It is under OGPC and I can't see big contribution from it. If there is money to be made, why not? OGPC has not been contributing much to DNeX. To me, OGPC has been a bad investment.
Syed Zainal is building a Dnex conglomerate for the past 2 years since his Dne appointment to the Board. congolemerate. He rope in CGP fund to facilitate the Silterra take-over. Next he convince Foxconn to take up a stake in DNex. Stopped the sale of Ping petroleum at the most appropriate time and indirectly enhanced DNex valuation. He is building big plans for DNex. Just wait for the forthcoming news announcement.
By listing both Silterra & Oil n Gas arm, fund raising will be solved and shareholders will also benefited if management offer IPO shares. I propose this to management here
Yes,Tan Seri has sounded to spin off or IPO Silterra/O&G are on the table.As both require high capex to grow moving forward,best to do is to IPO.As there are already too much Dnex float shares in the market, PP raise Fund will make it worst.
@jk20598, any potential spinoff would probably happen after some value creation. I think, from my own view, Silterra will need to at least lock down another 1 or 2 more long term clients to reach 90% capacity utilization. Tan Sri also has given a ballpark figure of how much is needed to upgrade and expand infrastructure at Silterra, which will be funded by GCP. IPO for Ping Petroleum might sound likely as the price of crude oil is high now, and with Russia/Ukraine war happening, I think price of oil may remain high which favors Ping spin-off. Additionally, Tan Sri said something about commercializing Avalon field which is part of Anasuria cluster then, additional capital is required. Since banks are hesitant to lend capital to new O&G greenfield projects due to ESG theme being played, thus, a potential Ping spin-off will be very likely. Just my 2 cents thoughts.
Based on the following information, it is very unlikely to spin-off with Ping Petroleum. Syed Zainal estimates that the group’s O&G unit would need at least RM100mil in capex to develop its newly acquired Avalon oil field in the UK. The Avalon oil field is 100% owned by Dnex and Syed Zainal says the group may be looking for partners to develop the field.“Thanks to the current high crude oil price, we could use internally generated funds for the Avalon field. We expect that the field could have the capability to produce between 5,000 to 7,000 barrels a day, which will double or triple our current production,” he says.
If I am not mistaken the net profit per barrel after tax is at least USD30/barrel for Anasuria cluster if the price is at least USD80. If RM100 million is needed ( about USD24 million), production at 6000 barrels per day @USD30/barrel profit, it will only need 133 days to pay back the investment plus the time to develop the Avalon field.
@KingDavid that is a ballpark way to put it if all goes according plan. However, so far it appears DNeX is a good growth story with bigger potentials that is very rare to find.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
carimakan
2,493 posts
Posted by carimakan > 2022-03-17 16:56 | Report Abuse
kuat mainkan perasaan org la si dnex ni..adoii