Update: Full field development plan submitted
The next 9-12 months are a critical period for MOIL and could trigger a fundamental de-risking of the overall project. On 27 October, MOIL submitted the Tsimiroro development plan (TDP) for government approval. This could take as little as 30 days, although we do expect comments from the ministry. Other major milestones include delineation of the field through additional drilling (ready for a H215 CPR), better understanding of crude pricing in local power markets (acting as a substitute for diesel) and internationally, continued understanding of the ongoing pilot wells, and better connection to the field via an improved road system. These should enable a clearer view to full field development, ready for its next fund-raising (we note key shareholders have agreed to take part in the proposed future $50m). We have updated our valuation, reducing our full NAV to 29p/share for Phase 1 and 2 (52p/share including Phase 3). NAV should grow materially with the full development of the 1.7bnbbl OIP.
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