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Good question! That would be really cool
Far too late.. the activities have already begun. This afternoon there will be a meeting between Trump and AMLO followed by a collective meeting with representatives from both countries. This evening is the dinner where businessmen from both sides are attending. Ward knew about this dinner before it was in the news.. just sayin’.
Also, out of 17 businessmen in attendance from the US side, only one energy company is represented; Jeff Martin with Sempra Energy.
I see. Solid.
$1.4b would be the net profit to Mirage, so that is after expenses.
You are correct though, the other 75% would be $4.2b to Bluebell. Thanks for catching that.
And I totally agree. Let us see some breakdown of where the cash is coming from in order to get us to these potential revenues.
Plus, why would anyone in their right mind back out? Blue Bell is going to KILL IT!!!
Shoot, if 25% amounts to $1.4B annual net profit to Mirage; then that means Blue Bell's take home $5.6B.
Not a bad return on investment!!!
The deal is binding, of course there would be reprecusions!
Under the unbinding MOU with OMD, it would remain unbinding until the good will deposits of $15,000,000 were received. Only then would the deal would become binding. IF OMD backed out, they would still owe Mirage $10,000,000. If Mirage backed out, nothing would be owed. Clearly that is what happened.
This time, the deal is sealed. Binding.
Another BN Americas Article:
Mirage Energy set to build US$300mn gas pipelines in Puebla state
Bnamericas
Published: Friday, June 12, 2020
Texas-based Mirage Energy has inked a deal for around US$300mn to develop natural gas pipelines in Puebla state in central Mexico.
The deal, signed with the state and announced on Thursday, involves Mirage building a set of pipelines to deliver 500MMBTU/d (million British Thermal Units per day) of gas to a series of offtakers, including the state itself and various industrial parks.
Stage one will be a 46-mile pipeline connecting Pemex's compression station at San Martín to a new industrial park in Izúcar de Matamoros, Mirage said in a release, adding that it should be able to deliver gas imports at 50% of current prices.
Mirage operates three pipelines in Mexico, two Progreso bidirectional lines and a third, 14-mile bidirectional duct that connects the Progreso lines to the company's Brasil storage field in Tamaulipas state. The Brasil storage field has capacity of 786Bf3 of natural gas.
Both Progreso lines are fed by company pipelines that cross the US-Mexican border close to the town of Progreso, Texas.
The company's first Progeso line stretches 36 miles to Pemex's station 19, while the second Progreso line extends 67 miles from station 19 to the Los Ramones interconnection.
The Puebla pipelines would advance central Mexico’s natural gas network toward integration, promising steadier gas supplies and lower costs.
It could also mark a shift towards smaller, regional deals as major projects come online. The 2.6Bf3/d South Texas-Tuxpan maritime pipeline, which began operations in September 2019, has this year gradually ramped up gas flows, which is effectively forcing completion of smaller projects to transport the gas from Tuxpan.
Meanwhile, this August the Wahalajara pipeline network is expected to be completed, promising to bring 400Mf3/d to the Guadalajara region.
“The era of massive gas and power infrastructure construction is mostly over,” Claudia Espinosa, editor of the Mexico Energy Report, said in a recent webinar hosted by commodity pricing and analysis firm ICIS.
But natgas-related projects like Mirage's are currently in a sweet spot.
Prices are more stable than oil due to steadier demand amid lockdowns and Mexican President Andrés Manuel López Obrador (AMLO), thought by critics to favor NOC Pemex and electric utility CFE over private sector firms, appears less interested in shaping the natgas market ever since private firms agreed to renegotiate transit fees with CFE in 2019.
“The president is an oil man, and gas is an afterthought,” Christopher Lenton, senior editor at Natural Gas Intelligence, said recently.
Mirage Energy did not announce construction timelines for the Puebla pipelines.
- Article cut off -
https://www.bnamericas.com/en/news/mirage-energy-set-to-build-us300mn-gas-pipelines-in-puebla-state
Macod, hilarious!! I drink Bulletproof coffee just about everyday myself. Phenomenal.
MRGE = Bulletproof!
Gas Chaser,
"Soon" is relative, and what that timeline looks like is anyone's guess at this point. I'm certainly not saying right this instant! What I am saying, is that Ward definitely has interest in selling Mirage and a very reasonable time to sell is when all projects are started. You do make a good point, revenues are important; but those start coming in as early as 3 months from the start of construction! And from there, the ball is rolling on all projects and they are at 17% - 35% completion.. with the ball continuing to roll. Considering that all supply contracts are in place (the PR's just yet to be released), this is a cash cow as soon as the projects are completed.
As far as the risky environment in Mexico, like the guys at NGI said on the conference call some us tuned into, natural gas is immune to the political interference experienced by the private sector in Mexico. And not only is gas immune to begin with, the fact that our natural gas projects strengthen the CFE, makes them bulletproof.
Good evening,
Another sleepless night for me, as I wait to awaken to our wildest dreams.
I'd like to encourage everyone to hold tight until breaking ground PR's and forecasted revenues are published. However, if a buyout is on/soon to be on the table, projected revenues may not be made public.. Just my gut feeling. And on the flip side, if more PR'S are released with revenues not disclosed, it's telling that a buyout is coming. Please, correct me if I'm wrong.
I encourage all present to hold tight because I believe this story is larger than we can fathom. Example, that contract with Puebla? Brings in roughly $228,000,000 per year from off the San Fernando line. The San Fernando has the capacity to transport up to 4 bcf per day (8x the amount of Puebla). If they transport the gas at the same rate of $1.25 per one thousandth, that's just over $1.8B in annual revenue. Once you add in intake fees on this gas coming into the storage facility, the time spent on it being stored, millions on millions of barells of oil transported through the Isthmus project; we have SEVERAL billions of dollars in revenue on our hands. The Isthmus alone will put the San Fernando revenues to shame. It is obvious to me, that the $1.4B net profit someone on this board suggested, is dealing with Mirage's take home money.. That is our 25%!! Has to be. This puts our worst case scenario at $21 PPS. Worst case scenario..
When do we see a PPS even remotely close to this price target? IMO there are several catalysts, but what will job jaws that this is real, will be the announcing of the projecta by US & MX government officials and PR's of breaking ground dates & forecasted revenue projections. That alone I would think gets us half way there. Then, as revenues start coming in and the largest of projects progress, we see our worst case scenario.
So, that's my take. We're going to blast off, but the rocket won't stop for the moon. It's going for Mars.
Back to dreaming. Goodnight.
Pembina's project is totally unrelated to Mirage.
It would be nice to see the this very format (livestream by Dan Brouillette) in the announcing of Mirage's projects though! Hopefully today's livestream is the first among many.
I believe under the USMCA, an export permit is no longer required to ship natural gas to MX. However, Mirage/Northern Hemisphere are still Trophy Projects of the USMCA, so I bet they show them off!
I agree!
Wow, this is really cool. It's a livestream from the US secretary of Energy signing the export permit for the company Pembina, exporting LNG out of Oregon into Asia. The first EVER LNG export terminal on the west coast.. a $10 billion dollar investment.
I would LOVE to see something like this for Mirage! Wow, this could be a foreshadow of what's to come.
Cheers!
Join me LIVE for a virtual signing of a major announcement to authorize the export of LNG from a new, U.S. energy infrastructure facility. https://t.co/LPZEXYQrPz
— Dan Brouillette (@SecBrouillette) July 6, 2020
Well.. this could be interesting:
"Today, July 6, 2020, US Secretary of Energy Dan Brouillette will host a virtual signing ceremony to authorize export of LNG from a new, historic energy infrastructure facility.
Expanding opportunities for US LNG abroad has been a top priority for President Trump and Secretary Brouillette. This Infrastructure project will create jobs and provide greater access for US LNG to growing markets around the world."
.@SecBrouillette TO MAKE LNG ANNOUNCEMENT
— Charisma Troiano (@ENERGYSpox) July 6, 2020
📺 Watch Live ➡️ @SecBrouillette today at 12:45 pm EST. pic.twitter.com/aL2btMSh0K
$10 for me!
BN Americas Coverage: I don’t have access to the full article, but what a surprise!!
New Trade Deal Set to Hinder AMLO goal of Energy Independence
The entrance into force of the new North American free trade deal USMCA came amid a steep drop in regional trade flows due to COVID-19 and US and Canadian concerns about the Mexican power market.
“There have been some issues with various aspects of regulation in the Mexican energy sector,” deputy US trade representative C.J. Mahoney said during a recent webinar hosted by the Baker Institute.
The USMCA entered into force on July 1.
US NATURAL GAS AND MEXICAN ENERGY INDEPENDENCE
US trade representative Robert Lighthizer said a “free flow of energy” would occurr from the US to both Canada and Mexico as part of updated USMCA measures. In the short-term, that could spell greater US exports of natural gas to Mexico, undermining one of AMLO’s chief political goals, energy independence.
In September 2019, the South Texas-Tuxpan natural gas pipeline started operations, and could in time transit 2.6Bf3/d (billion cubic feet a day) of gas into central Mexico. A fraction of that gas in the coming months will make its way to the Yucatán Peninsula thanks to the start of operations of the Cuxtal interconnection. Similarly, the Wahalajara pipeline network could enter operations in August, transiting another 400Mf3/d (million cubic feet a day) of US natural gas around northern Mexico.
FRACKING AND GAS STORAGE
According to Warren Levy, CEO of Jaguar E&P, a fundamental draw of Mexico’s gas-rich Burgos basin owes in part to its proximity to talent and technology in Houston.
While fracking is not banned, AMLO opposes the technology and a fracking ban is in the senate.
But should energy prices fully recover to pre-pandemic levels, it would make the Burgos basin again a prime spot for investors seeking to use US talent and technology for hydraulic fracking in the region, another source of integration in the two countries’ natural gas sectors. And while uncertainty exists in one sector of the power market, US natural gas looks set to gain greater presence in Mexico as a result of USMCA.
However, the prevalence of US natural gas need not lead to greater US influence in Mexico.
On Thursday, Mirage Energy CEO Michael Ward celebrated USMCA for “greatly opening up the cross-border energy sector.” Mirage recently secured US$4bn in financing to develop what would be the largest natural gas infrastructure project spanning the US-Mexico border.
Ward said Mirage’s project will vest Mexico with greater energy security, by “giving the country a six-months’ supply of domestically stored natural gas, providing needed power in the event of a natural or political supply interruption.”
Also, the US recently authorized LNG shipments via rail, potentially opening up existing well-integrated railway nodes, such as Texas and Monterrey, to cryogenic LNG imports to Mexico.
REGULATIONS
Kenneth Smith-Ramos, a lead negotiator of the deal under the previous Mexican government, said the country must work so “that we don’t have regulatory backtracking that could affect the implementation of the USMCA.” He cited regulatory changes attempted since May that disadvantage renewables companies as a potential snag.
Since late June, the issue has intensified with high-level officials in both the US and Canada criticizing Mexico’s regulatory shifts.
This could be a topic of conversation when President Andrés Manuel López Obrador (AMLO) visits Donald Trump in Washington on July 8-9, AMLO’s first foreign trip since taking office in December 2018.
[article cut off]
https://www.bnamericas.com/en/news/new-free-trade-deal-set-to-hinder-amlo-goal-of-energy-independence
Thanks Ibow, I’ve really enjoyed this board as well.
We’re about to wake up in our wildest dreams!
I disagree, ibow.. for two reasons;
1. The nature of the projects being international. It would be a great disservice to Mexico to pull the plug on the Concho line. The very same people group the dems politically care for. Also, wouldn’t it violate the warm heartedness of the bipartisan USMCA/T-MEX agreement? Not a smart political or foreign affair move.
2. Besides, even if Biden got elected and despite all of the above reasons went forth with with pulling the plug, timely execution not likely. Like my dad says, they’ll run on anything to have power. Getting elected is their end game.
Wow, that’s awesome!!!!
Funds = Covered Notes = 10Q
Can’t wait for next week!
Not subscribed, so I can’t read the whole article
Some publications seem as though their agenda is to destroy everything good so that power may follow.
Quote:
“A meeting of Mexican and American presidents normally boosts a relationship that is vital for both countries, especially in the areas of trade, immigration and crime. The Trump-amlo encounter is unlikely to achieve that. It is not clear what amlo will gain from the summit except frequent-flyer miles”
You wait and see “Economist”.
AMLO this morning:
"With the T-MEC, the integration of the three countries is more effective, so we must make profits from this neighborhood."
Appropriate name drop to follow:
Northern Hemisphere Logistics
Yes Airchair! Good point!
Well..at least he’ll be the richest used car salesman of all time. They know things in UREConia
That will be the final day... Unless of course, the announcement of the consignments beats them to the hook!
Can you imagine?
An 8k showing millions$ in the bank, a 10q showing us compliant.. notes covered.
That will be a milestone.. The final day this trades as a shell corporation.
When the Rubenstein PR came out yesterday, I thought this morning would be ideal time for the 10Q to be filed. Since it wasn't, there is only one justifiable reason as to why.... that the notes associated with the 10Q will be covered with the first tranche of funding (that hopefully comes within the next two weeks). That's a smart move and good news.
Why else would Ward skip out on the opportunity of filing it today?
For sure- I always have to explain this aspect to anyone interested... And the answer hardly satisfies them.
July 1st - USMCA is now enacted.
AMLO to meet with Trump at the White House in one week, on July 8th.
https://www.unotv.com/noticias/portal/nacional/detalle/en-vivo-conferencia-lopez-obrador-1-de-julio-792536/
I thought the same thing about Blue Bell being low profile.. and although Mirage is now beginning to open the blinds to its inner workings, Blue Bell does not seem like they will follow suit.. imo.
Penny, does it matter?
Gas, thanks for pointing that out. High profile clients here too:
Jaguar & Land Rover
Fundrise
Miss Universe
LeBlanc
Mirage Energy - $$
WOW!!!!!!!!!!!!!!!!!!!!
Glad I added just a pinch more of shares today at 20 cents.
HUGE THINGS ON THE HORIZON FOR MIRAGE ENERGY!!!!!!!!!!!!!!!!!!!!!!!!!!
DC,
There is just something about this article..
I learned that IEnova owns compression station "El Caracol" which is right next to CENEGAS's compression station 19. IEnova also own the 36" line that runs south and parallel with the San Fernando Line and connects with compression station "Los Indios" which is right next to CENEGAS's compression station 17. Essentially, IEnova's existing pipeline and compression stations mirror the existing assets owned by CENEGAS that are being handed over to Mirage. The info graphic (which is nearly impossible to read), shows IEnova and Enbridge proposals for expansion pipelines to help relieve the bottleneck on IEnova's compression stations . Their expansion lines tie in to what looks awfully similar to our Progresso Line. And on top of all of that, ICIS reveals to us that IEnova and Enbridge have an MOU with CENEGAS. Interesting that those CENEGAS assets are being handed over to Mirage! Just sayin!!!!
Ah, so you’re saying there *could have* been notes converting that caused us to drop down to 15 cents?
Gas Chaser, do you think there is any chance Blue Bell allows us to cover the notes with our funds? Seems like an awfully nice deal for shareholders, but not sure how it would benefit them.
I agree with you, Jeftan. Here are my speculations:
AMLO said that today they are choosing a date to celebrate the USMCA in Washington. I would suspect that has to be a couple of weeks out, but we'll find out today.
According to Horacio, Mirage needs to meet with the CRE again, only this time with AMLO. In my mind, this takes place AFTER AMLO's visit to Washington to celebrate the USMCA. Doesn't it seem appropriate to have this meeting with an American company after the enactment of the USMCA and the celebration over it? Zero doubt that substantial publicity follows this event.
The initial funds from BlueBell will likely take place no earlier than July 1st and no later than July 17th (between two and four weeks from when the debt financing was announced). And ideally, following the two events above (Ward himself has said several times that this is a huge political move for AMLO. He must have the mic first.) Once funds are received, notes are paid off, and we see our 10Q and 8k.
As important as it is for us shareholders (in the short term) to have regular press releases, the big guns have to be fired decently and in order with the powers that be. Gaze is out three to four weeks for me because of the reasons stated above (Hopefully i'm wrong!). One thing is for sure, the wait will have been well worth it!
Congrats Titus
That’s right.. Supports the CFE= Deal Sealed
New Interview from Horacio Zarate:
They propose a million dollar investment in natural gas pipelines in Veracruz
6/25/2020
- The National Energy and Petrochemical Council and the Mirage Energy company expect to invest 4 billion dollars
- They would rehabilitate and expand the pipeline network in Veracruz to supply CFE with natural gas
- The AMLO government has given the green light to this type of works in the country
In alliance, the National Energy and Petrochemical Council and the Mirage Energy Corporation company announced their intention to invest 4 billion dollars to build a gas pipeline from Waha, Texas, to a storage tank in Tamaulipas, going down the Cactus gas pipeline, Chiapas .
The project would cover the state of Veracruz from north to south and could expand the gauge to 48 inches of the Interoceanic Gas Pipeline of the Isthmus, between Coatzacoalcos and Salina Cruz, allowing the generation of a thousand jobs in the country, both direct and indirect.
The objective would be to supply the Federal Electricity Commission (CFE), which is experiencing a gap due to the low supply of natural gas for electricity generation, especially since the Government of Andrés Manuel López Obrador has given "green light" to others gas pipelines in the country.
Exclusively, the president of the National Council for Energy and Petrochemicals, Horacio Zárate Acevedo, anticipated that if this investment and construction proposal were made, the cheapest price in the world in terms of natural gas would be offered to customers, mainly CFE .
"The CFE generates Electric Power through 65% of Natural Gas consumption, which is of great importance in the consumption of this energy (...).
"The National Energy and Petrochemical Council has just signed a framework collaboration agreement with one of the largest companies in the world, Mirage Energy Corporation , on March 17 of this year and this commercial alliance is for more than 4 billion dollars ", Highlighted.
Broadly speaking, he explained that natural gas will be piped from Waha to a storage tank in Campo Marte, Tamaulipas, and from there it would pass through the San Fernando-Cactus gas pipeline, heading to the Yucatan Peninsula.
"It is a great investment of the largest to be established in our country, we have already knocked on the doors and we are in a hiatus because there has been no opening after the pandemic in the country," said Zárate Acevedo.
He added that they manage permits, with an advance of 40 percent to achieve validation in different dependencies.
In addition to seeking an approach with the Presidency of the Republic, they need to make arrangements with the CFE, the Ministry of Energy, Petróleos Mexicanos, the National Center for Energy Control (CENACE) and the Energy Regulatory Commission (CRE).
In this regard, Zárate Acevedo anticipated a spill in the economy with the generation of jobs associated with the natural gas supply project.
"First of all, it is required to have government validations in some way and what we intend as the first action is to present it to President Andrés Manuel López Obrador and hence all the communication channels and the CFE are derived; We have 30 to 40 percent progress.
"If there is no natural gas there is no production and currently the Federal Electricity Commission is going through one of the most bitter moments, both technical and financial. Last year they lost more than 29 billion pesos in technical failures. "
He considered that due to the current stage of financial crisis, the government of Mexico and the CFE, in their National Energy Plan, as well as austerity, are going through the right moment to review all the contracts inherited from past administrations.
“The clauses on the costs of natural gas could be thoroughly reviewed, coupled with times, suppliers, forms of payment, dollar price and favorable conditions for the country, since it is known that there are uncompetitive prices that make the generation of gas more expensive. electric power, substantially increasing the electricity rates in Mexico ”.
This, added to the fight against “huachiluz”, which is the theft of electricity by merchants, industries and houses-rooms, generating an annual deficit close to 100 million pesos currently generated by the CFE.
"In some way the CFE is struggling to create the best conditions for supplying electricity."
From Texas to Yucatan
The gas line project would begin in Waha and part towards Agua Dulce y Nueces, Texas, enters national territory in Matamoros through Camargo, continues to two compression stations and one measurement station.
The pipeline advances through Tamaulipas in a north-south direction and continues in Naranjos, Tuxpan and in Coatzacoalcos it connects with a gas line towards Salina Cruz. In this line it is planned to expand the size of the pipeline and it is planned to connect this city with Tapachula, in the limits of Chiapas and Guatemala.
The work continues its route to Tabasco, Campeche and concludes in Valladolid, Yucatan, from where a branch line would continue to Cancun and Tulum.
Zárate Acevedo recalled that it is fuel for the production of assemblers in Bajío, the industry in the north of the country and even in Tenaris-Tamsa de Veracruz, demonstrating its high efficiency.
"Veracruz must change that citizen and political chip, that if this project of that magnitude is brought in, that they do not polarize it with political issues."
He added that natural gas is an efficient, economic and environmentally friendly energy source, generating a calorific level equal to or greater than LP Gas, but making it safer in its operation.
Currently, Natural Gas is used in the Northern states -Centre of the country, attracting large companies for the installation of Industrial Parks. In this sense, he mentioned that one of the main requirements that companies request to invest are basic municipal services and natural gas.
“As the President of Mexico has already endorsed it in the past months, to continue the gas pipelines in the country, there is great confidence that this important project will generate economic spillover, public works, and above all, give certainty to the CFE to continue supplying energy for industry -commerce and housing, including improving the rates earned on bi-monthly receipts.
“Veracruz is the number one state, in the production of natural gas, making it very attractive for investment; which would allow to minimize unemployment in the entity ”, he concluded.
https://www.alcalorpolitico.com/informacion/plantean-inversion-millonaria-en-ductos-de-gas-natural-en-veracruz-319550.html
What do you mean. Jackpot?