Facility has an interest rate of 5% payable at maturity or conversion, and carries a conversion option whereby the lender has the right to call for the conversion of the loan into ordinary shares of Gasol at a price of 0.6 pence per share. Conversion may take place up to 30 December 2012. The Facility is repayable (to the extent not previously converted) on 30 December 2012. Repayment may be made, at the Company's choice, either in cash or in Gasol's shares (priced at a 10% discount to the mid-market closing price on the day before repayment).
In consideration for BBH entering into the Facility, the Company is extending the exercise date of the 12 million Warrants, issued to BBH on 7 January 2010, by a year to 30 December 2012.
25TH NOVEMBER 2011
Gasol secures £1 million funding for new working capital
Gasol (AIM: GAS) is pleased to announce that it has entered into a £1 million convertible loan facility (the "Facility") on 25 November 2011 to provide further working capital for the Company to continue the development of its business.
The Facility, which has been entered into with African Gas Development Corporation Limited ("AfGas"), Gasol's largest shareholder, carries an interest rate of 5% payable at maturity or conversion.
The Facility carries a conversion option whereby the lender has the right to call for the conversion of the loan (in whole or in part) into ordinary shares of Gasol at a price of 0.6 pence per share.
Conversion may take place up to 25 November 2012. The Facility is repayable (to the extent drawn and not previously converted) on 25 February 2012, 25 May 2012, 25 August 2012 and 25 November 2012. In each case repayment may be made, at the Company's choice, either in cash or in Gasol's shares (priced at a 10% discount to the mid-market closing price on the day before repayment) subject to a minimum of 0.5 pence.
The participation by AfGas in the Facility is considered a related party transaction under the AIM Rules for Companies. The Directors of Gasol having consulted with Panmure Gordon (UK) Limited, the Company's Nominated Adviser, consider the terms of this transaction to be fair and reasonable insofar as its shareholders are concerned.
As a consequence of entering into the Facility, the conversion terms of each of the £3 million convertible loan facility entered into on 30 December 2010 and the £1 million convertible loan facility entered into on 26 April 2011 are lowered from 1.0 pence to 0.6 pence per share in accordance with the terms of their respective facility agreements.
Commenting on the announcement, Ewen Wigley, Gasol's Chief Operating Officer, said:
"We are pleased to have secured further working capital funding from our major shareholder, showing its continued support and confidence in Gasol's ongoing development of the gas-to-power strategy in Africa."
In reply to Antone, post #1
It looks to me like GASOL have been raising cash recently to kick start something,
its only a guess on my part but i think the recent warning by the United Nations to end gas flaring in nigeria could mean that gasol are being encouraged to get moving on block OML 114.
acerking
Gasol have exclusive agreements with afren and afgas covering large swathes of the gulf of guinea,with recent activity stepping up by AFREN and reading between lines of some of their statements i think its very likely they could be about to announce something. OML 114 has 750 Bcf stated resources so this could be a highly profitable play for both gasol and afren and is said to have a 20 year well life.
Gasol has always been somewhat of a joke. Too many vested interests and with Afgas/Afren lurking and massive amounts of finding needed to get anywhere, there's a lot of dilution waiting in the wings. It's a shame, it started or with a promising idea all those years ago, just never got anywhere and probably never will imo.
Extract from RNS ( nigeria )
"During the exclusivity period, Gasol will have an opportunity to make a proposal to Moni Pulo regarding the development of OML 114, including exploration, development and offtake. -If Moni Pulo accepts the proposal from Gasol, it is then the intention of the parties to work together to conclude definitive gas purchase agreements for development and sale of all of the gas in OML 114 to Gasol. -OML 114 is situated in shallow waters on the coast of South East Nigeria at the mouth of the Calabar River, within a locality that has a number of known gas reserves that could, subject to agreement, be used in due course to augment a Gasol project. -The licence area has been drilled and surveyed since the 1990s and has gas reserves of approximately 750 billion cubic feet 107 million barrels of oil equivalent. -Gasol has commissioned initial pre-feasibility reports which indicate that the available gas could support LNG production of over 800,000 tons per annum for 10 years or fuel a 500 MegaWatt power station for 20 years. -This agreement represents the first step in the development of the Company's new strategy and offers Gasol the important opportunity to secure a known supply of gas for monetization".
From the press yesterday.
DOW JONES NEWSWIRE: LONDON ROUNDUP
January 12th 2012
Gasol Plc ( GAS:LON ) announced that it has entered into a convertible loan facility
with Banque Benedict Hentsch & Cie SA,the facility has an interest rate of 5%
payable at maturity or conversion, and carries a conversion option whereby the
lender has the right to call for the conversion of the loan into ordinary shares of
Gasol at a price of 0.60p per share.The company have now completed the fund
raising which started at the back end of 2011,and thought to be in a strong
position to convert options on Block OML 114 in nigeria where resources of
750 billion cubic feet of gas (approximately 107 million barrels of oil equivalent)
have been identified.
Just noticed that AFREN and AFGAS own 75% of gasol shares ??
acerking
Yes around 85% of shares not in public hands, see below
These are the main shareholders of Gasol plc.
Percentage of total stock:
African Gas Development Corporation Limited - 585,897,670 - 53.03%
Afren plc - 226,421,354 - 20.49%
Synergy Asset Management Limited - 75,000,000 - 6.79%
The percentage of the Company's AIM securities that are not held in public hands is 84.89%
antone thats a very high percentage of stock held by its partners ( AFREN & AFGAS ) and only 15% in free float ?
Some info on guinea
Natural Gas and Petroleum - Equatorial Guinea
Exxon Mobil Corp. reported that crude oil production from the Zafiro field on Block B again decreased compared with that of previous years. in 2010, crude oil production decreased by about 4% compared with that of 2009 and was about 51% that of 2006. after additional drilling and production well completions that increased production from the Zafiro field in 2004, ExxonMobil reported annual double-digit decline rates from the field until 2007. Mobil from Block B of the Zafiro Development Area (Exxon Mobil Corp., 2008; 2011).
In 2010, Hess Corp. (2011) of the United States reported a slight (1%) decrease in crude oil output from the Ceiba Field and okume Complex and Marathon oil Corp. (2011, p. 13) of the united States reported that the sale of condensate from the Alba natural gas field decreased by about 11% in 2010 compared with that of 2009. Natural gas from the Alba field was stripped of condensate and lPG at the alba plant. The lnG plant and the methanol plant used portions of the resultant dry gas (after the extraction of the liquids) as feedstock. Any remaining gas was piped back to the Alba field and reinjected. In 2010, Noble Energy Inc. of the United States drilled 5 production wells and 3 water-injection wells on the aseng prospect on Block i. a 120,000-barrel-per-day (bbl/d)-capacity floating production, storage, and offloading (FPSO) vessel was under construction and was expected to be onsite in 2012. Noble also planned to develop the Alen condensate and natural gas project (formerly the Belinda prospect), with initial production to begin in 2013 (Noble Energy Inc., 2011).
The Government completed a feasibility study of a crude oil refinery. A 20,000-bbl/d-capacity refinery was proposed to be built at Mbini (international Business times, 2010).
Equatorial Guinea inc., which was a subsidiary of ExxonMobil, started a new drilling program at Zafiro in 2010 and continued discussions with the Government about the development of the field’s natural gas resources. SONAF G.E. S.A., which was a joint venture of Gasol plc of the united Kingdom and Sonagas, had been established to collect, process, and sell natural gas
antone, have also noticed that all of the loan notes have issue price all at 0.60p or over,so buying now
at a nice discount to institutional investors
Yes there have been a number of loan notes issued at 0.60p or over and the company is now funded,the company seem to have been held back in the past by lack of funds so maybe with some funds at hand one or both projects can now be advanced.
Further good news for AFREN today (our major shareholder ) with a major discovery in Nigeria !
I wonder why they have backed gasol so large in terms of shareholding?