Some details on sale of assets
Acquisition of Madalena’s Non-Core Canadian Assets
Pursuant to the Letters of Intent, Point Loma and Madalena expect to enter into an asset
acquisition agreement, pursuant to which Point Loma will acquire Madalena's non-core
Canadian Assets for the aggregate purchase price of $5,500,000, prior to closing adjustments
(the "Madalena Purchase Price"). Upon the completion of the Arrangement, the Madalena
Purchase Price will ultimately be comprised of 6,244,814 First Mountain Shares (on a postShare
Consolidation basis) with a deemed value of $0.40 per share and a secured debenture of
First Mountain in favour of Madalena in the amount of $3,000,000 (the "Secured Debenture"),
which will be convertible into First Mountain Common Shares at a price of $0.50 per share (on a
post-Share Consolidation basis) and will have a five year term from the date of closing. Further
details of the terms of the Secured Debenture will be disclosed in a further news release.
The Madalena Acquisition is expected to close immediately prior to or concurrent with the Point
Loma Acquisition on or about April 30, 2016 and is subject to a number of terms and conditions
including negotiation of a definitive purchase agreement, including, without limitation, the
negotiation of the terms of the Secured Debenture, board approvals, due diligence, the
concurrent completion of the Private Placement and the Point Loma Acquisition, and the
approval of the TSXV. There is no guarantee that the Madalena Acquisition will be completed.
First Mountain Energy appears to be nothing more than a worthless shell company. I guess I would like to have a little better understanding of this transaction
Based on the intent to bring these assets back into production I am not sure why they are being sold other than to separate these assets from the Argentina assets. Some my question is why would this be advantageous?
Point Loma Private Placement
As a condition to the completion of the Arrangement, Point Loma intends to complete the
Private Placement of Subscription Receipts and Flow-Through Shares for collective minimum
aggregate gross proceeds of $2,000,000 and collective maximum aggregate gross proceeds of
up to $5,000,000. Each Subscription Receipt will automatically convert into 0.43 common
shares of the combined entity on a post Share Consolidation basis, after completion of the
Arrangement, at no additional cost to the holder upon satisfaction or waiver of all conditions to
The proceeds of the Private Placement are expected to be used to place the currently
suspended Point Loma and Madalena wells on production and to conduct other oil and gas
Honestly without the pipeline I don't see how this are can be brought back in production with current oil prices that's not happening. Maybe they know something we don't on oil prices.
The second annual Argentina Shale Gas & Oil Summit (A-SGOS) will be held in Buenos Aires on May 9th & 10th 2016. The summit will provide a two-day conference, exhibition and networking event to address the current challenges and future possibilities for the shale industry in Argentina.
The summit will bring together the unconventional resource supply chain from across Argentina, with attendance from key government officials, active shale gas operators, investors, contractors, consultancies and energy institutions. Confirmed sponsors include Packers Plus, Atlas Copco, BDO and Radius Energy Solutions.
As the only shale summit scheduled to take place in Argentina during 2016, A-SGOS provides a crucial opportunity to optimize strategy for the world’s second largest shale play and to engage with key stakeholders in the wake of Argentina’s presidential election.
The conference will address next steps for the shale industry in Argentina. Discussion will consider repositioning Argentina as a major global player, economic & investment trends, technology for optimising the shale process, stakeholder engagement, addressing the skills gap, and the impact of the declining oil price upon the industry, amongst other themes. The conference will incorporate numerous case studies focussing upon existing experience within the Argentine shale sector, with particular attention paid to operational results thus far from both the exploration and production phases. Technical workshops covering topics such as drilling & completions, hydrology and geology & geomechanics will also take place during conference break-out sessions.
A-SGOS will also host a two-day exhibition attended by market-leaders within the shale sector. Exhibitors will offer information, solutions and updates on the latest industry products for the upstream shale industry within Argentina. The exhibition will also host networking throughout the course of the two days.
Any discussions with Madalena management you can share? very interested in the wells being completed this quarter. While they wont discuss that perhaps some info on neighboring activity.
Down by almost 2/3rds over the last year.
U.S. oil-drilling rigs edged down for an eighth week in a row. They fell by 28 to 439 as of Friday. The total active U.S. rig count, which includes natural-gas rigs, was down 30 at 541. Compared to last year, the total U.S. rig count has fallen by 885, with oil rigs down by 673.
Rig count is down to record low levels. The major are canceling big projects all over the world. Production is going to be showing a decline soon regardless of Iran coming on the market. Iraq has no money to pay back oil companies for their investments. Think there are getting much new investment.
If oil prices are not up substantially by year end this economy has way more problems that I care to think about.
That is a given if the price of oil stays where it is at. There is also a 50% chance it triples if the price per barrel hits $50 to $60 this fall.
Not much consideration given to the rig counts. These numbers are record lows and this WILL so up in production numbers soon
They agreed NOT to raise production. Since they are running flat out now that seems a Pyrrhic victory
Almost missed the 592 bopd well in the Corion amargo. Forgive my spelling errors.
With these two wells the company has added 800 plus bopd at $67 per bbl.
The Vaca Muerta is what is pulling everyone into Argentina and that is where all surrounding activity is taking place. For all intents Madalena has not yet touched the vaca muerta. They currently have no production from the Vaca Muerta. This latest release covers 2 excellent wells but both are above the vaca muerta formation.
My point being Madalena is doing a great job of executing the play as the build into the deeper vaca muerta shale. The production being generated is significant and is to date self funding by tapping some easier to produce formations.
This not to say they don't have great acreage for the Vaca Muerta. By all indications from wells all around them they do. Just keep in mind that all the success to date is a bonus to the main target.
What do you think a JV will be worth to Madalena in Curamhuele? Obviously contingent on how much the want to give up. My thoughts are they keep 40% and sell off 50%.
Considering the general state of the oil markets perhaps a "neutral" reaction is quite positive at the moment. At least the are holding steady and not dropping like a rock