Market response to a pretty decent update is, so far, muted. Good to see that the international arbitration process has now formally commenced. Let's hope for a positive result and without too much further delay.
The rest of the stuff is more or less known already; Cairn making positive noises about Senegal, Kraken is under budget and, along with Catcher, is on schedule.The drilling news from Egdon re Keddington onshore, while not a significant asset for Cairn at 10%, might give us a few dollars more.
Nothing happening with Spanish Point. I doubt if there is any issue with the Government other than extending the licence, which shouldn't be a problem for Cairn. Cairn could progress Spanish Point If Providence could cough up some cash - which they probably would only be in a position to do if Barrroe were successfully farmed out - though the delay might not be an issue for Cairn, at least, until the Indian dispute is (successfully) cleared up.
Does anyone know what happens if First Oil cannot meet their obligations to fund 15% of the Kraken development? - Do Enquest and Cairn have to make up the shortfall? - What happens to First Oils’s investment so far in Kraken? Re Sunday Times article 10/01/16 “…..A NORTH SEA oil tycoon has been forced to put his company up for sale in the latest sign of the carnage unleashed by the 70% plunge in the price of crude. Ian Suttie, 68, owes most of his £350m fortune to First Oil, which he founded in 2001. It bills itself as the largest British-owned private oil company in the North Sea. Just before Christmas, First Oil quietly put itself up for sale after Suttie declined a request from lenders to inject cash as part of a restructuring. Its travails could cause a headache for Whitehall. The company holds a 15% stake in Kraken, a $3bn development praised by the chancellor as evidence that his tax breaks were spurring a revival of the faltering sector. “
Did a bit of reading up on Cairn, been watching it for a while, and decided to take the plunge today. Well, at least , dipped my toes in the water.
Big fly in the ointment is the Indian tax situation, But I see a lot of positives here with Kraken & Catcher on schedule to come onstream next year- we can say that now :-) and the recent test in Senegal seemed to go all right. Long way to go there yet, of course. I don't know much about the other prospects except for Spanish Point, which, by all accounts, is a decent enough prospect.
According to the website there is an updating due on the 19th. That will be something to digest, anyway. We'll see how the oil price pans out in the medium / long term. I guess it's more of a gamble than ever with oil stocks.
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