Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I agree, this is a risk factor that has potentially a great impact if no deal is struck between both sides.
I expect common sense to prevail though and that we'll see drilling activity in the september - december timeframe.
I won't add untill this is cleared up and an agreement is made.
news out
http://finance.yahoo.com/news/terra-nova-confirms-status-operator-121500413.html
SINGAPORE, SINGAPORE / ACCESSWIRE / May 26, 2015 / Terra Nova Energy Ltd. ("Terra Nova") (TSX-V: TGC; OTCQX: TNVMF) wishes to confirm that, notwithstanding the termination of the Farm-In Agreement, it remains operator of the joint venture to explore and develop Petroleum Exploration Licenses ("PEL") 112 and 444. By way of a Deed of Assignment and Assumption dated August 25, 2013, in respect of PEL 112, and a Deed of Assignment and Assumption dated February 15, 2014, in respect of PEL 444, (the "Deeds of Assignment") Holloman Energy Corporation ("Holloman") and the minority farmors appointed Terra Nova as operator under the Joint Operating Agreement.
Under the Deeds of Assignment and Assumption, Holloman and the minority farmors also transferred Terra Nova a 25.8333% interest in each of PEL 112 and 444. Subsequently, Terra Nova sold a 5.1666% interest to Perseville Investing Inc. ("Perseville"). As a result, Terra Nova now holds a 20.66% interest in each of PEL 112 and 444.
news out
http://finance.yahoo.com/news/terra-nova-confirms-status-operator-121500413.html
SINGAPORE, SINGAPORE / ACCESSWIRE / May 26, 2015 / Terra Nova Energy Ltd. ("Terra Nova") (TSX-V: TGC; OTCQX: TNVMF) wishes to confirm that, notwithstanding the termination of the Farm-In Agreement, it remains operator of the joint venture to explore and develop Petroleum Exploration Licenses ("PEL") 112 and 444. By way of a Deed of Assignment and Assumption dated August 25, 2013, in respect of PEL 112, and a Deed of Assignment and Assumption dated February 15, 2014, in respect of PEL 444, (the "Deeds of Assignment") Holloman Energy Corporation ("Holloman") and the minority farmors appointed Terra Nova as operator under the Joint Operating Agreement.
Under the Deeds of Assignment and Assumption, Holloman and the minority farmors also transferred Terra Nova a 25.8333% interest in each of PEL 112 and 444. Subsequently, Terra Nova sold a 5.1666% interest to Perseville Investing Inc. ("Perseville"). As a result, Terra Nova now holds a 20.66% interest in each of PEL 112 and 444.
A great read, thank you for taking the time to put this together.
You mention natural gas possibilities here, do you have any knowledge if the seismic that was done reveals such discoveries on both PEL's ? I wish both companies revealed more info on the seismic so that we can stop guessing.
With your knowledge of HENC management how do you think things might evolve regarding the company's future:
- will the company sell out after a (successfull) drilling campaign this year ?
- or will they keep doing seismic on the remaining acreage before selling out (knowing this could take years)
- is it the plan to build a large energy company ?
With your experience and background: if the 100 million barrels (reserves) are proven after the upcoming drilling campaign would the share price trade at full valuation or with a discount ? What might we expect here ?
It continues to amaze me that it has taken this long to get where we are today with such enormous potential. I hope things will move much faster now and that we get informed regularly when things progress. TGC didn't excell at those points.
Everyone would love to see some drilling in july but I'm not counting on it, a lot needs to be settled first:
- HENC & TGC differences settled
- who acts as operator ?
- HENC financing: when/how ?
- driller selected
- how long are the permits that TGC requested valid ? is a reapply required ?
- all prep work for drilling: roads etc, how much is truly already done ?
etc...
I agree, get talking HENC & TGC - strike a deal so we can get drilling !
I assume we'll see an official answer from TGC next week, this is all ideal lawyer material...
They have to reach an agreement. TGC announced in their PR they wanted to go ahead and drill 2 holes, next HENC announced they is looking to hire a driller.
It will look mighty silly if both act as operator and have drillers on site, each getting in the way of the other party.
Common sense has to prevail, so talk to each other - strike a deal and get drilling.
Pacific Hunt is indeed another Civelli owned company. If a driller is chosen then I prefer it to be done by HENC and that they will not chose Pacific Hunt.
If I remember correctly the dry hole Wolfman 1 was done by Pacific Hunt and that drill took a lot longer then normal so that's not a great reference.
They will have to talk to one another to get out of this mess since that clawback is ideal material for a bunch of lawyers. I want a drilling campaign, not a court battle.
Yes, strange how events how unfolded, nobody saw this coming.
I hope both sides end up talking to one another soon, make an agreement on how to proceed so we can get drilling as soon as possible. It only seems to get more complicated every day now...
Good to see you posting here again though, always appreciate your thoughts.
I agree with your thinking, the latest developments seem to favour HENC more. I want to see this all cleared up first before buying more. If the HENC financing is beneficial to shareholders (debt instead of dilution ?) then HENC is the obvious choice to add.
There is not 1 lease owner but 3, this seems to be a misconception by various people. There have always been multiple owners (Chelsea/Sakhai in the past).
Nobody in their right mind who invested in TGC hoped that the company would get that 50% ownership on both PEL's. My hope was 35% untill they pulled this stunt.
Latest developments make it sound like lawyers are inevitable unless a deal is struck between both parties. There is a lot of bad blood between both sides now and each new development seems to make it worse. Lawyers will delay drilling even further unless rationality kicks in on both sides.
I don't think drilling is going to happen untill both sides reach an agreement/settlement. Everyone needs to be on the same page before going forward.
Nevertheless I'll keep following developments (positive news today for HENC if it's going to happen) and will decide where to add more when things become more clear (a settlement).
I would like to see those documents as well. Both parties give different numbers out so someone can't read very well or there are different versions of the same document out.
same here, interesting development and rather surprising. Fun stuff for lawyers but not for investors.
Like I said, all data is available for all owners, be it historic/seismic/analytic.
The point is who is operator and dictate what is going to happen, both parties claim something else: TGC says 51% has control and HENC says 75%. Since I assume everyone on both company boards can read and know their numbers then the only logical explanation here is that there are multiple versions of that document.
I would like to see those, and I'm sure other people here as well. It looks like lawyers could have fun here...
We'll see more news in the coming weeks when the smoke has cleared and both parties have come to an understanding.
Both parties want to drill, they indicated that in their pr's. Sadly both of them think they have also operator status, this needs to be cleared up first without much legal hassle.
In the end all parties will have to talk to one another since all are owners and share in the costs.
I expect to see rationality to return next month. Any Drilling is now probably in the september -december timeframe. January 2016 is now the deadline.
Don't think that's possible. Work Interest was earned after hitting milestones set in the farmin agreement. Those milestones were met and ownership was transferred and confirmed by Australian authorities, you can all look this up in PR's from years ago. In the filings there was never a question of reversing since money was spent and as a consequence was rewarded with work interest.
all this seems to be part of trying to getting a better deal, who knows how this will play out, this is more and more starting to resemble a soap opera...
all parties have access to all data, that would only be logical since all parties are owners. They key here is who has operator status, the operator proposes on how to go forward.
Josey, I think you're a bit confused: There are now 3 owners of both PEL's: Henc with 49%, TGC with 20% and Perseville with 31%
There are no other properties. Seismic was done on only a small portion of both PEL's (6%). This does not mean that TGC/Perseville only has 20% of that 6% if that is what your're alluding to...
Every future action/drilling on both PEL's has 3 partners so they all have to agree on an action plan. They need to get back to the discussion table and agree on how to go foward, the sooner the better to get out this mess...
TGC refers to the Joint Operating Agreement in their last PR, not the farmin:
The parties will be subject to the Joint Operating Agreement whereby ownership representing over 51% of the PELs will vote on an operator. The operator will have the right to propose an exploration budget after which point each party must provide capital to fund its working interest.
They wouldn't have made this move without lawyers examining all signed agreements. This is a slick and greedy bunch...
dilution doesn't have to be the answer. TGC sold 5% interest for 3 million $. I'm sure they can find a buyer for 10 % work interest that pays them 5 million.
Strangely enough, this could work out very well for HENC, it could be that they end up better off then before...
That doesn't seem to be correct, the operator is still TGC and will remain TGC since HENC doesn't have the voting power to change that:
"The parties will be subject to the Joint Operating Agreement whereby ownership representing over 51% of the PELs will vote on an operator. The operator will have the right to propose an exploration budget after which point each party must provide capital to fund its working interest."
So any announcment that HENC is looking for drillers seems rather strange and unreal to me.
This all needs to sink in first, the shouting from both parties must end. Then rationality kicks in and eventually all parties must sit around the table and get agreements on how to proceed. Everyone wants to make money so eventually greed will take over again and a compromise will be reached.
I just hope it's soon because these are all delays again...
The potential profit should indeed be quite big. They believe so much in it that the company owners have bought a direct stake in the PEL's (via Perseville). Who would do that if they didn't thought it was worth a lot of money.
This is a way to pressure for a better deal (think greed). Eventually a compromise will be reached when all the shouting has ended and everyone can think clear again.
well well...this is kind of a coup that TGC is staging. With TGC and Perseville having control via their joined 51% ownership they can now dictate on how to proceed. This now looks to be a way to press for a new and better deal.
Side effect is that this will result in further delays unless they can strike a new deal quickly. I hope this doesn't get delayed untill january 2016.
It goes to show again when money is concerned, things can get ugly...
some are still in shock from this coup. This needs to sink in first for a lot of people.
Henc needs to review all options first before proceeding. This will all result in further delays of the drilling program. Looks like january 2016 is now the target date unless a deal is sealed quickly.
josey, TGC owns 20% of both PEL's.
This is a very surprising move. TGC and Perseville have control now via their joined 51% ownership in the joint operating agreement so it will be interesting to see what kind of agreement now comes out of this.
If they push this through then HENC wil need to come up with 5 million $, that will result in 25 million extra shares at 0,20 cents.
Or as an alternative they sell 10% ownership to another party instead of diluting.
Either way I hope a proper deal comes out of this since I have money in both.
News coming:
VANCOUVER, May 19, 2015 /CNW/ - The following issues have been halted by IIROC:
Company: Terra Nova Energy Ltd.
TSX-Venture Symbol: TGC
Reason: At the Request of the Company Pending News
Halt Time (ET): 9:10 AM
IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
Agreed, that is nice...
It doesn't change my view on the company or the potential here when someone's patience is coming to an end or sees more potential elsewhere.
To each their own.
Some are simply moving from tgc to henc. I'm not going anywhere, i'll wait and see what happens...
Nothing new in the 10Q so let's hope for some news next week
10Q was the previous years out on 14/15 may so it looks like it's for tomorrow.
Annual shareholders meeting is on july 15th in Vancouver.
Does anyone from the board happen to live nearby or is anyone able to go ?
I hope we don't go without news untill June. Their aim is to drill at the end of Q2 so that could literally mean starting at the last days of june. If that is so then May might pass without any PR's...I hope I'm wrong....
Also, I've just heard that the company's PR/communications person (Lydia Danis) is now no longer employed at TGC. Don't know if this is a factor as well.
Good questions, hope someone knows the answer:
-> "How long will it take the FDA to get back after the B meeting in June or July? September or October or? Then what? "
-> "We know from Leo that the P3 meeting for B-ABSSSI will take place in late June, but does anyone have a general sense of when the FDA might give closure to that meeting so that the company has the approval and guidelines to start the Phase III trial? In other words, what's the typical time lag between and FDA meeting and their official conclusive feedback from that meeting? "
Tomorrow is a holiday in most countries so I doubt we'll see something then.
So hopefully the fun starts next week...