Was a very senior banker at CEO level. Then formed an oil company with two ex Shell very senior guys. I happen to still be an RKH shareholder, via both Desire and FOGL. Did very well out of Desire but not too well with FOGL and its Humpback expensive drill. As for Phipps junior he gave it all away. Phipps Senior (Colin) who I knew quite well would never have done what his son did. Re any other companies I'm still digesting info.
Hi PeteB If you review the available Edison report - where the analysts have been extremely extremely conservative. They view RKH's cash as being pretty much holding steady going forward and $48mn at the end of 2017. As PMO is taking most of the cost of the rig - the amount awarded or penalised in any arbitration is very small as to be insignificant per the Edison Analyst. Thankfully RKH haven't reported on any payment issues vis-a-vis Egypt field. I think having a national player of a state that is propping Egypt such as Kuwait / Kuwait Petroleum goes a long way in alleviating such risks. The good thing about currency fluctuation in regards to Egypt is that the costs also go down as they are in Egyptian pounds - so net net it should be even stevens In regards to market discounting oil that is not in production / near term. That is an unknown given we don't know what is going on in terms of farmout / restructuring of PMO. Moreover it doesn't make logical sense that given high cash balance, strong production covering G&A, rising oil price (double since low of $28 in January when RKH was 28p and now $52 and RKH at 27.5p) Market is broken and not working - I genuinely believe that this is manipulation in regards to UBS and others. If we get the message out and enough small buyers join in - it can definitely make a difference. I am going to reactivate my III and get the message out. RKH is grossly and wrongly undervalued given all the positives over the last 10 months..... You should buy more :)
To understand then you are an oil expert /petroleum engineering aspects plus an international banker who is now in Bahrain as the owner/large shareholder of a company. Why may I ask do you only post on RKH board? Of course it is very welcome - but I am just curious as to your interest in this company? Which others do you see as value?
Lot of Saudi cash already used to buy into several US East Coast refineries. They will all likely take less shale oil but more Saudi crude. Why get into messy shale deals if you can to a certain extent control it. ??
Yes agree emtirely, EGPC is always difficult to deal with as they may pay for crude in Egyptian Pounds so there's a big forex risk. Also payments are frequently delayed while the Govt waits for cash injections from Saudi and/or USA. Meanwhile oil payments are used to pay the army and civil service. On the other hand oil recovery there can be as cheap as $8-10 per bbl so its a balancing act for any oil co there.
I was a very senior international banker inc time with the Saudi Arabian Monitary Agency Riyadh and still have a lot banking friends so can usually see which way a finance deal is going. Of course I can't guarantee a certain ending but merely point out what looks to be on the cards. But of course any almost done deal can be screwed up at any time often by stupid lawyers.
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