The RNS detailing the issue of the Bond also included the news of the cancellation of the existing RBL. It was a condition of the Bond Issuer that it was cancelled at the time of the first disbursement of funds and that the Westface Notes would be fully repaid. Remember this is a Senior Secured Callable Bond - all security related to the RBL had to be cancelled. It also limits any future additional loans, until the Bond is cancelled/repaid of course. So why would you pay the unsecured Westface off early, yet incur costs for the full term? Why would you agree to cancel the RBL, rather than agree amendments to reflect the new FDP and increased P2? Why would you take out 2yr Bonds with a real rate of return to initial holders of 16.6%pa that still fall short of production? It has cleared the decks in readiness for something. Bring it on Andrew! All IMO, DYOR GLA joe
Verbatum BoD comment relating to the valid 26th Round question from the floor was one thing XEL seem to have editied out from their website recording of the 2014 AGM. PR dept also never responded to my query of them as to just what was said then as was hard to hear at the time, and as of some shareholder relevance, why it was deleted. One has to hope in the interim either someone fronts up with cash so they may yet be drilled, particularly imo Bunsen with the report in that area of flow (spill) thru to Bressay. Or that XEL can get a deferral on drilling from DECC until Bentley's up and running, at which time there may be more point in putting in wells that can tap in then via subsea to the main Bentley platform(s). Whatever, they need to be and surely are doing something at the moment, within six months, hopefully earlier, we will know what.
Bentley Development Group
The next announcement about who is joining the group will be the key to unlocking the necessary funding and subsequent FDP approval IMO. With XEL cancelling the long held RBL facility last month, looks like they have been identified for some time. Wonder who it will be?
Of course not, I'm talking of cash in the company to enable them to see out the FDP process being worked on for submission and approval by DECC in the interim. The FDP will have to include the RBL or alternative, which RC seems to remain confident about, the quantum of which which can only be calculated/known once the nominated contractors can get back to XEL with the costs for the major units required, any leasing options, timing, installation/operation of same up to production. Plus hopefully a jv partner showing up in the near future, though may not be essential, but useful cash perhaps to proceed still with 26th and/or 27th Round awards drilling, reduce debt, etc.
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